Mediagrif Announces Results of its Second Quarter of Fiscal 2014 and Declares Quarterly Dividend

Second quarter highlights:

• Revenues increased 6% to reach $16 million.
• EBITDA of $6.2 million or 39% of revenues compared to $6.5 million.
• Profit of $2.8 million ($0.18 per share), compared to $3.4 million ($0.25 per share).
• Repayment of $4.3 million on the revolving credit facility, $10.6 million since June 1^st.

Quarterly dividend:

• Declaration of a quarterly dividend of $0.10 per share payable on January 15, 2014 to shareholders of record on January 3, 2014.

TSX: MDF
www.mediagrif.com

LONGUEUIL, QC, Nov. 12, 2013 /CNW Telbec/ - Mediagrif Interactive Technologies Inc. (TSX: MDF), a world-leading operator of e-commerce solutions, today announced its financial results for the second quarter of fiscal 2014. Unless indicated otherwise, all amounts are in Canadian dollars.

SUMMARY OF CONSOLIDATED RESULTS

		Three months ended September 30,			Six months ended September 30,
		2013	2012		2013	2012
in thousands of Canadian dollars, except for numbers related to shares.			(restated)			(restated)
unaudited and not reviewed by independent auditors.		$	$		$	$
Revenues		15,955	15,042		31,653	30,732
EBITDA		6,188	6,508		11,492	12,632
Operating profit		4,437	5,141		8,276	9,969
Profit for the period		2,814	3,429		5,733	7,062
Earnings per share (basic & diluted)		0.18	0.25		0.36	0.51
Weighted average number of shares outstanding (in thousands)
	- Basic	15,834	13,797		15,834	13,769
	- Diluted	15,834	13,822		15,834	13,806

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

RESULTS OF SECOND QUARTER ENDED SEPTEMBER 30, 2013

For the second quarter of fiscal 2014, revenues increased by $0.9 million when compared to the second quarter of fiscal 2013 to reach $16.0 million.

During the second quarter, Jobboom services were used for an amount of $2.7 million. However, of that amount, only $1.9 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 combined with the increase in revenues of LesPAC and InterTrade Systems amounting to $0.8 million during the second quarter were partly offset by a $1.0 million decrease in the business network of MERX and by a decrease in the business networks of The Broker Forum, Power Source OnLine and Market Velocity as well as lower revenues from software development for a total amount of $0.8 million. The decrease in the business network of MERX is due to the non-renewal of the contractual agreement with Public Works and Government Services Canada ("PWGSC"), which expired on May 31, 2013.

Total operating expenses for the second quarter of fiscal 2014, including cost of revenues, totaled $11.5 million, compared to $9.9 million for the second quarter of fiscal 2013. The increase in operating expenses is mainly due to the addition of Jobboom operating expenses for $1.6 million (including additional amortization of the acquired intangible assets of $0.6 million), to the increase in commissions paid to an advertising sales agency due to higher sales in the quarter and to higher selling and marketing expenses, partially offset by additional tax credits.

EBITDA totaled $6.2 million or 38.8% of revenues compared to $6.5 million or 43.3% of revenues during the same quarter of fiscal 2013.

Profit reached $2.8 million ($0.18 per share), compared to $3.4 million ($0.25 per share) during the second quarter of fiscal 2013.

RESULTS OF THE FIRST SIX MONTHS ENDED SEPTEMBER 30, 2013

Revenues for the first six months of fiscal 2014 reached $31.7 million, an increase of 3.0% or $0.9 million when compared to revenues of $30.7 million recorded in the first six months of fiscal 2013.

During the first six months, Jobboom services were used for an amount of $3.7 million. However, of that amount, only $2.6 million is included in revenues in the first six months due to the adjustment made to recognize the fair value of deferred revenues at the acquisition date.

The addition of revenues from Jobboom combined with the increase in revenues of LesPAC and InterTrade Systems amounting to $1.2 million during the first six months were partly offset by a $1.3 million decrease in the business network of MERX and by a decrease in the business networks of The Broker Forum, Power Source OnLine and Market Velocity as well as lower revenues from software development for a total amount of $1.6 million. The decrease in the business network MERX is primarily due to the non-renewal of the contractual agreement with Public Works and Government Services Canada ("PWGSC"), which expired on May 31, 2013.

Total operating expenses for the first six months of fiscal 2014, including cost of revenues, totaled $23.4 million, compared to $20.8 million for corresponding period of fiscal 2013. The increase in operating expenses is mainly due to the addition of Jobboom operating expenses for $2.2 million (including additional amortization of the acquired intangible assets of $0.8 million), to non recurring acquisition costs of $0.3 million, to the increase in commissions paid to an advertising sales agency due to higher sales in the six-month period and to higher selling and marketing expenses, partially offset by additional tax credits.

EBITDA totaled $11.5 million or 36.3% of revenues compared to $12.6 million or 41.1% of revenues during the first six months of fiscal 2013.

Profit reached $5.7 million ($0.36 per share), compared to $7.1 million ($0.51 per share) during the first six months of fiscal 2013.

CASH FLOW AND FINANCIAL POSITION

During the second quarter of fiscal 2014, cash flows generated by operating activities reached $4.2 million, compared to $4.5 million in the second quarter of fiscal 2013.

The Company used a portion of these funds and a portion of its cash and cash equivalent to repay an amount of $4.3 million on the revolving credit facility during the second quarter of fiscal 2014.

For the first six months of fiscal 2014, cash flows generated by operating activities reached $10.0 million, compared to $7.5 million in the first six months of fiscal 2013.

As at September 30, 2013, the Company had $6.4 million of cash and cash equivalents and $22.1 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 January 15, 2014, to shareholders of record on January 3, 2014.

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.

Mediagrif InteractiveTechnologies Inc.
Claude Roy
President and Chief Executive Officer
Tel.: [phone] ext. 2004
Toll Free: 1 877 677-9088 ext. 2004
Email: [email protected]

Paul Bourque
Chief Financial Officer
Tel.: [phone], ext: 2135
Toll Free: 1 877 677-9088 ext. 2135
Email: [email protected]