Fantastic NR today,record revenue and earnings for 6 month period.The stock closed on the high for the day and year at 4.89.
Envoy Communications Group releases record first half financial results
TORONTO, April 23 /CNW/ - Envoy Communications Group Inc. (TSE: ECG)
today announced record first half fiscal 1999 financial results. Earnings for
the first half increased 79% to $1,191,462 from $666,473 reported in the same
period last year.
<<
For the six months
ended March 31 1999 1998 % Change
----------------------------------------------------------------------
Revenue $64,472,965 $12,789,036 404%
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Gross Margin 16,557,847 5,208,365 218%
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Net Income 1,191,462 666,473 79%
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Cash Flow from Operations 2,101,079 833,988 152%
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Earnings Per Share - $0.09 $0.07 29%
Fully Diluted
----------------------------------------------------------------------
>>
Envoy closed the acquisition of Devlin Multimedia in the second quarter,
enhancing its web development capabilities, and positioning Envoy as Canada's
leader in e-Marketing. Included in the acquisition was Devlin's proprietary
software Decision Room and its one of a kind Usability Lab. In the same
quarter, the Communique Group, one of Envoy's operating subsidiaries was
selected as advertising and digital agency of record for ClubLink, Canada's
largest owner, operator and developer of high quality golf courses.
''Fifty percent of our gross margin is derived from e-Marketing, up from
27 percent last year and Envoy is now the largest purchaser of web advertising
in Canada. This growth has been fuelled by our ability to leverage our brand
expertise to the Internet,'' stated Envoy president and CEO Geoff Genovese.
''Envoy is well positioned to capitalize on the explosion of electronic
commerce and digital marketing. The numbers we have achieved in the first half
of fiscal 1999 reflect the demand in the marketplace for an integrated
e-Marketing strategy,'' he added.
In addition to Devlin Multimedia, Envoy owns Toronto based Communique
Group and the New York based e-Marketing and advertising agency Hampel
Stefanides. The Envoy Group's list of e-Marketing clients includes Microsoft,
Toshiba, CDNow, Fedex, IMAX, National Discount Brokers, MAC Cosmetics, MSN and
Inktomi, in addition to adidas, BASF, A&W, Benjamin Moore, LCBO, Canada Life,
Honda, Bridgestone/Firestone, Bermuda Telephone and Castrol. Envoy
Communications Group Inc. is a new breed company. It is an integrated
e-Marketer, digitally driven and committed to building global brands both off
and on-line.
<<
Envoy Communications Group Inc.
Consolidated Balance Sheet
(Unaudited - Prepared by Management)
As at March 31 1999 1998
-----------------------------------------------------------------------
Assets
Current
Cash and Short Term Investments 8,996,489 3,120,158
Accounts Receivable 17,331,527 10,060,651
Contract Work-in-Process 3,613,574 1,844,110
Prepaid Expenses 896,876 658,934
-------------------------------
30,838,466 15,683,853
Restricted Cash 754,350 -
Capital Assets 6,199,760 4,531,550
Goodwill and Other Assets 13,511,501 5,114,622
------------------------------
51,304,077 25,330,025
-----------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current
Accounts Payable and Accrued
Liabilities 21,088,414 10,500,636
Deferred Revenue 7,478,165 1,212,497
Current Portion of Long-Term Debt 1,697,027 77,554
------------------------------
30,263,606 11,790,687
Long-Term Debt 3,022,841 222,825
------------------------------
Shareholders' Equity
Share Capital 14,404,368 10,634,371
Retained Earnings 3,807,639 2,682,142
Cumulative Translation Adjustment (194,377) -
------------------------------
18,017,630 13,316,513
------------------------------
51,304,077 25,330,025
------------------------------
Envoy Communications Group Inc.
Consolidated Statement of Operations and Retained Earnings
(Unaudited - Prepared by Management)
For the six months ended March 31 1999 1998
-----------------------------------------------------------------------
Revenue 64,472,965 12,789,036
Cost of Sales 47,915,118 7,580,671
------------------------------
Gross Margin 16,557,847 5,208,365
Expenses:
Salaries and Benefits 10,282,402 2,528,772
General and Administrative 2,726,739 1,626,094
Occupancy Costs 508,759 199,511
Amortization 909,617 167,515
Interest 171,166 20,000
------------------------------
Total Operating Expenses 14,598,683 4,541,892
------------------------------
Income Before Taxes 1,959,164 666,473
Income Taxes 767,702 -
------------------------------
Net Income/(Loss) 1,191,462 666,473
Retained Earnings/(Deficit),
Beginning of Year 2,682,142 1,179,343
Less Loss on Redemption of Shares (65,965)
------------------------------
Retained Earnings/(Deficit),
End of Period 3,807,639 1,845,816
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Net Income/(Loss) per Share - Basic 0.09 0.08
-----------------------------------------------------------------------
Net Income/(Loss) per Share - Fully Diluted 0.09 0.07
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>>
-30-
For further information: Geoff Genovese, President, Envoy Communications
Group, (416) 593-1212; Jason Mandel, President, Carabiner Investor Relations,
(416) 599-2256 |
