MONTREAL, Feb. 12 /CNW/ - iWeb Group Inc. (TSX-V: IWB) ("iWeb" or the
"Company"), a worldwide internet hosting infrastructure provider, announces
its financial results for the three-month period ended December 31, 2007. All
results are reported in Canadian dollars unless otherwise stated.
- Revenue of $3.2 million, a 62% increase in revenues compared to first
quarter of previous fiscal year
- Adjusted EBITDA(1) of $0.8 million, a 65% increase over the first
quarter of fiscal 2007
- Closing of a 3.3 million of shares public offering with gross
proceeds of $4.1 million
- Beginning of installation work of the Nuns' Island premises for a new
co-location data center
"Our steady growth in revenues and adjusted EBITDA continued in this
quarter" explained Marc Guindon, Vice-President and Chief Financial Officer of
iWeb. "We are currently working to keep that growth level, with the completion
of phase three of our second data center of dedicated servers. In addition,
with the addition of the coming installation of Nuns' Island, we will increase
our revenue source in the co-location services. Proceeds received from the
November public offering will help in financing a portion of the current work.
We are currently in discussions in order to obtain additional financing to
complete the necessary investments required to keep our growth level."
First Quarter of 2008 Financial Review
For the first quarter of 2008, consolidated revenues increased
$1.2 million or 62% to $3.2 million compared to the same quarter of last year.
This revenue growth can be attributed primarily to a steady rise in dedicated
Gross profit margin for the first quarter of fiscal 2008 was in line with
last year margin at 54%. The benefits of tight operating cost control were
offset by the decrease in value of the U.S. dollar against the Canadian
dollar, having a negative effect on Company's revenues in the last quarter.
More than 70% of iWeb revenues are generated in U.S. currency.
Total operating expenses for the quarter ended December 31, 2007, were
53% of revenue, compared to 47% for the same three-month period of fiscal
2007. This increase in expenses is attributable to a higher level of
activities resulting from the Company's organic growth, specifically resulting
in higher overhead expenses. In addition, increase in stock-based compensation
expense, resulting from a higher stock price in the last year, impacted the
administration expenses in the last quarter. Financial expenses were also
higher, in line with the additional financing facilities obtained in order to
pay for the additions in iWeb infrastructures.
Adjusted EBITDA increased 65% to $0.8 million, or 25% of revenues, in the
last quarter, compared to $0.5 million, or 24% of revenues, for the
three-month period ended in December of 2006. This is an increase of 65%.
Net earnings were $18,026 or $0,0007 per share compared to $92,995 or
$0.0040 per share one year-ago. As discussed, net earnings for the last
quarter were impacted by a stronger Canadian dollar against the U.S. dollar,
by higher overhead costs in order to support the Company's growing operations,
and by a higher non-deductible share-based compensation expenses which have
also a negative impact on the Company's effective tax rate, increasing it to
42%, from 32% in the first quarter of fiscal 2007.
Selected Financial Information
First quarter ended
Revenues $3,171,784 $1,956,177
Gross profit $1,710,058 $1,049,005
Net earnings $18,026 $92,995
Earnings per share - basic $0,0007 $0,0040
Adjusted EBITDA(1) $790,003 $477,709
Total assets $20,524,505 (*)$14,788,031
Shareholders' equity $5,526,825 (*)$1,957,453
Cash and term deposits $4,060,141 (*)$844,456
(*)As at September 30, 2007
A full set of financial statements and MD&A for iWeb will be available at
www.iweb8.com and at www.sedar.com.
1- The Company defines Adjusted EBITDA as Earnings before interest,
taxes, depreciation and amortization and stock based compensation.
About iWeb Group Inc.
Founded in 1996, iWeb offers a full line of advanced IP hosting services
either through shared hosting, dedicated servers or co-location in three data
centers, featuring over 52,000 square feet of floor space and the latest
technological equipment. iWeb provides services in English, French and Spanish
to clients in more than 130 countries. For more information, please visit
www.sedar.com or the Company's website at www.iweb8.com.
Caution concerning forward-looking statements
This news release contains certain forward-looking statements. These
statements relate to future events or iWeb's future economic performance and
reflect the current assumptions and expectations of management. Certain
unknown factors may affect the events, economic performance and results of
operations. iWeb undertakes no obligation, and does not intend to, update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under applicable law.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this news release.
For further information:
For further information: Marc Guindon, iWeb Group Inc., Vice-President
and Chief Financial Officer, (514) 286-4242 ext. 121, email@example.com; Kristen
Dickson, The Equicom Group Inc., Investor Relations, (416) 815-0700 ext. 273,