Cossette Communication Group - Fiscal Year 2007 Results - Gross income up 8.7%, net earnings up 26.9%



    KOS (TSX)

    MONTREAL, Dec. 4 /CNW Telbec/ - Cossette Communication Group Inc.
("Cossette" or the "Company") recorded gross income of $234.1 million for its
fiscal year ended September 30, 2007, an increase of 8.7 per cent from
$215.4 million in fiscal year 2006. Net earnings amounted to $15.8 million
($0.94 per share), an increase of 26.9 per cent from $12.4 million ($0.72 per
share) in fiscal 2006.
    "Our organic growth performance reflects the efforts we have made on the
one hand to reinforce new business development in all of our communications
disciplines and on the other, to continually improve our Convergent
Communications(TM) service offering." said Claude Lessard, Chairman, Chief
Executive Officer and President. "With the acquisition of Dare Digital, we
significantly strengthened our digital capabilities. Our emphasis on digital
communication in all of our disciplines will continue to be an area of focus
during the current year."
    For the year, earnings from operations were $28.4 million, compared with
$22.6 million in 2006. Cash flows from operating activities excluding the net
change in non-cash working capital items amounted to $25.1 million, compared
to $20.9 million last year, an increase of 20.3 per cent.
    For the fourth quarter ended September 30, 2007, gross income amounted to
$65.9 million, an increase of 17.1 per cent compared to gross income of
$56.3 million reported for the fourth quarter of last year. Net earnings for
the period were $4.1 million ($0.25 per share) compared to $3.0 million
($0.18 per share) for the same period in fiscal 2006.
    Management's Discussion and Analysis containing a full analysis of
financial results is available on SEDAR (www.sedar.com).

    Cossette Communication Group 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 planning and buying, sales
promotion, CRM, database and direct marketing, interactive marketing and
technology solutions, public relations and alliance marketing, branding and
design, ethnic marketing, sports marketing, branded content and product
placement and business-to-business communications (B2B practices). Cossette
has approximately 1,650 employees and offices in Quebec City, Montreal,
Toronto, Vancouver, Halifax, New York, Boston, Irvine, Los Angeles, London,
Moscow and Shanghai.

    Forward Looking Statements - This press release is not an offer of
securities for sale. It may contain forward-looking statements concerning the
Company's business, operations and strategies, including forward-looking
statements within the meaning of section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 in the United States. The
Company cautions that, by their nature, forward-looking statements involve
risks and uncertainties and the Company's actual results may differ materially
from those expressed or implied in such statements, due to a variety of
factors including downturns in general economic conditions and resulting
changes in client business and marketing strategies, consolidation and
globalisation 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, our ability to successfully integrate our acquired and
to-be-acquired businesses and the retention of key management, creative and
technical personnel. Reference should be made to the most recent annual
Management's Discussion and Analysis for an in-depth description of major risk
factors. The Company assumes no obligation to update or revise any
forward-looking statement, whether as a result of new information, future
events or any other reason.

    Financial analysts are invited to participate in a conference call with
management tomorrow December 5, 2007, at 9:00 a.m. The media and any
stakeholders may attend the call in listening mode only. Please dial
(514) 861-2909 or 888-789-9572 (Canada & US) or 00-800-6578-9818 (Global Toll
Free). A replay will be available at (514) 861-2272 or 1-800-408-3053,
passcode 3240735# until December 21, 2007 and on the investor relations
section of our website at www.cossette.com.

    Appendix: Selected Financial Information


    
                      Cossette Communication Group Inc.
                       Selected Financial Information
       (in thousands of Canadian dollars, except for amounts per share)

         Results for the 12-month period ended September 30 (audited)

                                                     2007              2006

    Gross income                                  234,086           215,444
    Operating expenses                            205,709           192,827
    Earnings from operations                       28,377            22,617
    Earnings before income taxes                   28,780            23,073
    Earnings after income taxes                    19,184            14,565
    Non-controlling interest                       (3,410)           (2,130)
    Net earnings                                   15,774            12,435
    Cash flows from operations
     (before the net change in non-cash
     working capital items)                        25,131             20,886
    Net earnings per share
      Basic                                          0.94               0.72
      Diluted                                        0.93               0.72
    Weighted average number of
     shares outstanding ('000)
      Basic                                        16,773             17,252
      Diluted                                      16,914             17,252

        Results for the 3-month period ended September 30 (unaudited)

                                                     2007              2006

    Gross income                                   65,859            56,252
    Operating expenses                             57,946            50,112
    Earnings from operations                        7,913             6,140
    Earnings before income taxes                    7,788             6,336
    Earnings after income taxes                     5,476             3,865
    Non-controlling interest                       (1,420)             (867)
    Net earnings                                    4,056             2,998
    Cash flows from operations
     (before the net change in non-cash
      working capital items)                        6,291             4,798
    Net earnings per share
      Basic                                          0.25              0.18
      Diluted                                        0.24              0.18
    Weighted average number of shares
     outstanding ('000)
      Basic                                        16,501            17,032
      Diluted                                      16,685            17,032

                           Balance sheet (audited)
                                                    As at             As at
                                           Sept. 30, 2007    Sept. 30, 2006

    Cash and cash equivalents                       3,484            24,406
    Current assets                                188,788           166,730
    Intangible assets and deferred charges          6,384             4,271
    Goodwill                                       84,244            60,972
    Total assets                                  299,100           248,181
    Current portion of long-term debt                 411               451
    Balances of purchase prices of
     subsidiaries (current portion)                16,009             1,238
    Long-term debt                                    108               300
    Balances of purchase prices of subsidiaries       529             1,367
    Shareholders' equity                          132,123           126,534
    




For further information:

For further information: Jean Royer, Executive Vice-President and Chief
Financial Officer, (418) 521-3784; Source: Cossette Communication Group Inc.;
www.cossette.com

Organization Profile

COSSETTE COMMUNICATION GROUP INC.

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