Envoy Communications Group Inc (C-ECG) - News Release
Envoy posts $2.5-million 2003 net earnings
Envoy Communications Group Inc ECG
Shares issued 43,583,696 Jan 21 2004 close $ 0.97
Thursday January 22 2004 News Release
Mr. Geoffrey Genovese reports
ENVOY COMMUNICATIONS GROUP REPORTS FISCAL 2003 NET EARNINGS OF $2.5 MILLION AND STRONG FOURTH QUARTER RESULTS
Envoy Communications Group has released financial results for the fourth quarter and year ended Sept. 30, 2003.
Envoy's fiscal 2003 results improved significantly compared with the previous year, reflecting management's execution of its restructuring plan to more closely align the company's costs with its projected revenues, to divest non-core assets, to reduce bank debt and to focus its resources on its consumer and retail-branding businesses.
Fiscal 2003 -- 12-month results
Envoy has recorded net earnings for fiscal 2003 of $2.5-million or 12 cents per share basic and nine cents per share fully diluted, compared with a loss of $53.4-million or $2.54 per share basic and fully diluted in 2002. The decrease in revenue from $59.1-million in fiscal 2002 to $42.4-million in fiscal 2003 reflects the discontinuance of unprofitable operations and is in line with our long-term objective of providing meaningful earnings per share to our shareholders.
Fiscal 2003 -- fourth quarter results
For the fourth quarter ended Sept. 30, 2003, net revenue reached $10.8-million, compared with $13.2-million in 2002. Again, this is reflective of the discontinuance of unprofitable operations. Net earnings for the quarter were $800,000, or three cents per share basic, and two cents per share fully diluted, compared with a loss of $15.4-million, or 73 cents per share basic and fully diluted in 2002. This was a solid quarter for Envoy and an encouraging end to a year in which the company steadily gained momentum.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
ENVOY COMMUNICATIONS GROUP
CONSOLIDATED STATEMENTS OF OPERATIONS
AND RETAINED EARNINGS (DEFICIT)
For the year ended
Sept. 30 Sept. 30
2003 2002
Net revenue $42,427,243 $59,121,090
Operating expenses
Salaries and
benefits 28,038,911 45,096,981
General and
administrative 5,973,664 11,669,901
Occupancy costs 3,276,497 4,728,817
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37,289,072 61,495,699
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Depreciation 2,387,817 2,858,641
Amortization of
intangible asset 24,197 24,197
Interest expense 2,707,687 1,245,126
----------- ------------
Earnings (loss) before unusual items,
gain on closure of subsidiaries,
restructuring costs, income taxes,
goodwill amortization
and writedown 18,470 (6,502,573)
Unusual items - 750,648
Gain on closure of
subsidiaries (2,499,604) -
Restructuring costs
(recovery) (267,212) 10,857,534
----------- ------------
Earnings (loss) before income taxes and
goodwill amortization
and writedown 2,785,286 (18,110,755)
Income taxes
(recovery) 246,524 (4,853,540)
----------- ------------
Earnings (loss), before goodwill
amortization and
writedown 2,538,762 (13,257,215)
Goodwill amortization, net of income
taxes of nil
(2002 -- $12,000) - 2,187,509
Writedown of goodwill - 37,934,711
----------- ------------
Net earnings
(loss) $2,538,762 $(53,379,435)
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Earnings (loss)
per share -- basic $0.12 $(2.54)
Earnings (loss)
per share -- diluted 0.09 (2.54)
Earnings (loss) per share before
goodwill amortization
and writedown --
basic 0.12 (0.63)
Earnings (loss) per share before
goodwill amortization
and writedown --
diluted 0.09 (0.63)
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