Mediagrif posts strong financial results for its second quarter of fiscal 2012

Highlights of the second quarter ended September 30, 2011:

  • Revenues increased 11%, or $1.3 million to $12.7 million;
  • EBITDA improved 17% reaching $4.5 million, operating profit up 15% amounting to $3.7 million;
  • Net earnings of $3.7 million ($0.27 per share), compared to $1.9 million ($0.14 per share) in the second quarter of fiscal 2011;
  • Cash level raised to $33.4 million as at September 30, 2011, compared to $29.7 million as at June 30, 2011;
  • Board of Directors declared a cash dividend of $0.08 per share, payable on January 16, 2012 to shareholders of record at the close of business on January 3rd, 2012.

TSX: MDF
www.mediagrif.com

LONGUEUIL, QC, Nov. 14, 2011 /CNW Telbec/ - Mediagrif Interactive Technologies Inc. (TSX: MDF), a world-leading operator of e-commerce solutions, today announced its financial results for the second quarter ended September 30, 2011. Unless indicated otherwise, all amounts are in Canadian dollars.

On November 14, 2011, the Company acquired substantially all of the assets of LesPAC Inc., a subsidiary of Yellow Media Group Inc. for cash consideration of $ 72.5 million, subject to certain working capital adjustments. LesPAC.com is Quebec's leading classifieds web site. The acquisition is financed by $ 25 million in cash from the Company, a term loan of $ 40 million and a revolving credit facility of up to $ 20 million, both extending over five years. The term loan and line of credit, put in place by a syndicate of two financial institutions, bear interest at LIBOR plus a premium based on the level of debt, repayable at any time without penalty, and are secured by assets of the Company. The term loan is repayable in quarterly instalments of $ 1 million.

CONSOLIDATED RESULTS

(in thousands of Canadian dollars, except for numbers related to shares) Three months ended
Sept. 30th
Six months ended
Sept. 30th
(unaudited) 2011 2010 2011 2010
Revenues 12,706 11,420 25,343 22,665
EBITDA 4,476 3,818 8,468 7,482
Operating profit 3,732 3,234 6,957 6,215
Net earnings 3,747 1,901 5,905 4,172
Earnings per share        
- Basic 0,27 0,14 0,43 0,30
- Diluted 0,27 0,14 0,43 0,30
Weighted average number of share outstanding (in thousands)        
- Basic 13,705 13,873 13,694 13,886
- Diluted 13,740 13,889 13,732 13,905


SECOND QUARTER RESULTS OF FISCAL 2012, COMPARED WITH SECOND QUARTER OF FISCAL 2011

The earnings analysis takes into consideration the impact of the acquisition of InterTrade Systems Inc. ("InterTrade") completed in December 2010.

For the second quarter of fiscal 2012, revenues increased by $1.3 million, compared to the second quarter of fiscal 2011, reaching $12.7 million. This increase is mainly due to the revenues of InterTrade which amounted to $1.4 million during the second quarter of 2012.

Furthermore, revenues in original currencies increased by $0.2 million for the second quarter of fiscal 2012, compared to the second quarter of fiscal 2011. However, the changes in the value of the Canadian dollar compared to the U.S. dollar, combined with hedge coverage, generated a negative impact on revenues of $0.3 million, thus cancelling the increase of revenues in original currencies.

Operating expenses of the second quarter of fiscal 2012 reached $6.5 million, compared to $5.9 million for the second quarter of fiscal 2011. The increase in operating expenses is mainly due to the addition of InterTrade expenses for $1.2 million partly offset by lower salaries, severances & benefits.

EBITDA reached $4.5 million or 35.2% of revenues for the second quarter of fiscal 2012 compared to $3.8 million or 33.4% of revenues for the corresponding period of 2010.

Net earnings reached $3.7 million for the second quarter of fiscal 2012, compared to $1.9 million for the second quarter of fiscal 2011. During the second quarter of fiscal 2012, a foreign exchange gain of $0.8 million was recorded compared to a $0.2 million loss in the second quarter of fiscal 2011.

SIX MONTHS ENDED SEPTEMBER 30, 2011 COMPARED TO SIX MONTHS ENDED SEPTEMBER 30, 2010

For the first six months ended September 30, 2011, total revenues reached $25.3 million, an increase of $2.7 million when compared with revenues of $22.7 million for the corresponding period of 2010. This increase is mainly due to the revenues of InterTrade which amounted to $2.7 million during the six months period ended September 30, 2011.

Furthermore, revenues in original currencies increased by $0.5 million for the six month period ended September 30, 2011 compared to the six month period ended September 30, 2010. However, the changes in the value of the Canadian dollar compared to the U.S. dollar, combined with hedge coverage, generated a negative impact on revenues of $0.6 million, thus cancelling the increase of revenues in original currencies.

Operating expenses for the six month period ended September 30, 2011 reached $13.3 million, compared to $11.5 million for the corresponding period of 2010. The increase in operating expenses is mainly due to the addition of InterTrade expenses of $2.1 million and lower tax credits partly offset by lower salaries & benefits.

EBITDA reached $8.5 million or 33.4% of revenues for the six month period ended September 30, 2011 compared to $7.5 million or 33.0% of revenues for the corresponding period of 2010.

Net earnings reached $5.9 million compared to $4.2 million for the first six months ended September 39, 2010.

CASH FLOW AND FINANCIAL POSITION

As at September 30, 2011, cash and cash equivalents amounted to $33.4 million, compared to $29.7 million as at June 30, 2011.

For the second quarter ended September 30, 2011, free cash flow, defined as cash flows from operating activities less the acquisition of fixed assets and intangible assets, less dividends paid, reached $2.4 million, compared to $1.4 million for the quarter ended September 30, 2010.

The increase is due to the company dividend payment policy modification. In fact, in February 2011, the Company has modified its dividend payment policy, from a semi-annual to a quarterly dividend distribution policy.

For the first six months ended September 30, 2011, free cash flow, totalled $1.5 million compared to $1.7 million for the first six months ended September 30, 2010.

TRANSITION TO IFRS

Mediagrif's unaudited condensed consolidated interim financial statements for the quarter ended September 30, 2011 have been prepared using IFRS. Amounts relating to the year ended March 31, 2011 have been restated to reflect the adoption of IFRS. Details of the accounting differences can be found in the notes to the interim financial statements.

OUTLOOK

Given strong year-to-date performance and the acquisition of LesPAC, which generated $12.7 million in revenues for the twelve-month period ended December 31, 2010, Mediagrif's outlook for the balance of 2012 is positive.

The Company expects its consolidated revenues for fiscal 2012 to increase by approximately 20% on an annualized basis and EBITDA to be in the range of $17.5 million to $19.5 million, without taking into account costs relating to the acquisition. These projections are based on certain assumptions, including that there would be no significant change in the current value of the Canadian dollar compared to the U.S. dollar, no significant increase or decrease in revenues and operating expenses and stable market conditions.

About Mediagrif Interactive Technologies Inc.

Mediagrif Interactive Technologies Inc. (TSX: MDF) delivers innovative e-commerce solutions to businesses since 1996. Its web platforms enable clients to find, purchase and sell products, exchange information, gain access to business opportunities and manage supply chain collaboration with greater speed and efficiency. The Company provides e-commerce solutions in the fields of electronic components, computer equipment and telecommunications, medical equipment, automotive aftermarket, wine & spirits, diamonds and jewelry, retail markets and government opportunities. Mediagrif has its headquarters in Longueuil and has offices in North America and Asia. For more information, please visit us at www.mediagrif.com or call 1 877 677-9088.

In addition to providing an earnings measure in accordance with IFRS, the Company shows operating profit and earnings before interest, taxes, depreciation and amortization ("EBITDA") as supplementary earnings measures. The Company sometimes refers to the free cash flow measure in its documents. Free cash flow is defined as cash flows from operating activities less the acquisition of fixed assets and intangible assets presented in investing activities and less dividends paid that are presented in financing activities. Operating profit, EBITDA and free cash flow are not intended to be measures that should be regarded as an alternative to other financial operating performance measures prepared in accordance with IFRS. Those measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect us. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation. All amounts are in Canadian dollars.

Unaudited condensed interim financial statements, accompanying notes and MD&A are available on www.mediagrif.com and have been filed with SEDAR at the following address: www.sedar.com.

SOURCE MEDIAGRIF INTERACTIVE TECHNOLOGIES INC.

For further information:

Mediagrif Interactive Technologies Inc.
Claude Roy
Chief Executive Officer
Tel.: 450-449-0102 ext. 2004
Toll Free: 1 877 677-9088 ext. 2004
Email: croy@mediagrif.com

Paul Bourque
Chief Financial Officer
Tel.: 450-449-0102, ext: 2135
Toll Free: 1 877 677-9088 ext. 2135
Email: pbourque@mediagrif.com

Profil de l'entreprise

MEDIAGRIF INTERACTIVE TECHNOLOGIES INC.

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