Edleun's Second Quarter 2012 Results Highlighted by Increased Growth, Significant Same Centre Performance and Completion of First New Development and Redevelopments
CALGARY, Aug. 16, 2012 /CNW/ - Edleun Group, Inc. ("Edleun" or the "Company") (TSXV: EDU), the leading provider of quality early childhood education and care in Canada, announced today its operational and financial results for the three and six months ended June 30, 2012. During the quarter, the Company continued to grow its portfolio through strategic acquisitions and development to 45 centres providing 4,368 licensed child care spaces at June 30, 2012.
Child care centre operational highlights during the second quarter of 2012 include:
-
In June, completion of the redevelopment of the Lawrence Learning Centre
in Kelowna with 140 licensed child care spaces with operations
commencing in July;
-
At the end of the second quarter, completion of the development of the
Chestermere Learning Centre, the first new greenfield development with
operations commencing in July providing 247 licensed child spaces to
this growing suburban Calgary community;
-
At the end of June, the Company acquired an operating child care centre
in Airdrie, Alberta for $75,000. This facility is situated in leased
premises under long term lease, adds 51 licensed child care spaces to
the Company's portfolio and will contribute to results beginning in the
third quarter 2012;
-
At the end of June, the Company acquired established Montessori child
care centres in each of Ajax and Markham, Ontario for $1.1 million.
These centres are situated in leased premises under long term leases,
add 194 licensed child care spaces to the Company's portfolio and will
contribute to results beginning in the third quarter of 2012; and
- In April, completion of the redevelopment of the Highland Park Learning Centre in Calgary and commencement of operations. This child care centre adds 75 licensed child care spaces to the Company's portfolio.
Financial highlights for the three months ended June 30, 2012:
-
Reported a 127% increase in revenue compared to the same period in 2011
(June 30, 2011 - $3.96 million versus June 30, 2012 - $9.0 million) due
to the increased number of child care spaces and higher occupancy
rates;
-
Increased same-centre occupancy levels by five percentage points from
84.6% in the second quarter of 2011 to 89.6% in the second quarter of
2012;
-
Increased same centre revenue by 11% and same centre margin (in dollars)
by 27% compared to the second quarter period a year earlier;
-
More than doubled the number of licensed child care spaces over the same
period in 2011 from 2,038 to 4,368, with an additional 806 under
development and coming on line beginning in the third quarter of 2012;
and
- Closed a private placement of $5 million five year 6.75% debentures convertible into common shares at $1.10 per share.
"In the second quarter, we continued to demonstrate the merit and success of Edleun's business model with significant increases in same centre occupancy, revenue and gross margin," said Ms. Mary Ann Curran, CEO of Edleun. "We have successfully acquired centres and improved their performance following the introduction of programming, services and physical renovations. The new "state of the art" Chestermere and McKenzie Towne Learning Centres each comprise approximately 247 licensed child care spaces and provide a significant source of high quality licensed child care spaces to these underserved communities. We are pleased with the early reception that these centres have received in these communities and the substantial pre-enrollment by parents for the upcoming school year."
"In addition to these new developments - which are approximately triple the size and impact of an acquired centre - we completed the redevelopment of two child care centres, one in Calgary and one in Kelowna, British Columbia," said Dale Kearns, President and CFO. "The combination of the development, redevelopment and recent acquisitions of centres will add approximately 900 or 22% new licensed child care centres; which begin to impact our operational and financial results in the third quarter 2012. We continue to pursue an active pipeline of acquisitions, co-location centres, and several sites in Alberta for potential development. Our third new development property, located in the Brookfield Properties master-planned community of Seton in South Calgary is in the development permit process and is anticipated to add a further 400 licensed child care spaces to this rapidly growing area of the city on completion of two phases of development. The Company secured $5 million of highly accretive debt capital to enable the funding of the expansion and execution of our growth plans. The Company's solid financial position and low level of financial leverage enabled us to secure this financing on attractive terms. We are well positioned to execute on our near term plans without dilution to our shareholders."
Financial Review
($000's except where otherwise noted and per share amounts)
Three and six months ended June 30, 2012
For the three months ended June 30, 2012, the Company reported revenue of $9.0 million, an increase of 127% compared with $3.96 million of revenue in the same period of the prior year. This is primarily due to a twofold increase in the number of centres and spaces (23 centres and 2,330 licensed spaces added), combined with occupancy improvements and modest rate increases. Same centre revenue increased 11% in the three month period. For the six months ended June 30, 2012 the Company reported revenue of $17.01 million compared to revenue in the same period in 2011of $7.46 million, an increase of 128% while same centre revenues increased 13%.
Portfolio centre margin (see Non-IFRS Performance Measures below for centre margin definition) for the three month period ended June 30, 2012 was $1.61 million, 125% higher than the same period of 2011. As a percentage of revenue, centre margin was 32.2%, down marginally from 32.5% in the second quarter of 2011. For the six month period ended June 30, 2012 centre margin was $2.95 million or 119% higher than the same period of 2011, with a decrease of 1.3 percentage points to 31.9% as a percentage of revenue. The decrease in margin as a percentage of revenue for the six month period was primarily as a result of smaller centres in British Columbia that carry higher labour costs and a low occupancy centre in Ontario acquired through a receivership proceeding. Overall occupancy excluding this centre was 87.1%, an increase of 0.8 percentage points from the preceding quarter. Same centre margin (in dollars) for the three and six months ended June 30, 2012 increased by 27% and 23%, respectively, compared to the three and six months ended June 30, 2011.
| $000's (except per share amounts) |
Q2 2012 |
Q1 2012 |
Q4 2011 |
Q3 2011 |
Q2 2011 |
Q1 2011 |
Q4 2010 |
Q3 2010 |
Q2 2010 (47-day period) |
||||||||||
| Revenue | $ | 8,984 | $ | 8,030 | $ | 5,840 | $ | 4,877 | $ | 3,958 | $ | 3,502 | $ | 3,124 | $ | 2,270 | $ | 867 | |
| Centre margin | 2,893 | 2,537 | 1,841 | 1,406 | 1,286 | 1,194 | 1,005 | 616 | 273 | ||||||||||
| Centre margin % | 32 | 31 | 31 | 29 | 32 | 34 | 32 | 27 | 31 | ||||||||||
| Net loss(1) | (355) | (731) | (811) | (957) | (541) | (249) | (678) | (896) | (1,724) | ||||||||||
| Adjusted EBITDA | 800 | 735 | 192 | (294) | 137 | 144 | (59) | (392) | (769) | ||||||||||
| FFO | 563 | 604 | 119 | (314) | (22) | 71 | (193) | (564) | (1,445) | ||||||||||
| AFFO | 750 | 789 | 211 | (329) | 100 | 136 | (61) | (432) | (206) | ||||||||||
| Per share amounts: | |||||||||||||||||||
| Net loss | (0.003) | (0.006) | (0.007) | (0.008) | (0.006) | (0.003) | (0.007) | (0.009) | (0.033) | ||||||||||
| FFO | 0.005 | 0.005 | 0.001 | (0.003) | (0.002) | 0.001 | (0.002) | (0.006) | (0.028) | ||||||||||
| AFFO | 0.006 | 0.007 | 0.002 | (0.003) | 0.001 | 0.001 | (0.008) | (0.005) | (0.004) | ||||||||||
| Cash | 3,961 | 3,803 | 1,911 | 18,026 | 24,270 | 7,035 | 8,662 | 12,856 | 22,769 | ||||||||||
| Available under credit facility | 18,394 | 18,626 | 22,100 | 24,800 | 24,800 | 24,800 | - | - | - | ||||||||||
| # of centres in operation(2) | 45 | 40 | 38 | 29 | 22 | 20 | 20 | 17 | 11 | ||||||||||
| # of centres under development or redevelopment(2) | 4 | 6 | 5 | 3 | 2 | 1 | - | - | - | ||||||||||
| Total # of centres | 49 | 46 | 43 | 32 | 24 | 21 | 20 | 17 | 11 | ||||||||||
| Licensed spaces in operation(2) | 4,368 | 3,908 | 3,660 | 2,539 | 2,038 | 1,833 | 1,815 | 1,527 | 1,061 | ||||||||||
| Spaces under development or redevelopment(2) | 806 | 1,031 | 803 | 569 | 494 | 247 | - | - | - | ||||||||||
| Total spaces | 5,174 | 4,939 | 4,463 | 3,108 | 2,532 | 2,080 | 1,815 | 1,527 | 1,061 | ||||||||||
Notes:
- 2010 amounts have been restated from Canadian GAAP to IFRS.
- As at the date of this report, the Company has 46 centres in operation representing 4,615 licensed spaces and three centres under development or redevelopment representing 559 licensed spaces.
Adjusted EBITDA was $800 for the second quarter 2012 compared to $137 for the same period a year earlier and $735 on sequential basis from the first quarter. (See Non-IFRS Performance Measures below for Adjusted EBITDA definition). On a sequential quarter basis, revenue increased 12% as a result of two centre acquisitions, fee increases and occupancy increases. Four centre acquisitions in the second quarter closed at the end of the fiscal period resulting in no revenue contribution for these until the third quarter 2012. Offsetting Adjusted EBITDA growth was higher general and administrative expense, due principally to the investment in the review and selection of operational and financial information systems to support the Company in its growth objectives and a higher amount of professional fees incurred to prepare the Company's first Annual Information Form filing together with the creation of a deferred share unit plan. As these expenses are either one-time, or above what would be typically incurred, it is anticipated that they should decline or be eliminated hereon.
Funds From Operations ("FFO") (see Non-IFRS Performance Measures below for FFO and Adjusted Funds From Operations ("AFFO") definitions) for the second quarter of 2012 was $563 compared to $(22) for the second quarter of 2011, due primarily to portfolio growth, offset by higher finance and stock based compensation expense. FFO per share for the second quarter of 2012 was $0.005, consistent with the first quarter of 2012 and compared to $(0.002) for the second quarter of 2011.
AFFO for the second quarter of 2012 was $750 compared to $789 in the first quarter of 2012 and $100 in the second quarter of 2011. Offsetting the modest increase in Adjusted EBITDA on a sequential basis was a higher level of maintenance capital expenditures. AFFO per share for the second quarter of 2012 was $0.006 compared to $0.007 for the first quarter of 2012 and $0.001 for the second quarter of 2011.
| Adjusted EBITDA, FFO & AFFO | Q2 2012 | Q1 2012 | Q4 2011 | Q3 2011 | Q2 2011 | |||||
| Adjusted EBITDA | $ | 800 | $ | 735 | $ | 192 | $ | (294) | $ | 137 |
| Net loss for the period | $ | (355) | $ | (731) | $ | (810) | $ | (957) | $ | (541) |
| Depreciation and certain other non cash items | 478 | 459 | 325 | 313 | 238 | |||||
| Acquisition costs | 440 | 876 | 605 | 330 | 281 | |||||
| FFO | $ | 563 | $ | 604 | $ | 119 | $ | (314) | $ | (22) |
| Stock based compensation | 237 | 196 | 104 | 69 | 166 | |||||
| Maintenance capital expenditure | (50) | (11) | (12) | (84) | (44) | |||||
| AFFO | $ | 750 | $ | 789 | $ | 211 | $ | (329) | $ | 100 |
Net loss decreased for the three month period ended June 30, 2012 from $541 in 2011 to $355 in 2012. For the six month period ended June 30, 2012 net loss was $1,086 compared with $790 for the six months ended June 30, 2011. Included in net loss are acquisition costs that are expensed as incurred which for the three and six months ended June 30, 2012 were $440 and $1,316, respectively, compared with $281 and $396, respectively, in the same periods of 2011. During the six months ended June 30, 2012 the Company incurred $478 of cost associated with the restructuring of its internal acquisitions group. Under IFRS, acquisition costs are not deferred or capitalized and must be expensed in the period in which they are incurred.
The one-time, and above typical level of general and administration expense noted regarding the second quarter Adjusted EBIDTA, also impacted the Company's net income, FFO and AFFO in the quarter. The Company's investment in its corporate and operational infrastructure is anticipated to benefit the Company going forward and enable lower general and administration expenses and increased profitability in future quarters.
The Company continues to be in a solid financial position. At June 30, 2012, the Company had cash equivalents and available credit totalling $22.3 million. Capital allocated to the completion of development projects is $4.0 million. As such, the Company has sufficient capacity to fund the remaining construction costs on its development projects and in-place non-dilutive capital to fund its acquisition pipeline for the balance of the year.
Outlook
According to various government sources, there remains a significant shortage of child care availability in Canada. The Company believes that the opportunities to acquire, develop and co-locate child care centres in the near and medium term are abundant. The early signs of success in its first two newly developed centres at Chestermere and McKenzie Towne have bolstered the confidence of the Company in advancing its pipeline of new developments. The Company has access to sufficient capital resources to undertake these activities in subsequent quarters of 2012.
Operationally in the third quarter, the Company expects to see a more pronounced impact than in prior years from summer seasonality as a result of its initial acquisitions of Montessori schools. The Company utilizes these periods of lower occupancy to address maintenance activities in order to have a minimal impact on the centres during peak operations.
The third quarter of 2012 will be transitional, if not transformational, for the Company in its evolution and strategic development. The Company announced significant enhancements to the management team with the hiring of Ms. Mary Ann Curran as CEO and Mr. Dean Michaels as Senior Vice President of Acquisitions and Development. The senior management team is well positioned to continue and expand its growth opportunities while providing the leadership and systems to enable this growth to be achieved effectively for its customers and profitably for its shareholders.
The addition of the 900 licensed child spaces from the newly opened Chestermere Learning Centre, the scheduled opening of the McKenzie Towne Early Learning Centre and other recent redevelopments and acquisitions during the third quarter, are expected to deliver increased profitability beginning in the fourth quarter of 2012 and continuing in 2013.
Non IFRS Performance Measures
The Company uses "centre margin" as a performance indicator of child care centre operating results. Centre margin does not have a standardized meaning prescribed by IFRS and therefore may not be comparable with the calculation of similar measures by other entities. Centre margin is determined by deducting centre expenses from revenue. Centre expenses exclude net rents due under leases for leasehold properties and mortgage interest, if any, on those properties owned by the Company.
Adjusted EBITDA is calculated by deducting from centre margin general and administrative expenses, operating lease expense and taxes other than income taxes. FFO is calculated by adjusting the net loss to add back acquisition costs expensed as incurred, depreciation and certain other non cash items.
The Company's business, which is oriented toward the acquisition and development of child care centres and includes the ownership of a significant portfolio of real estate, reports net income that includes deduction for acquisition costs and non-cash charges such as depreciation and stock based compensation expense. Reflecting these factors and consistent with the practice of the Canadian real estate industry, the Company focuses on FFO and AFFO as key financial metrics to measure and compare operating performance. FFO and AFFO do not have standardized meanings prescribed by IFRS. The Company's method of calculating FFO and AFFO may be different from other entities and, accordingly, may not be comparable to such other entities. FFO and AFFO: (i) do not represent cash flow from operating activities as defined by IFRS; (ii) are not indicative of cash available to fund all liquidity requirements, including capital for growth; and (iii) are not to be considered as alternatives to IFRS based net income for the purpose of evaluating operating performance.
Net income / loss is impacted by, among other items, accounting standards that require child care centre acquisition and transaction costs to be expensed as incurred. As the Company executes its consolidation and development strategy in the Canadian child care market, it will routinely incur such expenses which will negatively impact the Company's reported net income / loss, but not FFO and AFFO.
Conference Call
Edleun Group Inc. will hold a conference call Friday, August 17, 2012 at 10:00 am ET (8:00 am MT), to discuss the results of the second quarter of fiscal 2012. The Company's full Financial Statements and Management's Discussion and Analysis will be available on SEDAR at www.sedar.com.
To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191. Please connect approximately 10 minutes prior to the beginning of the call. The conference call will be archived for replay until Friday, August 24, 2012, at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 20949906 followed by the number sign.
A live audio webcast of the conference call will be available at: http://www.newswire.ca/en/webcast/detail/1020089/1102805. Please connect at least 10 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above website for 90 days.
About Edleun Group Inc.
Edleun is the leading provider of high-quality, community-based Early Learning & Care child care centres in Canada offering early education and child care services to children ages six weeks to 13 years. Edleun is committed to preparing children for the next step in their education and life, offering families and employers access to and choice of quality early childhood education programs, as well as enhanced opportunities and career advancement for Early Childhood Educators.
Publicly traded on the Toronto Stock Exchange (TSX-V:EDU), the Company's objectives include the acquisition and subsequent improvement of existing child care centres and developing new state-of-the-art Early Learning and Care Centres in underserved Canadian communities.
The Company currently has a total of 46 operating centres in its portfolio and three in various stages of development or redevelopment representing approximately 5,200 licensed child care spaces.
Forward-Looking Statements
Certain statements in this Release which are not historical facts may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Any statements related to Edleun's projected revenues, earnings, growth rates, revenue mix, staffing and resources, and product plans are forward looking statements as are any statements relating to future events, conditions or circumstances. The use of terms such as "believes", "anticipated", "expected", "projected", "targeting", "estimate", "intend" and similar terms are intended to assist in identification of these forward-looking statements. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of Edleun to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions. Except as required by law, Edleun does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.
The Company undertakes no obligation, except as required by law, to update publicly or otherwise any forward-looking information, whether as a result of new information, future events or otherwise, or the above list of factors affecting this information. Many factors could cause the actual results of Edleun to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Edleun Group, Inc.
Condensed Consolidated Statements of Financial Position
(Unaudited)
| (CDN $000's) | June 30, 2012 | December 31, 2011 | ||||
| Assets | ||||||
| Non-current assets | ||||||
| Property and equipment | $ | 42,861 | $ | 33,434 | ||
| Goodwill | 25,985 | 22,940 | ||||
| Definite life intangible assets | 725 | 340 | ||||
| 69,571 | 56,714 | |||||
| Current assets | ||||||
| Cash and cash equivalents | 3,961 | 1,911 | ||||
| Accounts receivable | 3,121 | 1,589 | ||||
| Prepaid and other expenses | 1,753 | 3,606 | ||||
| Short term investments | 39 | 39 | ||||
| 8,874 | 7,145 | |||||
| Total Assets | $ | 78,445 | $ | 63,859 | ||
| Liabilities | ||||||
| Non-current liabilities | ||||||
| Long term debt and financing leases | $ | 6,745 | $ | 2,151 | ||
| Deferred tax liability | 42 | 42 | ||||
| Convertible debentures - liability component | 4,264 | - | ||||
| 11,051 | 2,193 | |||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | 5,333 | 2,877 | ||||
| Deferred revenue | 992 | 399 | ||||
| Current portion of debt and financing leases | 463 | 109 | ||||
| 6,788 | 3,385 | |||||
| Total Liabilities | 17,839 | 5,578 | ||||
| Shareholders' Equity | ||||||
| Share capital | 65,987 | 62,931 | ||||
| Convertible debentures - equity component | 428 | - | ||||
| Equity settled share based compensation | 1,257 | 1,330 | ||||
| Accumulated deficit | (7,066) | (5,980) | ||||
| Total Shareholders' Equity | 60,606 | 58,281 | ||||
| Total Liabilities and Shareholders' Equity | $ | 78,445 | $ | 63,859 | ||
Edleun Group, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
Three and six months ended June 30, 2012 and 2011
(Unaudited)
| Three months ended June 30, | Six months ended June 30, | ||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||
| Revenue | $ | 8,984 | $ | 3,958 | $ | 17,014 | $ | 7,460 | |||
| Centre expenses | |||||||||||
| Salaries, wages and benefits | 4,358 | 1,946 | 8,376 | 3,655 | |||||||
| Other operating expenses | 1,733 | 726 | 3,208 | 1,325 | |||||||
| Centre margin | 2,893 | 1,286 | 5,430 | 2,480 | |||||||
| Lease | 539 | 160 | 983 | 290 | |||||||
| Finance | 82 | - | 128 | - | |||||||
| General and administrative | 1,495 | 1,042 | 2,839 | 1,975 | |||||||
| Taxes, other than income taxes | 59 | - | 73 | - | |||||||
| Acquisition costs | 440 | 281 | 1,316 | 396 | |||||||
| Stock-based compensation | 237 | 166 | 433 | 262 | |||||||
| Depreciation and amortization | 411 | 237 | 803 | 443 | |||||||
| 3,263 | 1,886 | 6,575 | 3,366 | ||||||||
| Loss before other income | (370) | (600) | (1,145) | (886) | |||||||
| Other income | 15 | 59 | 59 | 96 | |||||||
| Net Loss and Total Comprehensive Loss | $ | (355) | $ | (541) | $ | (1,086) | $ | (790) | |||
| Net loss per share | |||||||||||
| Basic and diluted | $ | (0.003) | $ | (0.006) | $ | (0.009) | $ | (0.008) | |||
| Weighted average number of common shares | |||||||||||
| Basic and diluted | 121,050,016 | 96,296,823 | 117,894,089 | 99,285,161 | |||||||
Edleun Group, Inc.
Condensed Consolidated Statements of Changes in Shareholders' Equity
Three and six months ended June 30, 2012 and 2011
(Unaudited)
|
(CDN 000's) |
Share Capital |
Convertible Debentures - Equity Component |
Equity Settled Share Based Compensation |
Accumulated Deficit |
Shareholders' Equity |
|||||||||||||
| Balance at January 1, 2011 | $ | 38,463 | $ | - | $ | 1,089 | $ | (3,424) | $ | 36,128 | ||||||||
| Share issuance | 25,003 | - | - | - | 25,003 | |||||||||||||
| Share issuance costs | (1,483) | - | - | - | (1,483) | |||||||||||||
| Stock-based compensation | - | - | 262 | - | 262 | |||||||||||||
| Warrants exercised | 232 | - | (36) | - | 196 | |||||||||||||
| Stock options exercised | 382 | - | (75) | - | 307 | |||||||||||||
| Net loss and comprehensive loss | - | - | - | (790) | (790) | |||||||||||||
| Balance at June 30, 2011 | $ | 62,597 | $ | - | $ | 1,240 | $ | (4,214) | $ | 59,623 | ||||||||
| Balance at January 1, 2012 | $ | 62,931 | $ | - | $ | 1,330 | $ | (5,980) | $ | 58,281 | ||||||||
| Stock-based compensation | - | - | 433 | - | 433 | |||||||||||||
| Warrants exercised | 2,662 | - | (412) | - | 2,250 | |||||||||||||
| Options exercised | 394 | - | (94) | - | 300 | |||||||||||||
| Issue of convertible debentures | - | 428 | - | - | 428 | |||||||||||||
| Net loss and comprehensive loss | - | - | - | (1,086) | (1,086) | |||||||||||||
| Balance at June 30, 2012 | $ | 65,987 | $ | 428 | $ | 1,257 | $ | (7,066) | $ | 60,606 | ||||||||
Edleun Group, Inc.
Condensed Consolidated Statements of Cash Flow
Three and six months ended June 30, 2012 and 2011
(Unaudited)
| Three months ended June 30, | Six months ended June 30, | |||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||
| Cash provided by (used in): | ||||||||||
| Operating Activities: | ||||||||||
| Net loss | $ | (355) | $ | (541) | $ | (1,086) | $ | (790) | ||
| Items not affecting cash: | ||||||||||
| Depreciation and amortization | 445 | 237 | 837 | 443 | ||||||
| Amortization of deferred financing costs | 15 | 16 | 30 | 29 | ||||||
| Stock-based compensation | 237 | 166 | 433 | 262 | ||||||
| Change in non-cash working capital | (45) | (1,284) | 709 | (2,081) | ||||||
| 297 | (1,406) | 923 | 2,137 | |||||||
| Investing Activities | ||||||||||
| Acquisitions | (948) | (4,888) | (2,173) | (4,888) | ||||||
| Property and equipment | (4,315) | (395) | (7,948) | (1,506) | ||||||
| Restricted cash | - | 116 | - | 116 | ||||||
| (5,263) | (5,167) | (10,121) | (6,278) | |||||||
| Financing Activities | ||||||||||
| Proceeds of share issue | - | 25,003 | - | 25,003 | ||||||
| Share issuance costs | - | (1,483) | - | (1,483) | ||||||
| Exercise of warrants | - | - | 2,250 | 196 | ||||||
| Exercise of options | 300 | 288 | 300 | 307 | ||||||
| Loan proceeds | 299 | - | 4,219 | - | ||||||
| Loan repayments | (67) | - | (113) | - | ||||||
| Proceeds of convertible debentures issue | 5,000 | - | 5,000 | - | ||||||
| Convertible debenture issuance costs | (344) | - | (344) | - | ||||||
| Finance lease repayments | (64) | - | (64) | - | ||||||
| 5,124 | 23,808 | 11,248 | 24,023 | |||||||
| Change in Cash and Cash Equivalents | 158 | 17,235 | 2,050 | 15,608 | ||||||
| Cash and cash equivalents, beginning of period | 3,803 | 7,035 | 1,911 | 8,662 | ||||||
| Cash and cash equivalents, end of period | $ | 3,961 | $ | 24,270 | $ | 3,961 | $ | 24,270 | ||
| Cash and cash equivalents comprised of: | ||||||||||
| Cash | $ | 3,961 | $ | 24,167 | ||||||
| Cash equivalents | - | 103 | ||||||||
| $ | 3,961 | $ | 24,270 | |||||||
SOURCE: Edleun Group, Inc.
For further information:please contact Dale Kearns, President of Edleun Group, Inc. at (403) 705-0362 ext. 406, or Nick Hurst of the Equicom Group, Inc. at (403) 218-2835.