In a reorganization phase, Fortsum Business Solutions Inc. posts quarterly revenues up 21% and $175,000 in net cumulative earnings



    Publication of Q3 2007 financial results

    QUEBEC, Nov. 23 /CNW Telbec/ - Fortsum Business Solutions Inc. (Fortsum
Business Solutions) (TSX Venture Exchange: FRT) releases its third-quarter
results showing $6,843,109 in consolidated revenues representing a 21.4%
increase over $5,638,867 posted for the third quarter 2006. This increase is
largely due to the contribution of acquisitions made after the period of
comparison. Due to major restructuring costs totalling $771,097, the
Corporation posted a net loss of $43,109 for the quarter as compared to net
earnings of $95,685 in 2006.

    Outlook

    "To keep up with the needs created by accelerated growth over the last
few months and reap maximum benefit from its activities, the Corporation has
actively pursued, over the course of Q3, its organizational restructuring
strategy and foresees further important changes in the upcoming months,"
announced the new President and Chief Executive Officer, André Thompson.
"Although management remains optimistic concerning the results for 2007, one
must foresee that costs related to carrying out our action plan will have a
major impact on the Corporation's results in the short term," added Thompson.
    "In addition to the reorganization announced by corporate executives,
which included the eradication of the position of Vice-president, Development,
Corporate Affaires and Financial Institutions held by Paul Julien Groleau, we
have revised the cost structure and operational mode of the Corporation's MBB
division in order to better align it with the target market, the penetration
of which has proven slower than expected. In general, we intend to optimize
the synergy between the Integration and Software Manufacturing segments as
well as increase their productivity. Management believes that the ongoing
restructuring will result in higher shareholder equity. To this end, the
Corporation is always on the lookout for profitable acquisitions and has
secured the means to meet its objectives," concluded Thompson.

    -------------------------------------------------------------------------
    Fortsum Business Solutions presents segmented information to help the
    readers better understand the Corporation's performance and outlook. The
    reader can consult the financial statements and MD&A at the SEDAR archive
    or on our Web site at www.fortsum.com.
    -------------------------------------------------------------------------

    
    Consolidated statements of net and comprehensive earnings

    For the periods
     ended September 30
                                 2007         2006         2007         2006
                                    $            $            $            $
                                    3 Months                  9 Months
    -------------------------------------------------------------------------
    Revenues                6,843,109    5,638,867   20,868,405   15,485,805
    Cost of goods sold      2,640,021    1,795,928    8,024 457    4,523,962
    Selling and customer
     service expenses       1,569,054    1,534,527    5,071,160    4,839,567
    Administrative
     expenses               1,160,720      878,963    3,574,271    2,685,502
    Development costs,
     net of tax credit
     on investments           177,473      424,134    1,151,333    1,139,514
    -------------------------------------------------------------------------
                            1,295,841    1,005,315    3,047,184    2,297,260
    -------------------------------------------------------------------------
    Depreciation              340,535      639,801      851,147    1,856,951
    Financial expenses,
     net of interest income    60,127      186,715      386,789      542,912
    Change in fair value of
     financial instruments    (33,672)           -      (33,672)           -
    -------------------------------------------------------------------------
    Earnings (loss) before
     unusual items and
     income taxes             928,851      178,799    1,842,920     (102,603)
    -------------------------------------------------------------------------
    Unusual items:
    Debt settlement costs           -            -      408,450            -
    Restructuring costs       771,097            -      991,578            -
    -------------------------------------------------------------------------
    Earnings (loss) before
     income taxes             157,754      178,799      442,892     (102,603)
    -------------------------------------------------------------------------
    Income taxes
      Current                  26,963      228,646      219,019      429,521
      Future                  173,900     (145,532)      49,125     (401,565)
    -------------------------------------------------------------------------
                              200,863       83,114      268,144       27,956
    -------------------------------------------------------------------------
    Net and comprehensive
     earnings (net and
     comprehensive loss)      (43,109)      95,685      174,748     (130,559)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic and diluted net
     earnings (loss) per
     outstanding share              -            -            -            -
    -------------------------------------------------------------------------
    Average number of
     outstanding shares for
     the period
     (in thousands)            45,645       33,009       38,285       33,009
    -------------------------------------------------------------------------


    Consolidated statements of deficit

    For the periods
     ended September 30
                                 2007         2006         2007         2006
                                    $            $            $            $
                                    3 Months                  9 Months
    -------------------------------------------------------------------------
    Deficit, beginning of
     period                (6,019,301)  (5,735,668)  (5,944,965)  (5,509,424)
    Add
    Unit issue costs (net
     of related future
     quarterly income
     taxes of $126,275 and
     $259,400 for the
     9-month period)         (274,092)           -     (566,285)           -
    Net earnings (loss)       (43,109)      95,685      174,748     (130,559)
    -------------------------------------------------------------------------
    Deficit, end of
     period                (6,336,502)  (5,639,983)  (6,336,502)  (5,639,983)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated statements of cash flows

    For the periods
     ended September 30
                                 2007         2006         2007         2006
                                    $            $            $            $
                                    3 Months                  9 Months
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
    Net earnings (loss)       (43,109)      95,685      174,748     (130,559)
    Adjustments for:
      Compensation expense -
       stock options           39,149       34,596       73,228      190,072
      Depreciation of
       property, plant and
       equipment               80,600       65,533      225,017      173,647
      Amortization of
       intangible assets      236,535      550,868      555,930    1,613,104
      Amortization of
       pre-operating costs     23,400       23,400       70,200       70,200
      Amortization of
       deferred charges         9,827       33,471      212,533      100,413
      Accrued interest on
       balance of purchase
       price payable            7,621            -       22,862            -
      Loss (gain) on
       disposal of property,
       plant and equipment          -            -         (438)         389
      Change in the fair
       value of financial
       instruments            (33,672)           -      (33,672)           -
      Future income taxes     173,900     (145,532)      49,125     (401,565)
    -------------------------------------------------------------------------
                              494,251      658,021    1,349,533    1,615,701
    Net change in non-cash
     working capital items     48,703     (147,362)  (1,151,417)     116,380
    -------------------------------------------------------------------------
    Cash flows related to
     operating activities     542,954      510,659      198,116    1,732,081
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Additions to property,
     plant and equipment      (75,728)     (49,080)    (240,761)    (217,089)
    Additions to intangible
     assets                   (26,200)           -     (262,000)           -
    Proceeds from disposal
     of property, plant and
     equipment                      -            -        1,000            -
    Business acquisitions  (2,229,906)           -   (2,887,572)  (1,820,690)
    Increase in deferred
     charges                        -            -      (33,776)           -
    -------------------------------------------------------------------------
    Cash flows related to
     investing activities  (2,331,834)     (49,080)  (3,423,109)  (2,037,779)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Repayment of
     long-term debt          (300,000)    (189,900)  (4,351,130)    (555,520)
    Long-term debt                  -            -    5,000,000            -
    Units issued            3,500,000            -    7,000,002            -
    Unit issue costs         (336,704)           -     (711,092)           -
    -------------------------------------------------------------------------
    Cash flows related to
     financing activities   2,863,296     (189,900)   6,937,780     (555,520)
    -------------------------------------------------------------------------
    Net increase (decrease)
     in cash and cash
     equivalents            1,074,416      271,679    3,712,787     (861,218)
    Cash and cash
     equivalents,
     beginning of period    8,732,548    4,718,841    6,094,177    5,851,738
    -------------------------------------------------------------------------
    Cash and cash
     equivalents, end of
     period                 9,806,964    4,990,520    9,806,964    4,990,520
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplementary
     Information
    Interest paid             152,910      158,561      662,006      480,135
    Income taxes paid         172,351        5,479      873,312       56,444
    Property, plant and
     equipment included in
     accounts payable          18,583       29,857       18,583       29,857
    -------------------------------------------------------------------------


    Consolidated balance sheets

                                                   September 30  December 31
                                                           2007         2006
                                                              $            $
                                                     (unaudited)    (audited)
    -------------------------------------------------------------------------

    Assets
    Current assets
    Cash                                                746,964    1,494,177
    Temporary investments, 4.07%, maturing in
     October 2008 (3.8%, matured in January 2007)     9,060,000    4,600,000
    Accounts receivable                               2,653,780    2,762,900
    Work in progress                                    277,391      194,942
    Investment tax credits receivable                   436,465            -
    Income taxes receivable                             167,068            -
    Inventories                                         150,719      273,748
    Prepaid expenses                                    146,030      158,185
    Future income tax assets                            681,853      668,900
    -------------------------------------------------------------------------
    Total current assets                             14,320,270   10,152,852
    -------------------------------------------------------------------------
    Investment                                           36,000       19,349
    -------------------------------------------------------------------------
    Property, plant and equipment                       795,227      702,567
    -------------------------------------------------------------------------
    Intangible assets                                 4,196,958    3,022,888
    -------------------------------------------------------------------------
    Deferred charges                                     23,700      138,902
    -------------------------------------------------------------------------
    Goodwill                                         11,170,720    9,119,175
    -------------------------------------------------------------------------
    Future income tax assets                            490,447      343,000
    -------------------------------------------------------------------------
                                                     31,033,322   23,498,733
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities
    Accounts payable and accrued liabilities          3,538,481    3,533,993
    Income taxes payable                                      -      451,519
    Current position of long-term debt                1,325,000      859,040
    -------------------------------------------------------------------------
                                                      4,863,481    4,844,552
    Deferred revenues                                 5,046,313    5,016,591
    -------------------------------------------------------------------------
    Total current liabilities                         9,909,794    9,861,143
    -------------------------------------------------------------------------
    Long-term debt                                    3,536,543    3,197,016
    -------------------------------------------------------------------------
    Future income tax liabilities                     1,179,050      828,925
    -------------------------------------------------------------------------
    Shareholders' equity
    Share capital                                    19,613,754   12,741,024
    Warrants                                            157,272       30,000
    Contributed surplus                               2,973,411    2,785,590
    Deficit                                          (6,336,502)  (5,944,965)
    -------------------------------------------------------------------------
                                                     16,407,935    9,611,649
    -------------------------------------------------------------------------
                                                     31,033,322   23,498,733
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Non-GAAP financial measures

    Earnings before interest, income taxes, depreciation and amortization
(EBITDA) is a measure that has no standardized meaning prescribed by Canadian
GAAP and is considered a non-GAAP measure. Therefore, this measure may not be
comparable to similar measures presented by other issuers. EBITDA excludes
unusual elements presented in the statement of net and comprehensive earnings
and can be used to compare our operating performance on a consistent basis and
are presented in this MD&A to provide the reader with additional information
regarding the Corporation's liquidity and ability to generate funds to finance
its operations. It is not intended to replace financial information prepared
in accordance with GAAP.

    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 information. Statements
based on current management expectations involve inherent risks and
uncertainties, both known and unknown. 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 the release.
    %SEDAR: 00019855EF




For further information:

For further information: André Thompson, 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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