Mediagrif reports results for its first quarter of fiscal 2019

News provided by

Mediagrif Interactive Technologies Inc.

Aug 07, 2018, 15:36 ET

First quarter highlights of fiscal year 2019:

Revenues up 5.8% to reach $21.1 million.
Long-term agreement with the SAQ for the development of the Société Québécoise du Cannabis' transactional website
Adjusted EBITDA¹ of $5.3 million including non-recurring expenses of $0.1 million.
Profit of $2.4 million ($0.16 per share).
Cash flow from operating activities totaled $2.4 million.

Quarterly dividend:

Declaration of a quarterly dividend of $0.10 per share payable on October 15, 2018 to shareholders of record on October 1, 2018.

LONGUEUIL, QC, Aug. 7, 2018 /PRNewswire/ - Mediagrif Interactive Technologies Inc. (TSX: MDF), a Canadian leader in information technology, today announced its financial results for the first quarter of fiscal 2019. Unless otherwise indicated, all amounts are in Canadian dollars.

SUMMARY OF CONSOLIDATED RESULTS

	First quarter ended June 30,

In thousands of Canadian dollars, except per share amounts	2018	2017
Unaudited by independent auditors	$	$
Revenues	21,128	19,971
Adjusted EBITDA¹	5,256	6,145
Operating profit	3,224	4,175
Profit	2,432	2,416
Earnings per share (basic and diluted)	0.16	0.16
Basic and diluted weighted average number of shares outstanding (in thousands)	14,849	14,895

^{__________________________________
1}See reconciliation of adjusted EBITDA and profit as well as the "About Mediagrif Interactive Technologies Inc." section.

FIRST QUARTER OF FISCAL 2019 ENDED JUNE 30, 2018

For the first quarter of fiscal year 2019, revenues reached $21.1 million, an increase of 5.8% or $1.2 million when compared to the first quarter of fiscal year 2018.

During the first quarter, the increase in revenues is mainly attributable to the addition of Orckestra revenues of $1.6 million for a complete period of three months compared to $0.1 million during the first quarter of fiscal year 2018 following its acquisition on June 23, 2017.

In addition, InterTrade had a strong quarter with a revenue increase of $0.3 million during the first quarter of fiscal year 2019 whereas MERX had a revenue increase of $0.1 million during the same period.

Also during the first quarter of fiscal year 2019, LesPAC revenues stood at the same level when compared to the revenues of the corresponding quarter of fiscal year 2018 whereas Jobboom revenues decreased by $0.4 million. The decrease in Jobboom revenues is mainly attributable to price adjustments reflecting market conditions. However, when compared to the fourth quarter of fiscal 2018, Jobboom revenues for the first quarter of fiscal 2019 slightly increased.

The Corporation also signed a long-term agreement during the first quarter with the Société des alcools du Québec to use Orckestra's e-commerce platform in the development of the Société Québécoise du Cannabis' transactional website. The transactions are expected to begin on October 17, 2018.

During all of fiscal year 2019, the Corporation will continue to invest in technology and in selling and marketing in order to increase the organic growth of its platforms operating in growing fields of activity.

Adjusted EBITDA totalled $5.3 million compared to $6.1 million during the first quarter of fiscal 2018. Adjusted EBITDA for the first quarter includes non-recurring expenses of $0.1 million as well as a $0.4 million loss related to Orckestra's operations.

Profit reached $2.4 million ($0.16 per share), the same level as the profit of the corresponding quarter in the preceding year. Profit for the first quarter of fiscal 2019 includes a foreign exchange gain of $0.3 million on assets denominated in U.S. dollars compared to a foreign exchange loss of $0.4 million during the first quarter of fiscal year 2018.

FINANCIAL POSITION AND FINANCING

During the first quarter of fiscal year 2019, cash flows generated by operating activities reached $2.4 million, compared to $2.2 million during the first quarter of fiscal year 2018. The Corporation used a portion of these funds and funds available on its credit facility to cover for the acquisitions of capital assets.

Also during the first quarter of fiscal year 2019, the Corporation paid out a total of $1.5 million in dividends.

As at June 30, 2018, the Corporation had $12.1 million in cash and cash equivalents, and $53.0 million available on its revolving credit facility of $80.0 million.

QUARTERLY DIVIDEND

The Board of Directors of Mediagrif declared a quarterly dividend of $0.10 per share payable on October 15, 2018, to shareholders of record on October 1, 2018.

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.


		First quarter ended June 30,
In thousands of Canadian dollars Unaudited by independent auditors		2018 $	2017 $

Profit		2,432	2,416

	Income tax expense	825	1,139
	Depreciation of property, plant and equipment and amortization of intangible assets	882	777
	Amortization of acquired intangible assets	1,189	1,183
	Amortization of deferred financing costs	10	10
	Amortization of deferred lease inducement	(33)	(35)
	Foreign exchange loss (gain)	(316)	431
	Interest on long-term debt	267	224

Adjusted EBITDA		5,256	6,145

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.