Mediagrif reports solid 2012 annual results and increases its quarterly dividend

TSX: MDF
www.mediagrif.com

Fiscal year 2012:

• Revenue up 14.3% or $6.7 million to $53.8 million.
• EBITDA increased 14.9% to $17.4 million compared to $15.1 million a year ago.
• Net earnings of $9.5 million ($0.69 per share), compared to $8.0 million ($0.58 per share) in fiscal 2011.
• The Company completed the acquisition of LesPAC on November 14, 2011.
• Repayment of $6.0 million (including an amount of $5.0 million in advance) on the term loan contracted in connection with the acquisition of LesPAC.

Increase of quarterly dividend at $0.09 per share:

• Increase of 13% of quarterly dividend from $0.08 to $0.09 per share.

LONGUEUIL, QC, June 12, 2012 /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, 2012. Unless indicated otherwise, all amounts are in Canadian dollars.

SUMMARY OF CONSOLIDATED RESULTS

		Three months ended March 31^st			Fiscal year ended March 31^st
(in thousands of Canadian dollars, except for numbers related to shares - unaudited)		2012	2011		2012	2011
Revenues		14,864	12,747		53,824	47,076
EBITDA		5,523	3,672		17,364	15,112
Operating profit		4,022	2,766		13,229	12,345
Net earnings		2,635	1,900		9,505	7,995
Earnings per share
	- Basic	0.19	0.14		0.69	0.58
	- Diluted	0.19	0.14		0.69	0.58
Weighted average number of share outstanding (in thousands)
	- Basic	13,721	13,680		13,705	13,784
	- Diluted	13,779	13,715		13,755	13,804

The earnings analysis summary takes into consideration the impact of the acquisitions of Systèmes InterTrade Inc. ("InterTrade") completed on December 22, 2010 and of LesPAC completed on November 14, 2011. In relation with the acquisition of LesPAC, the Company incurred and expensed in the third quarter 2012, acquisition related costs that impacted operating profit and EBITDA by $1.4 million and net earnings by $1.3 million.

FISCAL YEAR END MARCH 31, 2012 RESULTS

For the fiscal year ended March 31, 2012, total revenues reached $53.8 million, an increase of $6.7 million when compared with revenues of $47.1 million for the corresponding period of 2011. This increase is mainly due to the revenues of InterTrade and of LesPAC which amounted to $8.1 million during the year ended March 31, 2012. Revenues, in original currencies, from some subsidiaries decreased by a net amount of $0.5 million during the year ended March 31, 2012. Moreover, the changes in the value of the Canadian dollar compared to the US dollar, combined with hedge coverage in place, generated a negative impact on revenues of $0.9 million during the year ended March 31, 2012.

Operating expenses for the year ended March 31, 2012 reached $29.7 million, compared to $24.5 million for the corresponding period of 2011. The increase in operating expenses is mainly due to the addition of InterTrade and LesPAC related operating expenses of $4.6 million, the acquisitions costs of LesPAC of $1.4 million partly offset by lower salaries and benefits of $1.0 million.

EBITDA totalled $17.4 million for the year ended March 31, 2012 compared to $15.1 million in the corresponding period of 2011.

Net earnings reached $9.5 million ($0.69 per share) compared to $8.0 million ($0.58 per share) for the year ended March 31, 2011.

FOURTH QUARTER 2012 RESULTS

For the fourth quarter of fiscal 2012, revenues reached $14.9 million, an increase of $2.2 million when compared to the fourth quarter of fiscal 2011 revenues of $12.7 million.  The increase is mainly due to the revenues of LesPAC which amounted to $2.6 million in the fourth quarter of fiscal 2012, partly offset by a reduction in revenues from some subsidiaries amounting to $0.4 million.

Operating expenses of the fourth quarter of fiscal 2012 reached $7.8 million, compared to $7.0 million for the corresponding quarter of 2011. The increase in operating expenses is mainly due to the addition of LesPAC related operating expenses of $1.5 million (including a $0.7 million amortization expenses related to this addition). This increase was partially offset by lower salaries, lower professional services and by additional tax credits for a total of $0.7 million.

EBITDA totalled $5.5 million or 37.2% of revenues compared to $ 3.7 million or 28.8% of revenues during the fourth quarter of fiscal 2011.

Net earnings reached $2.6 million ($0.19 per share) during the fourth quarter of fiscal 2012, compared to $1.9 million ($0.14 per share) in the corresponding quarter of 2011.

CASH FLOW AND FINANCIAL POSITION

On November 10, 2011, in connection with the acquisition of LesPAC, the Company entered into a credit agreement providing a long-term financing comprised of a $40.0 million, guaranteed, non renewable term loan and a $20.0 million, guaranteed, revolving credit facility for general corporate purposes, including acquisitions. Both the term loan and the revolving facility extend over five years. The Company used the entire amount of the term loan and $7.5 million of the revolving credit facility to finance the acquisition at closing.

During the fiscal year 2012, operating activities generated $12.3 million of cash flow compared to $10.3 million for the corresponding period of 2011. The Company used a portion of these funds and a portion of its cash and cash equivalents to repay an amount of $6.0 million on the term loan and an amount of $2.8 million on the revolving credit facility.

As at March 31, 2012, the Company had $5.4 million of cash and cash equivalents and $15.3 million available on its revolving credit facility of $20.0 million.

QUARTELY DIVIDEND INCREASED TO $0.09 PER SHARE

The Board of Directors of Mediagrif approved a 13% dividend increase in the quarterly dividend of $0.08 per share and declared a quarterly dividend of $0.09 per share. The dividend is payable on July 16, 2012 to shareholders of record at the close of markets on July 3, 2012.

TRANSITION TO IFRS

Mediagrif's audited consolidated financial statements for the year ended March 31, 2012 have been prepared using IFRS. Amounts relating to the year ended March 31, 2011 have been restated to reflect the adoption of IFRS. Details of the accounting differences can be found in the notes to the consolidated financial statements.

About Mediagrif Interactive Technologies Inc.

Mediagrif Interactive Technologies Inc. (TSX: MDF) delivers innovative e-commerce solutions to businesses 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 & spirits, diamonds and jewelry, classified ads, supply chain 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 an earnings measure 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 fixed assets 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.

 

Mediagrif InteractiveTechnologies Inc.
Claude Roy
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]