NURUN's Q3 Revenues up 249% in 2000: Quarter-to-Quarter
Growth Stands at 20.2%
MONTREAL, QUEBEC--OCTOBER 27, 2000 - 08:01 EDT
NURUN Inc., a subsidiary of the Quebecor Inc.
group, today released its financial results for the three months
ended September 30, 2000. Revenues for the period totaled $36.9
million, an increase of 249% over the same period in 1999 and of
20.2% over last quarter's results. Orders also grew from $37.8
million in the second quarter to 39.2 million in the third
quarter, while revenues from outside Canada increased to 45% from
39% in the second quarter.
For the nine months ended September 30, 2000, revenues totaled
$90.2 million, representing an increase of 186% over the same
period last year. EBITDA stands at 5.2% or $4.7 million, while
earnings per share before amortization of goodwill are $0.06.
"We are very pleased to have maintained our revenue growth and
positive EBITDA during the summer, which is typically the most
difficult time of the year for our industry," said Jacques-Hervé
Roubert, President and CEO of NURUN Inc. "Going forward, we will
continue to develop our strategic alliance with Quebecor World and
focus on developing relationships with Fortune 1000 clients in
order to improve bottom-line results significantly."
Recent Developments
During the third quarter of 2000, NURUN reached a definitive
strategic alliance agreement with Quebecor World, the world's
largest commercial printer. The three principle elements of the
agreement include joint marketing initiatives, a preferred
supplier arrangement, and the development of a corporate
e-commerce and IT strategy for Quebecor World. In the framework
of this strategic alliance, NURUN has already carried out
marketing activities with Quebecor World's Retail division and
will continue to develop business with Quebecor World's other
divisions.
NURUN also completed its acquisition of the Italian new media
agency Quam SRL and its two subsidiaries, Quam Production and Quam
Idea. Concurrent to this transaction, Quebecor Communications
Inc. exercised its pre-emptive right to acquire shares in NURUN
and maintain its 57.5% interest in the company, providing NURUN
with $11 million in capital for future acquisitions in Europe.
In addition, NURUN entered into partnerships with Delphes
Technologies International and Vignette Corporation. As a
certified integrator of Delphes's Diogene, a natural language
search technology, NURUN will be able to offer an optimal
information retrieval solution to all clients with content-rich
Web sites. As an application service provider (ASP) of Vignette's
V/5 E-business Platform, NURUN will give its clients access to
Vignette's e-business solution on a quarterly fee basis.
During the third quarter, NURUN also developed Web sites for Club
Med, Évian and L'Oréal in New York; Essilor, Yellow, Quebecor
World and Archambault in Montreal; MTV Italia and Lux Gallery in
Italy; Club Med, Biotherm, Helena Rubinstein and Danone in Paris;
Amway and Zebrano in Toronto; the Quebec Pension Plan in Quebec;
Medline in Chicago and many others. Club Med offers unique Web
experiences to its users in different countries and counted on
NURUN to develop "regionalized" corporate Web sites for France and
the United States that offer e-commerce and online reservation
capabilities. The MTV Italia site developed by NURUN won the
Mediastar award as the best Italian Web site and portal. Since
the new MTV Italia site was launched, page views have tripled and
its chat line is currently the most used in Italy.
"These contracts confirm our ability to breakthrough on an
international scale and develop outstanding relationships with
Fortune 1000 clients," said Jacques-Hervé Roubert, President and
CEO of NURUN. "We will continue to develop global relationships
with some of the world's best known brands, like Club Med, L'Oréal
and Évian, who are served by several of NURUN's 14 international
locations."
NURUN Inc.
NURUN Inc. (TSE: IFN), a subsidiary of the Quebecor Inc. group,
provides e-commerce, Web integration and automated publishing
solutions to corporate and public sector clients in North America,
Europe and South America. NURUN employs more than 1,300
professionals in its various offices in Montreal, Quebec City,
Toronto, Ottawa, Seattle, New York, Boston, Chicago, Paris, Milan
and Santiago.
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NURUN inc.
Consolidated Statements of Income
(in thousands of dollars, except earnings per share)
(Unaudited)
Three month Nine month
period ended period ended
Sep 30, Aug 31, Sep 30, Aug 31,
2000 1999 2000 1999
Revenues $36,935 $10,596 $90,158 $31,532
Operating Expenses
Cost of revenues 22,244 6,040 53,206 18,725
Selling and marketing 7,648 1,826 20,088 5,971
General and
administrative 5,162 1,311 11,055 3,544
Reseach and development 340 318 1,123 1,396
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35,394 9,495 85,472 29,636
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Earnings before depreciation,
amortization, net interest
income and income taxes 1,541 1,101 4,686 1,896
Depreciation of fixed
assets 1,135 249 2,757 691
Net interest income (388) (309) (1,481) (980)
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Earnings before income
taxes, minority interest
and goodwill amortization 794 1,161 3,410 2,185
Income taxes 305 471 1,566 905
Minority interest (122) - (122) -
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Earnings before
goodwill amortization 611 690 1,966 1,280
Goodwill amortization 5,976 179 15,531 422
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Net income (loss) ($5,365) $511 ($13,565) $858
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Earnings per share before
goodwill amortization $0,02 $0,05 $0,06 $0,09
Net Earnings (Net Loss)
per share ($0,16) $0,04 ($0,42) $0,06
Weighted average of
shares outstanding
(in thousands) 33,494 13,658 31,939 13,561
NURUN inc.
Consolidated Balance Sheets
(in thousands of dollars)
(Unaudited)
Sep. 30, Aug.31,
2000 1999
ASSETS
Current assets
Cash and cash equivalents $3,653 $1,106
Short-term investments 43,213 25,170
Accounts receivable 40,337 9,474
Tax credits receivable 3,684 480
Work in process 18,621 1,124
Prepaid expenses 1,894 240
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111,402 37,594
Fixed assets 11,971 2,034
Future income taxes 1,607 814
Goodwill 240,004 10,826
Other Assets 472 -
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$365,456 $51,268
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness $5,376 $0
Accounts payable and accrued liabilities 19,676 3,724
Income taxes payable 5,109 -
Future income taxes 476 171
Deferred revenues 2,334 291
Current portion of long-term debt 9,251 225
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42,222 4,411
Long-term debt 485 824
Future income taxes 164 -
Non-controlling interest 10,778 -
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53,649 5,235
Shareholders' Equity
Capital stock 322,213 42,857
Retained earnings (deficit) (9,790) 3,369
Translation adjustment (616) (193)
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311,807 46,033
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$365,456 $51,268
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NURUN inc.
Consolidated Statements of Cash Flows
(in thousands of dollars)
(Unaudited)
Sep. 30, August 31,
2000 1999
OPERATING ACTIVITIES
Net income (loss) ($13,565) $858
Items not affecting cash and cash equivalents
Depreciation of fixed assets 2,757 691
Goodwill amortization 15,531 422
Others (71) 15
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Funds from operations 4,652 1,986
Changes in non-cash balancesrelated to operations
Accounts receivable (7,754) 1,570
Work in process (6,512) (412)
Tax credits receivable (1,431) (106)
Accounts payable and accrued liabilities (7,050) (979)
Deferred revenues (374) 213
Others 250 (852)
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Cash flows from operating activities (18,219) 1,420
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FINANCING ACTIVITIES
Issuance of common stock 81,730 -
Increase in non-controlling interest 10,000 -
Repayment of long-term debt (7,522) (61)
Decrease in bank indebtedness 2,247 -
Issuance of long-term debt 206 885
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Cash flows from financing activities 86,661 824
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INVESTING ACTIVITIES
Business acquisitions, net of cash and cash
equivalents acquired (74,809) (7,447)
Additions to fixed assets (4,833) (612)
Translation adjustment (867) (150)
Cash flows from investing activities
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Cash flows from investing activities (80,509) (8,209)
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Decrease in cash and cash equivalents (12,067) (5,965)
Cash and cash equivalents, beginning of period 58,933 32,241
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Cash and cash equivalents, end of period $46,866 $26,276
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