Strong results for Mediagrif in the second quarter of fiscal 2013

Strong results for Mediagrif in the second quarter of fiscal 2013 
Second quarter highlights: 


    --  Revenues up 20% or $2.5 million to $15.2 million;
    --  EBITDA reached 43% of revenues or $6.5 million, up 44% compared
        to $4.5 million;
    --  Operating profit of $5.2 million compared to $3.7 million;
    --  Profit of $3.4 million or $0.25 per share;
    --  Repayment of $3.0 million (including $2.0 million in advance)
        on the term loan.

Quarterly dividend:
    --  Board of Directors declared a quarterly dividend of $0.09 per
        share payable on January 14, 2013 to shareholders of record at
        the close of markets on January 3, 2013.

Amendment to credit agreement:
    --  Amendment to the existing credit agreement to support the
        Company's growth.

TSX: MDF www.mediagrif.com

LONGUEUIL, QC, Nov. 13, 2012 /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 2013 ended 
September 30, 2012. Unless indicated otherwise, all amounts are in Canadian 
dollars.

SUMMARY OF CONSOLIDATED RESULTS
                                                             
                                 Three months ended  Six months ended
                                    September 30       September 30

(in thousands of Canadian          2012         2011   2012       2011
dollars, except for numbers
related to shares - unaudited)

Revenues                         15,213       12,706 31,060     25,343

EBITDA                            6,514        4,477 12,639      8,469

Operating profit                  5,219        3,732 10,111      6,957

Profit for the period             3,429        3,747  7,062      5,905

Earnings per share                                                    

  - Basic & Diluted                0.25         0.27   0.51       0.43

Weighted average number of share                                      
outstanding (in thousands)

  - Basic                        13,797       13,705 13,769     13,694

  - Diluted                      13,822       13,740 13,806     13,733

The income analysis summary takes into consideration the impact of the 
acquisition of LesPAC network ("LesPAC") completed on November14, 2011.

RESULTS FOR THE SECOND QUARTER OF FISCAL 2013

For the second quarter of fiscal 2013, revenues totalled $15.2million, an 
increase of 19.7% or $2.5million compared to the second quarter of fiscal 
2012 revenues of $12.7million.

The revenue increase is explained by the addition of revenues from LesPAC for 
$3.1million, partly offset by a decrease in revenues, in original 
currencies, in certain subsidiaries, amounting to a net amount of 
$0.4million. Moreover, the changes in the value of the Canadian dollar 
compared to the U.S. dollar, combined with currency hedge in place, generated 
a negative impact on revenues of $0.1 million during the second quarter of 
fiscal 2013.

Total operating expenses of the second quarter of fiscal 2013, including cost 
of revenues, reached $10.0million, compared to $9.0million for the second 
quarter of fiscal 2012. The increase in operating expenses is mainly due to 
the addition of LesPAC activities for $1.8million during the second quarter 
while operating expenses of the other subsidiaries decreased by a net amount 
$0.8million as a result of lower salaries and professional services, a 
decrease in the bad debt expense and additional tax credits.

EBITDA totalled $6.5million or 42.8% of revenues compared to $4.5million 
or 35.2% of revenues during the second quarter of fiscal 2012.

Profit reached $3.4million ($0.25 per share), compared to $3.7million 
($0.27 per share) recorded during the second quarter of fiscal 2012. Profit 
for the second quarter of fiscal 2013 includes a foreign exchange loss of $0.3 
million while the Company recorded a foreign exchange gain of $1.2million 
during the second quarter of fiscal 2012.

RESULTS FOR THE FIRST SIX MONTHS OF FISCAL 2013

For the first six months of fiscal 2013, revenues totalled $31.1million, an 
increase of 22.9% or $5.8million, when compared to the first six months of 
fiscal 2012 revenues of $25.3 million.

The increase is explained by the addition of revenues from LesPAC for 
$6.7million, partly offset by a decrease in revenues, in original 
currencies, in certain subsidiaries, amounting to a net amount of 
$0.6million. Moreover, the changes in the value of the Canadian dollar 
compared to the U.S. dollar, combined with currency hedge in place, generated 
a negative impact on revenues of $0.2 million during the first six months of 
fiscal 2013.

Total operating expenses of the first six months of fiscal 2013, including 
cost of revenues, reached $20.9million, compared to $18.4million for the 
first six months of fiscal 2012. The increase in operating expenses is mainly 
due to the addition of LesPAC activities for $3.8million during the first 
six months while operating expenses of the other subsidiaries decreased by a 
net amount $1.2million as a result of lower salaries and professional 
services and additional tax credits.

EBITDA totalled $12.6million or 40.7% of revenues compared to $8.5million 
or 33.4% of revenues during the first six months of fiscal 2012.

Profit reached $7.1million ($0.51 per share), compared to $5.9million 
($0.43 per share) recorded during the first six months of fiscal 2012.

CASH FLOW AND FINANCIAL POSITION

During the second quarter of fiscal 2013, operating activities generated 
$5.7million of cash flows compared to $3.6million for the corresponding 
period of fiscal 2012.

The Company used a portion of these funds and a portion of its cash and cash 
equivalents to repay an amount of $3.0million on the term loan during the 
second quarter of fiscal 2013. As at September 30, 2012, a total of 
$11.0million (including an amount of $8.0million in advance) had been 
repaid on the $40.0million Term Loan that was put in place to fund the 
acquisition of LesPAC.

As at September 30, 2012, the Company had $5.8million of cash and cash 
equivalents and $16.0million available on its revolving credit facility of 
$20.0million.

During the first six months of fiscal 2013, operating activities generated 
$8.0million of cash flows compared to $3.8million for the first six months 
of fiscal 2012.

RECENT DEVELOPMENTS

The credit agreement signed on November 10, 2011 with the National Bank of 
Canada and the Bank of Nova Scotia was amended on November 13, 2012, allowing 
the Company to consolidate its existing term loan and revolving facility into 
a single revolving credit facility, to increase its borrowing capacity 
thereunder and the existing accordion loan of $25.0million.

The amended credit agreement now provides for a revolving facility of 
$60.0million, including an accordion loan of $40.0million, which is 
subject to lenders' acceptance. Conditions attached to the original credit 
agreement remain unchanged except for conditions related to the term loan, 
including the obligation to make mandatory quarterly instalments, which now 
cease to apply.

QUARTERLY DIVIDEND

The Board of Directors of Mediagrif approved and declared a quarterly dividend 
of $0.09 per share payable on January 14, 2013, to shareholders of record at 
the close of markets on January 3, 2013.

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 and spirits, diamonds and jewelry, 
classified ads, 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.



Mediagrif InteractiveTechnologies Inc. Claude Roy President and Chief 
Executive Officer Tel.: 450-449-0102 ext. 2004 Toll Free: 1 877 677-9088 ext. 
2004 Email:croy@mediagrif.com

Paul Bourque Chief Financial Officer Tel.: 450-449-0102, ext: 2135 Toll Free: 
1 877 677-9088 ext. 2135 Email:pbourque@mediagrif.com

SOURCE: MEDIAGRIF INTERACTIVE TECHNOLOGIES INC.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/13/c7720.html

CO: MEDIAGRIF INTERACTIVE TECHNOLOGIES INC.
ST: Quebec
NI: ECOM ERN DIV FIN 

-0- Nov/13/2012 23:50 GMT


 
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