Mediagrif reports higher Q3 FY11 financial results

  • Revenues of $11.7 million compared to $11.4 million for the third quarter of 2010;

  • Earnings from operations of $3.4 million compared to $2.5 million for the third quarter of 2010;

  • EBITDA of $4.0 million compared to $3.3 million for the third quarter of 2010;

  • Net earnings of $1.9 million compared to $1.1 million for the third quarter of 2010;

  • Cash and cash equivalents reached $29.2 million on December 31, 2010 compared to $29.6 million on December 31, 2009 and $34.4 million on March 31, 2010.

LONGUEUIL, QC, Feb. 8 /CNW Telbec/ - Mediagrif Interactive Technologies Inc. (TSX: MDF), a world-leading operator of e-commerce solutions, today announced its financial results for the third quarter of fiscal year 2011, ended December 31, 2010. Unless indicated otherwise, all amounts are in Canadian dollars.

FINANCIAL HIGHLIGHTS:

The Company reported an increase in the financial results of its third quarter of 2011. Furthermore, the Company purchased Laval based InterTrade System Inc. ("InterTrade") for a cash consideration of $8.1 million while maintaining sufficient cash level.

Revenues in the third quarter of 2011 were higher at $11.7 million compared to $11.4 million in the third quarter of 2010.

Earnings from operations increased by 36% and reached $3.4 million during the third quarter of 2011 compared to $2.5 million for the third quarter of 2010. This increase is mainly due to an increase in revenues as well as by the general headcount reduction throughout the Company and by better cost control.

Other expenses amounted to $0.2 million for the third quarter of 2011 compared to $0.5 million for the third quarter of 2010. This decrease is mainly due to a foreign exchange loss on our US dollar assets of $0.3 million compared to a foreign exchange loss of $0.5 million for the third quarter of 2010.

Net income and basic and diluted earnings per share amounted to $1.9 million and $0.14 respectively for the third quarter of 2011 compared to $1.1 million and $0.08 for the third quarter of 2010.

RESULTS OF THE THIRD QUARTER AND FIRST NINE MONTHS OF THE FISCAL YEAR 2011:

Revenues in the third quarter of 2011 were higher at $11.7 million compared to $11.4 million in the third quarter of 2010. For the first nine months of 2011, revenues decreased by $0.3 million compared to the corresponding period of 2010, from $34.6 million to $34.3 million.

  • The revenue increase is mainly due to the business networks MERX, The Broker Forum and Carrus. BidNet, GovernmentBids, Interactive Procurement Technologies and Global Wine & Spirits evolve in competitive and economic environment which renders their organic growth more difficult. Revenues from Power Source On-Line, Polygon, Market Velocity and CBI networks are more affected by the consequences of the economic slowdown in their respective industries. The impact of the acquisition of InterTrade is $0.1 million.

  • In original currencies, revenues increased by $0.6 million for the third quarters of 2011 compared to the third quarter of 2010. For the first nine months of 2011, in original currencies, revenues increased by $0.5 million compared to the corresponding period of 2010.

  • Revenues earned in US dollars represent 59% of total revenues in the third quarter of 2011 and 2010 and for the first nine months of 2011 and 2010. As a result, the variation in the value of the Canadian dollar compared to the US dollar combined with our hedge coverage generated a negative impact on revenues of $0.4 million and $0.8 million during the third quarter and first nine months of 2011 respectively.

Gross margin for the third quarter and first nine months of 2011 increased to 80% and 79% respectively, compared to the corresponding periods of 2010 during which the margins were 77% and 78%. Higher margins are mainly due to cost reductions related to development activities previously done by third parties. 

Operating expenses for the third quarter of 2011 decreased to $5.9 million compared to $6.2 million for the third quarter of 2010. For the first nine months of 2011, operating expenses decreased to $16.9 million compared to $19.7 million for the corresponding period of 2010. The decrease in operating expenses is explained by the following items:

  • General and administrative expenses for the third quarter of 2011 were stable at $2.0 million compared to the third quarter of 2010. Expenses related to the move of the head office and InterTrade's acquisition-related costs were offset by better cost control and general headcount reduction throughout the Company.

    For the first nine months of 2011, general and administrative expenses decreased to $5.6 million compared to $6.9 million for the corresponding period of 2010. This decrease is mainly due to the general headcount reduction and to better cost control throughout the Company as well as the reversal in the first quarter of 2011 of a penalty of $0.2 million related to a tax assessment that was recorded in the first quarter of 2010.

  • Sales and marketing expenses for the third quarter of 2011 decreased to $1.9 million compared to $2.1 million for the third quarter of 2010. For the first nine months of 2011, sales and marketing expenses decreased to $5.8 million compared to $6.6 million for the corresponding period of 2010. This decrease is mainly due to the general headcount reduction throughout the Company and to the decrease of the allowance for doubtful accounts, partially offset by an increase in advertising and promotion expenses.

  • Technology expenses for the third quarter of 2011 remained stable at $1.8 million compared to the third quarter of 2010. For the first nine months of 2011, technology expenses decreased to $5.3 million compared to $5.5 million for the corresponding period of 2010 due to the general headcount reduction partially offset by a decrease in income tax credits.

  • Amortization of acquired intangible assets increased to $176,000 compared to $173,000 for the third quarter of 2010 and at $521,000 for the first nine months of 2011 compared to $518,000 for the corresponding period of 2010.

  • Stock-based compensation expense for the third quarter of 2011 decreased to $6,000 compared to $89,000 for the third quarter of 2010. For the first nine months of 2011, a stock-based compensation expense was reversed due to the cancellation of stock options in the first quarter and resulted in a credit of $341,000 compared to an expense of $215,000 for the corresponding period of 2010.

Earnings from operations increased by 36% and reached $3.4 million during the third quarter of 2011 compared to $2.5 million for the third quarter of 2010. This increase is mainly due to an increase in revenues as well as by the general headcount reduction throughout the Company and by better cost control. For the first nine months of 2011, earnings from operations increased by 42% and reached $10.2 million compared to $7.2 million for the corresponding period of 2010. This increase is mainly due to the reversal of a stock-based compensation expense, to the general headcount reduction throughout the Company and to better cost control.

Basic and diluted earnings per share amounted to $0.14 for the third quarter of 2011 compared to $0.08 for the third quarter of 2010. Basic and diluted weighted average number of common shares outstanding for the third quarters of 2011 and 2010 were 13.7 million and 13.9 million respectively. For the first nine months of 2011, basic and diluted earnings per share amounted to $0.47 compared to $0.12 for the corresponding period of 2010. Basic and diluted weighted average number of common shares outstanding for the first nine months of 2011 and 2010 were 13.8 million and 13.9 million respectively.

As at December 31, 2010, our cash and cash equivalents decreased to $29.2 million compared to $34.4 million as at March 31, 2010 and compared to $29.6 million as at December 31, 2009. This decrease is due to the acquisition of InterTrade for a net consideration of $7.7 million, to the payment of a cash dividend of $0.14 per share for a total of $1.9 million for the first nine months, and to the purchase for cancellation of a block of 230,500 common shares for a cash consideration of $2.0 million.

Free cash flow, defined as cash flows from operating activities less the acquisition of premises and equipment and intangible assets and dividends paid, increased to $1.8 million in the third quarter of 2011 compared to $0.9 million in the third quarter of 2010. This increase is mainly due to the increase in acquisition of capital assets net of the deferred lease inducement this quarter offset by a dividend payment of $1.4 million in the third quarter of 2010. For the first nine months of 2011, free cash flow amounted to $3.5 million compared to $1.7 million in the corresponding period of 2010. This increase is mainly due to higher net earnings in 2011 offset by a variation in non-cash working capital items and by the increase of the dividend paid by $0.6 million.

On March 3, 2010, the Company announced the renewal of its normal course issuer bid whereby it is authorized to purchase for cancellation for the twelve-month period which started on March 5, 2010 up to 695,425 common shares. During the nine-month period ended December 31, 2010, 250,690 common shares were purchased for cancellation.

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. Mediagrif provides e-commerce solutions in the fields of electronics components, computer equipment and telecommunications, medical equipment, automotive aftermarket, wine & spirits, diamonds and jewelry, retail markets and government opportunities. Headquartered in Longueuil, Mediagrif has offices in North America and Asia. For more information, please visit us at www.mediagrif.com.

In addition to providing an earnings measure in accordance with GAAP, the Company shows earnings from operations 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 premises and equipment and intangible assets presented in investing activities and less dividends paid presented in financing activities. Earnings from operations, EBITDA and free cash flow are not intended to be measures that should be regarded as an alternative to other financial operating performances prepared in accordance with Canadian GAAP. Those measures do not have a standardized meaning prescribed by GAAP 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 interim financial statements, accompanying notes and MD&A are available on www.mediagrif.com and have been filed with SEDAR.

SOURCE MEDIAGRIF INTERACTIVE TECHNOLOGIES INC.

For further information:

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

Suzanne Mercier
Chief Financial Officer
Tel.: (450) 449-0102 ext. 2135
Toll Free: 1 877 677-9088 ext. 2135
Email: smercier@mediagrif.com

Profil de l'entreprise

MEDIAGRIF INTERACTIVE TECHNOLOGIES INC.

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.