iMarketing Solutions Group Inc.
TSX VENTURE : XDM

iMarketing Solutions Group Inc.

May 03, 2011 19:24 ET

iMarketing Solutions Group Inc. (formerly Xentel DM Incorporated) Reports December 31, 2010 Fiscal Year End Results

CALGARY, ALBERTA--(Marketwire - May 3, 2011) - iMarketing Solutions Group Inc. (formerly Xentel DM Incorporated) (TSX VENTURE:XDM) -

Period ended December 31Three monthsFiscal year
2010200920102009
($ 000's, except per share amounts)
Revenue$23,907$22,544$90,694$92,474
Gross Margin5,7084,90422,98821,138
Net earnings (loss)(1,825)371(1,272)2,322
EBITDA(664)9111,1985,021
EPS (loss), fully diluted$(0.06)$0.01$(0.04)$0.09
EBITDA, per share, fully diluted$(0.02)$0.04$0.04$0.20
*EBITDA – Net Earnings before income taxes, interest, depreciation and amortization. Since Gross Margin, EBITDA and diluted EBITDA per share have no standardized GAAP meaning, the comparability of these amounts to other enterprises may not be possible if the basis of calculation of differs.

iMarketing Solutions Group Inc., a North American specialty entertainment and relationship marketing company, today reported its financial results for the year ending December 31, 2010.

Net loss for the three months ended December 31, 2010 amounted to $1,825 thousand or $(0.06) per share on a fully diluted basis. This compares to the net earnings for the three months ended December 31, 2009 of $371 thousand or $0.01 per share on a fully diluted basis. Net loss for the year ended December 31, 2010 was $1,272 thousand or $(0.04) per diluted share compared to net earnings for the year ended December 31, 2009 of $2,322 thousand or $0.09 per diluted share. Included in the loss for the fourth quarter 2010 and for the year ended December 31, 2010 was a write off of impaired goodwill totaling $1,043 thousand.

Revenues for the three months ended December 31, 2010 increased to $23,907 thousand compared to $22,544 thousand for the three months ended December 31, 2009. The increase of $1,363 thousand primarily resulted from additional revenues generated by the recently merged operations of The Responsive Marketing Group Inc. (RMG). The additional revenues from RMG were partially offset by revenue decreases in the US operations.

iMarketing Solutions Group Inc. (formerly Xentel DM Incorporated) is one of North America's leading relationship-marketing concerns and producers of cause related entertainment events. The Company's success is attributable to proprietary sales tools including technologically advanced teleservices and sophisticated customer databases. The Company has over 400 clients and 1,900 employees in over 25 offices across North America.

Certain statements in this press release may constitute "forward looking statements" reflecting our current beliefs, plans, estimates and expectations. These forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or the combined companies to be materially different from any performance or achievement expressed or implied by such "forward looking statements". Except as required by applicable securities laws, we undertake no obligation to update any forward looking statements for any reason after the date hereof to conform these statements to actual results or to changes in our expectations.

iMarketing Solutions Group Inc. (formerly Xentel DM Incorporated)
Consolidated Balance SheetsDecember 31, 2010December 31, 2009
('000s)
Assets
Current assets
Cash and cash equivalents$2,322$3,445
Accounts receivable, net of allowances9,9236,555
Income taxes recoverable16-
Prepaid expenses and other current assets1,499959
Future income taxes526332
14,28611,291
Equipment3,2022,298
Future income taxes2,1002,059
Intangible assets1,75157
Goodwill-1,064
$21,339$16,769
Liabilities
Current liabilities
Bank indebtedness$1,483$63
Accounts payable and accrued liabilities6,4624,969
Income taxes payable-66
Current portion of long term liabilities56189
Future income taxes1,010838
Due to related parties400-
9,9166,025
Future income taxes82-
Deferred tenant inducement56139
10,0546,164
Shareholders' equity
Share capital10,7978,765
Contributed surplus769646
Accumulated other comprehensive income (loss)(3,858)(3,655)
Retained earnings3,5774,849
11,28510,605
$21,339$16,769
iMarketing Solutions Group Inc. (formerly Xentel DM Incorporated)
Consolidated Statements of Operations and Retained Earnings
For the years ended December 3120102009
('000s, except per share amounts)
Revenue$90,694$92,474
Cost of revenue67,70671,336
Gross margin22,98821,138
Corporate expenses
Branch overhead and corporate administration21,79016,117
Interest expense98120
Amortization of equipment1,265900
Amortization of intangible assets727
23,22517,144
Earnings (loss) before undernoted items(237)3,994
Writedown of goodwill(1,043)-
Earnings (loss) before income taxes(1,280)3,994
Income tax expense (recovery)
Current income tax expense142211
Future income tax expense (recovery)(150)1,461
(8)1,672
Net earnings (loss)(1,272)2,322
Retained earnings, beginning of year4,8493,027
Dividends paid-500
Retained earnings, end of year$3,577$4,849
Basic net earnings per share$(0.04)$0.09
Diluted net earnings per share$(0.04)$0.09
Basic weighted average number of shares outstanding31,56825,015
Diluted weighted average number of shares outstanding31,74725,248
iMarketing Solutions Group Inc. (formerly Xentel DM Incorporated)
Consolidated Statements of Contributed Surplus
For the years ended December 3120102009
('000s)
Balance, beginning of year$646$558
Gain on share repurchase from book value1888
Fair value of shares financed by promissory note105-
Balance, end of year$769$646
iMarketing Solutions Group Inc. (formerly Xentel DM Incorporated)
Consolidated Statements of Comprehensive Income (Loss)
For the years ended December 3120102009
('000s)
Net earnings (loss) for the year$(1,272)$2,322
Foreign currency translation adjustment from self sustaining foreign operations(203)(1,266)
Comprehensive income (loss)$(1,475)$1,056
iMarketing Solutions Group Inc. (formerly Xentel DM Incorporated)
Consolidated Statements of Accumulated Other Comprehensive Income (Loss)
For the years ended December 3120102009
('000s)
Balance, beginning of year$(3,655)$(2,389)
Foreign currency translation adjustment from self sustaining foreign operations
(203
)
(1,266
)
Balance, end of year$(3,858)$(3,655)
iMarketing Solutions Group Inc. (formerly Xentel DM Incorporated)
Consolidated Statements of Cash Flows
For the years ended December 3120102009
('000s)
Cash flows from (used in) operating activities
Net earnings (loss) for the year$(1,272)$2,322
Non cash transactions reflected in net earnings
Amortization1,337907
Future income tax expense (recovery)(150)1,461
Adjustment for non cash tenant inducement rent credit(83)(83)
Writedown of goodwill1,043-
8754,607
Net change in non cash working capital items
Accounts receivable(884)(115)
Prepaid expenses and other current assets328795
Income taxes payable / recoverable279(214)
Accounts payable and accrued liabilities666(173)
Net change in non cash working capital items389293
1,2644,900
Cash flows from (used in) financing activities
Bank indebtedness(400)(10)
Due to related parties, net300(1,615)
Long term debt repaid(284)(66)
Repurchase of share capital(200)(72)
Dividends paid-(500)
Issuance of share capital on option exercise33-
(551)(2,263)
Cash flow (used in) investing activities
Investment in equipment(1,453)(398)
Transaction costs for RMG(291)-
(1,744)(398)
Effect of exchange rate fluctuations on cash balances(92)(159)
Net (decrease) increase in cash and cash equivalents(1,123)2,080
Cash and cash equivalents, beginning of year3,4451,365
Cash and cash equivalents, end of year$2,322$3,445

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • iMarketing Solutions Group Inc.
    Caren Holtby
    866-204-9861
    416-633-4643 (FAX)