The IT Infrastructure provider continues the consolidation of its growth with an increase in revenue
MONTREAL, May 19 /CNW Telbec/ - iWeb Group Inc. (TSX-V: IWB), a global provider of IT infrastructure and Internet hosting services, announces its financial results for the second quarter ended March 31st, 2010.
- Revenues reached $7.4 M, a 7% year-over-year increase (a 22% increase
at constant exchange rate)
- Adjusted EBITDA of $2.1 M, representing 28.3% of revenue
- Net profit jumped to $389,000, compared to the $246,000 loss reported a
- Operating profit nearly doubled, from $120,000 in 2009, to $234,000 for
the same quarter of 2010
- Operating cash flow of $1.5 M
"iWeb is focused is on the next phase of the company's growth, in which the automation of its fourth Data Center will play an important role. During these important developments, iWeb will pay close attention to the profitability of its operations" said Eric Chouinard, President and Chairman of the board.
Philip Tousignant, the company's Chief Financial Officer added that "given the moderate pace of the economic recovery, iWeb aims at the optimisation of resources and expenses in order to be ready to meet the anticipated market demand once it returns to normal, as well as ensuring the proper deployment of current projects."
Financial Review: second quarter of 2010
Revenues for the second quarter were up 7% to $7.4M, from $6.9M in the second quarter of 2009. Using the same exchange rates as the previous year, revenues would have been higher than the same quarter of 2009, by 22%.
Adjusted EBITDA reached 28.3% of revenue at $2.1M, a slight improvement over the $1.9M (26.8% of revenue) reported one year earlier.
The Company's net profit reached $389,000 from a loss of $246,000 in the second quarter of 2009, though both results are largely attributable to the unrealized gains and losses on exchange rates linked to iWeb's long term debt in $USD.
Key Financial Data (in thousands of dollars, except per share amounts)
Second quarter ended
Revenues $7,419 $6,933
Operating Profit $234 $120
Net Earnings (loss) $389 $(246)
Earnings (loss) per share - basic $0.0138 $(0.0088)
Adjusted EBITDA(1) $2,100 $1,855
Adjusted EBITDA /revenue 28.3% 26.8%
Cash flow from operations $1,520 $1,339
As at As at
March 31, September 30,
Total assets $36,898 $32,990
Long term debt, including derivatives $19,990 $17,524
Shareholder's equity $7,116 $6,365
Cash and term deposits $4,441 $2,215
1- The Company defines Adjusted EBITDA as Earnings before interest
expenses, income taxes, depreciation and amortization, stock-based
compensation, unrealized exchange gain/loss and straight-line
amortization of rental expense.
The complete interim financial statements and Management Discussion and Analysis (MD&A) of the company are available at www.sedar.com and investors.iweb.com.
About iWeb Group Inc. (iWeb.com)
iWeb.com is a worldwide provider of Internet hosting services and IT Infrastructure. With the opening of its fourth secured data center in Montreal, iWeb's capacity will near 35,000 dedicated servers. Since 2004, the company's compounded annual growth rate has been above 75%, making it one of Canada's 100 fastest growing companies according to PROFIT Magazine.
Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 170 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to close to 22,000 customers in 150 countries. iWeb's shares are listed on the TSX Venture Exchange (TSX-V: IWB); for more information please consult: http://investors.iweb.com
Caution concerning forward-looking statements: This news release may contain 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.
SOURCE iWeb Group Inc.
For further information: For further information: Philip Tousignant, iWeb Group Inc., Chief Financial Officer, (514) 286-4242, extension 2149, firstname.lastname@example.org; Bernard Dahl, Presentis, Investor Relations/Media Relations, (514) 802-2801, email@example.com