PEER 1 Hosting Reports Fiscal 2012 Fourth Quarter and Year End Results
VANCOUVER, Sept. 24, 2012 /CNW/ - PEER 1 Network Enterprises, Inc. (TSX:PIX), operating as PEER 1 Hosting (PEER 1 or the "Company"), a leading provider of online IT infrastructure, today announced its results for the three and 12 months ended June 30, 2012. All amounts are stated in US dollars unless otherwise noted.
Selected Financial Highlights for the Fiscal Years Ended June 30, 2012 and 2011
- Revenue increased 18% to $133.6 million from $112.8 million;
- Gross profit increased 20% to $51.4 million from $42.9 million;
- Operating profit decreased 22% to $1.9 million from $2.5 million; and
- Normalized EBITDA increased 33% to $34.3 million from $25.7 million.
Selected Highlights for Fiscal 2012
- Completion of an acquisition of all the outstanding shares in the capital of NetBenefit (UK) Limited ("NetBenefit"), a division of London-based Group NBT Limited, and a leading UK-based managed hosting company, effective July 1, 2012. The fully funded, all cash £25.2 million (US$39.6 million) transaction, is the largest acquisition transaction for PEER 1 to date, and clearly establishes PEER 1 as a leader in the UK managed hosting market. The transaction is expected to deliver substantial financial and strategic benefits and other synergies including the integration and migration of NetBenefit's business and servers into PEER1's new flagship datacenter in the UK;
- Entry into a new credit agreement, replacing its previous facility, with a syndicate of lenders led by National Bank of Canada ("NBC"), and including HSBC Bank Canada, HSBC Bank PLC, GE Canada, Business Development Bank, Bank of America, Laurentian Bank of Canada and Canadian Western Bank. The new facilities are comprised of a US$100.0 million non-revolving term facility and a US$40.0 million and £7.0 million revolving credit facility. In addition, an accordion feature allows PEER 1 to request an increase in the amount available under the revolving facility by a further US$25.0 million, bringing the total potential credit available under the facilities to US$175.0 million;
- Completion and opening of a new 57,800 square foot green data centre in Portsmouth, UK. The facility offers businesses across London and the South East scalable managed hosting, dedicated hosting and colocation services in one of the greenest data centres in the country. The location is also optimal for businesses of all sizes operating in Europe. This state-of-the art facility leads the way in reducing the carbon footprint for the Company's customers, delivers 24/7 service and provides customers with the capacity to grow;
- Signature of a lease for additional data centre space in its existing Los Angeles facility. The additional space will allow the Company to offer up to approximately 3,000 servers of additional capacity to its high end managed and dedicated hosting customers who demand a West Coast presence;
- Successful achievement of the Level 1 Payment Card Industry Data Security Standard (PCI DSS) certification for several managed hosting and co-location data centres worldwide. PEER 1 Hosting's clients, who handle and process customer card details and transactions, can now be confident that their applications can be supported in a PCI compliant environment, enabling them to focus on their business rather than securing their hosted environments; and
- Entry into a partnership with Magento Inc. to offer a new optimized Managed Hosting solution to online retailers. The offering is a turn-key infrastructure solution designed to improve the performance and reliability of Magento-based e-commerce websites, delivered over PEER 1 Hosting's 10Gb FastFiber™ Network and supported by PEER 1 Hosting's unlimited FirstCall™ Support.
"In fiscal 2012 we continued to invest heavily in growth, particularly in the EMEA region as we opened our new flagship UK data centre and completed an acquisition that established us as a clear leader and will offer numerous synergies in this market," said Fabio Banducci, President and CEO of PEER 1 Hosting. "In parallel with the NetBenefit acquisition we also secured syndicated credit facilities that will provide us with considerable flexibility in funding growth."
Financial Review for the Three and Twelve Months Ended June 30, 2012 and 2011
Revenue increased to $34.3 million for the three months ended June 30, 2012 from $29.9 million for the three months ended June 30, 2011. When adjusted for the exchange rates in effect in the prior year period, revenue for the three months ended June 30, 2012 was $34.6 million. Taking into account the effect of the differing exchange rates between the Canadian and US dollars for the comparative period, revenue increased by 16% for the three months ended June 30, 2012. Revenue increased to $133.6 million for the twelve months ended June 30, 2012 from $112.8 million for the twelve-month period ended June 30, 2011. When adjusted for the exchange rates in effect during the period, revenue for the twelve months ended June 30, 2012 increased to $133.8 million. The increase in revenue for both periods is attributable to organic growth.
Colocation revenues increased to $4.5 million for the three months ended June 30, 2012 from $4.3 million for the three months ended June 30, 2011, and increased to $17.8 million for the twelve months ended June 30, 2012, compared with $15.5 million for the twelve months ended June 30, 2011. The increase in colocation revenue for both periods is attributable to organic growth, offset partly by the decreased value of the Canadian dollar against the US dollar for the three month period ended June 30, 2012.
Bandwidth revenues increased to $2.3 million for the three months ended June 30, 2012 compared with $2.2 million for the three months ended June 30, 2011, and increased to $9.4 million for the twelve months ended June 30, 2012, compared with $8.9 million for the twelve months ended June 30, 2011. The increase in bandwidth revenue for the three months and the twelve months ended June 30, 2012 is attributable to organic growth.
Hosting Services revenues increased to $25.6 million for the three months ended June 30, 2012 from $21.7 million for the three months ended June 30, 2011, and increased to $99.5 million for the year ended June 30, 2012 from $82.1 million for the year ended June 30, 2011. The increase for both periods is attributable to organic growth. Hosting Services revenues were not materially impacted by foreign exchange effects as the majority of the Hosting Services sales are currently denominated in US dollars.
Consolidated cost of sales increased to $22.2 million for the three months ended June 30, 2012 from $18.6 million for the three months ended June 30, 2011, $2.5 million of which related to UK operations. Cost of sales as a percentage of revenue increased to 65% for the three months ended June 30, 2012 from 62% for the three months ended June 30, 2011. The increase in cost of sales compared to the same period in the prior year is primarily due to increased depreciation costs of $2.3 million, increased staff cost of $0.6 million, increased bandwidth costs of $0.3 million, and an increase of $0.7 million in other expenses. The increase in cost of sales as a percentage of revenue relative to the prior year is primarily due to the increase in capacity in anticipation of future growth.
Cost of sales increased by $12.3 million for the year ended June 30, 2012 from $69.9 million for the year ended June 30, 2011. During the year, the Company incurred costs $7.7 million ($4.4 million in prior year) related to its operations in the United Kingdom, which are included in cost of sales. Total cost of sales included $0.2 million of one-time property tax assessments in the UK. Cost of sales as a percentage of revenue remained unchanged at 62% for the year ended June 30, 2012 compared with the year ended June 30, 2011. The increase in cost of sales for the year ended June 30, 2012 compared with the same period in the prior year is primarily due to increases in depreciation costs of $6.5 million, staff costs of $1.5 million, software license costs of $1.4 million, bandwidth costs of $0.8 million, power costs of $0.7 million, and $1.0 million in other cost of sales expenses. The increases in these expenses can primarily be attributed to higher revenues.
Total operating expenses increased to $13.6 million for the three months ended June 30, 2012 from $10.1 million for the three months ended June 30, 2011. Operating expenses as a percentage of revenue were 40% for the three months ended June 30, 2012 and 34% for the three months ended June 30, 2011. For the year ended June 30, 2012 total operating expenses increased by $9 million to $49.5 million. Operating expenses as a percentage of revenue increased to 37%, from 36% for the year ended June 30, 2011. The increase in total operating expenses for the three months ended June 30, 2012, are primarily due to an increases in staff and training costs of $1.3 million, professional services of $0.7 million, advertising of $0.3 million, amortization expense of $0.2 million, and other expenses of $0.6 million. For the year ended June 30, 2012 the increase in operating expenses is largely attributable to $4.7 million in staff and training cost, higher commission expenses of $0.8 million, and an increase of $3.2 million in other operating expenses.
Of the total increase of $3.5 million in operating expenses relative to the prior year for the period ended June 30, 2012, $1.5 million was directly related to acquisition costs, $0.5 million related to one-time severance expenses, and $0.3 million for commission expenses for which revenues will be earned in fiscal 2013. Adjusting for these one-time items, operating expenses for the quarter ended June 30, 2012, would have been $11.3 million (33% of revenue). For the year ended June 30, 2012, operating expenses of $49.5 million included $1.5 million of NetBenefit acquisition related costs, $0.5 million of one-time severance expenses, and $0.3 million in commission expenses relating to bookings for which revenues will not be generated until the next fiscal year. Normalizing for these items, operating expenses for the year ended June 30, 2012 would have been $47.2 million (35% of revenues).
In addition, total operating expenses for the quarter ended June 30, 2012, are comprised of $5.7 million ($4.5 million in prior year) sales and marketing expenses, $6.5 million ($4.4 million in prior year) general and administrative expenses, and $1.4 million ($1.2 million in prior year) expenses in technology and customer relations. During the three months ended June 30, 2012, the company incurred $2.0 million related to its UK operations ($1.0 million in prior year), $0.7 million ($0.3 million in prior year) of which are categorized as general and administrative expenses, and $1.2 million ($0.8 million in prior year) of which are categorized as selling and advertising expenses. For the year ended June 30, 2012, operating expenses are comprised of $21.1 million ($17.2 million in prior year) of sales and marketing expenses, $23.2 million ($18.4 million in prior year) of general and administrative expenses, and $5.2 million ($4.9 million in prior year) in expenses for technology and customer relations. During the year ended June 30, 2012, the company incurred $6.1 million related to its operations in the United Kingdom ($3.6 million in prior year) which are included in operating expenses, $1.9 million of which are categorized as general and administrative expenses, $4.0 million of which are categorized as selling and marketing expenses, and $0.2 million of which are categorized as technology and customer relations expenses.
Normalized EBITDA was $8.9 million for the three months ended June 30, 2012 and $34.3 million for the twelve months ended June 30, 2012, compared with $7.1 million and $25.7 million in the respective prior year periods.
Interest expense increased to $2.9 million for the three months ended June 30, 2012, compared with $1.0 million for the three months ended June 30, 2011, primarily due to a $1.4 million loss on interest rate swaps ($0.4 million in prior year) and a $0.7 million write-off of loan origination fees (nil in prior year) related to the debt refinancing. During the fiscal year ended 2012, interest expense increased to $5.8 million for the year ended June 30, 2012, compared with $3.0 million for the year ended June 30, 2011. The increase in interest expense for the year ended June 30, 2012 was primarily due to $2.0 million loss on the Company's interest rate swap ($0.7 million loss in prior year) resulting from market fluctuations in interest rates, a $0.7 million write-off of loan origination fees as a result of debt refinancing related to the acquisition of NetBenefit, and higher interest expenses due to higher debt level.
For the year ended June 30, 2012, PEER 1 Hosting recorded total income tax expense of $0.5 million compared with total income tax expenses of $1.4 million for the year ended June 30, 2011.
The foreign exchange loss was at $1.2 million for the year ended June 30, 2012, compared to a gain of $3.1 million for the prior fiscal period. The Company also recorded an impairment expense in the amount of $0.3 million related to the write-off of certain intangible assets (nil in prior year).
Net loss for the three-month period ended June 30, 2012 was $5.2 million and for year ended June 30, 2012 was $5.7 million, compared with a net loss of $0.3 million and net income of $1.2 million for the respective periods in 2011.
The Company had working capital of $28.4 million at June 30, 2012, compared with working capital of $0.4 million as at June 30, 2011. The increase in working capital is primarily due to an additional drawdown on the credit facilities in relation to the acquisition of NetBenefit, which took place subsequent to the balance sheet date on July 1, 2012. The increase is partly offset by investments in property, plant and equipment. The Company anticipates current liquidity and cash generated from operations to be sufficient to fund operations for the foreseeable future. As at June 30, 2012, the Company had available $45.5 million under its $151.0 million credit facilities and an additional $25.0 million available under the accordion feature of its credit agreement.
PEER 1 Hosting had 126,021,055 common shares issued and outstanding as at June 30, 2012
| EBTITDA Reconciliation | |||||
| 3 months ended | Years ended | ||||
| 30-Jun | 30-Jun | 30-Jun | 30-Jun | ||
| (in $ millions) | 2012(1) |
2011(1) | |
2012(1) |
2011(1) |
| Net profit (loss) | $ (5.2) | $ (0.3) | $ (5.7) | $ 1.2 | |
| Finance expense | 2.9 | 1.0 | 5.8 | 3.0 | |
| Depreciation and amortization | 8.1 | 5.5 | 27.2 | 19.9 | |
| Income tax expense | 0.1 | 0.6 | 0.5 | 1.3 | |
| Stock-based compensation | 0.4 | 0.4 | 3.1 | 3.3 | |
| Foreign exchange loss (gain) | 0.5 | (0.1) | 1.3 | (3.0) | |
| Acquisition costs | 1.5 | - | 1.5 | - | |
| Other non-operating expenses(2) | 0.6 | - | 0.6 | - | |
| Normalized EBITDA | $ 8.9 | $ 7.1 | $ 34.3 | $ 25.7 | |
| (1) | Amounts have been prepared and restated to IFRS |
| (2) | Other non-operating expenses for the year ended June 30, 2012 consist of one-time severance costs of $0.5 million, the write-off of intangible assets of $0.2 million, and an offsetting gain on disposal of assets of $0.1 million. |
Conference Call
PEER 1 Hosting will hold a conference call on Monday, September 24, 2012 at 5:30pm Eastern Time (ET), to discuss the results for the fourth quarter and full year fiscal 2012. The Company's full Financial Statements and Management's Discussion and Analysis are available on its website at http://www.peer1.com/investors.
To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191. The conference call will be archived for replay until Monday October 1, 2012, at midnight. To access the archived conference call, dial (416) 849-0833 or 1.855.859.2056 and enter the reservation number 31897653 followed by the number sign.
A live audio webcast of the conference call will be available at:
http://www.newswire.ca/en/webcast/detail/1037423/1126143
Please connect at least 10 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above website for 90 days.
Non-IFRS Measures
PEER 1 Hosting reports normalized EBITDA because it is a key measure used by management to evaluate the Company's performance. PEER 1 Hosting believes that normalized EBITDA is useful supplemental information, as it provides an indication of the results generated by PEER 1 Hosting's main business activities. Normalized EBITDA is not a recognized measure under IFRS, and accordingly investors are cautioned that normalized EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with IFRS as an indicator of financial performance of PEER 1 Hosting, or as a measure of the company's liquidity and cash flows. PEER 1 Hosting's method of calculating normalized EBITDA may differ from other issuers and, accordingly, normalized EBITDA may not be comparable to similar measures presented by other issuers. The schedule above sets out PEER 1 Hosting's normalized EBITDA calculations.
About PEER 1 Hosting
PEER 1 Hosting is one of the world's leading IT hosting providers. The company is built on two obsessions: Ping & People. Ping, represents its commitment to best-in-breed technology, founded on a high performance 10Gbps FastFiber Network™ connected by 17 state-of-the-art datacenters, 17 points-of-presence and 10 colocation facilities throughout North America and Europe. People, represents its commitment to delivering outstanding customer service to its more than 10,000 customers worldwide, backed by a 100 percent uptime guarantee and 24x7x365 FirstCall Support™. Info-Tech Research Group recently named PEER 1 Hosting as a "Champion" in its Canadian colocation and managed services Vendor Landscape report, recognizing the company's strength in product offerings and enterprise strategy in the global IT marketplace. PEER 1 Hosting's portfolio includes Managed Hosting, Dedicated Servers under the ServerBeach brand, Colocation and Cloud Services under the Zunicore brand.Founded in 1999, the company is headquartered in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 Hosting shares are traded on the TSX under the symbol PIX. For more information visit:www.peer1.com or www.peer1hosting.co.uk.
Forward Looking Statements
Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third party manufacturing, managing rapid growth, global sales risks, limited intellectual property protection and other risks and uncertainties described in PEER 1 Hosting's public filings with securities regulatory authorities.
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||
| (In thousands of United States dollars) | |||
| June 30, 2012 |
June 30, 2011 |
July 1, 2010 |
|
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | $ 51,111 | $ 7,803 | $ 2,321 |
| Trade and other receivables | 6,402 | 6,447 | 3,249 |
| Prepaid expenses | 2,050 | 1,448 | 1,610 |
| Income tax receivable | - | 2,874 | 1,192 |
| 59,563 | 18,572 | 8,372 | |
| Non-current assets | |||
| Other assets | 2,694 | 2,353 | 2,738 |
| Deferred tax assets | 4,193 | 1,818 | 1,277 |
| Property, plant and equipment | 101,321 | 87,697 | 53,717 |
| Equipment under finance lease | 1,934 | 724 | 986 |
| Intangible assets | 10,034 | 6,636 | 5,921 |
| 120,176 | 99,228 | 64,639 | |
| Total assets | 179,739 | 117,800 | 73,011 |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Trade and other payables | 17,210 | 9,944 | 9,115 |
| Loans and borrowings | 7,500 | 5,008 | 3,000 |
| Derivatives | 1,117 | 250 | 170 |
| Income tax payable | 1,502 | - | 569 |
| Obligations under finance lease | 835 | 237 | 376 |
| Deferred lease inducement | 214 | 136 | 131 |
| Deferred revenue | 2,746 | 2,561 | 2,210 |
| 31,124 | 18,136 | 15,571 | |
| Non-current liabilities | |||
| Loans and borrowings | 97,249 | 53,062 | 16,404 |
| Derivatives | 1,950 | 875 | 170 |
| Deferred tax liability | 3,265 | 1,354 | 543 |
| Obligations under finance lease | 1,389 | 11 | 232 |
| Deferred lease inducement | 861 | 655 | 609 |
| 104,714 | 55,957 | 17,958 | |
| Total liabilities | 135,838 | 74,093 | 33,529 |
| EQUITY | |||
| Issued capital | 35,129 | 28,221 | 27,631 |
| Share-based payments reserve | 8,651 | 9,985 | 6,804 |
| Warrants | - | - | 86 |
| Accumulated other comprehensive income | (134) | (492) | - |
| Retained earnings | 255 | 5,993 | 4,961 |
| Total equity | 43,901 | 43,707 | 39,482 |
| Total liabilities and equity | 179,739 | 117,800 | 73,011 |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED | ||
| (In thousands of United States dollars) | ||
| June 30, 2012 |
June 30, 2011 |
|
| Revenue | ||
| Colocation services | $ 34,148 | $ 30,684 |
| Hosting Services | 99,475 | 82,134 |
| 133,623 | 112,818 | |
| Cost of sales | 82,190 | 69,872 |
| Gross profit | 51,433 | 42,946 |
| Administration expenses | 23,221 | 18,372 |
| Sales and marketing expenses | 21,066 | 17,198 |
| Other operating expenses | 5,207 | 4,887 |
| Operating profit before other items | 1,939 | 2,489 |
| Finance income | (7) | (17) |
| Gain on disposal of property, plant and equipment | (74) | (45) |
| Loss on legal settlement | - | 24 |
| Foreign exchange loss (gain) | 1,276 | (3,078) |
| Finance expense | 5,832 | 2,988 |
| Other non-operating expense | 155 | - |
| Profit (loss) before income taxes | (5,243) | 2,617 |
| Income taxes expense | 495 | 1,373 |
| Profit (loss) | (5,738) | 1,244 |
| Other comprehensive income (loss) | ||
| Foreign currency translation gain (loss) | (2,638) | 3,605 |
| Unrealized gain (loss) on net investment in subsidiaries | 2,996 | (4,097) |
| Other comprehensive income, net of tax | 358 | (492) |
| Total comprehensive income (loss) | (5,380) | 751 |
| Profit (loss) attributable to common shares | (5,738) | 1,244 |
| Total comprehensive income (loss) attributable to common shares | (5,380) | 751 |
| Earnings (loss) per share | ||
| Basic | (0.05) | 0.01 |
| Diluted | (0.05) | 0.01 |
| Weighted average number of common shares outstanding | ||
| Basic | 122,739,988 | 120,095,064 |
| Diluted | 122,739,988 | 124,956,918 |
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||
| (In thousands of United States dollars) | |||||||||||
| Share capital | |||||||||||
| Number | Amount | Warrants | Share-based payments reserve |
Accumulated other comprehensive income |
Retained earnings |
Total | |||||
| Balance at July 1, 2010 | 119,721,834 | $ 27,631 | $86 | $ 6,804 | $- | $ 4,961 | $ 39,482 | ||||
| Stock options exercised | 210,903 | 212 | - | (106) | - | - | 106 | ||||
| Warrants exercised | 833,333 | 422 | (86) | - | - | - | 336 | ||||
| Stock-based compensation | - | - | - | 3,287 | - | - | 3,287 | ||||
| Purchase of shares for cancellation pursuant to normal course issuer bid |
(189,500) | (44) | - | - | - | (211) | (255) | ||||
| Transactions with owners | 120,576,570 | 28,221 | - | 9,985 | - | 4,750 | 42,956 | ||||
| Profit for the year | - | - | - | - | - | 1,244 | 1,244 | ||||
| Other comprehensive income (loss): |
|||||||||||
| Foreign currency translation gain |
- | - | - | - | 3,605 | - | 3,605 | ||||
| Unrealized loss on net investment in subsidiaries |
- | - | - | - | (4,097) | - | (4,097) | ||||
| Total comprehensive income for the year |
- | - | - | - | (492) | 1,244 | 751 | ||||
| Balance at June 30, 2011 | 120,576,570 | 28,221 | - | 9,985 | (492) | 5,993 | 43,707 | ||||
| Balance at July 1, 2011 | 120,576,370 | 28,221 | - | 9,985 | (492) | 5,993 | 43,707 | ||||
| Stock options exercised | 5,444,685 | 6,908 | - | (4,457) | - | - | 2,451 | ||||
| Stock-based compensation | - | - | - | 3,123 | - | - | 3,123 | ||||
| Transactions with owners | 126,021,055 | 35,129 | - | 8,651 | (492) | 5,993 | 49,281 | ||||
| Loss for the year | - | - | - | - | - | (5,738) | (5,738) | ||||
| Other comprehensive income (loss): |
|||||||||||
| Foreign currency translation gain (loss) |
- | - | - | - | (2,638) | - | (2,638) | ||||
| Unrealized gain (loss) on net investment in subsidiaries |
- | - | - | - | 2,996 | - | 2,996 | ||||
| Total comprehensive income for the year |
358 | (5,738) | (5,380) | ||||||||
| Balance at June 30, 2012 | 126,021,055 | 35,129 | - | 8,651 | (134) | 255 | 43,901 | ||||
| CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED (In thousands of United States dollars) |
|||||||
| June 30, 2012 |
June 30, 2011 |
||||||
| Operating Activities | |||||||
| Net income (loss) | $ (5,738) | $ 1,244 | |||||
| Depreciation of property, plant and equipment | 25,782 | 19,157 | |||||
| Amortization of intangible assets | 1,440 | 727 | |||||
| Bad debt expense | 806 | 426 | |||||
| Gain on disposal of property, plant and equipment | (74) | (45) | |||||
| Amortization of deferred loan origination fees | 907 | 474 | |||||
| Mark to market loss on derivatives | 1,990 | 863 | |||||
| Future income tax expense (recovery) | (474) | 631 | |||||
| Stock-based compensation | 3,123 | 3,287 | |||||
| Interest paid | (3,200) | (2,122) | |||||
| Income taxes refunded, net of income tax paid | 3,386 | (2,969) | |||||
| Increase in deferred lease inducement | 259 | 35 | |||||
| Impairment of intangible properties | 277 | - | |||||
| Net change in non-cash working capital | 7,840 | (1,334) | |||||
| Cash flows from operating activities | 36,324 | 20,374 | |||||
| Investment Activities | |||||||
| Investment in other assets | (482) | (592) | |||||
| Acquisition of property, plant and equipment | (38,119) | (48,372) | |||||
| Acquisition of intangible assets | (5,143) | (1,367) | |||||
| Proceeds on disposition of equipment | 184 | 55 | |||||
| Cash flows used in investing activities | (43,560) | (50,276) | |||||
| Financing Activities | |||||||
| Proceeds from loans and borrowings | 53,724 | 74,171 | |||||
| Repayments of loans and borrowings | (6,290) | (35,921) | |||||
| Payment of finance lease obligations | (570) | (389) | |||||
| Payment of derivative liabilities | - | (283) | |||||
| Purchase of shares for cancellation pursuant to normal course issuer bid | - | (255) | |||||
| Issuance of capital stock | 2,436 | 442 | |||||
| Cash flow from financing activities | 49,300 | 37,765 | |||||
| Foreign exchange gain (loss) on cash and cash equivalents | 1,244 | (2,381) | |||||
| Increase in cash and cash equivalents, | 43,308 | 5,482 | |||||
| Cash and cash equivalents, beginning (1) | 7,803 | 2,321 | |||||
| Cash and cash equivalents, ending (1) | $ 51,111 | $ 7,803 | |||||
| Supplemental non-cash financing and investing disclosure: | |||||||
| Effect of acquisition of property, plant and equipment in trade and other payables | 2,298 | 1,302 | |||||
| (1) | Cash and cash equivalents consist of highly liquid market instruments with original maturity of three months or less, which are readily convertible into a known amount of cash |
SOURCE: Peer 1 Network Enterprises, Inc.
For investor inquiries please contact:
Nick Hurst
The Equicom Group
+1 (403) 218-2835
[email protected]
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