International Datacasting Corporation Announces Fourth Quarter and Full Year Fiscal 2013 Results

International Datacasting Corporation Announces Fourth Quarter and Full Year 
Fiscal 2013 Results 
OTTAWA, ONTARIO -- (Marketwired) -- 04/29/13 -- International
Datacasting Corporation ("IDC") (TSX:IDC), a global leader in digital
content distribution solutions for the world's premiere broadcasters,
announced its financial results today for the fourth quarter and
fiscal year ended January 31, 2013. All amounts in this release are
in Canadian dollars unless otherwise stated. 
Financial Highlights: 
(in millions, except for gross margin and net loss per share) 


 
                                     Fourth Quarter             Fiscal Year 
                            ------------------------------------------------
                            ------------------------------------------------
                                   2013        2012        2013        2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenues:                                                                   
  IDC Products                 $    4.8    $    3.3    $   18.7    $   18.4 
  IDC Systems                  $    1.4    $    3.1    $   10.5    $   11.0 
                            ------------------------------------------------
Total revenues                 $    6.2    $    6.4    $   29.2    $   29.4 
                            ------------------------------------------------
Gross profit                   $    2.4    $    1.6    $   11.1    $   11.3 
Gross margin                         39%         25%         38%         38%
Operating expenses             $    3.4    $    3.3    $   12.1    $   13.7 
Adjusted EBITDA (1)            $   (0.2)   $   (0.4)   $    1.3    $   (0.1)
Net loss                       $   (1.0)   $   (1.7)   $   (1.0)   $   (2.3)
Net loss per share             $  (0.02)   $  (0.03)   $  (0.02)   $  (0.04)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
Fourth Quarter Results 
Revenues totaled $6.2 million for the fourth quarter of Fiscal 2013,
representing a 4% decline from the prior year's fourth quarter.
Product revenues grew by 46% as a result of an increase in the
average dollar value per sales order compared to the same quarter in
Fiscal 2012. Systems sales declined by 57%, due primarily to the
completion of the Direct-to-Home Broadcasting project in Kenya during
the first quarter of Fiscal 2013. IDC anticipates that revenue will
be materially lower going forward in this segment as the company
shifts its focus to the higher margin and more scalable products
business. IDC has recently launched new products targeted at high
growth areas including the LASER(TM) Targeted Ad Insertion Platform
and the STAR Pro Audio solution and is expected to be the catalyst
for improved margins and revenue growth. 


 
(1)  Adjusted earnings before income taxes, depreciation and amortization   
     ("Adjusted EBITDA") is a non-GAAP financial measure. The reconciliation
     of Adjusted EBITDA to Net Income (Loss) is provided at the end of this 
     release.                                                               

 
During the fourth quarter of Fiscal 2013, gross margins improved to
39% from 25% in the same quarter in Fiscal 2012 mainly due to lower
inventory impairment charges. Excluding inventory impairments, gross
margins would have been 40% and 37%, respectively. 
IDC generated a slight loss on an adjusted EBITDA basis for the
quarter, a $0.2 million improvement over the comparable period. IDC's
balance sheet remains healthy with a working capital ratio of 3.2 to
1 and liquid assets of $7.0 million at January 31, 2013. 
Del Lippert, Interim CEO and Chairman of the Board of IDC, stated,
"During fourth quarter of Fiscal 2013, we made solid progress in
building a stronger management team and expect to benefit from this
over the course of Fiscal 2014 and beyond." Lippert added, "We are
confident that our next generation STAR and LASER(TM) solutions
position us well to gain share in the global broadcast markets." 
Rick Clements, Chief Financial Officer of IDC, stated, "During the
fourth quarter of Fiscal 2013, we continued to focus on delivering
strong revenue growth at higher gross margin within the IDC Products
segment, enabling IDC to incur only a small loss on an adjusted
EBITDA basis despite the management shake-up during the quarter. For
fiscal year 2013, we executed against our cost reduction goals with
an operating loss improvement of $1.4 million primarily due to
corporate restructuring." Clements added, "We remain very focused on
delivering a significant improvement in our operating margin in
Fiscal 2014 and beyond, which we believe will drive increased
shareholder value. In addition, the improvement in our pipeline as a
result of a successful NAB event is a further step toward ultimately
realizing revenue goals over the long-term." 
For further information on IDC's fourth quarter and fiscal year-end
2013 results, refer to the audited consolidated financial statements
and Management's Discussion and Analysis that will be available on
SEDAR (www.sedar.com) after the Toronto Stock Exchange closes on
April 29, 2013. 
Financial Summary & Conference Call 
This announcement will be followed by a Management conference call at
8:30 a.m. ET on Tuesday, April 30, 2013, to discuss the results, and
to respond to questions from investors. 
Del Lippert, IDC's Interim CEO, invites all interested parties to
participate in the conference call. 
CONFERENCE CALL DETAILS: 


 
DATE:             Tuesday April 30, 2013                                    
TIME:             8:30 a.m. ET                                              
DIAL-IN NUMBERS:  613-233-1979 / 1-866-696-5910                             
                                                                            
PARTICIPANT CODE: 9700180                                                   
                                                                            
INSTANT REPLAY:   1-800-408-3053                                            
                  Passcode: 2957964                                         
                  Available until May 1, 2013 10:00 a.m. ET                 

 
WEBCAST: A live audio webcast of the conference call will be
available at the following link: http://www.gowebcasting.com/4319.
This webcast will be archived here for 365 days. 
Please connect to
the website at least 15 minutes prior to the conference call to
ensure adequate time for any software download that may be needed to
access the webcast. 
About International Datacasting Corporation: 
International Datacasting Corporation (TSX:IDC) is a global leader in
digital content distribution for the world's premiere broadcasters in
radio, television, data and digital cinema. IDC offers a broad
portfolio of advanced solutions including the STAR Pro Audio
solution, LASER(TM) Targeted Ad Insertion platform, and the Digital
Tattoo(TM) DTH Over IP Gateway. The company's products and solutions
are in demand for radio and television networks, targeted ad
insertion, digital cinema, 3D live events, satellite news gathering,
sports contribution, VOD, and IPTV. IDC is headquartered in Ottawa,
Canada, with regional offices in Arnhem, the Netherlands and in San
Diego, California. The company has installations in over 100
countries and service offices in Thailand and Singapore, and an
international network of value-added partners and resellers. For more
information visit: www.datacast.com. 
Forward-Looking Statements: 
This press release contains certain information that may constitute
"forward-looking information" and/or "forward-looking statements"
within the meaning of applicable Canadian securities laws. All
forward - looking information and forward-looking statements are
necessarily
 based on a number of estimates and assumptions that are
inherently subject to significant business, economic and competitive
uncertainties and contingencies. All statements other than statements
which are reporting results as well as statements of historical fact,
are forward-looking statements that may involve a number of known and
unknown risks, uncertainties and other factors; many of which are
beyond the ability of IDC to control or predict. 
Forward-looking statements are generally identifiable by use of the
words "may", "will", "should", "continue", "expect", "anticipate",
"estimate", "believe", "intend", "plan or "project" or the negative
of these words or other variations on these words or comparable
terminology. There can be no assurance that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements. Risk
factors that might cause actual results to differ materially include,
but are not limited to: 


 
--  competitive developments; 
--  risks associated with IDC's growth; 
--  expectations regarding new product initiatives and timing, including the
    STAR Pro Audio solution, LASER(TM) Targeted Ad Insertion Platform and
    Digital Tattoo(TM) DTH Over IP Gateway 
--  any difficulties with integrating acquired product lines into IDC's
    business and/or manufacturing procedures; 
--  any difficulties or disputes with IDC's subcontractors, contract
    manufacturers and suppliers; 
--  IDC's dependence on the development and growth of the satellite services
    market; 
--  a lengthy and variable sales cycle for IDC's products and services; 
--  IDC's reliance on a small number of customers for a large percentage of
    its revenue; 
--  expectations with respect to the sufficiency of its financial resources
    and liquidity; 
--  regulatory risks and intellectual property infringement. 

 
More detailed information about potential factors that could affect
IDC's financial and business results is included in the public
documents IDC files from time to time with Canadian securities
regulatory authorities and which are available on SEDAR at
www.sedar.com, 
Except as expressly required by applicable law, we undertake no
obligation to publicly update or revise forward-looking statements,
whether as a result of new information, future events or otherwise.
Forward-looking statements are provided to assist external
stakeholders in understanding IDC's expectations as at the date of
this release and may not be appropriate for other purposes. Readers
are cautioned not to place undue reliance on such statements. 


 
                   INTERNATIONAL DATACASTING CORPORATION                    
               CONSOLIDATED STATEMENTS OF FINANCIAL POSITION                
                      AS AT JANU
ARY 31, 2013 and 2012                       
                             (Canadian dollars)                             
                                                                            
                                                        2013           2012 
                                              ------------------------------
ASSETS                                                                      
Current Assets                                                              
  Cash                                         $   4,943,025  $   4,839,766 
  Short-term investments                              75,000      2,411,800 
  Available-for-sale investments                   1,986,510              - 
  Accounts receivable                              6,145,251      4,673,727 
  Inventories                                      2,449,121      4,247,470 
  Other assets                                       443,519        722,882 
                                              ------------------------------
Total Current Assets                              16,042,426     16,895,645 
                                              ------------------------------
                                                                            
Non-Current Assets                                                          
  Other assets                                        28,215        631,607 
  Capital assets                                   1,312,544      1,852,739 
  Deferred taxes                                   2,800,000      2,800,000 
                                              ----------------------------- 
Total Non-Current Assets                           4,140,759      5,284,346 
                                              ------------------------------
                                                                            
TOTAL ASSETS                                   $  20,183,185  $  22,179,991 
                                              ------------------------------
                                              ------------------------------
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current Liabilities                                                         
  Accounts payable                             $   1,842,762  $   1,781,257 
  Accrued liabilities                              1,839,545      1,347,451 
  Customer deposits                                  363,936        755,761 
  Deferred revenue - current portion                 433,480        882,827 
  Provisions                                         440,167        660,474 
  Obligations under capital leases - current                                
   portion                                             2,999         36,714 
  Current tax liability                               19,326              - 
                                              ------------------------------
Total Current Liabilities                          4,942,215      5,464,484 
                                              ------------------------------
                                                                            
Non-Current Liabilities                                                     
  Deferred tax liability                              23,063              - 
  Deferred revenue                                    55,277              - 
  Obligations under capital leases                         -          3,002 
                                              ------------------------------
Total Non-Current Liabilities                         78,340          3,002 
                                              ------------------------------
                                                                            
TOTAL LIABILITIES                                  5,020,555      5,467,486 
                                              ------------------------------
                                                                            
Shareholders' Equity                                                        
  Capital stock                                   23,406,259     23,977,481 
  Contributed surplus                              3,263,245      3,212,923 
  Accumulated other comprehensive loss              (243,209)      (229,729)
  Accumulated deficit                            (11,263,665)   (10,248,170)
                                              ------------------------------
TOTAL SHAREHOLDERS' EQUITY                        15,162,630     16,712,505 
                                              ------------------------------
                                                                            
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     $  20,183,185  $  22,179,991 
                                              ------------------------------
                                              ------------------------------
                                                                            
                                                                            
                                                                            
                   International Datacasting Corporation                    
        CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS        
              FOR THE PERIODS ENDED JANUARY 31, 2013 and 2012               
                 (Canadian dollars, except for share data)                  
                                                                            
                             Three months ended     
    Twelve months ended 
                                    (unaudited)                   (audited) 
                      January 31,   January 31,   January 31,   January 31, 
                             2013          2012          2013          2012 
                    --------------------------------------------------------
                                                                            
REVENUE              $  6,149,435  $  6,416,655  $ 29,235,682  $ 29,406,231 
                                                                            
COST OF REVENUE         3,786,189     4,795,082    18,145,913    18,092,651 
                    --------------------------------------------------------
                                                                            
GROSS PROFIT            2,363,246     1,621,573    11,089,769    11,313,580 
                    --------------------------------------------------------
                                                                            
OPERATING EXPENSES                                                          
Selling, general and                                                        
 administrative         2,361,015     2,215,155     7,956,362     8,244,360 
Research and                                                                
 development, net of                                                        
 investment tax                                                             
 credits                1,078,180     1,206,800     4,140,484     5,547,888 
Foreign exchange                                                            
 gain                      (6,943)     (118,187)       (4,670)     (106,882)
  Total operating                                                           
   expenses             3,432,252     3,303,768    12,092,176    13,685,366 
                    --------------------------------------------------------
                                                                            
                                                                           -
OPERATING LOSS                                                              
 BEFORE OTHER ITEMS    (1,069,006)   (1,682,195)   (1,002,407)   (2,371,786)
                                                                            
Realized loss on                                                            
 sale of short-term                                                         
 investments                    -             -       (27,220)            - 
                                                                            
Net interest income:                                                        
  Interest income          19,606        20,443        67,195        45,941 
  Interest expense          5,429             -        (5,720)       (5,799)
                                                                            
                                                                           -
LOSS BEFORE INCOME                                                          
 TAXES                 (1,043,971)   (1,661,752)     (968,152)   (2,331,644)
                                                                            
Income tax expense:                                                         
  Current                  (2,325)      (73,712)      (21,060)      (27,018)
  Deferred                      -             -       (26,283)            - 
                                                                            
                                                                           -
NET LOSS             $ (1,046,296) $ (1,735,464) $ (1,015,495) $ (2,358,662)
                    --------------------------------------------------------
                    --------------------------------------------------------
                                                                            
OTHER COMPREHENSIVE                                                         
 LOSS, NET OF TAXES                                                         
Change in fair value                                                        
 of available-for-                                                          
 sale investments          (9,660)            -       (13,480)            - 
                    --------------------------------------------------------
                                                                            
  Total other                                                               
   comprehensive                                                            
   loss, net of                                                             
   taxes                   (9,660)            -       (13,480)            - 
                    --------------------------------------------------------
                                                                            
COMPREHENSIVE LOSS   $ (1,055,956) $ (1,735,464) $ (1,028,975) $ (2,358,662)
                    --------------------------------------------------------
                    --------------------------------------------------------
                                                                            
                                                                            
NET LOSS PER SHARE                                                          
  Basic              $      (0.02) $      (0.03) $      (0.02) $      (0.04)
  Diluted            $      (0.02) $      (0.03) $      (0.02) $      (0.04)
                                                                            
  Weighted average                                                          
   number of shares                                                         
   outstanding -                                                            
   basic               57,384,642    58,410,946    57,908,795    59,378,002 
  Weighted average                                                          
   number of shares                                                         
   outstanding -                                                            
   diluted             57,384,642    58,410,946    57,908,795    59,378,002 
                                                                            
                                                                            
                                                                            
                   INT
ERNATIONAL DATACASTING CORPORATION                    
                   CONSOLIDATED STATEMENTS OF CASH FLOWS                    
              FOR THE PERIODS ENDED JANUARY 31, 2013 and 2012               
                             (Canadian dollars)                             
                                                                            
                             Three months ended         Twelve months ended 
                                    (unaudited)                   (audited) 
                      January 31,   January 31,   January 31,   January 31, 
                             2013          2012          2013          2012 
                    --------------------------------------------------------
                                                                            
OPERATING ACTIVITIES                                                        
Net loss             $ (1,046,296) $ (1,690,862) $ (1,015,495) $ (2,314,060)
Add items not                                                               
 requiring an outlay                                                        
 of cash:                                                                   
  Depreciation and                                                          
   amortization           494,475       185,451       895,704       956,469 
  Deferred taxes          (20,757)            -        23,063       (46,525)
  Realized loss on                                                          
   sale of short-                                                           
   term investment              -             -        27,220             - 
  Unrealized losses                                                         
   (gains) on                                                               
   derivatives            (22,787)     (103,914)      102,509        77,648 
  Stock-based                                                               
   compensation                 -       (33,265)       42,744        93,933 
                    --------------------------------------------------------
                         (595,365)   (1,642,590)       75,745    (1,232,535)
Net change in non-                                                          
 cash working                                                               
 capital:                                                                   
  Accounts                                                                  
   receivable             (22,150)    1,683,211    (1,471,524)    5,942,701 
  Inventories             284,122       608,028     1,597,720      (473,086)
  Other assets            120,647       372,545       237,075       187,497 
  Accounts payable                                                          
   and accrued                                                              
   liabilities            207,050      (627,598)      544,770    (2,205,764)
  Customer deposits       117,164      (458,333)     (391,825)   (1,552,353)
  Deferred revenue       (315,966)       56,757      (394,070)      288,415 
  Provisions               16,312        75,288      (220,307)        2,268 
  Current tax                                                               
   liability                1,789             -        19,326             - 
                    --------------------------------------------------------
Net cash provided by                                                        
 (applied to)                                                               
 operating                                                                  
 activities              (186,397)       67,308        (3,090)      957,143 
                    --------------------------------------------------------
                                                                            
INVESTING ACTIVITIES                                                        
Purchase of capital                                                         
 assets                   (29,437)      (48,092)     (154,880)     (502,755)
Proceeds from                                                               
 redemption of                                                              
 short-term                                                                 
 investment                     -             -     2,309,580             - 
Purchase of short-                                                          
 term investment                -    (2,411,800)            -    (2,411,800)
Purchase of                                                                 
 available-for-sale                                                         
 investments                    -             -    (1,999,990)            - 
                    --------------------------------------------------------
Net cash provided by                                                        
 (applied to)                                                               
 investing                                                                  
 activities               (29,437)   (2,459,892)      154,710    (2,914,555)
                    --------------------------------------------------------
                                                                            
FINANCING ACTIVITIES                                                        
Repayments of                                                               
 obligations under                                                          
 capital leases            (8,888)      (11,136)      (36,717)      (53,215)
Issue of common                                                             
 shares, net of                                                             
 issue costs                    -         7,776         4,480       158,913 
Repurchase of common                                                        
 shares, net of                                                             
 costs                          -       (11,144)      (16,124)      (11,144)
                    --------------------------------------------------------
Net cash provided by                                                        
 (applied to)                                                               
 financing                                                                  
 activities                (8,888)      (14,504)      (48,361)       94,554 
                    --------------------------------------------------------
                                                                            
Net increase                                                                
 (decrease) in cash                                                         
 during the period       (224,722)   (2,407,088)      103,259    (1,862,858)
                                                                            
CASH - Beginning of                                                         
 period                 5,167,747     7,246,854     4,839,766     6,702,624 
                    --------------------------------------------------------
                                                                            
CASH - End of period $  4,943,025  $  4,839,766  $  4,943,025  $  4,839,766 
                    --------------------------------------------------------
                    --------------------------------------------------------
                                                                            
                                                                            
                                                                            
                   International Datacasting Corporation                    
                 Non-GAAP Financial Measure Reconciliation                  
    Adjusted Earnings Before Income Taxes, Depreciation, and Amortization   
                                  (EBITDA)                                  
              For the periods ended January 31, 2013 and 2012               
                             (Canadian dollars)                             
                                                                            
 
                             Three months ended         Twelve months ended 
                      January 31,   January 31,   January 31,   January 31, 
                             2013          2012          2013          2012 
                    --------------------------------------------------------
                                                                            
Net loss reported                                                           
 under IFRS          $ (1,046,296) $ (1,735,464) $ (1,015,495) $ (2,314,060)
Add back:                                                                   
 Depreciation                                                               
  expense                 494,475       239,136       895,704       956,469 
 Dissident                                                                  
  shareholder                                                               
  expense                       -             -       403,439             - 
 Restructuring                                                              
  expense                  20,000       124,661       307,665       160,133 
 Inventory                                                                  
  impairment charge       112,564       779,821       233,080       979,821 
 Incremental                                                                
  external business                                                         
  acquisition                                                               
  expense                       -             -       213,940             - 
 Severance relating                                                         
  to senior                                                                 
  management              178,913       141,969       178,913       141,969 
 Income tax expense                                                         
  (recovery)                2,325        73,712        47,343       (19,507)
                    --------------------------------------------------------
                                                                            
Adjusted EBITDA      $   (238,019) $   (376,165) $  1,264,589  $    (95,175)
                    --------------------------------------------------------
                    --------------------------------------------------------

 
In this release, IDC has presented Adjusted EBITDA, which is a
"non-GAAP financial measure" and accordingly it is not an earnings
measure recognized by IFRS and does not carry standard prescribed
significance. Moreover, IDC's method for calculating Adjusted EBITDA
may differ from that used by other companies using the same
designation. Accordingly, we caution readers that Adjusted EBITDA
should not be substituted for determining net income (loss) as an
indicator of operating results or as a substitution for cash flows
from operating and investing activities. 
We believe Adjusted EBITDA is a meaningful and useful financial
metric to investors and analysts for measuring and predicting its
operating performance by excluding income taxes, depreciation and
amortization as well as unusual and/or non-recurring charges as noted
in the above table. While inventory impairment charges are not
unusual for our satellite communication industry due to the rapid
technological change, we have excluded this item from EBITDA given
the unusually large inventory write- off in the fourth quarter of
Fiscal 2012.
Contacts:
Rick Clements
Chief Financial Officer
International Datacasting Corporation
613-596-4120
rclements@datacast.com
www.datacast.com
 
 
Press spacebar to pause and continue. Press esc to stop.