Q-Media continues to post successful results with record revenues and EBITDA for second quarter
Leading technology and publishing industry supply chain management
provider on track to post another year of impressive growth
VANCOUVER, March 15 /CNW/ - Q-Media Services Corporation (TSE:QMS) today
reported record revenues of $47.3 million for the second quarter 2001 ending
January 31, 2001, a 107 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 141 per cent over last year's figures to
a record $6.0 million for the second quarter. Year-to-date revenue has
increased 90 per cent over last year from $50.1 million to $96.8 million.
EBITDA for the same period also rose by 123 per cent to $13 million from $5.8
million.
"Our results have been solid and we continue to maintain our revenue and
key margins despite the general slowdown in the technology markets," said Q-
Media president Robert Lawrie. "In particular we are encouraged by our key
industry operating margin - EBITDA - which continues to grow at a faster rate
than revenue. Our short-term expectation is for the general slowdown to
continue, however, we are seeing a building of our order flow which could
provide momentum for the last 6 months of calendar year 2001."
Income before amortization of goodwill increased significantly from $1.0
million a year ago to $1.8 million. Net income of $741,000 was down from
$912,000 last year, due to increased amortization costs related to the $93
million acquisition of Quebecor World Inc.'s two CD-ROM plants in the U.S. at
the beginning of the current fiscal year. Year-to-date net income was $2.0
million compared to $2.4 million for the same period last year.
"Our strategy of enhancing our supply chain services and increasing value
to our customers is particularly timely given the increased emphasis in the
industry on outsourcing and making supply chains more efficient," added
Lawrie.
The company recently announced an expanded supply chain management
agreement with Telus, which is expected to generate increased revenues for Q-
Media, as Telus continues the expansion of its business in Canada. In a
related move, to facilitate and enhance the supply chain for Telus, Q-Media
entered into a strategic distribution agreement with 3COM to incorporate that
company's modems into Telus' Quick Connect Kits.
Q-Media's net earnings per share before goodwill amortization were $0.12
basic and $0.06 fully diluted, compared with $0.10 basic and $0.08 fully
diluted for the same period last year. Year-to-date, net earnings per share
before goodwill amortization were $0.30 basic and $0.14 fully diluted,
compared with $0.25 basic and $0.19 fully diluted for the same period last
year. Reported net earnings per share were $0.03 basic and $0.03 fully
diluted, compared with $0.09 basic and $0.07 fully diluted for the same period
last year. Year-to-date, net earnings per share were $0.13 basic and $0.08
fully diluted, compared with $0.23 basic and $0.17 fully diluted for the same
period last year.
About Q-Media Services Corporation
Q-Media Services Corporation operates six supply chain management
facilities located in Vancouver, Canada; 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.qmediaservices.com
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.
<<
Q-Media Services Corporation
Consolidated Income Statement
January 31, 2001 (Unaudited)
Expressed in CDN$000s
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Second Quarter, Second Quarter, For the six For the six
2001 (ended 2000 (ended months ended months ended
January 31, January 31, January 31, January 31,
2001) 2000) 2001 2000
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Revenue $47,308 $22,828 $96,808 $50,953
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Gross
margin $12,913 $6,373 $26,982 $13,956
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Gross
margin % 27.3% 27.9% 27.9% 27.4%
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EBITDA $6,015 $2,494 $12,948 $5,810
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Interest $2,036 $369 $4,171 $745
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Amortization $1,788 $633 $3,538 $1,224
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Income before
Goodwill and
Income Taxes $2,191 $1,492 $5,239 $3,841
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Income Taxes $417 $448 $1,362 $1,152
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Income before
goodwill
amortization $1,774 $1,044 $3,877 $2,689
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Net income $741 $912 $1,948 $2,424
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Basic EPS
before
goodwill
amortization $0.12 $0.10 $0.30 $0.25
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Fully diluted
EPS before
goodwill
amortization $0.06 $0.08 $0.14 $0.19
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Basic EPS $0.03 $0.09 $0.13 $0.23
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Fully Diluted EPS $0.03 $0.07 $0.08 $0.17
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For further information: John Longley, Chief Financial Officer,
(604) 232-5751, shareholder@qmediaservices.com; Shafiq Jamal, Barr and
Wilcox Group, sjamal@barr-wilcoxgroup.com, (604) 488-1100 |
