Q-Media Reports Results For Fiscal 2000
Vancouver, British Columbia - Tuesday, October 31, 2000, 9:00 AM EST
Q-Media Services Corporation today reported results for fiscal
2000.
Fourth Quarter Highlights: (three months ended July 31, 2000
compared with three months ended
July 31, 1999)
* Revenues were $19.8 million compared with $24.0 million.
* Earnings before interest, taxes, depreciation and
amortization (EBITDA) were $1.8 million compared
with $2.6 million.
* Net earnings were $563,000 compared with $683,000.
* Net earnings per share were $0.05 basic and fully
diluted, after add-back of convertible debenture
interest, compared with $0.07 basic and $0.08 fully
diluted.
Fiscal 2000 Highlights: (year ended July 31, 2000 compared
with year ended July 31, 1999)
* Revenues were $92.3 million compared with $101.8 million.
* EBITDA were $9.2 million compared with $10.4 million.
* Net earnings were $3.6 million compared with $4.5
million.
* Net earnings per share before goodwill amortization were
$0.39 basic and $0.31 fully diluted, compared
with $0.49 basic and $0.34 fully diluted.
* Net earnings per share, after add-back of convertible
debenture interest, were $0.33 basic and $0.27
fully diluted compared with $0.43 basic and $0.30 fully
diluted.
Robert M. Lawrie, President, said the Company's decline in
revenue from 1999 reflects the reduced business from one customer
which experienced a temporary decline in their business and
closure of one of the Company's facilities. Despite this
reduction in revenue, the Company was able to maintain its key
operating margins for the year.
Lawrie added that fiscal 2000 was a landmark year for Q-Media
because of three major developments. These were: (a) successful
development of activities for the acquisition of the software
manufacturing operations of Quebecor World Inc., completed at
year end; (b) enhancing and expanding key customer relationships
which resulted in a new facility being established at Nashville,
Tennessee; and (c) closure of a facility and redeployment of the
assets to more profitable opportunities.
The acquisition of the Quebecor assets was a major development.
The two manufacturing facilities, both in the United States,
provide Q-Media with a new presence in the northeastern United
States. In addition, the Company also secured a $45 million
contract over four years from Quebecor, as well as first right of
refusal on all CD manufacturing outsourced by Quebecor in North
America. Integration of the new facilities is proceeding
smoothly.
The Company's key customer relationships were further enhanced
as, at year end, Q-Media was awarded Microsoft Authorized
Replicator status by Microsoft and during the year the Company
established a new facility at Nashville, Tennessee to supply
Dell's new manufacturing facility. This facility has achieved its
ambitious objectives in its first year and continues to perform
well.
During the year we consolidated our west coast operations which
resulted in the closing of the Newark California facility.
Although revenues and earnings were negatively impacted to some
degree by this decision, the Company was able to maintain several
key clients as customer accounts were transferred to other
company locations.
Other highlights of the year include the expansion of CD ROM
manufacturing capacity by approximately 50%, the installation of
a manufacturing line at the Irvine, CA, facility which is
designed to handle DVD ROM product in the future and significant
expansion in capacity to provide customers with internet based
fulfillment and order tracking. While demand for DVD ROM
replication remains relatively low, the Company is maintaining
its position as a technology leader in its industry.
With the recent acquisition and the strengthening of our key
customer relationships the outlook for fiscal 2001 is highly
positive, with continued revenue and earnings growth anticipated.
Q-Media Services Corporation operates seven supply chain
management facilities located in Vancouver, Canada; Redmond and
Fife, Washington; Irvine, California; Austin, Texas; Nashville,
Tennessee and Westborough, Massachusetts. These facilities
provide complete outsourced supply chain management services to
technology customers such as hardware manufacturers in the
personal computer industry, content publishers and software
publishers. The Company's services include planning and
procurement of materials, production and assembly services, and
fulfillment and inventory management. Shares of Q-Media Services
Corporation are traded on the Toronto Stock Exchange under the
symbol (QMS). U.S. S.E.C. exemption: 12g3-2(b) 82-3761. Further
information can be found at the web site: www.qmedia.ca.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Jon W. Kieran, Investor Relations (416)868-1079
Hume, Kieran Inc.
If you prefer to receive company news releases via e-mail, please
advise Zuzana Pravda (zuzana@humekieran.on.ca). |
