Q3 report
[ Note - all of DTM's news releases are available from CCN
at cdn-news.com ]
JUNE 4, 1997
Groupe Informatique DTM Inc. - Growth of 81 Percent in
Net Earnings for DTM During Third Quarter
MONTREAL, QUEBEC--For the third quarter ended April 30, 1997,
Groupe Informatique DTM Inc. announces sales of $18.1 million,
compared with $18.2 million for the corresponding period of the
previous year.
Net earnings rose to $315,396, up from $174,053 for the three
months ended April 30, 1996, an increase of 81 percent. Earnings
per share (basic) amounted to $0.09, up from $0.05 for the third
quarter of 1996. The Company's excellent performance was mainly
due to the increase in profit margins, especially those deriving
from professional services. These operations provided the Company
with a gross margin three times greater than computer equipment
resales, in addition to enhancing customer loyalty and having a
major impact on DTM's other business.
Nine months - solid improvement in operating profitability
Net earnings for the nine months ended April 30, 1997 stood at
$556,222 or $0.16 per share, up 15 percent over $482,629 or $0.14
per share for the corresponding period in 1996. The operating
profitability improved considerably, since net earnings for 1996
included a $193,187 gain on the disposal of assets. In fact,
earnings before gain on disposal and income taxes climbed to
$960,700 for the nine months ended April 30, 1997, compared with
$636,152 for the same period of fiscal 1996, an increase of 48.9
percent. The higher relative share of the gross profit from
services, which rose from 13.1 percent from 17.1 percent, was
behind the strong growth in the Company's profitability.
Intense internal development
The Company has consolidated its leadership in personal computers:
- Contract with Levesque Beaubien Geoffrion - $5 million.
- Contract with Notarius - $20 million over three years.
- T.J. Watson Award, granted by IBM, for customer service
excellence. DTM was the only recipient of this award in Quebec.
- Strategic alliance with MPACT Immedia Corporation (ME and TSE -
IFM) for the distribution of MPACT products by DTM.
- Agreement with PBSC (a subsidiary of IBM) to pursue the
development of our training activities.
Outlook - toward increased profitability
By developing its professional services, DTM expects to increase
its net earnings by more than 40 percent annually until the year
2000. "In light of our earnings before gain on disposal and
income taxes for the first nine months of the current fiscal year
(an increase of 48.9 percent), the Company's performance is
perfectly in line with the objectives we had set. Planned
acquisitions will even enable us to exceed our goals," indicated
Karol Brassard, Chairman of the Board.
Management meets financial community
To raise the Company's profile in the financial community as well
as to report on its recent developments and positive outlook,
management has launched an important financial communications
program. A document describing the Company has been distributed
to financial community players and management plans to make
several presentations to brokers. A presentation will be held at
the Westin Mont-Royal Hotel (Printemps Room) on June 17 at noon,
to which you are cordially invited (please confirm your attendance
with Nathalie Dion, at 842-1131).
Profile
Active in personal computers since 1977, DTM is currently the
largest Canadian-owned integrator of personal computers in Quebec.
The Company provides comprehensive technological solutions for a
client base consisting mostly of medium-sized and large
corporations. Among other things, it is a specialist in MICROSOFT
platforms and one of its leading Solution Providers in Quebec.
DTM, whose head office is in Lachine (Montreal), also has offices
in Quebec City. Groupe Informatique DTM Inc. is listed on The
Montreal Exchange under the ticker symbol DTM.
/T/
Groupe Informatique DTM inc.
Summary of Results Three months ended Nine months ended
($) April 30, April 30,
1997 1996 1997 1996
___________________ __________________
Sales 18,102,149 18,216,254 48,028,444 44,304,462
Earnings before
gain on disposal
and income taxes 553,327 295,819 960,700 636,152
Gain on disposal of
assets and liabilities - (1,513) 15,113 193,187
Net earnings 315,396 174,053 556,222 482,629
Earnings per share
(basic) 0.09 0.05 0.16 0.14
FOR FURTHER INFORMATION PLEASE CONTACT:
Groupe Informatique DTM Inc.
Martin Vidal
Executive Vice-President and Vice-President, Finance
(514) 828-4428
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