Fortsum Business Solutions reaches a record peak of nearly $700,000 in net earnings for Q2 2008



    Publication of Quarterly Financial Statements of Q2 2008

    Financial Highlights

    - Record consolidated quarterly revenues of $7.8M for Q2 2008
    - Adjusted EBITDA of $1.5M up 152% over 2007
    - Consolidated net earnings up $785,000 over 2007

    QUEBEC, Aug. 14 /CNW Telbec/ - Fortsum Business Solutions Inc. (Fortsum
Business Solutions) (TSXV: FRT) today releases its financial results for the
second quarter ended June 30, 2008. Corporate revenues for Q2 2008 totalled
$7,804,000, an unprecedented peak, and an increase in revenues of more than
16% over the Q2 2007 revenues of $6,722,000. The adjusted EBITDA stood at
$1,502,000 for the period ended June 2008 as compared to $597,000 for the same
period last year. The net earnings generated by the Corporation totalled
$679,000 ($0.014 per share), versus a net loss of $106,000 (-$0.003 per share)
for the comparative period in 2007.
    Disregarding the unusual professional fees in excess of $400,000 paid in
the second quarter, the Corporation would have recorded net earnings near the
$1M mark (or $0.021 per share) for Q2," proudly stated the Chair of the Board
and Chief Executive Officer, André Thompson. "We are particularly pleased with
this increased and continued profitability as it confirms to all shareholders
that Fortsum Business Solutions is indeed on an upward path, fully benefiting
from the daily efforts invested to improve productivity and control operating
costs. It is important to note that these unusual fees were incurred in the
best interest of all shareholders in support of various initiatives undertaken
to put an end to the situation within the Board of Directors due to the
dissension of one director and significant shareholder. Not accounting for
this situation, the results for the quarter ended June 30, 2008 would have
shown exceptionally high profits," added Thompson. "We believe that the
various strategic initiatives taken in these last few weeks, including the
recent appointment of a new president and chief operating officer, position
the Corporation to even better benefit from the synergy created between our
Software Publishing and Integration sectors. Moreover, the new Board of
Directors is stronger than ever and wholly dedicated to evaluating
opportunities to increase value in the short term. This is very positive news
that should please all our shareholders," concluded Thompson.


    
    Consolidated balance sheets

                                                        June 30  December 31
                                                           2008         2007
                                                              $            $
    (in thousands of $)                              (unaudited)    (audited)
    -------------------------------------------------------------------------
    ASSETS
    Current assets
    Cash                                                  1,247        1,049
    Temporary investment, 4.07%, maturing in
     July 2008 (4.07% matured in January 2008
     for 2007)                                            8,700        9,050
    Accounts receivable                                   3,141        2,515
    Work in progress                                        509          271
    Investment tax credits receivable                       542          668
    Income taxes receivable                                   -          141
    Inventories                                             150          150
    Prepaid expenses                                        321          244
    Future income tax assets                                633          655
    -------------------------------------------------------------------------
    Total current assets                                 15,243       14,743
    -------------------------------------------------------------------------
    Investment                                                -           42
    -------------------------------------------------------------------------
    Property, plant and equipment                           748          810
    -------------------------------------------------------------------------
    Intangible assets                                     4,673        3,746
    -------------------------------------------------------------------------
    Goodwill                                             12,246       11,438
    -------------------------------------------------------------------------
    Future income tax assets                                306          403
    -------------------------------------------------------------------------
                                                         33,216       31,182
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities
    Accounts payable and accrued liabilities              3,384        3,391
    Income taxes payable                                    184            -
     Current portion of long-term debt                    1,318        1,310
    -------------------------------------------------------------------------
                                                          4,886        4,701
    Deferred revenues                                     5,829        5,688
    -------------------------------------------------------------------------
    Total current liabilities                            10,715       10,389
    -------------------------------------------------------------------------
    Long-term debt                                        2,562        3,142
    -------------------------------------------------------------------------
    Future income tax liabilities                         1,067          996
    -------------------------------------------------------------------------
    Shareholders' equity
    Share capital                                        20,277       19,421
    Warrants                                                208          350
    Contributed surplus                                   3,228        3,102
    Deficit                                              (4,841)      (6,218)
    -------------------------------------------------------------------------
                                                         18,872       16,655
    -------------------------------------------------------------------------
                                                         33,216       31,182
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated statements of Net
     Earnings and Comprehensive Income

    For the periods ended
      June 30

    (in thousands of $,          2008         2007         2008         2007
     except for amounts             $            $            $            $
     per share)                      3 Months                 6 Months
    -------------------------------------------------------------------------
    Revenues                    7,804        6,722       14,892       14,026

    Cost of goods sold          2,545        2,661        4,758        5,385
    Selling and customer
     service expenses           1,720        1,766        3,391        3,503
    Administrative expenses     1,443        1,308        2,538        2,413
    Development costs, net
     of investment tax credits    594          390        1,235          973
    -------------------------------------------------------------------------
                                6,302        6,125       11,922       12,274
    -------------------------------------------------------------------------
                                1,502          597        2,970        1,752
    -------------------------------------------------------------------------
    Depreciation and
     amortization                 268          246          517          509
    Financial expenses, net
     of interest income            (1)         150           45          329
    Change in fair value of
     the investment                 2            -            2            -
    -------------------------------------------------------------------------
    Earnings before unusual
     items and income taxes     1,233          201        2,406          914
    -------------------------------------------------------------------------
    Unusual items
      Costs related to early
       repayment of long-term
       loans                        -          407            -          407
      Restructuring costs           -           39            -          221
      Expenses arising from
       dissension within the
       Board                      401            -          401            -
    -------------------------------------------------------------------------
    Earnings (loss) before
     income taxes                 832         (245)       2,005          286
    -------------------------------------------------------------------------
    Income taxes
      Current                     274          (13)         616          193
      Future                     (121)        (126)          12         (125)
    -------------------------------------------------------------------------
                                  153         (139)         628           68
    -------------------------------------------------------------------------
    Net earnings (loss) and
     comprehensive income
     (loss)                       679         (106)       1,377          218
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic and diluted net
     earnings (loss) per
     outstanding share          0.014       (0.003)       0.029        0.006
    -------------------------------------------------------------------------
    Average number of
     outstanding shares for
     the period (in thousands) 47,197       34,923       47,105       34,605
    -------------------------------------------------------------------------


    Consolidated statements
     of deficit

    For the periods ended
     June 30

                                 2008         2007         2008         2007
                                    $            $            $            $
    (in thousands of $)              3 Months                 6 Months
    -------------------------------------------------------------------------
    Deficit, beginning of
     period                    (5,520)      (5,621)      (6,218)      (5,945)
    Add (deduct)
      Unit issue expenses
       (net of related future
       income taxes of
       $133,000)                              (292)                     (292)
    Net earnings (loss)           679         (106)       1,377          218
    -------------------------------------------------------------------------
    Deficit, end of period     (4,841)      (6,019)      (4,841)      (6,019)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated statements
     of cash flows

    For the periods ended
     June 30

                                 2008         2007         2008         2007
                                    $            $            $            $
    (in thousands of $)              3 Months                 6 Months
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES

    Net earnings (loss)           679         (106)       1,377          218
    Adjustments for:
      Stock-based compensation
       expense                     13           27           35           34
      Depreciation of property,
       plant and equipment         91           73          180          144
      Gain on disposal of
       property, plant and
       equipment                   (1)           -          (26)           -
      Amortization of
       intangible assets          177          150          337          319
      Amortization of
       pre-operating costs          -           23            -           46
      Amortization and
       write-off of deferred
       charges                      9          169           20          202
      Accrued interest on
       balance of purchase
        price payable               4            7            8           15
      Change in fair value
       of the investment            2            -            2            -
      Future income taxes        (121)        (126)          12         (125)
    -------------------------------------------------------------------------
                                  853          217        1,945          853
    Net change in non-cash
     working capital items        530          114         (384)      (1,198)
    -------------------------------------------------------------------------
    Cash flows related to
     operating activities       1,383          331        1,561         (345)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Proceeds from disposal
     of investment                 41            -           41            -
    Additions to property,
     plant and equipment         (114)         (86)        (163)        (165)
    Proceeds from disposal
     of property, plant and
     equipment                      3            -           64            1
    Additions to intangible
     assets                      (575)        (236)        (599)        (236)
    Business acquisitions      (1,369)        (658)      (1,261)        (658)
    -------------------------------------------------------------------------
    Cash flows related to
     investing activities      (2,014)        (980)      (1,918)      (1,058)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Increase in deferred
     charges                        -          (34)           -          (34)
    Increase in long-term debt      -        5,000            -        5,000
    Repayment of long-term debt  (300)      (3,867)        (600)      (4,051)
    Units issued                    -        3,500            -        3,500
    Unit issue costs                -         (375)           -         (375)
    Proceeds from the exercise
     of warrants                  805            -          805            -
    -------------------------------------------------------------------------
    Cash flows related to
     financing activities         505        4,224          205        4,040
    -------------------------------------------------------------------------
    Net increase (decrease)
     in cash and cash
     equivalents                 (126)       3,575         (152)       2,637
    Cash and cash equivalents,
     beginning of period       10,073        5,156       10,099        6,094
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period              9,947        8,731        9,947        8,731
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    -------------------------------------------------------------------------
    Fortsum Business Solutions presents segmented information to help the
    reader better understand the Corporation's performance and outlook. The
    Corporation's complete consolidated financial statements and the
    management's discussion and analysis have been submitted to SEDAR and are
    also available on our Web site at www.fortsum.com.
    -------------------------------------------------------------------------

    Earnings before interest, taxes, depreciation and amortization (EBITDA)
and earnings before interest, taxes, depreciation and amortization excluding
unusual items (adjusted EBITDA) are measures that have no standardized meaning
according to Canadian GAAP. Therefore, these measures may not be comparable to
similar measures presented by other issuers. Adjusted EBITDA excludes unusual
items presented in the statement of net and comprehensive earnings as at
June 30, 2008, such as restructuring costs and cost related to the early
repayment of long-term loans as well as fees related to the dissension within
the Board of Directors.

    About Fortsum Business Solutions

    Fortsum Business Solutions Inc. is mainly involved in the development,
integration, marketing and support of accounting, commercial and banking data
management software. For more information: www.fortsum.com.

    Forward-looking Information

    This press release may contain forward-looking statements. Statements
based on management's current expectations contain known and unknown inherent
risks and uncertainties. Actual results may vary from forecasts. The reader
should not place undue faith in forward-looking information.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    %SEDAR: 00019855EF




For further information:

For further information: André Thompson, Chair of the Board and Chief
Executive Officer, athompson@fortsum.com; Dany Beaudet, Corporate
Communications Coordinator, (418) 877-3003, ext. 2272; Toll-free:
1-888-268-0088, Fax: (418) 877-9994, dbeaudet@fortsum.com

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FORTSUM BUSINESS SOLUTIONS INC.

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