Mediagrif reports results for its first quarter of fiscal year 2017

First quarter highlights: 

  • Acquisition of Advanced Software Concepts Inc. ("ASC") completed on May 31st, 2016.
  • Revenue up 7.1% to reach $19.0 million.
  • Adjusted EBITDA1 of $7.0 million or 37% of revenue.
  • Profit of $3.7 million ($0.25 per share) compared to $3.4 million ($0.22 per share).
  • Cash flow from operating activities totalled $4.5 million.

Quarterly dividend:

  • Declaration of a quarterly dividend of $0.10 per share payable on October 17, 2016 to shareholders of record on October 3, 2016.

LONGUEUIL, QC, Aug. 3, 2016 /CNW Telbec/ - Mediagrif Interactive Technologies Inc. (TSX: MDF), a Canadian leader in information technology, today announced its financial results for the first quarter of fiscal 2017. Unless indicated otherwise, all amounts are in Canadian dollars.

SUMMARY OF CONSOLIDATED RESULTS

(in thousands of Canadian dollars, except for numbers related to shares – unaudited)


Three months ended
June 30,



2016

 

$

2015

 

$

Revenue



18,966

17,709

Adjusted EBITDA1



6,962

6,478

Operating profit



5,531

5,117

Profit for the period



3,734

3,420

Earnings per share (basic and diluted)



0.25

0.22

Weighted-average number of shares
outstanding basic and diluted (in thousands)



14,999

15,460

____________________


1 See reconciliation of adjusted EBITDA

 

FIRST QUARTER OF FISCAL 2017 ENDED JUNE 30, 2016

For the first quarter of fiscal 2017, revenue increased by 7.1% or $1.3 million to reach $19.0 million when compared to the first quarter of fiscal 2016.

Since its acquisition on May 31st 2016, ASC services were used for an amount of $0.3 million. However, of that amount, only $0.2 million is included in revenues in the quarter due to the adjustment made to recognize the fair value of deferred revenues at the acquisition date.

Adjusted EBITDA totalled $7.0 million or 37% of revenue compared to $6.5 million or also 37% during the first quarter of fiscal 2016. Adjusted EBITDA of the quarter includes professional fees totalling $0.1 million related to the acquisition of ASC.

Profit reached $3.7 million ($0.25 per share) compared to $3.4 million ($0.22 per share) during the first quarter of fiscal 2016.

FINANCIAL POSITION AND FINANCING

During the first quarter of fiscal 2017, cash flows generated by operating activities reached $4.5 million, compared to $4.0 million for the first quarter of fiscal year 2016. The Company used a portion of these funds and funds available on its credit facility to proceed with the acquisition of ASC and also to cover for the acquisitions of capital assets. The Company also paid out $1.5 million in dividends during the first quarter of fiscal 2017.

As at June 30, 2016, the Company had $10.2 million of cash and cash equivalents and $38.8 million available on its revolving credit facility of $80.0 million.

QUARTERLY DIVIDEND

The Board of Directors of Mediagrif declared a quarterly dividend of $0.10 per share payable on October 17, 2016, to shareholders on record on October 3, 2016.

RECONCILIATION OF ADJUSTED EBITDA AND PROFIT

Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization, foreign exchange gain (loss) and other revenue (expenses) as historically calculated by the Company.

(in thousands of Canadian dollars, unaudited)


Three months ended

June 30



2016

 

$

2015

 

$

Profit



3,734

3,420

Income tax expense



1,427

1,395

Depreciation of property, plant and equipment and
amortization of intangible assets



625

463

Amortization of acquired intangible assets



984

894

Amortization of deferred financing costs



10

-

Amortization of deferred lease inducement



(182)

(36)

Foreign exchange loss (gain)



(9)

150

Financial expenses



202

196

Loss (gain) on disposal of property, plant and equipment



171

(4)

Adjusted EBITDA



6,962

6,478

 

About Mediagrif Interactive Technologies Inc.

Mediagrif Interactive Technologies Inc. (TSX: MDF) is a Canadian leader in information technology, owner of several recognized Web and mobile platforms including Jobboom, LesPAC, Réseau Contact, MERX, ASC, InterTrade, Carrus, and BidNet. Mediagrif's e-commerce solutions are used by millions of consumers and businesses in North America and around the world. The Company has offices in Canada, the United States and China. 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, amortization, foreign exchange gain (loss) and other revenue (expenses) ("Adjusted EBITDA") as supplementary earnings measures. Operating profit and adjusted EBITDA 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 expected 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.

Audited consolidated 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.: Claude Roy, President and Chief Executive Officer, Tel.: 450 449-0102 ext. 2004, Toll Free: 1 877 677-9088 ext. 2004, Email: croy@mediagrif.com; Paul Bourque, Chief Financial Officer, Tel.: 450 449-0102, ext: 2135, Toll Free: 1 877 677-9088 ext. 2135, Email: pbourque@mediagrif.com

RELATED LINKS
http://www.mediagrif.com

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