iMarketing Solutions Group Inc. reports results for the three and six months ended June 30, 2011
(in thousands of Canadian dollars except per share data)
3 Months Ended June 30, 2012 |
3 Months Ended June 30, 2011 |
6 Months Ended June 30, 2012 |
6 Months Ended June 30, 2011 |
|
Revenue | 18,863 | 22,523 | 39,152 | 45,522 |
Net Earnings/(Loss) | (1,374) | 831 | (2,049) | 1,372 |
EBITDA | (751) | 1,743 | (1,265) | 3,183 |
EPS (Basic and fully diluted) | (0.04) | 0.03 | (0.06) | 0.04 |
EPS (Fully diluted) | (0.04) | 0.03 | (0.06) | 0.04 |
CALGARY, Aug. 30, 2012 /CNW/ - iMarketing Solutions Group Inc. (TSX Venture Exchange: XDM) a North American relationship marketing company, today reported its financial results for the three and six months ended June 30, 2012.
Net loss for the three months ended June 30, 2012 amounted to 1,374 or a loss of $0.04 per share on a fully diluted basis. This compares to the net earnings for the three months ended June 30, 2011 of 831 or net earnings of $0.03 per share on a fully diluted basis.
EBITDA for the three months ended June 30, 2012 amounted to (751). This compares to EBITDA for the three months ended June 30, 2011 of 1,743.
Net loss for the six months ended June 30, 2012 amounted to 2,049 or a loss of $0.06 per share on a fully diluted basis. This compares to the net earnings for the six months ended June 30, 2011 of 1,372 or net earnings of $0.04 per share on a fully diluted basis.
EBITDA for the six months ended June 30, 2012 amounted to (1,265). This compares to EBITDA for the six months ended June 30, 2011 of 3,183.
The Company's complete unaudited condensed interim consolidated financial statements have been filed and are available on SEDAR.
The Company is in the process of a complete restructuring, rationalization and technology upgrade during which time there will be significant transformation of the Company operations. Until that process is complete later this year it will be necessary to maintain parallel information technology platforms together with the associated duplication of costs. The company has recorded a one-time charge in the second quarter of 2012 totaling 218 consisting of employee severance related expenses arising from the closure of the Company's Calgary facility.
As a result of the cost of continuing restructuring efforts and a decline in business results, Management has determined that the Company will require additional financing in order to complete the implementation of its restructuring plans and return the company to profitability. Management is substantially advanced on a plan to finance future funding requirements.
iMarketing Solutions Group Inc. is one of North America's leading relationship-marketing concerns in the non-profit and political sectors. The Company's success is attributable to proprietary sales tools including technologically advanced teleservices and sophisticated customer databases.
Certain statements in this press release may constitute "forward looking statements" reflecting our current beliefs, plans, estimates and expectations. These forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or the combined companies to be materially different from any performance or achievement expressed or implied by such "forward looking statements". Except as required by applicable securities laws, we undertake no obligation to update any forward looking statements for any reason after the date hereof to conform these statements to actual results or to changes in our expectations.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
iMarketing Solutions Group Inc. Unaudited Condensed Interim Consolidated Statements of Financial Position (In thousands of Canadian dollars) |
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As at | June 30, 2012 |
December 31, 2011 |
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Assets | |||||
Current assets | |||||
Cash | $ | - | $ | 448 | |
Trade and other receivables | 6,682 | 7,742 | |||
Prepaid expenses and other current assets | 779 | 1,110 | |||
Total current assets | 7,461 | 9,300 | |||
Equipment | 3,653 | 4,020 | |||
Intangible assets | 1,978 | 2,111 | |||
Deferred income taxes | 294 | - | |||
Total assets | $ | 13,386 | $ | 15,431 | |
Liabilities | |||||
Current liabilities | |||||
Bank indebtedness | $ | 1,497 | $ | 498 | |
Trade and other payables | 5,352 | 6,331 | |||
Other provisions | 103 | 153 | |||
Deferred revenue | 424 | 268 | |||
Accrued restructuring charges | 544 | 543 | |||
Bank loans | 78 | 144 | |||
Total current liabilities | 7,998 | 7,937 | |||
Deferred tenant inducement | 18 | 56 | |||
Accrued restructuring charges - non-current | 359 | 352 | |||
Deferred income taxes | 1,275 | 1,275 | |||
Finance lease obligation | 24 | 31 | |||
Total liabilities | 9,674 | 9,651 |
As at | June 30, 2012 |
December 31, 2011 |
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Shareholders' equity | |||||
Share capital | 10,791 | 10,791 | |||
Contributed surplus | 678 | 678 | |||
Accumulated other comprehensive loss | (4,377) | (4,358) | |||
Deficit | (3,380) | (1,331) | |||
Total shareholders' equity | 3,712 | 5,780 | |||
Total liabilities and shareholders' equity | $ | 13,386 | $ | 15,431 |
iMarketing Solutions Group Inc. Consolidated Statements of Operations Unaudited (In thousands of Canadian dollars, except per share amounts) |
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Three months ended | Six months ended | ||||||||
For the periods ended June 30 | 2012 | 2011 | 2012 | 2011 | |||||
Note 3 | Note 3 | ||||||||
Revenue | $ | 18,863 | $ | 22,523 | $ | 39,152 | $ | 45,522 | |
Cost of revenue | 12,960 | 14,174 | 27,005 | 28,893 | |||||
Gross margin | 5,903 | 8,349 | 12,147 | 16,629 | |||||
Operating expenses | |||||||||
Branch overhead and corporate administration | 6,654 | 6,606 | 13,412 | 13,446 | |||||
Depreciation of equipment | 338 | 400 | 711 | 725 | |||||
Amortization of intangible assets | 67 | 97 | 133 | 212 | |||||
Total operating expenses | 7,059 | 7,103 | 14,256 | 14,383 | |||||
Operating earnings | (1,156) | 1,246 | (2,109) | 2,246 | |||||
Non-operating income (expense) | |||||||||
Restructuring charges | (218) | - | (218) | - | |||||
Interest expense | (7) | (18) | (23) | (46) | |||||
Total non-operating income (expense) | (225) | (18) | (241) | (46) | |||||
Earnings/(loss) before income taxes | (1,381) | 1,228 | (2,350) | 2,200 | |||||
Income tax expense | |||||||||
Current income tax expense | 7 | 7 | |||||||
Deferred income tax expense | - | 397 | 294 | 828 | |||||
Total income tax expense | 7 | 396 | 301 | 828 | |||||
Net earnings/(loss) for the period | $ | (1,374) | $ | 831 | $ | (2,049) | $ | 1,372 | |
Basic earnings per share | $ | (0.04) | $ | 0.03 | $ | (0.06) | $ | 0.04 | |
Diluted earnings per share | $ | (0.04) | $ | 0.03 | $ | (0.06) | $ | 0.04 | |
Basic weighted average number of shares outstanding | 32,206 | 32,323 | 32,206 | 32,345 | |||||
Diluted weighted average number of shares outstanding | 32,206 | 32,509 | 32,206 | 32,542 |
iMarketing Solutions Group Inc. Consolidated Statements of Comprehensive Income (Loss) Unaudited (In thousands of Canadian dollars, except per share amounts) |
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Three months ended | Six months ended | |||||||||
For the periods ended June 30 | 2012 | 2011 | 2012 | 2011 | ||||||
Net earnings/(loss) for the period | $ | (1,374) | $ | 831 | $ | (2,049) | $ | 1,372 | ||
Foreign currency translation adjustment from self-sustaining foreign operations | (22) | 20 | (19) | (195) | ||||||
Comprehensive income for the period | $ | (1,396) | $ | 851 | $ | (2,068) | $ | 1,17 |
iMarketing Solutions Group Inc. Consolidated Statements of Changes in Equity Unaudited (In thousands of Canadian dollars, except per share amounts) |
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note | Three months ended | Six months ended | |||||||
For the periods ended June 30 | 2012 | 2011 | 2012 | 2011 | |||||
Share capital | |||||||||
Balance, beginning of period | $ | 10,791 | $ | 10,902 | $ | 10,791 | $ | 10,902 | |
Repurchase and cancellation of shares | - | (53) | - | (53) | |||||
Balance, end of period | $ | 10,791 | $ | 10,849 | $ | 10,791 | $ | 10,849 | |
Contributed surplus | |||||||||
Balance, beginning of period | $ | 678 | $ | 664 | $ | 678 | $ | 664 | |
Discount from book value on share repurchase | - | 5 | - | 5 | |||||
Balance, end of period | $ | 678 | $ | 669 | $ | 678 | $ | 669 | |
Accumulated other comprehensive loss | |||||||||
Balance, beginning of period | $ | (4,355) | $ | (4,456) | $ | (4,358) | $ | (4,241) | |
Foreign currency translation change | (22) | 20 | (19) | (195) | |||||
Balance, end of period | $ | (4,377) | $ | (4,436) | $ | (4,377) | $ | (4,436) | |
Retained earnings | |||||||||
Balance, beginning of period as previously reported | $ | (1,506) | $ | 5,048 | $ | (831) | $ | 4,460 | |
Prior period adjustment | (500) | (309) | (500) | (262) | |||||
Balance, beginning of period as restated | 2,006 | 4,739 | (1,331) | 4,198 | |||||
Net earnings for the period - as previously reported | (1,374) | 878 | (2,049) | 1,466 | |||||
Prior period adjustment | - | (47) | - | (94) | |||||
Net earnings for the period - as restated | 1,374 | 831 | (2,049) | 1,372 | |||||
Balance, end of period | $ | (3,380) | $ | 5,570 | $ | (3,380) | $ | 5,570 |
iMarketing Solutions Group Inc. Consolidated Statements of Cash Flows Unaudited (In thousands of Canadian dollars, except per share amounts) |
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Three months ended | Six months ended | ||||||||
For the periods ended June 30 | 2012 | 2011 | 2012 | 2011 | |||||
Cash flow from (used in) operating activities | |||||||||
Net earnings/(loss) for the period | $ | (1,374) | $ | 831 | $ | (2,049) | $ | 1,372 | |
Items not affecting cash: | |||||||||
Depreciation of equipment | 338 | 400 | 711 | 725 | |||||
Amortization of intangible assets | 67 | 97 | 133 | 212 | |||||
Adjustment for non-cash tenant inducement rent credit | (19) | (21) | (38) | (42) | |||||
Deferred income tax expense | - | 397 | (294) | 833 | |||||
(988) | 1,704 | (1,537) | 3,100 | ||||||
Non-cash working capital | |||||||||
Accounts receivable | 651 | 2,534 | 760 | (912) | |||||
Prepaid expenses and other current assets | 18 | 300 | 331 | (498) | |||||
Accounts payable and accrued liabilities | (527) | (2,921) | (694) | (1,3722) | |||||
Deferred revenue | 264 | 219 | 156 | 435 | |||||
Change in non-cash working capital items | 406 | 132 | 553 | (2,347) | |||||
Cash flow from operating activities | (582) | 1,836 | (984) | 753 | |||||
Cash flow from (used in) financing activities | |||||||||
Increase (decrease) in bank indebtedness | 960 | (1,452) | 999 | (232) | |||||
Long term debt repaid | (33) | (83) | (66) | (167) | |||||
(Repayments to) advances from related parties | - | (200) | - | (400) | |||||
Repurchase of share capital | - | (47) | - | (47) | |||||
(Repayment of) advances under finance lease obligation | (3) | 35 | (7) | 35 | |||||
Cash flow from (used in) financing activities | 924 | (1,747) | 927 | (811) |
iMarketing Solutions Group Inc. Consolidated Statements of Cash Flows Unaudited (In thousands of Canadian dollars, except per share amounts) |
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Three months ended | Six months ended | ||||||||
For the periods ended June 30 | 2012 | 2011 | 2012 | 2011 | |||||
Cash flow from (used in) investing activities | |||||||||
Investment in equipment | (320) | (443) | (356) | (1,974) | |||||
Cash flow from (used in) investing activities | (320) | (443) | (356) | (1,974) | |||||
Effect of exchange rate fluctuations on cash and cash equivalents | (22) | 3 | (34) | (31) | |||||
Net increase (decrease) in cash and cash equivalents | - | (351) | (448) | (2,063) | |||||
Cash and cash equivalents, beginning of period | - | 610 | 448 | 2,322 | |||||
Cash and cash equivalents, end of period | $ | - | $ | 259 | $ | - | $ | 259 | |
Supplemental information | |||||||||
Cash payments (receipts) | |||||||||
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- | 19 | - | 33 | |||||
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7 | 18 | 23 | 46 |
SOURCE: iMarketing Solutions Group Inc.
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