Mediagrif reports third quarter results of fiscal 2012

Highlights of the third quarter ended December 31, 2011:

• The Company completed the acquisition of LesPAC on November 14, 2011;
• Revenue up 17% or $1.9 million to $13.6 million;
• EBITDA of $4.8 million (before expenses related to the acquisition of LesPAC of $1.5 million) compared to $4.0 million in the third quarter of fiscal 2011;
• Net earnings of $1.0 million ($0.07 per share), compared to $1.9 million ($0.14 per share) in the third quarter ended December 31, 2010;
• Repayment of $4.0 million on the term loan contracted in connection with the acquisition of LesPAC;
• Cash and cash equivalents of $6.3 million as at December 31, 2011;
• Board of Directors declared a cash dividend of $0.08 per share, payable on April 16, 2012 to shareholders of record at the close of business on April 2nd, 2012.

TSX: MDF

www.mediagrif.com

LONGUEUIL, QC, Feb. 14, 2012 /CNW Telbec/ - Mediagrif Interactive Technologies Inc. (TSX: MDF), a world-leading operator of e-commerce solutions, today announced its financial results for the third quarter ended December 31, 2011. Unless indicated otherwise, all amounts are in Canadian dollars.

SUMMARY OF CONSOLIDATED RESULTS

(in thousands of Canadian dollars, except for numbers related to shares)	Three months ended Dec. 31st			Nine months ended Dec. 31st
(unaudited)	2011	2010		2011	2010
Revenues	13,617	11,664		38,960	34,329
EBITDA	3,373	3,958		11,841	11,440
Operating profit	2,250	3,364		9,207	9,579
Net earnings	965	1,923		6,870	6,095
Earnings per share
- Basic	0.07*	0.14		0.50	0.44
- Diluted	0.07*	0.14		0.50	0.44
Weighted average number of share outstanding (in thousands)
- Basic	13,710	13,680		13,699	13,818
- Diluted	13,762	13,694		13,743	13,836
*Costs related to the acquisition of LesPAC had a negative impact of $0.10 per share.

THIRD QUARTER RESULTS OF FISCAL 2012, COMPARED WITH THIRD QUARTER RESULTS OF FISCAL 2011

The earnings analysis 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.

For the third quarter of fiscal 2012, revenues reached $13.6 million, an increase of $1.9 million when compared to the third quarter of fiscal 2011 revenues of $11.7 million. The increase is mainly due to the revenues of InterTrade and LesPAC which amounted to $2.6 million in the third quarter of fiscal 2012.

This increase was partly offset by a decrease in revenues from the development of e-commerce solutions for external customers of $0.3 million and a net decrease in the business networks revenues of $0.2 million. Furthermore, the changes in the value of the Canadian dollar compared to the U.S. dollar, combined with hedge coverage, generated a negative impact on revenues of $0.2 million in the third quarter of fiscal 2012.

Operating expenses of the third quarter of fiscal 2012 reached $8.6 million, compared to $5.9 million for the third quarter of fiscal 2011. The increase in operating expenses is mainly due to the addition of InterTrade and LesPAC related operating expenses of $1.2 million and the $1.5 million non-recurring costs related to the acquisition of LesPAC.

EBITDA totalled $3.4 million for the third quarter of fiscal 2012 compared to $4.0 million in the third quarter of fiscal 2011. Excluding the $1.5 million acquisition related costs of LesPAC, EBITDA was $4.8 million or 35.5% of revenues compared to $ 4.0 million or 33.9% of revenues during the third quarter of fiscal 2011.

Net earnings reached $1.0 million ($0.07 per share) during the third quarter of fiscal 2012, compared to $1.9 million ($0.14 per share) in the third quarter of fiscal 2011. Acquisition related costs had a negative impact of $1.3 million ($0.10 per share) on net earnings during the third quarter of fiscal 2012.

NINE MONTHS ENDED DECEMBER 31, 2011 COMPARED TO NINE MONTHS ENDED DECEMBER 31, 2010

For the first nine months ended December 31, 2011, total revenues reached $38.9 million, an increase of $4.6 million when compared with revenues of $34.3 million for the corresponding period of 2010. This increase is mainly due to the revenues of InterTrade and of LesPAC which amounted to $5.3 million during the nine-month period ended December 31, 2011.

Furthermore, revenues in original currencies increased by $0.1 million for the nine-month period ended December 31, 2011 compared to the nine-month period ended December 31, 2010. However, the changes in the value of the Canadian dollar compared to the U.S. dollar, combined with hedge coverage, generated a negative impact on revenues of $0.8 million during the nine-month period ended December 31, 2011.

Operating expenses for the nine-month period ended December 31, 2011 reached $21.9 million, compared to $17.5 million for the corresponding period of 2010. The increase in operating expenses is mainly due to the addition of InterTrade and LesPAC related operating expenses of $3.5 million, the acquisitions costs of LesPAC of $1.5 million partly offset by lower salaries & benefits.

EBITDA totalled $11.8 million for the nine-month period of fiscal 2012 compared to $11.4 million in the corresponding period of 2010. Excluding the $1.5 million acquisition related costs of LesPAC, EBITDA was $13.3 million or 34.1% of revenues compared to $11.4 million or 33.3% of the revenues for the nine-month period ended December 31, 2010.

Net earnings reached $6.9 million compared to $6.1 million for the first nine months ended December 31, 2010.

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 third quarter of fiscal 2012, operating activities generated $5.4 million of cash flow compared to $2.6 million for the corresponding period of 2010. The Company used these funds and a portion of its cash and cash equivalents to repay an amount of $4.0 million on the term loan and an amount of $1.0 million on the revolving credit facility.

At December 31, 2011, the Company had $6.3 million of cash and cash equivalents.

TRANSITION TO IFRS

Mediagrif's unaudited condensed consolidated interim financial statements for the nine months ended December 31, 2011 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 interim financial statements.

OUTLOOK

Given strong year-to-date performance and the acquisition of LesPAC, which generated $12.7 million in revenues for the twelve-month period ended December 31, 2010, Mediagrif's outlook for the balance of fiscal 2012 is positive.

The Company expects its consolidated revenues for the year ended March 31, 2012 to increase by approximately 20% on an annualized basis and EBITDA to be in the range of $17.5 million to $19.5 million, without taking into account costs relating to the acquisition. These projections are based on certain assumptions, including that there would be no significant change in the current value of the Canadian dollar compared to the U.S. dollar, no significant increase or decrease in revenues and operating expenses and stable market conditions.

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, retail markets 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. All amounts are in Canadian dollars.

Unaudited condensed 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. 

 

 

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]