Acquity Group Limited Reports Results for Second Quarter 2012
- Second Quarter Revenues Increased by 43.5% to $35.5 Million
- Operating Profit Increased by 10.7% to $4.2 Million
- Adjusted EBITDA Increased by 53.3% to $7.4 Million
CHICAGO, Aug. 8, 2012 /PRNewswire/ -- Acquity Group Limited ("Acquity" or the "Company") (NYSE MKT: AQ) today reported the following unaudited financial results for the second quarter ended June 30, 2012.
Financial highlights for the three month period ended June 30, 2012, compared to the three month period ended June 30, 2011
- Revenues increased by $10.7 million, or 43.5%, to $35.5 million, compared to $24.7 million for the three month period ended June 30, 2011.
- IFRS operating profit increased by $0.4 million, or 10.7%, to $4.2 million, or 11.8% of revenues, compared to $3.8 million, or 15.3% of revenues, for the three month period ended June 30, 2011.
- IFRS operating profit, excluding costs associated with our recent initial public offering and amortization of purchased intangible assets, increased by $2.4 million, or 52.7%, to $6.8 million, or 19.3% of revenues, compared to $4.5 million, or 18.1% of revenues, for the three month period ended June 30, 2011. Refer to the "Reconciliation of Non-IFRS Financial Measures to IFRS Profit" in the tables that follow for additional details for all non-IFRS financial measures.
- IFRS profit attributable to equity holders of the Company decreased by $1.1 million, or 48.4%, to $1.2 million, or $0.04 per American depositary share ("ADS"), compared to $2.2 million, or $0.12 per ADS for the three month period ended June 30, 2011.
- Non-IFRS adjusted profit attributable to equity holders of the Company increased by $0.9 million, or 29.8%, to $3.8 million, or $0.18 per ADS, compared to $2.9 million, or $0.16 per ADS for the three month period ended June 30, 2011.
- Non-IFRS Adjusted EBITDA increased by $2.6 million, or 53.3%, to $7.4 million for the three month period ended June 30, 2012, compared to $4.8 million for the three month period ended June 30, 2011.
- As of June 30, 2012, the Company had unrestricted cash and cash equivalents of $32.6 million.
Financial highlights for the six month period ended June 30, 2012, compared to the six month period ended June 30, 2011
- Revenues increased by $23.5 million, or 50.6%, to $70.0 million, compared to $46.4 million for the six month period ended June 30, 2011.
- IFRS operating profit increased by $5.2 million, or 84.5%, to $11.3 million, or 16.1% of revenues, compared to $6.1 million, or 13.2% of revenues, for the six month period ended June 30, 2011.
- IFRS operating profit, excluding costs associated with our recent initial public offering and amortization of purchased intangible assets, increased by $7.2 million, or 97.1%, to $14.7 million, or 21.0% of revenues, compared to $7.5 million, or 16.1% of revenues, for the six month period ended June 30, 2011.
- IFRS profit attributable to equity holders of the Company increased by $1.3 million, or 36.7%, to $5.0 million, or $0.24 per American depositary share ("ADS"), compared to $3.7 million, or $0.20 per ADS for the six month period ended June 30, 2011.
- Non-IFRS adjusted profit attributable to equity holders of the Company increased by $3.4 million, or 68.2%, to $8.4 million, or $0.42 per ADS, compared to $5.0 million, or $0.28 per ADS for the six month period ended June 30, 2011.
- Non-IFRS Adjusted EBITDA increased by $7.7 million, or 94.6%, to $15.8 million for the six month period ended June 30, 2012, compared to $8.1 million for the six month period ended June 30, 2011.
"Our ongoing business performance solidifies our position as a market leader of Brand eCommerce™ and Digital Marketing solutions," said Christopher Dalton, President and Chief Executive Officer of Acquity Group. "While macro-economic conditions continue to challenge our global clients, we remain encouraged by their ongoing investments in the digital channels, which are critical to their business transformation and competitive position as digital organizations."
Paul Weinewuth, Chief Financial Officer of Acquity Group, said, "We continue to experience strong utilization, driven by interest in our expertise in Brand eCommerce™ and Digital Marketing services. The substantial business growth during the past year has allowed us to gain additional market recognition and positions us as a leader in our category."
Recent Business Highlights
On May 2, 2012, the Company completed the initial public offering ("IPO") of its American depositary shares representing ordinary shares and is now listed on NYSE MKT under the stock symbol "AQ." The net proceeds of our initial public offering are expected to be used for potential acquisitions, working capital and to maintain existing ownership interests in joint ventures.
On June 11, 2012, the Company announced it relocated to an expanded space in New York City's Flatiron District to accommodate a significant rise in employee headcount serving the regional market.
Second Quarter 2012 Financial Results
Three Month Period Ended June 30, 2012 Compared to Three Month Period Ended June 30, 2011
Revenues increased by $10.7 million, or 43.5%, to $35.5 million for the three month period ended June 30, 2012, from $24.7 million for the three month period ended June 30, 2011. Revenues continue to grow due to strong demand seen in the market place for the Company's expertise and focused approach to delivering customer value.
Cost of revenues increased by $5.1 million to $19.6 million for the three month period ended June 30, 2012, from $14.4 million for the three month period ended June 30, 2011, which was primarily driven by organic growth of our staff to accommodate the demand for our services. These costs decreased as a percentage of revenues to 55.2% for the three month period ended June 30, 2012, from 58.4% for the three month period ended June 30, 2011.
Selling and marketing expenses increased by $0.7 million to $2.3 million for the three month period ended June 30, 2012, from $1.7 million for the three month period ended June 30, 2011. These costs decreased as a percentage of revenues to 6.6% for the three month period ended June 30, 2012, from 6.8% for the three month period ended June 30, 2011. This improvement was the result of leveraging our experienced sales force and entering into engagements that fit our growth model.
Administrative expenses increased by $2.6 million to $7.3 million for the three month period ended June 30, 2012, from $4.7 million for the three month period ended June 30, 2011. These costs increased as a percentage of revenues to 20.8% for the three month period ended June 30, 2012, from 19.2% for the three month period ended June 30, 2011. The increase was primarily due to an increase in operations headcount in order to support the growth of the business and its operations.
In connection with the IPO completed on May 2, 2012, the Company recorded a $2.0 million charge for the three month period ended June 30, 2012, related to costs for underwriting and legal fees, among other costs. The Company recorded this charge in accordance with IFRS rules, which requires the Company to recognize a charge for a portion of costs attributable to the IPO.
Equity in losses of joint ventures was $0.4 million for the three month period ended June 30, 2012, compared to $0.1 million for the three month period ended June 30, 2011.
Income tax expense was $2.6 million and $1.5 million for the three month periods ended June 30, 2012 and June 30, 2011, respectively. Our effective tax rate was 70.4% and 40.0% for the three month periods ended June 30, 2012 and June 30, 2011, respectively. The increase for the three month period ended June 30, 2012, compared to the three month period ended June 30, 2011 was primarily attributable to the impact of non-deductible IPO-related costs, losses in non-U.S. operations for which no tax benefit is available and an increase in state taxes.
Six Month Period Ended June 30, 2012 Compared to Six Month Period Ended June 30, 2011
Revenues increased by $23.5 million, or 50.6%, to $70.0 million for the six month period ended June 30, 2012, from $46.4 million for the six month period ended June 30, 2011. Revenues increased as a result of our continued focus on being one of the best providers in Brand eCommerce™ and Digital Marketing service capabilities and our ability to continue to secure new accounts that are committed to the digital channel.
Cost of revenues increased by $10.9 million to $38.0 million for the six month period ended June 30, 2012, from $27.1 million for the six month period ended June 30, 2011, which was primarily driven by organic growth of our staff to accommodate the demand for our services. These costs decreased as a percentage of revenues to 54.4% for the six month period ended June 30, 2012, from 58.3% for the six month period ended June 30, 2011.
Selling and marketing expenses increased by $0.9 million to $4.4 million for the six month period ended June 30, 2012, from $3.5 million for the six month period ended June 30, 2011. These costs decreased as a percentage of revenues to 6.3% for the six month period ended June 30, 2012, from 7.6% for the six month period ended June 30, 2011. This improvement was the result of leveraging our experienced sales force and entering into engagements that fit our growth model.
Administrative expenses increased by $4.4 million to $14.1 million for the six month period ended June 30, 2012, from $9.6 million for the six month period ended June 30, 2011. These costs decreased as a percentage of revenues to 20.1% for the six month period ended June 30, 2012, from 20.7% for the six month period ended June 30, 2011. The decrease was primarily due to our ability to leverage our fixed costs, which was offset by an increase in operations headcount in order to support the growth of the business and its operations.
In connection with the IPO completed on May 2, 2012, the Company recorded a $2.1 million charge for the six month period ended June 30, 2012, related to costs for underwriting and legal fees, among other costs. The Company recorded this charge in accordance with IFRS rules, which requires the Company to recognize a charge for a portion of costs attributable to the IPO.
Equity in losses of joint ventures was $0.9 million for the six month period ended June 30, 2012, compared to $0.1 million for the six month period ended June 30, 2011.
Income tax expense was $5.5 million and $2.4 million for the six month periods ended June 30, 2012 and June 30, 2011, respectively. Our effective tax rate was 53.0% and 39.6% for the six month periods ended June 30, 2012 and June 30, 2011, respectively. The increase for the six month period ended June 30, 2012, compared to the six month period ended June 30, 2011 was primarily attributable to the impact of non-deductible IPO-related costs, losses in non-U.S. operations for which no tax benefit is available and an increase in state taxes.
Third Quarter 2012 Outlook
The Company currently expects the following financial results for the third quarter of 2012:
- For the third quarter ending September 30, 2012, revenues are expected to be in the range of $37 million to $40 million; and
- IFRS operating profit margin, excluding costs associated with our recent initial public offering and amortization of purchased intangible assets, is expected to range from 16% to 18%.
Webcast and Conference Call
A conference call and webcast have been scheduled for 8:30 a.m. EDT today to discuss these results. Details of the conference call are as follows:
Date: | Wednesday, August 8, 2012 | |
Time: | 8:30 a.m. EDT (please dial in by 8:15 a.m.) | |
Dial-In #: | (877)299-4454 U.S. & Canada | |
+1(617)597-5447 International | ||
Confirmation code: | 80244067 | |
Alternatively, the conference call will be available via webcast at www.acquitygroup.com by clicking on the "Investors" tab.
Non-IFRS Financial Measures
Acquity provides non-IFRS financial measures to complement reported IFRS results. Management believes these measures help illustrate underlying trends in the Company's business and uses the measures to establish budgets and operational goals, communicated internally and externally, for managing the Company's business and evaluating its performance. The Company anticipates that it will continue to report both IFRS and certain non-IFRS financial measures in its financial results, including non-IFRS results that exclude interest, income tax provisions, depreciation and amortization, costs associated with its initial public offering, equity in losses of its joint ventures, acquisition costs and other related charges, among other costs. Consequently, Acquity's non-IFRS financial measures should not be evaluated in isolation or as a substitute for IFRS measures, but, rather, should be considered together with its consolidated financial statements, which are prepared according to IFRS.
Special Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "aim," "anticipate," "believe," "confident," "continue," "estimate," "expect," "future," "intend," "is currently reviewing," "it is possible," "likely," "may," "plan," "potential," "will" or other similar expressions or the negative of these words or expressions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. In particular, the section entitled "Third Quarter 2012 Outlook" in this announcement consists of forward-looking statements. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements and are subject to change, and such change may be material and may have a material adverse effect on the Company's financial condition and results of operations for one or more periods. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained, either expressly or impliedly, in any of the forward-looking statements in this announcement. Potential risks and uncertainties include, but are not limited to, the risks outlined in the Company's Registration Statement on Form F-1 and other documents filed with the U.S. Securities and Exchange Commission. Unless otherwise specified, all information provided in this announcement and in the attachments is as of the date of this announcement, and the Company does not undertake any obligation to update any such information, except as required under applicable law.
About Acquity Group Limited
Acquity Group Limited is a leading Brand eCommerce™ and digital marketing company that leverages the Internet, mobile devices and social media to enhance its clients' brands and e-commerce performance. It is the digital agency of record for a number of well-known global brands in multiple industries. Acquity Group Limited has served more than 500 companies and their global brands through eleven offices in North America and three offices in Asia. For more information about Acquity Group Limited, visit www.acquitygroup.com.
Acquity Group Limited | |||||||||||||
Consolidated Statements of Comprehensive Income - Unaudited | |||||||||||||
(Amounts in thousands, except per share data) | |||||||||||||
Three Month Periods Ended | Six Month Periods Ended | ||||||||||||
June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | ||||||||||
Revenues | $ 35,462 | 100.0% | $ 24,719 | 100.0% | $ 69,955 | 100.0% | $ 46,445 | 100.0% | |||||
Cost of revenues | 19,571 | 55.2% | 14,445 | 58.4% | 38,029 | 54.4% | 27,085 | 58.3% | |||||
Gross profit | 15,891 | 44.8% | 10,274 | 41.6% | 31,926 | 45.6% | 19,360 | 41.7% | |||||
Selling and marketing expenses | 2,329 | 6.6% | 1,678 | 6.8% | 4,439 | 6.3% | 3,518 | 7.6% | |||||
Administrative expenses | 7,373 | 20.8% | 4,747 | 19.2% | 14,080 | 20.1% | 9,634 | 20.7% | |||||
Costs associated with initial public offering | 1,999 | 5.6% | 64 | 0.3% | 2,115 | 3.0% | 88 | 0.2% | |||||
Operating profit | 4,190 | 11.8% | 3,785 | 15.3% | 11,292 | 16.1% | 6,120 | 13.2% | |||||
Finance costs | 12 | 0.0% | (14) | (0.1%) | (3) | (0.0%) | (31) | (0.1%) | |||||
Equity in losses of joint ventures | (442) | (1.2%) | (89) | (0.4%) | (884) | (1.3%) | (89) | (0.2%) | |||||
Profit before tax | 3,760 | 10.6% | 3,682 | 14.9% | 10,405 | 14.9% | 6,000 | 12.9% | |||||
Income tax expense | 2,646 | 7.5% | 1,474 | 6.0% | 5,510 | 7.9% | 2,374 | 5.1% | |||||
Profit | 1,114 | 3.1% | 2,208 | 8.9% | 4,895 | 7.0% | 3,626 | 7.8% | |||||
Profit/(loss) attributable to: | |||||||||||||
Equity holders of the Company | $ 1,154 | 3.3% | $ 2,238 | 9.1% | $ 4,999 | 7.1% | $ 3,658 | 7.9% | |||||
Non-controlling interests | (40) | (0.1%) | (30) | (0.1%) | (104) | (0.1%) | (32) | (0.1%) | |||||
Profit | $ 1,114 | 3.1% | $ 2,208 | 8.9% | $ 4,895 | 7.0% | $ 3,626 | 7.8% | |||||
Other comprehensive income: | |||||||||||||
Profit | 1,114 | 3.1% | 2,208 | 8.9% | 4,895 | 7.0% | 3,626 | 7.8% | |||||
Currency translation differences | (69) | (0.2%) | 31 | 0.1% | (67) | (0.1%) | 38 | 0.1% | |||||
Comprehensive profit | $ 1,045 | 2.9% | $ 2,239 | 9.1% | $ 4,828 | 6.9% | $ 3,664 | 7.9% | |||||
Total comprehensive profit/(loss) attributable to: | |||||||||||||
Equity holders of the Company | $ 1,085 | 3.1% | $ 2,241 | 9.1% | $ 4,932 | 7.1% | $ 3,666 | 7.9% | |||||
Non-controlling interests | (40) | (0.1%) | (2) | (0.0%) | (104) | (0.1%) | (2) | (0.0%) | |||||
Comprehensive profit | $ 1,045 | 2.9% | $ 2,239 | 9.1% | $ 4,828 | 6.9% | $ 3,664 | 7.9% | |||||
Profit per share attributable to equity holders of the Company: | |||||||||||||
American depositary shares (1) | $ 0.04 | $ 0.12 | $ 0.24 | $ 0.20 | |||||||||
Ordinary shares | $ 0.02 | $ 0.06 | $ 0.12 | $ 0.10 | |||||||||
Shares used in computing profit per share: | |||||||||||||
American depositary shares (1) | 22,151.3 | 18,738.6 | 20,445.0 | 18,738.6 | |||||||||
Ordinary shares | 44,302.7 | 37,477.3 | 40,890.0 | 37,477.3 | |||||||||
(1) On May 2, 2012, the Company completed the initial public offering of its American depositary shares representing ordinary shares and is now listed on NYSE MKT under the stock symbol "AQ." Pursuant to our registration statement filed with the Securities and Exchange Commission, each American depositary share presented in the consolidated statement of comprehensive income represents two ordinary shares outstanding. | |||||||||||||
Acquity Group Limited | ||||||
Consolidated Statements of Financial Position - Unaudited | ||||||
(Amounts in thousands) | ||||||
June 30, 2012 | December 31, 2011 | |||||
Assets | ||||||
Non-current assets | ||||||
Property and equipment, net | $ 4,285 | $ 3,648 | ||||
Intangible assets | 25,138 | 26,428 | ||||
Other non-current assets (1) | 4,832 | 74 | ||||
Investment in joint ventures | 2,933 | 3,887 | ||||
Deferred tax assets | 4,891 | 4,521 | ||||
42,079 | 38,558 | |||||
Current assets | ||||||
Trade receivables | 22,244 | 19,906 | ||||
Unbilled receivables | 12,108 | 8,056 | ||||
Due from customers under fixed-price contracts | 402 | 456 | ||||
Prepayments and other receivables | 1,638 | 3,096 | ||||
Restricted cash | - | 2,600 | ||||
Cash and cash equivalents | 32,638 | 6,875 | ||||
69,030 | 40,989 | |||||
Total assets | $ 111,109 | $ 79,547 | ||||
Equity and liabilities | ||||||
Equity | ||||||
Issued capital | $ 5 | $ 4 | ||||
Capital reserve | 96,577 | 71,030 | ||||
Other comprehensive income | 1 | 68 | ||||
Retained losses | (2,414) | (7,413) | ||||
Equity attributable to equity holders of parent | 94,169 | 63,689 | ||||
Non-controlling interests | 641 | 745 | ||||
Total equity | 94,810 | 64,434 | ||||
Non-current liabilities | ||||||
Other non-current liabilities | 6,015 | 5,379 | ||||
6,015 | 5,379 | |||||
Current liabilities | ||||||
Trade payables | 665 | 1,499 | ||||
Other payables and accruals | 8,699 | 8,159 | ||||
Due to customers under fixed-price contracts | 72 | 41 | ||||
Accrued income taxes | 848 | 35 | ||||
10,284 | 9,734 | |||||
Total liabilities | 16,299 | 15,113 | ||||
Total equity and liabilities | $ 111,109 | $ 79,547 | ||||
(1) As of June 30, 2012, other non-current assets primarily consist of deposits for joint venture related to an additional investment in our Huaren Kudong Commercial Trading Co., Ltd. joint venture. We are awaiting approval from the Chinese government, at which time the funds will be reclassified to "Investment in joint ventures" on the consolidated statement of financial condition. | ||||||
Acquity Group Limited | |||||||||||
Consolidated Statements of Changes in Equity - Unaudited | |||||||||||
(Amounts in thousands) | |||||||||||
Issued captial | Capital reserve | Other | Retained losses | Equity attributable | Non-controlling | Total equity | |||||
As of 31 December 2011 | 4 | 71,030 | 68 | (7,413) | 63,689 | 745 | 64,434 | ||||
Profit (loss) for the year | 3,845 | 3,845 | (64) | 3,781 | |||||||
Other comprehensive income | 2 | 2 | 2 | ||||||||
Total comprehensive income (loss) for the year | - | - | 2 | 3,845 | 3,847 | (64) | 3,783 | ||||
As of 31 March 2012 | $ 4 | $ 71,030 | $ 70 | $ (3,568) | $ 67,536 | $ 681 | $ 68,217 | ||||
Profit (loss) for the year | 1,154 | 1,154 | (40) | 1,114 | |||||||
Other comprehensive income | (69) | (69) | (69) | ||||||||
Issuance of American depositary shares, | 1 | 25,547 | 25,548 | 25,548 | |||||||
Total comprehensive income (loss) for the year | 1 | 25,547 | (69) | 1,154 | 26,633 | (40) | 26,593 | ||||
As of 30 June 2012 | $ 5 | $ 96,577 | $ 1 | $ (2,414) | $ 94,169 | $ 641 | $ 94,810 | ||||
(1) During the three month period ended June 30, 2012, the Company recorded additional issued capital and capital reserve related to the issuance of the Company's IPO of American depositary shares, which began trading on NYSE MKT on April 27, 2012, and was offset by costs associated with the IPO in accordance with IFRS rules. | |||||||||||
Acquity Group Limited | |||||||||
Consolidated Statements of Cash Flows - Unaudited | |||||||||
(Amounts in thousands) | |||||||||
Six Month Periods Ended | |||||||||
June 30, 2012 | June 30, 2011 | ||||||||
Operating activities: | |||||||||
Profit before tax | $ 10,405 | $ 6,000 | |||||||
Adjustments to reconcile profit before tax to net cash flows from operating actitivities: | |||||||||
Non-cash: | |||||||||
Depreciation of property and equipment | 1,004 | 633 | |||||||
Amortization of intangible assets & straight-line rent | 1,361 | 1,250 | |||||||
Impairment loss of trade receivables | 119 | - | |||||||
Finance costs | 3 | 31 | |||||||
Equity in losses of joint ventures | 884 | 89 | |||||||
Working captial adjustments: | |||||||||
Trade receivables and unbilled receivables | (6,510) | (4,409) | |||||||
Due from customers under fixed-price contracts | 54 | 385 | |||||||
Prepayment and other receivables | (500) | (228) | |||||||
Trade payables | (834) | 413 | |||||||
Other payables and accruals | 437 | (12) | |||||||
Due to customers under fixed-price contracts | 31 | 90 | |||||||
Other non-current assets | 4 | - | |||||||
Other non-current liabilities | - | 120 | |||||||
Income tax paid | (3,190) | (2,030) | |||||||
Net cash flows generated from operating activities | 3,268 | 2,332 | |||||||
Investing activities: | |||||||||
Purchase of property and equipment | (1,640) | (604) | |||||||
Decrease/(increase) in restricted cash | 2,600 | (1,990) | |||||||
Investment in joint venture | - | (2,832) | |||||||
Increase in deposits for joint venture (1) | (4,762) | - | |||||||
Loan receivable from officers of Acquity Group LLC | - | (4,193) | |||||||
Net cash flows used in investing activities | (3,802) | (9,619) | |||||||
Financing activities: | |||||||||
Proceeds from issuance of American depositary shares | 28,667 | - | |||||||
Payment of costs associated with initial public offering | (2,370) | (26) | |||||||
Net cash flows generated from/(used in) financing activities | 26,297 | (26) | |||||||
Net increase/(decrease) in cash and cash equivalents | 25,763 | (7,313) | |||||||
Cash and cash equivalents at the beginning of the period | 6,875 | 12,428 | |||||||
Cash and cash equivalents at the end of the period | $ 32,638 | $ 5,115 | |||||||
(1) For the six month period ended June 30, 2012, the increase in deposits for joint venture relates to an additional investment in our Huaren Kudong Commercial Trading Co., Ltd. joint venture. We are awaiting approval from the Chinese government, at which time the funds will be reclassified to "Investment in joint ventures" on the consolidated statement of financial position. | |||||||||
Acquity Group Limited | |||||||||
Reconciliation of Non-IFRS Financial Measures to IFRS Profit - Unaudited (1) | |||||||||
(Amounts in thousands, except per share data) | |||||||||
Three Month Periods Ended | Six Month Periods Ended | ||||||||
June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | ||||||
IFRS profit attributable to equity holders, as reported | $ 1,154 | $ 2,238 | $ 4,999 | $ 3,658 | |||||
Interest expense, net of interest income | (12) | 14 | 3 | 31 | |||||
Income tax expense | 2,646 | 1,474 | 5,510 | 2,374 | |||||
Depreciation & amortization: | |||||||||
Property and equipment | 523 | 320 | 1,004 | 633 | |||||
Intangible assets | 645 | 625 | 1,290 | 1,250 | |||||
Costs associated with initial public offering (2) | 1,999 | 64 | 2,115 | 88 | |||||
Equity in losses of joint ventures | 442 | 89 | 884 | 89 | |||||
Non-IFRS adjusted EBITDA | $ 7,397 | $ 4,824 | $ 15,805 | $ 8,123 | |||||
Three Month Periods Ended | Six Month Periods Ended | ||||||||
June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | ||||||
IFRS operating profit | $ 4,190 | $ 3,785 | $ 11,292 | $ 6,120 | |||||
Costs associated with initial public offering, net (2) | 1,999 | 64 | 2,115 | 88 | |||||
Amortization of intangible assets related to acquisition | 645 | 625 | 1,290 | 1,250 | |||||
Non-IFRS operating profit | $ 6,834 | $ 4,474 | $ 14,697 | $ 7,458 | |||||
Three Month Periods Ended | Six Month Periods Ended | ||||||||
June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | ||||||
IFRS profit attributable to equity holders, as reported | $ 1,154 | $ 2,238 | $ 4,999 | $ 3,658 | |||||
Costs associated with initial public offering, net (2) | 1,999 | 64 | 2,115 | 88 | |||||
Amortization of intangible assets related to acquisition | 645 | 625 | 1,290 | 1,250 | |||||
Non-IFRS adjusted profit | $ 3,798 | $ 2,927 | $ 8,404 | $ 4,996 | |||||
Adjusted profit per share attributable to equity holders of the Company: | |||||||||
American depositary shares (3) | $ 0.18 | $ 0.16 | $ 0.42 | $ 0.28 | |||||
Ordinary shares | $ 0.09 | $ 0.08 | $ 0.21 | $ 0.14 | |||||
Shares used in computing profit per share: | |||||||||
American depositary shares (3) | 22,151.3 | 18,738.6 | 20,445.0 | 18,738.6 | |||||
Ordinary shares | 44,302.7 | 37,477.3 | 40,890.0 | 37,477.3 | |||||
(1) The Company includes these adjusted calculations for the three and six month periods ended June 30, 2012 and June 30, 2011 because management believes they are useful to investors in that they provide for greater transparency with respect to supplemental information used by management in its financial and operational decision making. Accordingly, the Company believes that the presentation of this analysis, when used in conjunction with IFRS financial measures, is a useful financial analysis tool that can assist investors in assessing the Company's operating performance and underlying prospects. This analysis should not be considered in isolation or as a substitute for profit/(loss) prepared in accordance with IFRS. This analysis, as well as the other information in this press release, should be read in conjunction with the Company's financial statements and related footnotes contained in the documents that the Company files with the U.S. Securities and Exchange Commission. (2) The three and six month periods ended June 30, 2012 and June 30, 2011 include costs associated with the Company's IPO of American depositary shares, which began trading on NYSE MKT on April 27, 2012. The Company recorded this charge in accordance with IFRS rules, which allow the Company to (1) fully capitalize costs directly attributable to the IPO and (2) capitalize a portion of costs indirectly attributable to the IPO, based on the size of the offering. (3) On May 2, 2012, the Company completed the initial public offering of its American depositary shares representing ordinary shares and is now listed on NYSE MKT under the stock symbol "AQ." Pursuant to our registration statement filed with the Securities and Exchange Commission, each American depositary share presented in the Reconciliation of Non-IFRS Financial Measures to IFRS Profit represents two ordinary shares outstanding. | |||||||||
Investor Relations Contact:
Jessica Barist Cohen
Ogilvy Financial, New York
Phone: (646)460-9989
E-mail: aq@ogilvy.com
SOURCE Acquity Group LLC
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