| An SI Board Since June 1998 |
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MGX |
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Does anybody have any comment on this rising micro-cap?
Mosaic's strong first quarter results underscores the success of the company's growth strategy. There was a substantial increase in the company's key industry indicator, operating cash flow per share, which rose from three cents in the prior year's quarter to six cents in the quarter ended March 31, 1998. In addition, EBITDA grew 107 per cent to $3.1-million, with 59 per cent of the increase coming from internal growth and the balance through acquisitions. This level of growth and cash flow, provides the company with the ability to attract new senior debt and equity capital to finance its acquisition program. Recent acquisitions, including the impact of their goodwill amortization and financing costs, have continued to shift Mosaic's already seasonal business more heavily into the third and fourth quarters. The outlook for the second quarter of 1998 is continued strong growth in revenue, gross profit, EBITDA, and most importantly cash flow from operations. Cash flow per share should continue to be significantly ahead of the prior year for the balance of the year, with earnings per share expected to be consistent with the prior year for the second quarter and improving thereafter.
In respect of acquisitions, Mosaic closed the acquisition of McGill Multimedia, a North American new media communications company at the end of February. Further, in May the company closed the acquisition of NR Consulting, a UK based sales force training company working in regulated industries. Both acquisitions are expected to be accretive to cash flow and earnings in the second half of the year. With these acquisitions in place, the company is well positioned in both Canada and the U.K., with a significant presence in each market. For the balance of the year, Mosaic will follow its stated plan of focusing its acquisition strategy in the U.S. with the objective having a significant presence in sales services and field marketing by the end of the year.
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