Hartco Inc.

Hartco Inc.

May 09, 2013 09:40 ET

Hartco Announces 2013 First Quarter Results

MONTREAL, QUEBEC--(Marketwired - May 9, 2013) - Hartco Inc. (TSX:HCI) today announced its financial results for the three months ended March 31, 2013.

Consolidated results for the three months ended March 31, 2013

Hartco Inc. ("Hartco") posted consolidated revenues of $89.8 million for the three months ended March 31, 2013, compared to $107.3 million for the same period last year, and a net loss of $0.9 million or -$0.07 per share on a diluted basis compared to a net loss of $3.6 million or -$0.27 per share on a diluted basis, for the corresponding period in 2012.

"Difficult market conditions, including lower demand for IT products and services, contributed to weak financial results for the first quarter." said Pat Waid, Hartco's President and Chief Operating Officer.

Financial Position

Hartco ended the first quarter of 2013 with a strong cash position of $24.9 million and no debt.

Hartco Outlook

"We anticipate continued softness in IT demand throughout the next quarter," said Pat Waid. "We are taking action to adapt to the challenging market conditions and expect our operating performance to improve in the second half of the year."

Detailed Financial Information

Detailed financial information pertaining to Hartco's first quarter and annual results can be accessed at www.sedar.com or at www.hartco.com. The first quarter and annual financial statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS").

About Hartco Inc. Hartco Inc. (TSX:HCI) has been a leader in the Canadian information technology business for more than thirty years. Through its operating divisions, which together include 48 locations across Canada, Hartco Inc. delivers information technology solutions to private and public sector organizations of every size. For more information, please visit www.hartco.com.

Forward-Looking Statements

This news release contains forward-looking information. Except for historical information contained herein, the statements in this document are forward-looking. Forward-looking statements involve known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from forecasted results. Those risks include, among others, changes in customer demand for information technology products or services, changes in supplier pricing actions or terms, customer orders, pricing actions by competitors, changes in laws and regulations and general changes in economic conditions. Risks that could cause our results to differ materially from our expectations are discussed in our Annual Management's Discussion & Analysis ("MD&A").

(In thousands of dollars, except per share amounts)
Three months ended
March 31
2013 2012
$ $
Revenues89,753 107,314
Adjusted EBITDA (1)(1,317)447
Net loss(901)(3,558)
Diluted loss per share(0.07)(0.27)
Free cash flow (deficiency) (2)(2,597)(2,828)
Adjusted free cash flow (deficiency) (3)(2,565)(1,492)
Cash position24,850 19,394
(1)Adjusted EBITDA is defined as net loss excluding financial costs, depreciation and amortization, income tax expense, non-recurring gains or losses, impairment charges, and share of results of equity investments. Adjusted EBITDA is a non-IFRS measure as defined in the MD&A.
(2)Cash flow from continuing and discontinued operating activities less capital expenditures. Free Cash Flow is a non-IFRS measure as defined in the MD&A.
(3)Cash flow from continuing and discontinued operating activities, less capital expenditures, net of proceeds from disposal of assets, plus net investing activities, plus net collection of loans and other assets. Adjusted Free Cash Flow is a non-IFRS measure as defined in the MD&A.

Contact Information