Third quarter highlights:
Revenues up 11% or $1.5 million to $15.1 million.
EBITDA of $6.2 million up 29%, compared to $4.8 million (before
transaction costs of $1.4 million for the acquisition of LesPAC).
Operating profit of $4.9 million compared to $2.3 million.
Profit of $3.5 million ($0.24 per share), up by $2.5 million.
Full repayment of long-term debt following the private placement of
common shares of $35.0 million.
Increase in quarterly dividend at $0.10 per share:
Increase of 11% of quarterly dividend from $0.09 to $0.10 per share.
LONGUEUIL, QC, Feb. 12, 2013 /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 2013 ended December 31, 2012. Unless indicated otherwise, all
amounts are in Canadian dollars.
SUMMARY OF CONSOLIDATED RESULTS
Three months ended
Nine months ended
(in thousands of Canadian dollars, except for numbers related to shares
Profit for the period
Earnings per share
- Basic & Diluted
Weighted average number of share outstanding (in thousands)
The results for the three- and nine-month periods ended December 31,
2012 include a non-recurring expense of $1.4 million related to the
acquisition of LesPAC.
The income analysis summary takes into consideration the impact of the
acquisition of LesPAC network ("LesPAC") completed on November 14,
RESULTS FOR THE THIRD QUARTER OF FISCAL 2013
For the third quarter of fiscal 2013, revenues totaled $15.1 million, an
increase of 11.1% or $1.5 million compared to the third quarter of
fiscal 2012 revenues of $13.6 million.
The revenue increase is mainly explained by the increase in revenues
from LesPAC for $1.9 million, partly offset by a decrease in revenues,
in original currencies, in certain subsidiaries, amounting to a net
amount of $0.2 million. Moreover, the changes in the value of the
Canadian dollar compared to the U.S. dollar, combined with currency
hedges in place, generated a negative impact on revenues of
$0.1 million during the third quarter of fiscal 2013.
Total operating expenses of the third quarter of fiscal 2013, including
cost of revenues, reached $10.2 million, compared to $11.4 million for
the third quarter of fiscal 2012. The decrease in operating expenses is
mainly due to the $1.4 million transaction costs related to the
acquisition of LesPAC incurred during the third quarter of fiscal 2012
while LesPAC activities added $1.0 million in operating expenses during
the third quarter of fiscal 2013. Additional tax credits of
$0.2 million were also recorded in the third quarter of fiscal 2013.
EBITDA totaled $6.2 million or 40.8% of revenues compared to
$3.4 million or 24.6% of revenues during the third quarter of fiscal
Profit reached $3.5 million ($0.24 per share), compared to $1.0 million
($0.07 per share) recorded during the third quarter of fiscal 2012.
RESULTS FOR THE FIRST NINE MONTHS OF FISCAL 2013
For the first nine months of fiscal 2013, revenues totaled
$46.2 million, an increase of 18.6% or $7.2 million, when compared to
the first nine months of fiscal 2012 revenues of $39.0 million.
The increase is mainly explained by the increase in revenues from LesPAC
by $8.6 million, partly offset by a decrease in revenues, in original
currencies, in certain subsidiaries, amounting to a net amount of
$0.8 million. Moreover, the changes in the value of the Canadian dollar
compared to the U.S. dollar, combined with currency hedge in place,
generated a negative impact on revenues of $0.3 million during the
first nine months of fiscal 2013.
Total operating expenses of the first nine months of fiscal 2013,
including cost of revenues, reached $31.2 million, compared to
$29.8 million for the first nine months of fiscal 2012. The increase in
operating expenses is mainly due to the increase in LesPAC activities
for $4.8 million during the first nine months of fiscal 2013 partly
offset by a decrease in professional fees (including the $1.4 million
transaction costs related to LesPAC), lower salary expenses and
additional tax credits.
EBITDA totaled $18.8 million or 40.7% of revenues compared to
$11.8 million or 30.3% of revenues during the first nine months of
Profit reached $10.5 million ($0.75 per share), compared to $6.9 million
($0.50 per share) recorded during the first nine months of fiscal 2012.
CASH FLOW AND FINANCIAL POSITION
On December 6, 2012, the Company completed the sale, by way of a private
placement, of 2 million common shares for gross proceeds of
$35.0 million. The Company used the proceeds to repay in full the term
loan and revolving credit facility.
As at December 31, 2012, the Company had $9.3 million of cash and cash
equivalents and $60.0 million available on its unused revolving credit
Operating activities generated $4.9 million of cash flows during the
third quarter of fiscal 2013 compared to $5.4 million for the
corresponding period of fiscal 2012.
During the first nine months of fiscal 2013, operating activities
generated $12.9 million of cash flows compared to $9.2 million for the
first nine months of fiscal 2012.
QUARTERLY DIVIDEND INCREASED TO $0.10 PER SHARE
The Board of Directors of Mediagrif approved a 11% dividend increase in
the quarterly dividend of $0.09 per share and declared a quarterly
dividend of $0.10 per share. The dividend is payable on April 15, 2013,
to shareholders of record on April 2, 2013.
We have been informed by our client, Public Works and Government
Services of Canada ("PWGSC"), that it will not call for tenders in
order to replace the MERX solution. The department uses MERX's
electronic tendering system pursuant to a contract which expires May
PWGSC plans to provide its suppliers with a solution developed
internally. Suppliers of PWGSC, as well as those of other departments
and governmental agencies, may continue to benefit from all the value
added services of MERX.
The Company believes that the loss of a portion of the revenue from the
expiration of this agreement will be compensated, among other things
Providing the services of MERX to all suppliers and other departments
and agencies that are currently using MERX.
The increase activity generated by the use of MERX by our public and
private sector clients in Canada.
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 and spirits, diamonds
and jewelry, classified ads, supply chain collaboration 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 profit measures 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 property, plant and equipment 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.
Unless otherwise indicated, all amounts are in Canadian dollars.
Unaudited condensed consolidated 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 InteractiveTechnologies Inc.
President and Chief Executive Officer
Tel.: 450-449-0102 ext. 2004
Toll Free: 1 877 677-9088 ext. 2004
Chief Financial Officer
Tel.: 450-449-0102, ext: 2135
Toll Free: 1 877 677-9088 ext. 2135