Hi Dean,
Here is Globel's 1st quarter report. I know you've done your DD but I'm posting it here for others to see. This young company is looking good so far.
Source
CANADIAN CORPORATE NEWS
Date
11/01/99
Company
GLOBEL DIRECT INC.
Title
Globel Direct, inc. Shows Solid Growth in First Quarter Financial Results for
Fiscal 2000
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: Globel Direct, Inc.
ASE SYMBOL: GBD
November 1, 1999
Globel Direct, inc. Shows Solid Growth in First Quarter Financial Results for Fiscal 2000
CALGARY, ALBERTA--
Increasing Business Growth Momentum to be Complemented with Internet Direct Marketing and E-Commerce Opportunities to Build Web-Based Organization Globel Direct, inc. (GBD:ASE): Globel Direct, inc. ("Globel") announced today the Company's unaudited consolidated financial results for the first quarter in fiscal 2000. Globel reports for the three months ending August 31, 1999 total revenues of $3,180,749, EBITDA of $345,017, net income of $155,968 and earnings per share (EPS) of $0.02. There are no prior first quarter period comparative results to report.
/T/
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Consolidated Financial Results
Unaudited 3 months Audited Year end
August 31,1999 May 31, 1999
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Total Revenues $3,180,749 $5,821,965
EBITDA 345,017 635,604
Net Income 155,968 312,652
EPS -Basic 0.02 0.07
EPS -Fully diluted 0.01 0.04
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/T/
First quarter results were driven by solid performance in mailing, digital document production and call center activity, including several new contracts and projects in this area. As result of the two Edmonton based acquisitions during this quarter, management spent time integrating operations, including implementing new standardized quality procedures, homogenizing accounting processes, acquainting new staff and management with policies and procedures,
meeting new customers and locating and improving new plant space for combining the expanded Edmonton operations.
During the first quarter, Globel achieved various business development milestones:
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June 16, 1999: Acquired RN Marketing Solutions Ltd with revenues of $2.73 million.
June 16, 1999: Acquired Innovative Communications Ltd. with revenues of $4.05 million.
August 26, 1999: Awarded multi-year marketing communications contract from major airline.
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Subsequent to the end of Globel's first quarter the Company announced a letter of intent in a non-arms length transaction to acquire Globel Enterprises Inc. ("GEI"), a marketing services company with current annual revenues of approximately $7.8 million. Since the signing of the letter of intent terms of this transaction have been finalized. Globel will purchase all the outstanding shares of GEI for the purchase price of $11,464,286 through the issuance of 7,325,524 Common shares of Globel at a deemed value of $1.50 per share, and a
deferred cash payment of $476,000 to the preferred shareholders of GEI. On the closing of this transaction Globel will cancel 2,142,857 Series A Preferred shares and 1,000,000 Common Shares previously issued to GEI for a net total issuance of 4,182,667 Common Shares. The proposed transaction is subject to final regulatory approval and shareholder approval at the Annual and Special Meeting of shareholders to be held on December 13, 1999.
Mr. JR Richardson, CEO of Globel Direct says, "We have a great story to tell. We expect this fiscal year will be characterized by building increasing momentum in all our businesses, particularly as we position the company to be more of a Web-based organization. We are of the view that our well-positioned "bricks-and-mortar" operations, now occupying three key logistical placements in Western Canada, will complement our emerging e-commerce strategy to transform into a "clicks-and-mortar" company and earn a strategic place in the
emerging New Economy. E-commerce or ".com" companies cannot be virtual
retailers, instead they need superior logistics and fulfillment skills, which we possess in handfuls. E-business is here, and it is serious business. We plan to be there first, because on the Internet, there is no room for second.
We expect to have crystallized and implemented several of our contemplated web strategies during the remainder of the fiscal year, most probably our electronic bill presentment and our new Internet-based direct marketing program, moving us solidly into position to capitalize on our already Internet-complementary strengths. Internet marketing is, after all, simply direct marketing with a new media."
About Globel: Globel Direct, inc. is a technology-based media and communications company providing innovative communications solutions for the direct marketing of products and services. The Company utilizes current technologies in print direct mail, telephony call centre systems and the Company's exclusive e.GLOBEL for Internet presentation in direct marketing. Globel Direct, inc. is pursuing an internal growth strategy as well as making strategic acquisitions in pursuit of its goal to become a leading direct-to-customer communications company.
Globel Direct, inc. is a public company whose shares are listed for trading on the Alberta Stock Exchange under the stock symbol: "GBD". The Company has a total of 12,803,039 shares, fully diluted outstanding. For more information about Globel Direct, inc. visit www.globel.ca and www.investorfile.com.
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FOR FURTHER INFORMATION PLEASE CONTACT :
Investor Relations
J.R. Richardson
President
Direct: 403-531-6579
(403) 531-6560
Toll-Free: 1-800-551-5721
e-mail: jr@globel.ca
or
Gerry Wimmer
InvestorFile.com(TM)
Direct: 416-861-5776
(416) 861-0177
Toll-Free:1-888-894-8222
e-mail: GBD@investorfile.com
INDUSTRY: MED
SUBJECT: ERN |
