Mediagrif reports results for its second quarter of fiscal 2019
TSX: MDF
www.mediagrif.com
Second quarter highlights of fiscal year 2019:
-- Revenues reach $20.3 million.
-- Adjusted EBITDA(1) of $6.6 million.
-- Profit of $3.2 million ($0.21 per share).
-- Cash flows from operating activities totalled $2.7 million.
Quarterly dividend:
-- Declaration of a quarterly dividend of $0.10 per share payable on
January 15, 2019 to shareholders of record on January 2, 2019.
LONGUEUIL, QC, Nov. 13, 2018 /CNW Telbec/ - Mediagrif Interactive Technologies Inc. (TSX: MDF), a Canadian leader in information technology, today announced its financial results for the second quarter of fiscal 2019. Unless otherwise indicated, all amounts are in Canadian dollars.
SUMMARY OF CONSOLIDATED RESULTS
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Three months
ended Six months ended
September 30, September 30,
In thousands of Canadian
dollars, except per share
amounts 2018 2017 2018 2017
Unaudited and not reviewed by
independent auditors
$
$
$
$
---
Revenues 20,261 20,031 41,389 40,002
Adjusted EBITDA(1) 6,616 5,522 11,872 11,667
Operating profit 4,831 3,528 8,055 7,703
Profit for the period 3,178 1,710 5,610 4,126
Earnings per share (basic and
diluted) 0.21 0.11 0.38 0.28
Weighted average number of
shares outstanding
basic and diluted (in
thousands) 14,849 14,886 14,849 14,890
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1 See reconciliation of adjusted EBITDA and profit as well as the "About
Mediagrif Interactive Technologies Inc." section.
SECOND QUARTER OF FISCAL 2019 ENDED SEPTEMBER 30, 2018
For the second quarter of fiscal year 2019, revenues reached $20.3 million, an increase of 1.1% or $0.3 million when compared to the second quarter of fiscal year 2018.
The increase in revenues is mainly attributable to the ongoing organic growth of InterTrade and ASC platforms for a total amount of $0.4 million as well as a strong revenue growth of Orckestra in the amount of $0.6 million. Orckestra's growth is mainly attributable to an increase in the volume of activity for this platform following the signature of new agreements.
During all of fiscal year 2019, the Corporation will pursue its investments in its technology and infrastructure as well as in sales and marketing in order to seize market opportunities in its growing businesses areas. These initiatives have shown good results as of today with the conclusion of agreements with current customers as well as the addition of new customers since the beginning of the current financial year.
Also during the second quarter of fiscal year 2019, LesPAC revenues slightly decrease due to lower advertising revenues of $0.2 million whereas Jobboom and Réseau Contact revenues were down $0.4 million and $0.1 million respectively.
Adjusted EBITDA totalled $6.6 million compared to $5.5 million during the second quarter of fiscal year 2018. Notwithstanding the increase in revenues, the adjusted EBITDA increase is mainly attributable to non-recurring expenses of $1.1 million incurred during the second quarter of fiscal 2018, which did not repeat during the second quarter of fiscal 2019, and to the improvement of Orckestra's results.
Profit reached $3.2 million ($0.21 per share), during the second quarter of fiscal year 2019 compared to a profit of $1.7 million ($0.11 per share) during the second quarter of fiscal year 2018. Profit for the second quarter of fiscal 2019 includes a foreign exchange loss of $0.3 million on assets denominated in U.S. dollars (following the appreciation of the Canadian dollar) compared to a foreign exchange loss of $0.7 million during the corresponding quarter of fiscal year 2018.
QUARTERLY DIVIDEND
The Board of Directors of Mediagrif declared a quarterly dividend of $0.10 per share payable on January 15, 2019, to shareholders of record on January 2, 2019.
FIRST SIX MONTHS OF FISCAL 2019
For the first six months of fiscal 2019 revenues reached $41.4 million compared to $40.0 million for the first six months of fiscal 2018.
Adjusted EBITDA totalled $11.9 million compared to $11.7 million during the first six months of fiscal 2018.
Profit reached $5.6 million ($0.38 per share), compared to $4.1 million ($0.28 per share) during the first six months of fiscal 2018. Profit includes a foreign exchange gain on assets denominated in U.S. dollars of $0.1 million compared to a $1.1 million loss for the corresponding six months of fiscal 2018.
FINANCIAL POSITION AND FINANCING
During the first six months of fiscal year 2019, cash flows generated by operating activities reached $5.1 million, compared to $4.2 million during the first six months of fiscal year 2018. The Corporation used a portion of these funds to cover for the acquisitions of capital assets and to reimburse a portion of its long-term debt.
Also during the first six months of fiscal year 2019, the Corporation paid out a total of $3.0 million in dividends.
As at September 30, 2018, the Corporation had $12.4 million in cash and cash equivalents, and $52.0 million available on its revolving credit facility of $80.0 million.
RECONCILIATION OF ADJUSTED EBITDA AND PROFIT
Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization, foreign exchange gain (loss) and other revenues (expenses) as historically calculated by the Corporation.
Three months
ended Six months ended
September 30, September 30,
In thousands of Canadian
dollars 2018 2017 2018 2017
Unaudited and not reviewed by
independent auditors
$
$
$
$
---
Profit 3,178 1,710 5,610 4,126
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Income tax expense 1,116 912 1,941 2,051
Depreciation of property,
plant and equipment and
amortization of intangible
assets 861 793 1,743 1,570
Amortization of acquired
intangible assets 958 1,183 2,147 2,366
Amortization of deferred
financing costs 10 10 20 20
Amortization of deferred lease
inducement (34) (36) (67) (71)
Foreign exchange loss (gain) 256 686 (60) 1,117
Interest on long-term debt 271 264 538 488
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Adjusted EBITDA 6,616 5,522 11,872 11,667
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About Mediagrif Interactive Technologies Inc.
Mediagrif Interactive Technologies Inc. (TSX: MDF) is a Canadian leader in information technology offering strategic sourcing and unified commerce solutions as well as B2B and B2C marketplaces. Mediagrif's solutions are used by millions of consumers and businesses in North America and around the world. The Corporation has offices in Canada, the United States, Denmark and China. 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 Corporation shows operating profit and earnings before interest, taxes, depreciation, amortization, foreign exchange gain (loss) and other revenues (expenses) ("Adjusted EBITDA") as supplementary earnings measures. Operating profit and adjusted EBITDA 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. Adjusted EBITDA is provided to assist investors in determining the Corporation's ability to generate profitability from its operations and to evaluate its financial performance.
This press release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those expected 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.
SOURCE Mediagrif Interactive Technologies Inc.
