- Revenues of $47.7 million compared to $46.0 million in the previous
- Net earnings of $2.0 million compared to $5.1 million in the previous
- EPS of $0.12 compared to $0.29 in the previous year
Note: Audited fiscal 2008 MD&A, financial statements and accompanying
notes are available on www.mediagrif.com and have been filed with SEDAR.
All dollar figures are in Canadian dollars, unless otherwise specified.
LONGUEUIL, QC, June 10 /CNW Telbec/ - Mediagrif Interactive Technologies
Inc. (TSX: MDF), a world-leading developer of e-business networks and provider
of complete e-business solutions, today announced its financial results for
the fiscal year ended March 31, 2008.
Revenues for the year amounted to $47.7 million, as compared to
$46.0 million in the previous year. Excluding the impact on revenues of the
Market Velocity ("MVI") and epipeline ("EPI") acquisitions, total revenues
decreased from $46.0 million to $44.8 million for the year ended March 31,
2008. The foreign exchange variation is the main factor offsetting the organic
growth and the impact of acquisitions, with a negative impact on the revenues
of $2.6 million.
Operating expenses increased to $34.9 million during the year from
$30.8 million in the previous year mainly due to the MVI and EPI acquisitions
and higher sales & marketing expenses. As a result of such increase in
operating expenses and negative impact of foreign exchange variations,
earnings from operations amounted to $2.8 million as compared to $6.7 million
for the previous year. Net earnings and basic earnings per share for the year
amounted to $2.0 million or $0.12 per share, as compared to $5.1 million or
$0.29 per share for the previous year.
"Fiscal 2008 has been a year of realignment of strategies and
implementation of our new corporate and management structures aimed at
increasing our overall performance and efficiency. We concluded the year with
a good performance in most of our networks. Two networks that underperformed
this year finished the year on a positive note. Power Source On-Line is
regaining momentum following the implementation of an enriched offering and
Carrus is entering into a strategic partnership that will reopen and enhance
its sales opportunities," commented Denis Gadbois, President and Chief
Executive Officer of Mediagrif.
"However, the changing competitive and economic environments and the
steady rise of the Canadian dollar continued to impact our financial
performance. To offset these negative factors, we have concluded, throughout
the year, several acquisitions and partnerships that enabled us to further
enrich our service offering and increase our market penetration in targeted
sectors. We also lowered our operating expenses through the reduction of
headcount and further increased cost controls. We expect those decisions to
have positive results on our overall performance in fiscal 2009," concluded
KEY OPERATING HIGHLIGHTS OF FY2008:
On April 17, 2007, we acquired the customer base of Telephone
International ("TI"), an advertising and listing publication focused on the
telecom industry for a purchase price and other acquisition costs of
approximately US$168,000 (CA$190,000). Telephone International was integrated
into the Power Source On-Line ("PSO") network. This acquisition is part of our
strategy to increase the value of our offering to our PSO members.
On July 11, 2007, the Company purchased Market Velocity Inc. ("MVI"), a
leading service and technology provider for equipment trade-in, recycle, and
donation programs in the U.S. MVI is well respected for its expertise in
developing compelling solutions for the trade-in market and strategically
complements our Parts Exchange networks. It offers added value to our current
customers by giving them access to top-tier manufacturers, and brings the
largest pool of aftermarket remarketers to existing MVI clients. The
acquisition of MVI solidifies our position as one of the predominant players
and accelerates the expansion of our Parts Exchange networks throughout North
America. It also extends Mediagrif's reach in penetrating the end-consumer
market segment. The total purchase price and other acquisition costs was
approximately US$5.4 million (CA$5.7 million).
On August 6, 2007, MERX announced the execution of an agreement with
McGraw-Hill Construction, the premier provider of construction information and
intelligence in North America and part of The McGraw-Hill Companies (NYSE:
MHP) to collaborate on expanding information offerings to the construction and
building products industry in Canada and the U.S. MERX and McGraw-Hill
Construction work together on the publishing of construction project data to
provide additional value to both the Building Products Manufacturers and
On September 10, 2007, the Company purchased epipeline Inc. ("EPI"), a
leading online source of research for U.S. government contractors. EPI is also
recognized for providing advanced research services in the industry, which is
a solid asset for our e-Publishing networks as it enables us to offer
increased value and continue to consolidate our leading position as the
provider of complete and efficient source of government business opportunities
in North America. The total purchase price and other acquisition costs were
approximately US$3.8 million (CA$4.0 million), which included the repurchase
of long-term notes and other liabilities for approximately US$1.8 million
On September 25, 2007, the Company announced the purchase for
cancellation of 2,873,563 common shares at a price of $8.70 per share, for a
total cost of approximately $25.3 million, including related costs, as part of
a substantial issuer bid. The Board of Directors of Mediagrif had determined
that the purchase of common shares pursuant to this issuer bid represented an
effective use of Mediagrif's financial resources and was in the best interests
of its shareholders.
During the current fiscal year, the Company implemented a new corporate
structure announced in February 2007 and proceeded with major changes in its
top management. Moreover, in March 2008, the Company announced a significant
decrease of operating expenses through the reduction of headcount by
approximately 15%, the implementation of increased cost controls and the
transfer of resources in lower cost environments.
KEY FINANCIAL HIGHLIGHTS FY2008:
Revenues for the year reached $47.7 million as compared to $46.0 million
in the corresponding period of last year. The foreign exchange variation
remains the main factor offsetting the organic growth with a negative impact
on the revenues of $2.6 million. In spite of annual organic growth recorded by
BidNet, MERX, Telecom Finders and Global Wine & Spirits, revenues were
partially offset by a decrease in Power Source On-Line, caused by net
additional members generating lower average revenue and by Carrus Technologies
who faced a market slowdown due to a tendering process by one of our partners.
Revenues from our US e-Publishing networks, on a constant currency basis and
excluding the contribution of recent acquisitions of CBI and EPI, grew by
For the fiscal year ended March 31, 2008, total operating expenses
amounted to 34.9 million as compared to $30.8 million for the previous year.
General and administrative charges increased from $12.3 million to
$12.7 million, mainly due to the impact of acquisitions. Sales and marketing
expenses increased from $8.5 million last year to $10.7 million for the twelve
months ended March 31, 2008. This increase is attributable to the
acquisitions, the increased headcount in several business units in sales and
marketing positions, and intensified marketing efforts. Technology expenses
increased from $8.2 million to $9.2 million, due to a higher amortization of
internally developed software and Web sites, and the acquisition of MVI and
EPI. This increase is slightly offset by higher New Economy and R&D credits.
As a result, earnings from operations amounted to $2.8 million for the
year ended March 31, 2008 as compared to $6.7 million last year, due to higher
operating expenses and the negative impact of foreign exchange variations.
Diluted earnings per share amounted to $0.12 for the current year as compared
to $0.28 for the last year.
As of March 31, 2008, our cash and cash equivalents, including cash held
for the benefit of others, reached $28.3 million, an increase from
$26.6 million as of December 31, 2007 and also from $11.2 million as of March
31, 2007. As of March 31, 2008, we had no short-term investments as compared
to $53.1 million as of March 31, 2007. Free cash flow, defined as cash flow
from operating activities less capital expenditures, was $1.1 million during
the current fiscal year, as compared to $9.1 million for the previous year,
the variation mainly explained by the variation of earnings and changes in
non-cash working-capital items.
On March 3, 2008, the Company announced the renewal of a normal course
issuer bid whereby it is authorized to purchase for cancellation for the
twelve-month period starting March 5, 2008 up to 598,465 common shares. As of
March 31, 2008, no common shares had been repurchased for cancellation.
Management's Discussion and Analysis of annual financial results, along
with detailed financial results, can be accessed on the Corporation's Web site
A live Web cast of Mediagrif's fiscal 2008 annual financial results
conference call can be heard at 10:00 am EST Wednesday, June 11, at the
Please note that the Webcast will be available until August 10, 2008 at
the above link.
To participate to the conference call:
Local call-in number: (514) 861-1531
Toll-free call-in number: 1 866 223-7781
The conference call will also be available for listening until June 17,
2008 at the following number:
1 800 408-3053, access code 3262713#.
About Mediagrif Interactive Technologies Inc.
Mediagrif Interactive Technologies Inc. (TSX: MDF) is a world-leading
operator of e-business networks and provider of complete e-business solutions.
Mediagrif's e-business networks allow buyers and sellers within specific
industries to source, purchase or sell products and to exchange documents more
efficiently using the Internet. Mediagrif operates 15 networks, including
industry leaders www.brokerforum.com, www.powersourceonline.com,
www.telecomfinders.com, www.globalwinespirits.com and www.polygon.net.
Mediagrif also owns MERX, www.merx.com, the exclusive provider of e-publishing
services to the Government of Canada, and is a leading provider of government
bid aggregation services and e-procurement services in the U.S. Headquartered
in Longueuil, Mediagrif has various offices in Canada, the U.S, China, India
and Dubai. For more information, please visit us at www.mediagrif.com or call
1 877 677-9088.
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.
For further information:
For further information: Mediagrif Interactive Technologies Inc.:
Catherine Allard, Chief Financial Officer, (450) 677-8797 ext. 2133,
firstname.lastname@example.org; Kathy Roberge, Director, Communications, (450) 677-8797
ext. 3014, email@example.com