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Press release from Marketwire

Solium Capital Inc. Releases 2011 Second Quarter Results

Friday, August 12, 2011

Solium Capital Inc. Releases 2011 Second Quarter Results18:54 EDT Friday, August 12, 2011CALGARY, ALBERTA--(Marketwire - Aug. 12, 2011) - Solium Capital Inc. (TSX:SUM) ("Solium" or the "Company") today announced its financial results for the second quarter and six months ended June 30, 2011. Revenue and net earnings for the second quarter and six months ended June 30, 2011 increased over the comparable periods in the previous year. The addition of the business acquired from Computershare Inc. ("Computershare") in November 2010 positively impacted revenue and earnings from operations for the quarter and six month period. Participant share trading activity levels in the second quarter of 2011 returned to levels similar to those experienced in the second quarter of 2010. The strong participant share trading activity experienced in the first quarter of 2011 contributed to the increased revenue and earnings from operations for the six months ended June 30, 2011. Net earnings per share increased 18% to $0.013 in the second quarter and 76% to $0.067 in the six months ended June 30, 2011 compared to the same period of the previous year.Financial results for the quarter and six months ended June 30, 2011:Three Months Ended June 30,Six Months Ended June 30,2011120101% Change2011120101% ChangeRevenue$11,400,255$5,589,877104%$24,457,134$11,464,412113%Expenses before taxes$10,528,465$4,859,956117%$20,669,905$9,457,747119%Adjusted EBITDA2$2,214,296$841,000163%$6,176,471$2,299,120169%Earnings from operations$1,132,331$700,30062%$4,033,469$2,026,01499%Earnings before taxes$871,790$729,92119%$3,787,229$2,006,66589%Net earnings$546,688$332,45964%$2,806,112$1,192,904135%Net earnings per shareBasic$0.013$0.01118%$0.067$0.03876%Diluted3$0.013$0.01118%$0.067$0.03876%Issued and outstandingCommon shares41,680,91531,159,43334%Diluted444,619,51233,735,40632%Notes:The financial statements for the period ended June 30, 2011 have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The Company adopted IFRS as at January 1, 2011 with a transition date of January 1, 2010. The comparative figures for 2010 have been restated to comply with IFRS and are presented accordingly. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a non-IFRS financial measure which does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. Adjusted EBITDA provides useful information to users as it reflects the net earnings prior to the effect of non-operating expenses such as interest, tax, amortization, and foreign exchange gain or loss. Management uses Adjusted EBITDA in measuring the financial performance of the Company. Management monitors Adjusted EBITDA against budget and past results on a regular basis. The following is a reconciliation of Adjusted EBITDA to net earnings:Three months ended June 30Six months ended June 302011201020112010Adjusted EBITDA2,214,296841,0006,176,4712,299,120Foreign exchange gain (loss)82,41531,119456,500(12,497)Interest expense(342,956)(1,498)(702,740)(6,852)Amortization expense(1,081,965)(140,700)(2,143,002)(273,106)Income tax expense(325,102)(397,462)(981,117)(813,761)Net earnings546,688332,4592,806,1121,192,904Diluted earnings per share is calculated using the treasury stock method. Diluted shares as presented equals issued and outstanding common shares plus outstanding stock options and restricted share units. HIGHLIGHTS OF FINANCIAL PERFORMANCERevenue from Canadian operations was $5.5 million in the second quarter of 2011 (2010: $4.2 million) and $12.1 million in the six months ended June 30, 2011 (2010: $8.5 million), while revenue from U.S. operations was $5.9 million in the second quarter of 2011 (2010: $1.3 million) and $12.4 million in the six months ended June 30, 2011 (2010: $3.0 million). Adjusted EBITDA in Canada was $1.5 million in the second quarter of 2011 (2010: $1.3 million) and $3.9 million in the six months ended June 30, 2011 (2010: $2.7 million), while Adjusted EBITDA in the U.S. was $759,593 in the second quarter of 2011 (2010: loss $475,697) and $2.2 million in the six months ended June 30, 2011 (2010: loss $369,051). Net earnings from Canadian operations were $1.0 million in the second quarter of 2011 (2010: $866,193) and $3.1 million in the six months ended June 30, 2011 (2010: $1.7 million), while net losses from U.S. operations were $469,871 in the second quarter of 2011 (2010: loss $533,734) and $253,336 in the six months ended June 30, 2011 (2010: loss $497,439). The amortization of intangible assets is predominantly attributable to the U.S. operations. Net earnings per share was $0.013 in the second quarter of 2011 (2010: $0.011) and $0.067 in the six month ended June 30, 2011 (2010: $0.038). During the second quarter of 2011, the Company had a net cash inflow of $474,668 (2010: inflow $695,801) and net cash outflow of $486,096 for the six months ended June 30, 2011 (2010: outflow $1.4 million). Cash generated from operations of $1.9 million during the second quarter of 2011 (2010: $633,125) and $5.9 million during the six months ended June 30, 2011 (2010: $1.8 million) was offset mainly by the payments totaling $1.0 million to Computershare in the second quarter of 2011 (2010: $nil) and $2.1 million for the six months ended June 30, 2011 (2010: $nil). Purchases of capital assets of $442,138 in the second quarter of 2011 (2010: $405,180) and $1.2 million in the six months ended June 30, 2011 (2010: $459,741) also offset cash generated from operations. Working capital as at June 30, 2011 was $8.1 million (December 31, 2010: $5.5 million). About Solium Capital Inc.Solium Capital Inc. (TSX:SUM) specializes in technology and services for the administration and execution of equity-based incentive and savings programs for corporations and their employees. Solium's technology platforms, Shareworks, StockVantage and Express Options, are leading online solutions that integrate the management of multiple equity plan types including stock options, share units, share appreciation rights ("SARs"), restricted stock awards, and employee share purchase plans on one comprehensive platform for a client.The Management's Discussion and Analysis and the condensed interim financial statements for the three and six months ended June 30, 2011 referred to herein will be available on SEDAR at www.sedar.com under Solium Capital Inc., or at www.solium.com. FOR FURTHER INFORMATION PLEASE CONTACT: Jeff EnglishSolium Capital Inc.Managing Director(403) 450-6002 or (877) 380-7793ORLynn LeongSolium Capital Inc.EVP, Finance &Admin(403) 450-6015 or (877) 380-7793investorrelations@solium.com