MONTREAL, Aug. 28 /CNW/ - iWeb Group Inc. (TSX-V: IWB) (the "Company" or
"iWeb"), a worldwide Internet hosting infrastructure provider, announced its
results today for the third quarter, which ended on June 30, 2007. The
Company's financial statements and MD&A can be accessed at www.iweb8.com and
Highlights of the third quarter:
- A 70% increase in revenues over the same period in 2006
- Net earnings up 42% over the same period in 2006
- Appointment of three new Vice Presidents and a Corporate Controller,
to ensure effective management of the Company's rapid growth and
maintain its current service levels
- Official TSX Venture Exchange Tier-1 Issuer Status obtained
"As shown by our results, the Company is operating in a sector that is
experiencing high growth and demand for our service offering remains on the
rise," observed Eric Chouinard, President and Chief Executive Officer of iWeb.
"During the third quarter, we built up our management team, implemented
various cost control systems and continued investing in our infrastructure.
The exceptional results posted are proof of our ability to manage this growth
and effectively position ourselves to become a leader in the dedicated server
At the close of the third quarter 2007, the company's consolidated
revenues totaled $2.6M - an increase of $1.1M or 70% over the same period in
2006. This revenue growth can be attributed primarily to a rise in dedicated
Gross margins for the quarter equaled 59.1% of total sales, compared to
54.1% of sales posted in the same period in 2006. This improvement was mostly
due to an increase in sales volume and tight cost controls.
Overhead costs rose from 41% of revenues in the third quarter of 2006 to
47% for the same period this year. This increase was due to a higher level of
business activity related to the Company's growth, particularly a rise in
expenses for advertising that targeted the dedicated server market and
carrying charges for securing additional credit facilities.
Net earnings for the three-month period ended June 30, 2007 stood at
$200,848, compared to $141,936 for the same period in 2006. This increase can
be attributed primarily to the improvement in gross margins.
Earnings before interest, taxes and depreciation and amortization and
share-based compensation (adjusted EBITDA) continued upward, reaching $714,369
versus $422,607 for the same period in 2006 - a result that attests to the
Company's ability to generate increasing and positive cash flows.
Selected Financial Information
Third quarter ending June 30
Revenues $2,613,627 $1,538,969
Cost of services sold $1,068,767 $705,740
Net earnings $200,848 $141,936
Earnings per share $0.085 $0.061
Adjusted EBITDA $714,369 $422,607
Total assets $13,577,118 (*)$7,181,709
Shareholders' equity $1,673,849 (*)$1,244,835
Cash and term deposit $518,428 (*)$484,633
(*) As at September 30, 2006
About iWeb Group
Founded in 1996, iWeb offers a full line of advanced IP hosting services
either through shared hosting, dedicated servers or colocation in its own data
centers featuring 30,000 square feet of floor space and the latest
technological equipment. iWeb provides services in English, French and Spanish
to clients in more than 140 countries. For more information, please visit
www.sedar.com or the Company's website at http://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 release.
For further information:
For further information: Marc Guindon, iWeb Group Inc., Chief Financial
Officer, (514) 286-4242 ext. 121, email@example.com; Danielle Ste-Marie, The Equicom
Group Inc., (514) 844-6064, firstname.lastname@example.org