Q-Media announces record revenues and EBITDA for first
quarter
Successful completion of the $93-million acquisition of Quebecor's CD-ROM facilities, shows early benefits for company
VANCOUVER, Dec. 4 /CNW/ - Q-Media Services Corporation (TSE:QMS - news) today reported record revenues of $49.5 million for the
first quarter 2001 ending October 31, 2000, a 76 per cent increase over the same period last year. The company's earnings before interest,
taxes, depreciation and amortization (EBITDA) for the period also rose by 109 per cent over last year's figures to a record $6.9 million.
Q-Media's net earnings per share before goodwill amortization were $0.18 basic and $0.08 fully diluted, compared with $0.15 basic and
$0.11 fully diluted for the same period last year. Reported net earnings per share were $0.10 basic and $0.05 fully diluted, compared with
$0.14 basic and $0.10 fully diluted for the same period last year.
"We have made a strong start to fiscal 2001 and have been able to maintain a solid balance sheet while making significant moves to
expand the company. We are already starting to see the benefits of this expansion," said Q-Media president Robert Lawrie.
Income before amortization of goodwill increased 38% from $1.6 million a year ago to $2.1 million. Net income of $1.2 million was down
from $1.5 million last year, due to the financing costs related to the $93 million acquisition of Quebecor World's two US CD-ROM plants.
The new facilities near Seattle and Boston significantly increase Q-Media's mastering and CD-ROM replication capabilities and provide
additional capacity for order fulfillment, printing of technical documentation and assembly of final retail and OEM packages. In addition,
the facilities are ISO 9002 certified.
"Given the good start in the first quarter and the addition of new blue chip customers, Q-Media remains on target to surpass $200 million
in revenues for fiscal 2001," said Lawrie.
Along with Q-Media's smooth integration of the Quebecor CD-ROM facilities during the first quarter, Q-Media also expanded its
relationship with Microsoft as the company was granted full Microsoft Authorized Replicator and Fulfillment Centre designations by
Microsoft Corporation at its Irvine and Vancouver facilities, adding to the already existing designations at Q-Media's facilities in Fife
and Westborough.
In addition, Q-Media began initial product shipments to Celestica Incorporated during the first quarter and significantly increased
production for Dell Computer Corporation at its Nashville plant and Microsoft Corporation at its Redmond facility.
"We continue to be provided numerous opportunities to expand our business and strengthen our relationships with customers like
Microsoft and Dell, as a result of our acquisition of Quebecor's CD-ROM facilities," said Lawrie.
Q-Media Services Corporation
Consolidated Income Statement
October 31, 2000 (Unaudited)
Expressed in CDN$000s
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First Quarter, 2001 First Quarter, 2000
(ended October (ended October
31, 2000) 31, 1999)
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Revenue $49,500 $28,125
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Gross margin $14,069 $ 7,583
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Gross margin % 28.4% 27.0%
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EBITDA $ 6,933 $ 3,316
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Interest $ 2,135 $ 376
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Amortization $ 1,750 $ 591
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Income before Goodwill and $ 3,048 $ 2,349
Income Taxes
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Income Taxes $ 945 $ 704
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Income before goodwill $ 2,103 $ 1,645
amortization
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Net income $ 1,207 $ 1,512
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Basic EPS before goodwill $ 0.18 $ 0.15
amortization
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Fully diluted EPS before goodwill $ 0.08 $ 0.11
amortization
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Basic EPS $ 0.10 $ 0.14
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Fully Diluted $ 0.05 $ 0.10
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About Q-Media Services Corporation
Q-Media Services Corporation operates seven supply chain management facilities located in Vancouver, Canada; Redmond,
Washington; 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.
Forward-Looking Statements
Investors should take note that certain statements in this news release are forward-looking and may not give full weight to all of the
potential risks and uncertainties. These forward-looking statements include statements that are subject to risks and uncertainties.
Forward-Looking statements are subject by their nature to risks and uncertainties, and actual results, actions or events could differ
materially from those set forth in the forward-looking statements. Any forward-looking statements speak only as of the date made. The
Company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by
the securities laws.
For further information
John Longley, Chief Financial Officer, (604) 232-5751, shareholder@qmedia.com
Media Inquiries: Shafiq Jamal, Barr and Wilcox Group, sjamal@barr-wilcoxgroup.com, (604) 488-1100 |
