International Datacasting Corporation
TSX : IDC

International Datacasting Corporation

April 26, 2011 17:31 ET

CORRECTION FROM SOURCE: International Datacasting Announces Record Profitability and Revenues in Fourth Quarter and Fiscal Year-End 2011

OTTAWA, ONTARIO--(Marketwire - April 26, 2011) -

A correction from source is being issued with respect to the release sent out today at 5:00 PM EDT. The correction was made in the header of the table entitled "Consolidated Statements of Operations". The corrected version follows.

International Datacasting Corporation (TSX:IDC), a global leader in digital content distribution for the world's premiere broadcasters, today announced record-setting profitability and revenue results for the fourth quarter and fiscal year-end periods ended January 31, 2011.

Following two consecutive quarters of profitability, IDC's momentum continued as the Company posted its best ever results in the final quarter of fiscal 2011. Revenue increased 68% in the fourth quarter versus the same quarter in 2010, to $11.5 million, and EBITDA1 increased to $1.5 million making it the most profitable quarter in the Corporation's history. Excluding the impact of changes in foreign exchange from the strengthening of the Canadian dollar, IDC's revenues grew by 79% in fourth quarter fiscal 2011 versus the same fiscal quarter in 2010.

International Datacasting's fiscal year-end 2011 revenue was $34.4 million, its best year ever, up 48% from fiscal 2010, and up 64% excluding the impact of foreign exchange. This solid growth reflects strong demand for IDC's advanced Pro Audio, Pro Video, Pro Data and Pro Cinema broadcast solutions and IDC Systems services worldwide.

4Q Fiscal 2011 Financial Summary

The final quarter of fiscal 2011 set record revenues, and IDC achieved the highest quarterly EBITDA(1) ever recorded by the Corporation.

  • Revenue was $11.5 million, up 68%, compared to $6.9 million in 4Q fiscal 2010, and up 79% excluding the impact of changes in foreign exchange from the strengthening of the Canadian dollar.

  • Gross profit margin improved to 43% in the quarter, from 40% in 4Q fiscal 2010.

  • EBITDA(1) increased by $2.5 million to the highest quarterly level ever recorded by the Corporation, at $1.5 million or $0.03 per share, compared to a loss of $1.0 million or $0.02 per share in 4Q fiscal 2010.

  • Net earnings increased by $4.5 million to $1.6 million, or $0.03 per share, compared to a net loss of $2.9 million, or $0.05 per share, in 4Q fiscal 2010.

Fiscal Year-End 2011 Financial Summary

IDC's reputation for excellence drove strong international demand, and together with a renewed emphasis on cost controls resulted in fiscal year 2011 being one of the most successful in the Corporation's history.

  • Revenue was $34.4 million, up 48%, as compared to $23.3 million for fiscal 2010, and up 64% excluding changes in foreign exchange.

  • Gross profit was $15.4 million, or 45% of revenues compared to 43% in fiscal 2010.

  • EBITDA1 increased by $3.4 million to $1.9 million or $0.05 per share, as compared to a loss of $1.5 million or $0.05 per share for fiscal 2010.

  • Net earnings increased by $7.2 million to $0.6 million, or $0.01 per share, compared to a net loss of $6.6 million, or $.12 per share, for fiscal 2010.

"In fiscal 2011, IDC undertook a major restructuring and we are pleased to announce that our restructuring is mostly complete. Our revenues have grown to the highest level in our history, our margins have improved, our expenses have declined and we capped it off with our best quarter ever. This is a true testament to the dedicated work of our entire team," stated Adam E. Adamou, Executive Chairman, International Datacasting.

"Fiscal 2011 was a challenging yet rewarding year for IDC. Following the economic downturn, we successfully realigned our Corporation for profitability, integrated recent business acquisitions, created a new senior management team, and made improvements to core product areas," stated Frederick Godard, President and CEO, International Datacasting. "With these strategic changes in place, IDC is positioned more strongly than ever to drive innovation and exploit the evolving digital broadcast environment. Along with our global partners and premiere customers, we continue to build momentum in our core radio, data, broadcast video, digital cinema and IDC Systems services markets."

Conference Call

A conference call will be held on Wednesday, April 27, 2011 at 8:30 a.m. ET to discuss this announcement. The call may be accessed by dialing 1-613-233-1979 / 1-866-696-5910 with the pass code 1220537. A taped replay will be available until April 28, 2011 at 10:00 a.m. by dialing 1-800-408-3053 and reference the pass code 2335840. A live audio webcast of the conference call will be available at http://www.gowebcasting.com/2367. The webcast will be archived here for 365 days.

Forward-Looking Statements

This release may contain forward-looking statements reflecting IDC's objectives, estimates and expectations. Such statements may be marked by the use words such as "believe", "anticipate", "estimate", "looking ahead", "outlook" and "expect" as well as the conditional or future tense. Such statements involve risks and uncertainties and future results may differ materially from the Corporation's expectations. Factors that might cause a material difference include, but are not limited to, competitive developments, risks associated with IDC's growth, risks associated with any past or future acquisitions or divestitures, the development of the satellite datacasting market, regulatory risks, intellectual property infringement and other factors. Any forward-looking statements are provided to assist external shareholders in understanding IDC's expectations as at the date of this release and may not be suitable for other purposes. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof, except as expressly required by law. More detailed information about potential factors that could affect IDC's financial and business results is included in IDC's Annual Information Form dated April 29, 2011 and the other public documents IDC files from time to time with Canadian securities regulatory authorities.

A complete set of financial statements and management's discussion and analysis for the year ended January 31, 2011, FY2011 will be available at http://www.sedar.com/ or on the Investor Information section of IDC's website at www.datacast.com .

About International Datacasting Corporation (IDC):

International Datacasting Corporation (TSX:IDC) is a global leader in digital content distribution for the world's premiere broadcasters in radio, television and digital cinema. IDC offers a broad portfolio of advanced solutions including Pro Audio, Pro Video, Pro Cinema and Pro Data for implementing broadcast content contribution and distribution applications. IDC's solutions and IDC Systems are in demand for radio and television networks, digital cinema, 3D live events, distance learning, satellite news gathering, sport contribution, digital signage, and IPTV among others. IDC is headquartered in Ottawa, Canada, with regional offices in Arnhem, the Netherlands and in San Diego, California. IDC has installations in over 100 countries and service offices in Australia, Singapore and China with an international network of value-added partners and distributors.

(1) Earnings before interest, taxes, depreciation and amortization ("EBITDA") are a non-GAAP financial measure. EBITDA is not an earnings measure recognized by GAAP and does not carry standard prescribed significance. Our method for calculating EBITDA may differ from that used by other companies that use the same designation and the reader is advised that EBITDA should not be substituted for determining net income as an indicator of operating results or as a substitute for cash flows from operating and investing activities.

International Datacasting Corporation
Consolidated Balance Sheets as at
January 31,
2011
January 31,
2010
ASSETS
Current Assets
Cash$6,702,624$4,675,868
Amounts receivable10,616,4286,171,603
Inventories3,774,3845,260,362
Prepaid expenses and other assets - current portion962,544527,228
Future tax asset710,00040,672
Total Current Assets22,765,98016,675,733
Prepaid expenses - long term portion105,090142,102
Equipment2,140,4482,724,108
Future tax asset long term portion2,090,0002,059,328
Intangible assets232,625542,792
Goodwill-399,925
Total Non-Current Assets4,568,1635,868,255
Total Assets$27,334,143$22,543,988
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities$6,059,298$4,238,427
Customer deposits2,308,11478,745
Other liabilities-1,814
Obligations under capital leases - current portion53,21583,542
Deferred revenue594,412514,096
Total Current Liabilities9,015,0394,916,624
Long Term Liabilities
Obligations under capital leases39,71692,930
Future tax liability46,525108,558
Total Non-Current Liabilities86,241201,488
Total Liabilities9,101,2805,118,112
Shareholders' Equity
Capital stock23,213,57422,965,108
Contributed surplus3,202,7232,999,748
Accumulated other comprehensive (loss) income(206,452)23,277
Accumulated deficit(7,976,982)(8,562,257)
Total Shareholders' Equity18,232,86317,425,876
Total Liabilities and Shareholders' Equity$27,334,143$22,543,988
International Datacasting Corporation
Consolidated Statements of Operations
Twelve months
ended
Three months
ended
January 31,
2011
January 31, 2010January 31,
2011
January 31,
2010
Revenue$34,410,711$23,324,239$11,541,912$6,882,587
Cost of revenue19,018,70913,366,7626,620,9774,124,217
Gross profit15,392,0029,957,4774,920,9352,758,370
Operating expenses
Selling, general and administrative8,252,1338,333,3662,133,5802,398,950
Research and development, net of investment tax credits4,840,6334,392,0531,296,6551,382,241
Amortization1,289,1761,229,286331,384307,442
Restructuring costs673,131-- -
Intangible assets impairment203,375-203,375 -
Goodwill impairment102,9252,491,030102,925-
15,361,37316,445,7354,067,9194,088,633
Operating income (loss)30,629(6,488,258)853,016(1,330,263)
Interest income (expense)
Long-term(12,835)(20,426)(2,749)(4,738)
Short-term32,51364,4369,37113,137
Realized gain on sale of available-for-sale investment-437,384--
Realized gain on sale of held-for-trading investment-427,038--
Foreign exchange gain (loss)313,332(95,529)51,82620,696
Earnings (loss) before income taxes and extraordinary (loss) income363,639(5,675,355)911,464(1,301,168)
Income tax recovery (expense)670,149(1,375,554)695,575(1,464,079)
Earnings (loss) before extraordinary (loss) income1,033,788(7,050,909)1,607,039(2,765,247)
Extraordinary (loss) income(448,513)472,707-(119,179)
Net earnings (loss)$585,275$(6,578,202)$1,607,039$(2,884,426)
International Datacasting Corporation
Consolidated Statements of Cash Flows
Twelve months
ended
Three months
ended
January 31,
2011
January 31,
2010
January 31,
2011
January 31,
2010
Operating Activities
Net earnings (loss)$585,275$(6,578,202)$1,607,039$(2,884,426)
Add items not requiring an outlay of cash:
Goodwill impairment102,9252,491,030102,925-
Intangible assets impairment203,375-203,375
Amortization1,289,1761,229,286331,384307,442
Gain on sale of available-for-sale investment-(437,384)--
Gain on sale of held-for-trading investment-(427,038)--
Future income taxes(762,032)1,286,054(715,507)1,379,491
Stock-based compensation282,842357,29078,01178,971
Extraordinary loss (income)448,513(472,707)-119,179
Cash generated by (consumed by) operations before changes
in working capital2,150,074(2,551,671)1,607,227(999,343)
Net change in operating components of working capital net of
effects of business acquisition of Tiernan and Logic Innovations
(Note 17)93,3482,110,605(3,078,464)834,995
Cash provided by (applied to) operating activities2,243,422(441,066)(1,471,237)(164,348)
Investing activities
Additions to equipment(301,724)(413,157)(181,689)(62,779)
Proceeds on disposition of available-for-sale investment-635,487--
Proceeds on disposition of held-for-trading investment-624,778--
Business acquisition of Tiernan-(2,257,900)-(387,765)
Business acquisition of Logic Innovations-(579,810)-(579,810)
Purchase of available-for-sale investment-(198,103)--
Purchase of held-for-trading investment-(197,740)--
Cash applied to investing activities(301,724)(2,386,445)(181,689)(1,030,354)
Financing activities
Repayments of obligations under capital leases(83,541)(147,828)(19,728)(20,619)
Issue of common shares, net of issue costs168,59996,91171,56240,500
Cash provided by (applied to) financing activities85,058(50,917)51,83419,881
Increase (decrease) in cash during the year2,026,756(2,878,428)(1,601,092)(1,174,821)
Cash - Beginning of year4,675,8687,554,2968,303,7165,850,689
Cash - End of year$6,702,624$4,675,868$6,702,624$4,675,868
Interest paid12,83520,4262,7494,738
Income taxes paid139,0104,913--

Contact Information

  • International Datacasting Corporation
    Christine Rozak
    Director of Marketing and Communications
    613-596-4120 x 2215
    crozak@datacast.com