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Press release from CNW Group

Strong earnings growth for the fiscal year 2013

Tuesday, June 11, 2013

Strong earnings growth for the fiscal year 2013

18:04 EDT Tuesday, June 11, 2013

Fiscal year 2013:

  • Revenues of $61.3 million, up 14% or $7.5 million.
  • EBITDA of $25.2 million, up 34%, compared to $18.8 million (before expenses related to the acquisition of LesPAC of $1.4 million).
  • Solid contribution from LesPAC for its first complete fiscal year.
  • Profit of $14.0 million up 47% ($0.97 per share), compared to $9.5 million ($0.69 per share).

TSX: MDF
www.mediagrif.com


LONGUEUIL, QC, June 11, 2013 /CNW Telbec/ - Mediagrif Interactive Technologies Inc. (TSX: MDF), a world-leading operator of e-commerce solutions, today announced its financial results for the fiscal year ended March 31, 2013. Unless indicated otherwise, all amounts are in Canadian dollars.

SUMMARY OF CONSOLIDATED RESULTS

           
(in thousands of Canadian dollars, except for numbers related to shares - unaudited) Three months ended
March 31
Fiscal year ended
March 31
2013 2012 2013 2012
Revenues 15,147 14,864 61,335 53,824
EBITDA 6,360 5,543 25,172 17,365
Operating profit 5,077 4,022 20,086 13,229
Profit for the period 3,436 2,635 13,973 9,505
Earnings per share (basic & diluted) 0.22 0.19 0.97 0.69
Weighted average number of shares outstanding (in thousands)        

-     Basic 15,812 13,721 14,421 13,705

-     Diluted 15,827 13,779 14,448 13,755

The income analysis summary takes into consideration the impact of the acquisition of LesPAC network (LesPAC) completed on November 14, 2011. Due to this acquisition, the results of the fiscal year 2012 were affected by transaction costs which had a negative impact of $1.4 million on operating profit and EBITDA and of $1.3 million on profit.

FISCAL YEAR ENDED MARCH 31, 2013

For the fiscal year 2013, revenues totaled $61.3 million, an increase of $7.5 million when compared to the fiscal year 2012 revenues of $53.8 million. This revenue increase is mainly explained by the increase in revenues from LesPAC for $9.3 million, partly offset by a decrease in revenues, in original currencies, of certain subsidiaries, amounting to a net amount of $1.2 million. Moreover, the changes in the value of the Canadian dollar compared to the U.S. dollar, combined with currency hedges in place, generated a negative impact on revenues of $0.4 million.

Total operating expenses for fiscal 2013, including cost of revenues, reached $41.2 million, compared to $40.6 million for fiscal 2012. The slight increase in operating expenses is mainly due to the addition of LesPAC operating expenses, offset by the transaction costs incurred in fiscal 2012.

During the fiscal year 2013, EBITDA totaled $25.2 million or 41% of revenues compared to $17.4 million or 32% of revenues during the fiscal year 2012.

Profit reached $14.0 million ($0.97 per share), compared to $9.5 million ($0.69 per share) recorded during the year ended March 31, 2012.

FOURTH QUARTER OF FISCAL 2013

For the fourth quarter of fiscal 2013, revenues slightly improved to $15.1 million, when compared to $14.9 million for the fourth quarter of fiscal 2012. The increase is mainly explained by the increase in revenues from LesPAC by $0.6 million, partly offset by a decrease in revenues of certain subsidiaries amounting to a net amount of $0.2 million.

Total operating expenses for the fourth quarter of fiscal 2013, including cost of revenues, reached $10.1 million, compared to $10.8 million for the fourth quarter of fiscal 2012. The decrease in operating expenses is mainly due to the $0.4 million decrease in wage expenses, to the $0.2 million decrease in professional fees and to the $0.2 million decrease in depreciation and amortization expenses, compared to the fourth quarter of fiscal 2012.

EBITDA totaled $6.4 million or 42.0% of revenues compared to $5.5 million or 37.3% of revenues during the fourth quarter of fiscal 2012.

Profit reached $3.4 million ($0.22 per share), compared to $2.6 million ($0.19 per share) recorded during the fourth quarter of fiscal 2012.

CASH FLOW AND FINANCIAL POSITION

During fiscal 2013, operating activities generated $18.3 million of cash flows compared to $12.3 million for fiscal 2012.

The Company used a portion of these funds and a portion of its cash and cash equivalent to repay an amount of $5.0 million on the term loan and $0.8 million on the revolving credit facility.

During fiscal 2013, the Company also completed the sale, by way of a private placement, of 2 million common shares for gross proceeds of $35.0 million. The Company used the net proceeds to repay in full the credit facility.

As at March 31, 2013, the Company had $14.5 million of cash and cash equivalents and $60.0 million available on its revolving credit facility.

QUARTERLY DIVIDEND

The Board of Directors of Mediagrif approved and declared a quarterly dividend of $0.10 per share payable on July 15, 2013, to shareholders of record on July 2, 2013.

About Mediagrif Interactive Technologies Inc.

Mediagrif Interactive Technologies Inc. (TSX: MDF) delivers innovative e-commerce solutions since 1996. Its web platforms enable clients to find, purchase and sell products, exchange information, gain access to business opportunities and manage supply chain collaboration with greater speed and efficiency. The Company provides e-commerce solutions in the fields of electronic components, computer equipment and telecommunications, medical equipment, automotive aftermarket, wine and spirits, diamonds and jewelry, classified ads, labor market, supply chain collaboration and government opportunities. Mediagrif has its headquarters in Longueuil and has offices in North America and Asia. For more information, please visit us at www.mediagrif.com or call 1 877 677-9088.

In addition to providing profit measures in accordance with IFRS, the Company shows operating profit and earnings before interest, taxes, depreciation and amortization ("EBITDA") as supplementary earnings measures. The Company sometimes refers to the free cash flow measure in its documents. Free cash flow is defined as cash flows from operating activities less the acquisition of property, plant and equipment and intangible assets presented in investing activities and less dividends paid that are presented in financing activities. Operating profit, EBITDA and free cash flow are not intended to be measures that should be regarded as an alternative to other financial operating performance measures prepared in accordance with IFRS. Those measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect us. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation. Unless otherwise indicated, all amounts are in Canadian dollars.

Audited consolidated financial statements, accompanying notes and MD&A are available on www.mediagrif.com and have been filed with SEDAR at the following address: www.sedar.com.

SOURCE: MEDIAGRIF INTERACTIVE TECHNOLOGIES INC.

For further information:

Mediagrif InteractiveTechnologies Inc.
Claude Roy
President and Chief Executive Officer
Tel.: 450-449-0102 ext. 2004
Toll Free: 1 877 677-9088 ext. 2004
Email: croy@mediagrif.com

Paul Bourque
Chief Financial Officer
Tel.: 450-449-0102, ext: 2135
Toll Free: 1 877 677-9088 ext. 2135
Email: pbourque@mediagrif.com

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