Mediagrif announces its financial results for the third quarter of fiscal 2013

Mediagrif announces its financial results for the third quarter of fiscal 2013 
Third quarter highlights: 


    --  Revenues up 11% or $1.5 million to $15.1 million.
    --  EBITDA of $6.2 million up 29%, compared to $4.8 million (before
        transaction costs of $1.4 million for the acquisition of
        LesPAC).
    --  Operating profit of $4.9 million compared to $2.3 million.
    --  Profit of $3.5 million ($0.24 per share), up by $2.5 million.
    --  Full repayment of long-term debt following the private
        placement of common shares of $35.0 million.

Increase in quarterly dividend at $0.10 per share:
    --  Increase of 11% of quarterly dividend from $0.09 to $0.10 per
        share.

TSX: MDF
www.mediagrif.com

LONGUEUIL, QC, Feb. 12, 2013 /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 of fiscal 2013 ended 
December 31, 2012. Unless indicated otherwise, all amounts are in Canadian 
dollars.

SUMMARY OF CONSOLIDATED RESULTS
                                  
                                 Three months ended   Nine months ended
                                    December 31         December 31

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

Revenues                         15,128      13,617 46,188       38,960

EBITDA                            6,173       3,353 18,812       11,822

Operating profit                  4,898       2,250 15,009        9,207

Profit for the period             3,475         965 10,537        6,870

Earnings per share                                                     

  - Basic & Diluted                0.24        0.07   0.75         0.50

Weighted average number of share                                       
outstanding (in thousands)

  - Basic                        14,356      13,710 13,964       13,699

  - Diluted                      14,374      13,762 13,995       13,743

The results for the three- and nine-month periods ended December 31,
2012 include a non-recurring expense of $1.4 million related to the
acquisition of LesPAC.

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

RESULTS FOR THE THIRD QUARTER OF FISCAL 2013

For the third quarter of fiscal 2013, revenues totaled $15.1million, an 
increase of 11.1% or $1.5million compared to the third quarter of fiscal 
2012 revenues of $13.6million.

The revenue increase is mainly explained by the increase in revenues from 
LesPAC for $1.9million, partly offset by a decrease in revenues, in original 
currencies, in certain subsidiaries, amounting to a net amount of 
$0.2million. Moreover, the changes in the value of the Canadian dollar 
compared to the U.S. dollar, combined with currency hedges in place, generated 
a negative impact on revenues of $0.1million during the third quarter of 
fiscal 2013.

Total operating expenses of the third quarter of fiscal 2013, including cost 
of revenues, reached $10.2million, compared to $11.4million for the third 
quarter of fiscal 2012. The decrease in operating expenses is mainly due to 
the $1.4million transaction costs related to the acquisition of LesPAC 
incurred during the third quarter of fiscal 2012 while LesPAC activities added 
$1.0million in operating expenses during the third quarter of fiscal 2013. 
Additional tax credits of $0.2million were also recorded in the third 
quarter of fiscal 2013.

EBITDA totaled $6.2million or 40.8% of revenues compared to $3.4million or 
24.6% of revenues during the third quarter of fiscal 2012.

Profit reached $3.5million ($0.24 per share), compared to $1.0million 
($0.07 per share) recorded during the third quarter of fiscal 2012.

RESULTS FOR THE FIRST NINE MONTHS OF FISCAL 2013

For the first nine months of fiscal 2013, revenues totaled $46.2million, an 
increase of 18.6% or $7.2million, when compared to the first nine months of 
fiscal 2012 revenues of $39.0million.

The increase is mainly explained by the increase in revenues from LesPAC by 
$8.6million, partly offset by a decrease in revenues, in original 
currencies, in certain subsidiaries, amounting to a net amount of 
$0.8million. 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 $0.3million during the first nine months of 
fiscal 2013.

Total operating expenses of the first nine months of fiscal 2013, including 
cost of revenues, reached $31.2million, compared to $29.8million for the 
first nine months of fiscal 2012. The increase in operating expenses is mainly 
due to the increase in LesPAC activities for $4.8million during the first 
nine months of fiscal 2013 partly offset by a decrease in professional fees 
(including the $1.4million transaction costs related to LesPAC), lower 
salary expenses and additional tax credits.

EBITDA totaled $18.8million or 40.7% of revenues compared to $11.8million 
or 30.3% of revenues during the first nine months of fiscal 2012.

Profit reached $10.5million ($0.75 per share), compared to $6.9million 
($0.50 per share) recorded during the first nine months of fiscal 2012.

CASH FLOW AND FINANCIAL POSITION

On December 6, 2012, the Company completed the sale, by way of a private 
placement, of 2million common shares for gross proceeds of $35.0million. 
The Company used the proceeds to repay in full the term loan and revolving 
credit facility.

As at December 31, 2012, the Company had $9.3million of cash and cash 
equivalents and $60.0million available on its unused revolving credit 
facility.

Operating activities generated $4.9million of cash flows during the third 
quarter of fiscal 2013 compared to $5.4million for the corresponding period 
of fiscal 2012.

During the first nine months of fiscal 2013, operating activities generated 
$12.9million of cash flows compared to $9.2million for the first nine 
months of fiscal 2012.

QUARTERLY DIVIDEND INCREASED TO $0.10 PER SHARE

The Board of Directors of Mediagrif approved a 11% dividend increase in the 
quarterly dividend of $0.09 per share and declared a quarterly dividend of 
$0.10 per share. The dividend is payable on April 15, 2013, to shareholders of 
record on April 2, 2013.

RECENT DEVELOPMENT

We have been informed by our client, Public Works and Government Services of 
Canada ("PWGSC"), that it will not call for tenders in order to replace the 
MERX solution. The department uses MERX's electronic tendering system pursuant 
to a contract which expires May 31, 2013.

PWGSC plans to provide its suppliers with a solution developed internally. 
Suppliers of PWGSC, as well as those of other departments and governmental 
agencies, may continue to benefit from all the value added services of MERX.

The Company believes that the loss of a portion of the revenue from the 
expiration of this agreement will be compensated, among other things by:
    --  Providing the services of MERX to all suppliers and other
        departments and agencies that are currently using MERX.
    --  The increase activity generated by the use of MERX by our
        public and private sector clients in Canada.

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

-0- Feb/12/2013 23:36 GMT


 
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