Found this news at ISDN Record Revenues
Wire: ISDN DateStamp: 981103 14:47:45 Corporation: MPACT IMMEDIA
Stock Symbol: IFM Dateline: MONTREAL, QUEBEC Headline: MPACT IMMEDIA POSTS RECORD REVENUES AND PROFITS FOR 1998 -- FOURTH QUARTER BOOSTS YEAR-END RESULTS Text:
MPACT Immedia, one of the leading electronic commerce service
providers in North America, announced today record revenues and
profits for the 1998 fiscal year ended August 31st.
MPACT Immedia obtained revenues of $28,420,909 for the 1998
fiscal year compared to $19,088,661 in the previous year, an
increase of 49%. Network services revenues now represent 82% of
total revenues compared to 72% in the previous year. MPACT
Immedia has now recorded 28 consecutive quarters, on a
quarter-over-quarter basis, when network services revenues have
increased. These numbers include only MPACT Immedia''s results.
Future numbers will comprise the combined figures of the
Electronic Business Systems division of Bell Emergis and MPACT
Immedia.
Operating profit for the year was $4,602,237 compared to $762,966
in the previous year. The company posted a net profit of
$2,280,627 or $0.11 a share in 1998, compared to a net loss of
$14,643,254 or ($0.79) per share in the previous year. Last
year''s loss includes a one-time write down of $13,465,645.
In May 1998, the Company raised $13,000,000 from a Special
Warrant financing, with CIBC Wood Gundy Securities Inc. as the
lead manager. At the end of the year, cash in the bank totaled
over $19 million.
For the fourth quarter, MPACT Immedia had revenues of $8,430,832
compared to revenues of $5,810,748 in the fourth quarter of 1997,
an increase of 45%. Operating profit for the fourth quarter was
$1,359,393 compared to $352,176 for the same period last year.
Net profit for the fourth quarter was $1,149,221 compared to a
net loss in the fourth quarter last year of $11,875,764.
"Our results have exceeded our own projections and those of
financial analysts following our Company," says Brian Edwards,
President and CEO of MPACT Immedia. "Our strong revenue growth
from our core products, the increase profitability generated from
those products, combined with our recent merger with Bell Emergis
make this one of the most significant periods in the company''s
history. We are extremely well positioned going forward".
On August 31, 1998, Bell Canada and MPACT Immedia concluded their
previously announced transaction that saw the merger of the
Electronic Business Solutions (EBS) unit of Bell Emergis with
MPACT Immedia. Bell Canada acquired a 65% controlling interest in
MPACT Immedia in exchange for Bell Emergis'' EBS unit and a cash
investment of $54 million.
At year-end, the Company acquired the business and undertakings
of Immedia Telematics Inc., a research and development company in
the field of electronic commerce. This acquisition was pursuant
to an option granted in June 1993, whereby MPACT Immedia could
acquire the business for 325,000 common shares. The reason for
exercising the option at this point in time relates to business
matters. In particular the fact that the Company will be
receiving tax credits for research and development instead of
cash is no longer an issue.
In addition to accomplishing record revenues and profits in 1998
the Company concluded significant marketing transactions. MPACT
signed agreements with Nations Banks, Hongkong Bank of Canada,
Amalgamated Banks of South Africa (ABSA), and Bank of Tokyo. In
the mortgage services sector, MPACT signed agreements with
Freddie Mac, Norwest Bank, Cendant Corporation and Employee
Relocation Council in Washington, DC. In the merchant enabling
sector, MPACT Immedia signed key distribution agreements for Club
Web with Compaq and Microsoft and important customer agreements
with Cybernet and Intertops.
MPACT Immedia delivers network-centric business solutions that
enable and become an integral part of customer processes. Its
e-commerce solutions enable organizations to better compete in
the global marketplace. Following its recently concluded merger
with the Electronic Business Solutions (EBS) unit of Bell
Emergis, the combined entity is one of the top tier electronic
commerce providers in the world. For more information, please
refer to our Web site www.mpactimmedia.com.
- end -
For more information:
Anne Belliveau
Corporate Communications
MPACT Immedia
(514) 397-8535
abelliveau@emergis.com
Consolidated Statements of Earnings
(In Canadian Dollars)
Years ended August 31 1998 1997 1996
----------------------------------------------------------------
Revenue
Network services $23,361,292 $13,825,252 $6,270,911
Software and related
services 5,059,617 5,263,409 4,754,568
----------------------------------------------------------------
Total Revenue 28,420,909 19,088,661 11,025,479
----------------------------------------------------------------
Costs and expenses
Network services 6,464,964 3,364,681 1,373,015
Software and related
services 2,716,747 3,258,712 2,173,591
Selling, general and
administrative 14,636,961 11,702,302 7,015,051
(Include an unusual bad debt of $731,102 in 1996)
----------------------------------------------------------------
Total costs and expenses 23,818,672 18,325,695 10,561,657
----------------------------------------------------------------
Operating income 4,602,237 762,966 463,822
Depreciation and
amortization
(notes 7 and 8) 2,886,126 14,763,899 1,156,331
Interest income (775,237) (510,881) (347,724)
Interest expenses 313,022 45,370 92,032
Interest on long term debt 345,174 256,632 28,017
Operational reorganization
charges (note 4) 0 666,109 137,473
Other expenses 34,064 128,793 30,320
Loss (gain) on foreign
exchange (481,539) 56,298 (17,747)
----------------------------------------------------------------
2,321,610 15,406,220 1,078,702
----------------------------------------------------------------
Income (loss) before
income taxes 2,280,627 (14,643,254) (614,880)
Income taxes
Current 800,000 400,000 0
Recovery of current
income tax arising
from the application
of prior years''
losses (800,000) (400,000) 0
----------------------------------------------------------------
0 0
Net income (loss) $2,280,627 ($14,643,254) ($614,880)
================================================================
Income (loss) per share $ 0.11 $ (0.79) $ (0.04)
===============================================================
Consolidated Statements of Retained Earnings (Deficit)
(in Canadian dollars)
Years ended August 31 1998 1997 1996
----------------------------------------------------------------
Retained Earnings (Deficit),
beginning of year ($14,158,228) $485,026 $1,099,906
Net income (loss) 2,280,627 (14,643,254) (614,880)
----------------------------------------------------------------
Retained Earnings (Deficit),
end of year ($11,877,601) ($14,158,228) $485,026
===============================================================
The accompanying notes are an integral part of the consolidated
financial statements.
Consolidated Statements of Cash Flows
(in Canadian dollars)
Years ended August 31 1998 1997 1996
---------------------------------------------------------------
Operations
Net income (loss) $2,280,627 $(14,643,254) $(614,880)
Non-cash items
Depreciation and
amortization 2,886,126 14,763,899 1,156,331
Changes in working
capital items (3,849,864) 825,638 (1,496,391)
--------------------------------------------------------------
Source (use) of cash 1,316,889 946,283 (954,940)
--------------------------------------------------------------
Financing
Capital lease
obligations 1,931,904 2,924,178 341,604
Instalments on
capital lease
obligations (1,490,511) (709,447) (113,222)
Repayment of loans
payable (783,265) (538,890) (54,663)
Share issue for
acquisition of
subsidiary (note 11) 0 6,123,161 4,291,194
Share issue for
acquisition of
net assets (note 11) 2,112,500 0 0
Issue of common shares 9,455,010 139,337 3,099,374
Shares to be issued
for acquisition of
customer list 0 263,386 0
Issue of Special
Warrants (note 11) 11,980,767 0 10,170,777
----------------------------------------------------------------
Source of cash 23,206,405 8,201,725 17,735,064
----------------------------------------------------------------
Investing
Amounts receivable
from Immedia
Telematics Inc. (3,170,988) (2,144,509) 253,221
Term deposit held
in escrow 0 0 70,364
Term deposit 3,000,000 0 (3,000,000)
Deposits receivable (202,208) (8,192) 63,358
Lessor inducement
payments 0 0 180,745
Acquisition of
subsidiary (note 3) 0 (7,637,648) (4,889,107)
Acquisition of customer
list (note 3) 0 (431,911) 0
Acquisition of
net assets (note 3) (5,669,830) 0 0
Proceeds from disposals
of fixed assets 0 74,469 0
Additions to fixed
assets (3,255,452) (3,638,092) (795,288)
----------------------------------------------------------------
Use of cash (9,298,478) (13,785,883) (8,116,707)
----------------------------------------------------------------
Increase (decrease)
in cash 15,224,816 (4,637,875) 8,663,417
Cash position, beginning
of year 4,048,437 8,686,312 22,895
----------------------------------------------------------------
Cash position, end
of year $19,273,253 $4,048,437 $8,686,312
===============================================================
Cash position
Cash 11,658,073 928,663 486,312
Cash held in
trust (note 11) 8,554,665 0 0
Term deposits 3,437,115 3,489,774 8,200,000
Bank indebtedness (4,376,600) (370,000) 0
----------------------------------------------------------------
$19,273,253 $4,048,437 $8,686,312
=======================================
The accompanying notes are an integral part of the consolidated
financial statements.
Consolidated Balance Sheets
(in Canadian dollars)
As at August 31 1998 1997
---------------------------------------------------------------
ASSETS
Current assets
Cash and term deposits 2% to
4.56%(3.33% in 1997),
maturing September 1998 $ 12,095,188 4,418,437
Cash held in trust
(note 11) 8,554,665
Term deposit, 4.64%
(3.35% in 1997),
maturing September 1998
(note 15) 3,000,000 3,000,000
Trade accounts receivable 6,936,348 3,885,495
Other receivables (note 5) 1,979,846 4,652,397
Prepaid expenses 732,738 218,169
---------------------------------------------------------------
33,298,785 16,174,498
Deposits receivable 255,908 53,701
Capital assets (note 7) 18,531,712 5,259,438
---------------------------------------------------------------
$ 52,086,405 $ 21,487,637
===============================
Liabilities
Current liabilities
Bank indebtedness 4,376,600 370,000
Accounts payable and accrued
liabilities 4,325,213 3,807,985
Deferred revenue 1,429,054 841,147
Current portion of long-term debt 599,578 782,355
Obligations under capital
leases due within
one year 1,453,544 1,055,678
---------------------------------------------------------------
12,183,989 6,857,165
Long-term debt (note 9) 525,018 748,367
Obligations under capital
leases (note 10) 1,322,918 1,656,530
---------------------------------------------------------------
14,031,925 9,262,062
---------------------------
Shareholders'' equity
Capital stock (note 11) 49,932,081 26,383,803
Deficit (11,877,601) (14,158,228)
---------------------------------------------------------------
38,054,480 12,225,575
------------------------------
$ 52,086,405 $ 21,487,637
==============================
The accompanying notes are an integral part of the consolidated
financial statements. |
