KOS (TSX)
QUEBEC CITY, May 6 /CNW Telbec/ - Cossette Inc. ("Cossette" or the
"Company") recorded gross income of $55.1 million for the second quarter of
fiscal 2009, ended March 31, 2009, compared to $60.1 million in the
corresponding quarter of the previous fiscal year. Earnings Before Interest,
Taxes, Depreciation and Amortization (EBITDA)(1) amounted to $2.4 million for
the second quarter of fiscal year 2009, ended March 31, 2009, compared to $4.3
million in the corresponding quarter of fiscal year 2008. For the quarter,
Earnings from operations were $0.1 million, compared with $2.3 million in
2008. Net loss amounted to $0.5 million ($0.03 per share), compared to net
earnings of $0.9 million ($0.05 per share) for the second quarter of 2008. For
the quarter, cash flows from operating activities before changes in non-cash
working capital items reached $2.0 million, compared with $4.0 million in
2008.
"During this quarter our results were visibly impacted by the negative
economic environment, as were most of the businesses in our sector. In this
context, we have managed with care and are taking measures to reduce our cost
base while continuing to invest in our future," said Claude Lessard, Chairman
of the Board, Chief Executive Officer and President. "Though in some regions
performance is better than in others, we are seeking to develop new business
opportunities provided by the economic context in all our markets, and to
invest in the quality of our spectacular product by hiring top senior
resources. With an effective and exceptional team, we expect to be
well-positioned when the economic environment picks up the pace" he concluded.
The Company reports that this quarter it obtained an insurance policy
minimizing its exposure to the credit risk of certain clients. This measure is
part of a series of steps taken by the Company in order to reduce its
financial risk and protect its current and future cash flows.
First Half Review - For the six-month period ended March 31, 2009, gross
income amounted to $113.0 million, compared to $119.3 million reported in the
first half of fiscal 2008. EBITDA amounted to $8.1 million for the six-month
period ended March 31, 2009, compared to $11.8 million in the corresponding
period of fiscal 2008. Earnings from operations for the first half of fiscal
2009 were $3.6 million as compared to $7.8 million for the same period in
2008. Net earnings in the first half of fiscal 2009 were $1.0 million ($0.06
per share) down from $4.2 million ($0.25 per share) for the same period in
fiscal 2008.
Cash flows from operating activities before changes in non-cash working
capital items in the first six months of fiscal 2009 were $6.7 million as
compared to $9.6 million for the same period of fiscal year 2008.
Management's Discussion and Analysis, containing a full analysis of
financial results, is available on SEDAR (www.sedar.com).
Cossette Inc. offers a full range of leading-edge communication services
to clients of all sizes, including some of the most prestigious brands in the
world. A customer-driven organization built around highly specialized business
units, Cossette also offers Convergent Communications(TM), a unique working
method that brings added value to the client by integrating various services
offered by the Group, including strategic planning and research, advertising,
media buying and channel planning, sales promotion, direct response, database
and direct marketing, customer relationship management, interactive marketing
and technology solutions, public relations, organizational communication and
change management, sponsorship and alliance marketing, branding and design,
ethnic marketing, business-to-business communications (B2B practices) and
print and video production. Cossette has approximately 1,630 employees and
offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York,
Irvine, Los Angeles, London and Shanghai.
Forward-looking statements - This press release may contain statements
that are forward-looking in nature. These forward-looking statements may
involve, but are not limited to, comments with respect to the Company's
business or financial objectives, its strategies or future actions, its
targets, expectations for financial condition or outlook for operations and
future earn-out and additional equity interest obligations. Forward-looking
statements are not guarantees of future performance and actual results may
differ materially from those in the forwardlooking statements as a result of
various factors, including downturns in general economic conditions and
resulting changes in client business and marketing strategies, consolidation
and globalization of client brand strategies, the highly competitive nature of
the communications industry, the greater resources available to much larger
global agencies, low entry barriers for new competitors, dependence upon a
limited number of clients contributing a significant percentage of income,
inability to acquire new clients or new assignments from existing clients due
to client policies prohibiting performance of similar services for competing
products or companies, the Company's ability to successfully integrate
acquired and to-beacquired businesses and the retention of key management,
creative and technical personnel. Assumptions relating to the foregoing
involve judgments and risks, all of which are difficult or impossible to
predict accurately and many of which are beyond the control of the Company.
Although management believes that the expectations reflected in the
forward-looking statements are reasonable based on information currently
available, it cannot assure that the expectations will prove to have been
correct. Accordingly, undue reliance should not be placed on forward-looking
statements.
Financial analysts are invited to participate in a conference call with
management tomorrow May 7, 2009, at 10:00 a.m. The media and any stakeholders
may attend the call in listening mode only. Please dial (514) 392-9193 or
866-696-5911 (Canada & US) or 00-800-9559-6849 (Global Toll Free). A replay
will be available at (514) 861-2272 or 800-408-3053, passcode 7355620# until
May 23, 2009 and on the investor relations section of our website at
www.cossette.com.
Appendix: Selected Financial InformationCossette Inc. - Selected Financial Information
(in thousands of Canadian dollars, except the number of shares
and per share data)
Results for the 3-month period ended March 31, 2009 (unaudited)
2009 2008
Gross income 55,085 60,050
Salary, general and administrative expenses 52,689 55,743
EBITDA(1) 2,396 4,307
Earnings from operations 111 2,290
Earnings before income taxes and non-controlling
interest 233 2,439
Earnings after income taxes 65 1,544
Non-controlling interest (613) (672)
Net earnings (loss) (548) 872
Cash flows from operations
(before changes in non-cash working capital items) 2,002 3,999
Net earnings (loss) per share
Basic (0.03) 0.05
Diluted (0.03) 0.05
Weighted average number of shares outstanding ('000)
Basic 15,797 16,578
Diluted 15,797 16,621
Results for the 6-month period ended March 31, 2009 (unaudited)
2009 2008
Gross income 113,029 119,342
Salary, general and administrative expenses 104,970 107,543
EBITDA(1) 8,059 11,799
Earnings from operations 3,568 7,778
Earnings before income taxes and non-controlling
interest 3,871 8,110
Earnings after income taxes 2,258 5,358
Non-controlling interest (1,239) (1,135)
Net earnings 1,019 4,223
Cash flows from operations
(before changes in non-cash working capital items) 6,670 9,638
Net earnings per share
Basic 0.06 0.25
Diluted 0.06 0.25
Weighted average number of shares outstanding ('000)
Basic 15,813 16,600
Diluted 16,205 16,665
Cossette Inc. - Selected Financial Information
(in thousands of Canadian dollars)
Balance sheet
As at As at
March 31, Sept. 30,
2009 2008
(unaudited) (audited)
Cash and cash equivalents 24,230 13,685
Current assets 218,932 225,201
Intangible assets 5,803 5,505
Goodwill 102,298 93,122
Total assets 351,554 348,356
Short-term borrowings, including bank overdraft - 37,649
Current portion of long-term debt 12 99
Balances of purchase price of subsidiaries
(current portion) 6,668 14,566
Long-term debt 25,402 219
Balances of purchase price of subsidiaries - 106
Shareholders' equity 137,260 134,212
(1) EBITDA is not a performance measure consistent with Canadian
generally accepted accounting principles ("GAAP"). The information
regarding measures not consistent with Canadian GAAP is contained in
the Management's Discussion and Analysis filed on SEDAR.%SEDAR: 00012070EF
For further information: Financial Analysts only: Martin Faucher,
Vice-President and Chief Financial Officer, (418) 521-3784; Investors: Francis
Trudeau, Director, Acquisitions and Investor Relations, (514) 282-4633;
Medias: Mathieu Claise, Optimum Public Relations, (418) 521-3770; Source:
Cossette Inc., www.cossette.com
