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Press release from CNW Group

Mediagrif announces the results of its first quarter of fiscal 2014

Tuesday, August 06, 2013

Mediagrif announces the results of its first quarter of fiscal 2014

17:05 EDT Tuesday, August 06, 2013

First quarter highlights:

  • Acquisition of Jobboom completed as at June 1st, 2013.
  • Stable revenues at $15.7 million for the first quarter.
  • EBITDA of $5.5 million (before acquisition costs of $0.2 million) compared to $6.1 million.
  • Repayment of $6.3 million on the credit facility used to finance the acquisition of Jobboom, from the Company's cash and acquired cash.
  • Profit of $2.9 million ($0.18 per share), compared to $3.6 million ($0.26 per share).

Quarterly dividend:

  • Declaration of a quarterly dividend of $0.10 per share payable on October 15, 2013 to shareholders of record on October 1, 2013.

TSX: MDF
www.mediagrif.com

LONGUEUIL, QC, Aug. 6, 2013 /CNW Telbec/ - Mediagrif Interactive Technologies Inc. (TSX: MDF), a world-leading operator of e-commerce solutions, today announced its financial results for the first quarter of fiscal 2014. Unless indicated otherwise, all amounts are in Canadian dollars.

SUMMARY OF CONSOLIDATED RESULTS

   
  Three months ended
  June 30,
  2013 2012
in thousands of Canadian dollars, except for numbers related to shares.   (restated)
unaudited and not reviewed by independent auditors. $ $
Revenues 15,698 15,690
EBITDA 5,304 6,124
Operating profit 3,839 4,828
Profit for the period 2,919 3,633
Earnings per share (basic & diluted) 0.18 0.26
Weighted average number of shares outstanding (in thousands)    

- Basic 15,834 13,740

- Diluted 15,834 13,789

The profit analysis takes into consideration the impact of the acquisition of Jobboom completed on June 1, 2013.

RESULTS OF FIRST QUARTER ENDED JUNE 30, 2013

For the first quarter of fiscal 2014, revenues remained stable at $15.7 million when compared to the first quarter of fiscal 2013. During the first quarter, Jobboom services were used for an amount of $1 million. However, of that amount, only $0.7 million is included in revenues in the quarter due to the adjustment made to recognize the fair value of deferred revenues at the acquisition date.

The addition of revenues from Jobboom and the increase in revenues from LesPAC by $0.4 million during the quarter were offset by a $0.3 million decrease in the business network MERX, following the non-renewal of the contractual agreement with Public Works and Government Services Canada ("PWGSC"), which expired on May 31, 2013, by a decrease in the business networks of The Broker Forum and Power Source OnLine, as well as Market Velocity and from software development for a total amount of $0.8 million.

Total operating expenses for the first quarter of 2014, including cost of revenues, reached $11.9 million, compared to $10.9 million for the quarter ended June 30, 2012. The increase in operating expenses is mainly due to the addition of Jobboom operating expenses for $0.5 million (including additional amortization of the acquired intangible assets of $0.2 million), acquisition costs of $0.2 million to complete the acquisition and $0.2 million recorded as termination benefits.

EBITDA totaled $5.3 million or 33.8% of revenues compared to $6.1 million or 39.0% of revenues during the same quarter of fiscal 2013.

Profit reached $2.9 million ($0.18 per share), compared to $3.6 million ($0.26 per share) during the first quarter of fiscal 2013.

The Company's profit for the three months ended June 30, 2013 includes $0.7 million in revenues and a $0.1 million profit generated from Jobboom additional business.

If the business combination had been completed on April 1, 2013, the Company's consolidated revenues would have totaled $17.5 million and consolidated profit for the three months ended June 30, 2013 would have been $3.3 million, including additional interest on the long-term debt of $0.2 million. The Company considers the pro forma figures to be an approximate measurement of the financial performance of the combined business over a three-month period. However, pro forma information does not account for synergies or changes to historical transactions and is not necessarily indicative of the profit of the Company if the Acquisition actually occurred on April 1, 2013, nor of the profit that may be achieved in the future.

CASH FLOW AND FINANCIAL POSITION

During the first quarter of fiscal 2014, the Company used $48.5 million on its revolving credit facility in order to finance the acquisition of Jobboom. During that same quarter, cash flows generated by operating activities reached $5.8 million, compared to $2.9 million during the first quarter of fiscal 2013.

The Company used a portion of these funds and a portion of its cash and cash equivalent and acquired cash to repay an amount of $6.3 million on the credit facility.

As at June 30, 2013, the Company had $7.9 million of cash and cash equivalents and $17.8 million available on its revolving facility of $60.0 million.

QUARTERLY DIVIDEND

The Board of Directors of Mediagrif approved and declared a quarterly dividend of $0.10 per share payable on October 15, 2013, to shareholders of record on October 1, 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.

Unaudited condensed consolidated interim 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:

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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