iMarketing Solutions Group Inc.
TSX VENTURE : XDM

iMarketing Solutions Group Inc.

November 28, 2011 09:53 ET

iMarketing Solutions Group Inc. Reports Third Quarter September 30, 2011 Results

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2011) - iMarketing Solutions Group Inc. (TSX VENTURE:XDM) -



($000's)
3 Months Ended
September 30, 2011
3 Months Ended
September 30, 2010
9 Months Ended
September 30, 2011
9 Months Ended
September 30, 2010
Revenue 20,684 21,529 69,397 66,896
Net Earnings/(Loss) (706) (782) 761 1,396
EBITDA (427) (672) 2,865 1,723
EPS (Basic) $ (0.02) $ (0.02) $ 0.02 $ 0.04
EPS (Fully diluted) $ (0.02) $ (0.02) $ 0.02 $ 0.04

iMarketing Solutions Group Inc. a North American specialty entertainment and relationship marketing company, today reported its financial results for the nine months ending September 30, 2011.

The amounts in this earnings release, MD&A and interim financial statements for the nine months ended September 30, 2010, have been restated to reflect the adoption of IFRS, with effect from January 1, 2010. Further disclosure on the transition to IFRS can be found in the Company's MD&A and notes to the Company's consolidated condensed interim financial statements for the nine months ended September 30, 2011. This disclosure contains a description of the IFRS adjustments and reclassifications on transition and a reconciliation of the Company's financial statements previously prepared under Canadian GAAP to those prepared under IFRS for the three and nine months ended September 30, 2010, and for the year ended December 31, 2010.

Net loss for the three months ended September 30, 2011 amounted to $706 thousand or $0.02 per share on a fully diluted basis. This compares to the net loss for the three months ended September 30, 2010 of $782 thousand or $0.02 per share on a fully diluted basis. Net earnings for the nine months ended September 30, 2011 amounted to $761 thousand or $0.02 per share on a fully diluted basis. This compares to the net earnings for the nine months ended September 30, 2010 of $1,396 thousand or $0.04 per share on a fully diluted basis. Net earnings for the nine months ended September 30, 2010, as restated under IFRS, include a positive earnings adjustment of $988 thousand reflecting the merger executed in March 2010.

EBITDA for the three and nine months ended September 30, 2011 amounted to ($427) thousand and $2,865 thousand respectively. This compares positively to EBITDA for the three and nine months ended September 30, 2010 of ($672) thousand and $1,723 thousand respectively.

iMarketing Solutions Group Inc. 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.

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.
Consolidated Condensed Statements of Financial Position
Unaudited
(In thousands of Canadian dollars)
As at September 30, December 31,
2011 2010
Assets
Current assets
Cash and cash equivalents 235 2,322
Accounts receivable 10,644 9,923
Income taxes recoverable - 16
Prepaid expenses and other current assets 2,205 1,604
Total current assets 13,084 13,865
Equipment 4,589 3,658
Intangible assets 1,886 2,235
Deferred income taxes 2,779 2,626
Total assets 22,338 22,384
Liabilities
Current liabilities
Bank indebtedness 1,296 $ 1,483
Accounts payable and accrued liabilities 5,580 6,131
Income taxes payable 629 -
Due to related parties - 400
Deferred revenue 218 518
Current portion of long term liabilities 303 561
Total current liabilities 8,026 9,093
Deferred tenant inducement 2 56
Deferred income taxes 1,097 1,067
Long term debt 34 -
Total liabilities 9,159 10,216
iMarketing Solutions Group Inc.
Consolidated Condensed Statements of Financial Position
Unaudited
(In thousands of Canadian dollars)
As at September 30, December 31,
2011 2010
Shareholders' equity
Share capital 10,686 10,797
Contributed surplus 783 769
Accumulated other comprehensive loss (3,511) (3,858)
Retained earnings 5,221 4,460
Total shareholders' equity 13,179 12,168
Total liabilities and shareholders' equity $ 22,338 $ 22,384
iMarketing Solutions Group Inc.
Consolidated Condensed Statements of Operations
Unaudited
(In thousands of Canadian dollars, except per share amounts)
For the periods ended September 30 Three months ended Nine months ended
2011 2010 2011 2010
Revenue 20,684 21,529 69,397 66,896
Cost of revenue 15,305 16,952 50,214 49,755
Gross margin 5,379 4,577 19,183 17,141
Operating expenses
Branch overhead and corporate administration
5,791

5,249

16,318

15,418
Depreciation of equipment 376 333 1,101 952
Amortization of intangible assets 138 2 350 6
Transaction charges for business combination
-

-

-

291
Bargain purchase gain - - - (1,231)
Total operating expenses 6,305 5,584 17,769 15,436
Operating earnings (loss) (926) (1,007) 1,414 1,705
Non operating income (expense)
Interest expense (17) (31) (63) (72)
Total non operating income (expense) (17) (31) (63) (72)
Earnings (loss) before income taxes (943) (1,038) 1,351 1,633
Income tax expense (recovery)
Current income tax expense (recovery) - (4) - 325
Deferred income tax expense (recovery) (237) (252) 590 (88)
Total income tax expense (recovery) (237) (256) 590 237
Net earnings (loss) for the period (706) $ (782) 761 1,396
Basic and diluted earnings (loss) per share
$(0.02)

$(0.02)

$0.02

$0.04
Basic weighted average number of shares outstanding
32,107

33,379

32,416

31,414
Diluted weighted average number of shares outstanding
32,163

33,560

32,264

31,634
iMarketing Solutions Group Inc.
Consolidated Statements of Comprehensive Income (Loss)
Unaudited
(In thousands of Canadian dollars, except per share amounts)
Three months ended Nine months ended
For the periods ended September 30 2011 2010 2011 2010
Net earnings for the period (706) $ (782) 761 1,396
Foreign currency translation adjustment from self-sustaining foreign operations
544

(94)

342

(20)
Comprehensive income for the period 162 $ (876) 1,103 1,376
iMarketing Solutions Group Inc.
Consolidated Condensed Statements of Changes in Equity
Unaudited
(In thousands of Canadian dollars, except per share amounts)
Nine months ended
For the periods ended September 30 2011 2010
Share capital
Balance, beginning of period 10,797 $ 8,765
Issued for business combination - 2,217
Issued for business combination under
collateralized note

-

534
Exercise of options - 33
Repurchase and cancellation of shares (111) -
Share purchase financing - (534)
Balance, end of period 10,686 11,015
Contributed surplus
Balance, beginning of period 769 646
Discount from book value on share repurchase
14

-
Fair value of shares financed by promissory note
-

105
Balance, end of period 783 751
Accumulated other comprehensive loss
Balance, beginning of period (3,858) (3,655)
Foreign currency translation change 342 (114)
Balance, end of period (3,516) (3,769)
Retained earnings
Balance, beginning of period 4,459 4,849
Net earnings for the period 761 1,396
Balance, end of period 5,220 6,245
iMarketing Solutions Group Inc.
Consolidated Condensed Statements of Cash Flows
Unaudited
(In thousands of Canadian dollars, except per share amounts)
Nine months ended
For the periods ended September 30 2011 2010
Cash flow from (used in) operating activities
Net earnings (loss) for the period 761 1,396
Items not affecting cash:
Depreciation of equipment 1,101 952
Amortization of intangible assets 350 6
Adjustment for non-cash tenant inducement rent credit
(56)

(61)
Deferred income tax expense 107 (88)
Bargain purchase gain - (1,231)
2,263 974
Non-cash working capital
Accounts receivable (467) (1,040)
Prepaid expenses and other current assets
(579)

(561)
Accounts payable and accrued liabilities (932) 203
Income taxes recoverable/payable 538 525
Change in non-cash working capital items
(1,440)

(873)
Cash flow from (used in) operating activities
823

101
Cash flow from (used in) financing activities
Increase (decrease) in bank indebtedness (208) (814)
Long term debt repaid (224) (200)
(Repayments to) advances from related parties
(400)

300
Issuance of shares on option exercise - 33
Repurchase of share capital (96) -
Cash flow from (used in) financing activities
(929)

(681)
iMarketing Solutions Group Inc.
Consolidated Condensed Statements of Cash Flows
Unaudited
(In thousands of Canadian dollars, except per share amounts)
Nine months ended
For the periods ended September 30 2011 2010
Cash flow from (used in) investing activities
Investment in equipment (1,974) (599)
Adjustment for transaction costs for business combination expensed above
-

291
Cash flow from (used in) investing activities
(1,974)

(308)
Effect of exchange rate fluctuations on cash and cash equivalents
(7)

(36)
Net increase (decrease) in cash and cash equivalents
(2,087)

(924)
Cash and cash equivalents, beginning of period
2,322

3,445
Cash and cash equivalents, end of period
$ 235

$ 2,521

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

Contact Information

  • iMarketing Solutions Group Inc.
    Peter Pielsticker
    (416) 633-4646