RECORD REVENUES AND EARNINGS FOR THIRD QUARTER OF 1998
7/9/98 2:06:54 PM
Dateline:
MONTREAL, QUEBEC
Stock Symbol: IFM
MPACT Immedia Corporation, a global provider of Electronic Commerce products
and services, today reported record revenues and profits for its third
quarter of 1998.
The Company attained revenues of $7,765,677 in the third quarter ended May
31, 1998, compared to revenues of $6,203,427 for the third quarter ended May
31, 1997 - an increase of 25.2%. Revenues from network services jumped to
$6,615,414 from $4,963,433 in the same period last year - an increase of
33.3%. MPACT Immedia has now recorded 27 consecutive quarters, on a
quarter-over-quarter basis, when recurring revenues have increased. Network
services, which are recurring revenues, accounted for 85% of total revenues
this quarter.
The Company posted earnings before interest, taxes, depreciation and
amortization (EBITDA) of $1,730,733 in the third quarter of 1998, which was
up from an EBITDA of $515,822 in the third quarter of 1997. MPACT Immedia
also recorded a net profit of $959,495 or $0.05 per share in the third
quarter of this year. This compares with a net loss in the third quarter last
year of ($455,779) or ($0.03) per share.
MPACT Immedia had cash in the bank and in escrow of $23,857,900 on May 31,
1998.
For the first nine months of 1998, MPACT Immedia had revenues of $19,990,077,
compared to revenues of $13,277,913 in the first nine months of 1997 - an
increase of 50.6%. Operating profit for the nine months this year was
$3,242,844, compared to an operating profit of $410,790 in the first nine
months of last year. Net profit for the first nine months this year was
$1,131,406, or $0.06 per share, compared to a net loss of ($2,767,490) or
($0.16) per share in the first nine months of 1997. Last year's net loss
included a restructuring charge of $1,350,000.
"We are extremely pleased with our continued growth in revenues and the
record earnings that we have been able to generate. Network-services revenues
have increased significantly, specifically from projects in the on-line
banking, mortgage services, and sports and leisure markets," declared Brian
Edwards, President and CEO. "These results are very significant on their own
and, when combined with the previous announcement of the merger with the
Electronic Business Solutions group of Bell Emergis, make this the most
significant period in the company's history by a very large measure. "
On June 4, 1998, Bell Canada and MPACT Immedia announced they would merge the
Electronic Business Solutions (EBS) unit of Bell Emergis with MPACT Immedia.
MPACT Immedia will purchase the assets of the EBS unit and will issue shares
as payment. As a result, Bell Canada will assume a 65% interest in MPACT
Immedia and will inject $54 million in cash into the new company. This
transaction is subject to shareholder and regulatory approval and is expected
to close around August 31, 1998.
Edwards went on to detail several of MPACT Immedia's other achievements in
the third quarter of 1998. In the marketing area, the Company announced on
March 24 an agreement with Compaq Computer Corporation of Houston, Texas, to
set up an Internet merchant-enabling initiative, called ClubWeb, for small
and medium-size businesses. One of the key elements of this Internet solution
is MPACT Immedia's payment processing engine, BuyWay. On April 27, MPACT
Immedia announced an agreement with Microsoft Corporation of Redmond, Wash.,
to incorporate BuyWay into Microsoft's new Commerce Site Server 3.0 Commerce
Edition, also designed for the Internet merchandising market.
In the area of financing, during the quarter MPACT Immedia raised $13,000,000
from a Special Warrant financing, with CIBC Wood Gundy Securities Inc. as the
lead manager. Funds from the transaction will be used to deploy BuyWay for
the Compaq and Microsoft marketing initiatives plus to support the Company's
acquisition strategy. The Company also received proceeds of $8,475,000,
following the exercise of 1,575,000 purchase warrants and 150,000
compensation warrants, all of which were issued pursuant to a Special Warrant
financing in May, 1996.
MPACT Immedia Corporation, a worldwide leader in Electronic Commerce, offers
both EDI Commerce and Internet Commerce products and services through its
offices in Montreal, Livonia (Michigan), and Toronto. By marketing with
strategic partners, MPACT Immedia has developed a client list of many of the
Fortune 1000 companies including such global players as Royal Bank of Canada,
Bank of America, Citibank, Mercedes-Benz and Bell Atlantic. Its
advanced-technology EC solutions enable organizations to better compete in
the global marketplace. Its recently announced merger with the EBS unit of
Bell Emergis will position the combined entity as one of the largest and most
significant players in EC.
To learn more about the Company's products and services, visit the Internet
website at mpactimmedia.com.
For more information on this press release, please contact:
Barry V. Engel John Davidson
Executive Vice-President, Corporate Affairs Director of Communications
(514) 397-9747 (ext. 202) (514) 397-9747 (ext. 210)
Email: engel.barry@mpact.net Email: davidson.john@mpact.net
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