- Revenues of $47.9 million compared to $47.7 million in the previous
- Loss of $1.3 million or ($0.09) per share compared to net earnings of
$2.0 million or $0.12 per share in the previous year due to severance
expenses of $4.3 million and impairment expenses on long-lived assets
of $6.6 million
- Cash position maintained at $27.7 million compared to $27.8 million in
the previous year
LONGUEUIL, QC, June 9 /CNW Telbec/ - Mediagrif Interactive Technologies
Inc. (TSX: MDF), a world-leading operator of e-commerce solutions, today
announced its financial results for the fiscal year ended March 31, 2009. All
dollar figures in the present document are in Canadian dollars, unless
Revenues for the year ended March 31, 2009 increased in comparison to
last year, from $47.7 million to $47.9 million.
For the year ended March 31, 2009, total operating expenses increased to
$44.6 million compared to $34.9 million for the previous year due to severance
expenses of $4.1 million, impairment of intangible assets of $3.6 million and
write-off of capitalized software of $3.0 million. As a result, loss from
operations amounted to $7.8 million as compared to earnings from operations of
$2.8 million for the previous year.
Net loss and basic loss per share amounted to $1.3 million or $0.09 per
share as compared to net earnings and basic earnings per share of $2.0 million
or $0.12 per share for the previous year.
KEY OPERATING HIGHLIGHTS OF FY2009:
On December 15, 2008, the Board of Directors appointed Mr. Claude Roy as
Chairman of the Board and Chief Executive Officer and appointed new members in
replacement of departing Board members. Following these changes, the newly
appointed Board and Chief Executive Officer conducted a strategic and
operational review of Mediagrif's business activities in order to address the
challenging economic conditions and set a solid foundation for profitability
and future growth. As a result, in the fourth quarter of 2009, initiatives
were taken to reestablish positive operational margins in Mediagrif's business
networks through headcount adjustments, office closures, employee relocation
and management changes, in order to reduce operating costs, streamline our
operation and simplify the reporting structure.
Our international operations were scaled back with the sale of our Indian
operations held through Centerac DMCC (the operator of Yarnsandfibers.com) to
our co-shareholder on March 23, 2009, and the start of the liquidation process
of our Dubai joint venture held through Polygon DMCC and its subsidiaries on
March 16, 2009.
KEY FINANCIAL HIGHLIGHTS OF FY2009:
Revenues for the year reached $47.9 million as compared to $47.7 million
in the corresponding period of last year. These include revenues of the Market
Velocity Inc. ("MVI") and epipeline Inc. ("EPI") acquisitions from which only
a partial year was included in 2008. Most of Mediagrif's <a href="http://www.mediagrif.com">e-business networks</a>
experienced good organic growth, especially BidNet, MERX, Carrus and Global
Wine & Spirits. Such growth was offset by a decrease in The Broker Forum and
Polygon, due to lower memberships as well as a decrease in Power Source
On-Line caused by lower average revenue per member. The foreign exchange
fluctuation negatively impacted the revenues by $0.3 million. On a constant
currency basis, total revenues increased by $0.5 million compared to the
Gross margin as a percentage of revenue was at 76.8% during the year
ended March 31, 2009, compared to 79.0% for the previous year. The decrease is
partly explained by severance expenses of $0.2 million.
Total operating expenses for the year increased to $44.6 million compared
to $34.9 million for the previous year. General and administrative expenses
increased to $16.3 million compared to $12.7 million in the previous year
mainly due to severance expenses of $3.2 million and the write-off of
capitalized acquisition costs for an unrealized acquisition of $0.4 million.
Sales and marketing expenses increased to $11.2 million compared to $10.7
million last year due to severance expenses of $0.4 million and higher bad
debts. Technology expenses decreased from $9.2 million last year to $8.3
million this year due to severance expenses of $0.5 million offset by lower
salaries and lower amortization of capitalized software.
Certain projects related to internally developed software were abandoned,
resulting in a $3.0 million write-off and an impairment test was conducted on
acquired intangible assets, resulting in a $3.6 million write-off.
Centerac DMCC was sold to our co-shareholder as of March 23, 2009 and a
loss of $0.2 million was recognized.
As a result, loss from operations for the year ended March 31, 2009
reached $7.8 million as compared to earnings from operations of $2.8 million
last year, due to severance payments and impairment of long-lived assets.
Diluted loss per share amounted to $0.09 for the current year compared to
diluted earnings per share of $0.12 for the previous year.
As of March 31, 2009, our cash and cash equivalents reached $27.7
million, a decrease from $27.8 million as of March 31, 2008. Free cash flow,
defined as cash flow from operating activities less capital expenditure, was
$2.1 million during the current fiscal year, as compared to $1.3 million for
the previous year.
On March 3, 2009, 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, 2009 up to 700,865 common shares.
About Mediagrif Interactive Technologies Inc.
<a href="http://www.mediagrif.com">Mediagrif Interactive Technologies</a> Inc. (TSX: MDF) is a world-leading
operator of e-commerce 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 <a href="http://www.brokerforum.com">The Broker Forum</a>, <a href="http://www.powersourceonline.com">Power
Source On-Line</a>, <a href="http://www.telecomfinders.com">Telecom Finders</a>, <a href="http://www.globalwinespirits.com">Global Wine & Spirits</a> and <a href="http://www.polygon.net">Polygon</a>. Mediagrif
also owns <a href="http://www.merx.com">MERX</a>, the exclusive provider of e-publishing services to the
Government of Canada, and is a leading provider of <a href="http://www.governmentbids.com">government bid</a> aggregation
services and e-procurement services in the U.S. Headquartered in Longueuil,
Mediagrif has several offices in North America and Asia. 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.
For further information:
Audited financial statements, accompanying notes and MD&A are available
on www.mediagrif.com and have been filed with SEDAR.
For further information:
For further information: Contact persons at Mediagrif Interactive
Technologies Inc.: Claude Roy, Chief Executive Officer, (450) 677-8797 ext.
2004, Toll Free: 1-877-677-9088 ext. 2004, firstname.lastname@example.org; Suzanne
Mercier, Chief Financial Officer, (450) 677-8797 ext. 2135, Toll Free:
1-877-677-9088 ext. 2135, email@example.com