Logibec Groupe Informatique Ltd.
TSX : LGI

Logibec Groupe Informatique Ltd.

August 06, 2009 14:14 ET

Logibec Groupe Informatique Ltd.: Growth in Earnings

MONTREAL, QUEBEC--(Marketwire - Aug. 6, 2009) - Logibec Groupe Informatique Ltd. (TSX: LGI) announced today the results of its quarter ended June 30, 2009. All monetary amounts are expressed in Canadian dollars.

HIGHLIGHTS

QUARTER ENDED JUNE 30, 2009

- Revenue up 4% for the third quarter ended June 30, 2009, to stand at $19.2 million compared to $18.6 million for the same period in the previous fiscal year.

- Recurring revenue up 13% for the quarter to stand at $17.4 million or 91% of total revenue.

- Operating earnings of $6.9 million against $6.5 million, an increase of 7%.

- Quarterly net earnings up 33% to stand at $2.7 million, or $0.29 per share (basic and diluted) compared to net earnings of $2.0 million, or $0.21 per share (basic and diluted).

NINE-MONTH PERIOD ENDED JUNE 30, 2009

- Revenue up 15% for the nine-month period ended June 30, 2009, to stand at $57.7 million compared to $50.2 million for the same period in 2008.

- Recurring revenue up 24% to stand at $52.1 million compared to $42.0 million for the same period in 2008.

- Operating earnings of $20.1 million against $17.0 million, an increase of 18%.

- Net earnings increased 37% to stand at $7.3 million, or $0.77 per share (basic and diluted) compared to net earnings of $5.3 million, or $0.55 per share (basic and diluted).

- Net earnings margin of 13% compared to 11% last year.

OPERATING RESULTS

REVENUE

The business model adopted by the Company focuses on growth in recurring revenue. This revenue is primarily derived from annual software rights of use, software maintenance and support as well as from processing and hosting services for the Company's solutions. Non-recurring revenue is primarily from the sale of perpetual licenses and professional services.

The Company's activities are divided into two segments that are defined by geography and by the nature of the markets served. The Canadian segment specializes in the development, marketing, implementation and support of information systems for the health and social services sector in Canada. Healthcare in Canada is publicly funded and administered on a provincial or territorial basis. As such, the Company's Canadian customers are predominantly government-funded entities.

The U.S. segment specializes in the same activities, but for information systems for the eldercare sector in the United States, which is primarily managed by private enterprise. American customers are divided into for profit and not-for-profit entities.

For the quarters ended June 30, 2009 and 2008, revenue from American activities represented respectively 50% and 52% of consolidated revenue. This decrease of 2% for the quarter can be explained by the deferral of professional service revenue as explained in the section Revenue from American activities.

The graphic "Segment Revenue" for the quarter is available at the following address: http://media3.marketwire.com/docs/segRevq3.gif

For the nine-month period ended June 30, 2009, revenue from American activities represented 55% of consolidated revenue compared to 50% of consolidated revenue for the same period in the previous fiscal year. This increase in revenue from the American segment is primarily due to the inclusion of acquisitions made during the previous year, namely Achieve and QuickCare.

The graphic "Segment Revenue" for the nine-month period is available at the following address: http://media3.marketwire.com/docs/segRev09.gif

Revenue for the third quarter of fiscal year 2009 stood at $19.3 million, an increase of 4%, compared to $18.6 million for the same period in the previous fiscal year.



in thousands of Canadian
dollars Q3-2009 Q3-2008 Variance Q3-2009 Q3-2008
--------------------------------------------------------------------------
$ $ $ % % of % of
revenue revenue

Recurring revenue
Canada 7,553 6,912 641 9% 79% 77%
United States 9,884 8,564 1,320 15% n.m. 89%
--------------------------------------------------------------------------
17,437 15,476 1,961 13% 91% 83%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Non-recurring revenue
Canada 2,001 2,075 (74) -4% 21% 23%
United States (184) 1,048 (1,232) -118% n.m. 11%
--------------------------------------------------------------------------
1,817 3,123 (1,306) -42% 9% 17%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Total revenue
Canada 9,554 8,987 567 6% 50% 48%
United States 9,700 9,612 88 1% 50% 52%
--------------------------------------------------------------------------
19,254 18,599 655 4% 100% 100%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

n.m. equals not meaningful. See the section "Revenue from American
activities" for more information.


Revenue for the nine-month period ended June 30, 2009, stood at $57.7 million, an increase of 15%, compared to $50.2 million for the same period in the previous fiscal year.



in thousands of 9 months 9 months 9 months 9 months
Canadian dollars 2009 2008 Variance 2009 2008
--------------------------------------------------------------------------
$ $ $ % % of % of
revenue revenue

Recurring revenue
Canada 21,534 20,056 1,478 7% 83% 79%
United States 30,562 21,897 8,665 40% 96% 88%
--------------------------------------------------------------------------
52,096 41,953 10,143 24% 90% 84%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Non-recurring revenue
Canada 4,481 5,267 (786) -15% 17% 21%
United States 1,118 3,014 (1,896) -63% 4% 12%
--------------------------------------------------------------------------
5,599 8,281 (2,682) -32% 10% 16%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Total revenue
Canada 26,015 25,323 692 3% 45% 50%
United States 31,680 24,911 6,769 27% 55% 50%
--------------------------------------------------------------------------
57,695 50,234 7,461 15% 100% 100%
--------------------------------------------------------------------------
--------------------------------------------------------------------------


Revenue from Canadian activities

Revenue from Canadian activities for the third quarter of 2009 stood at $9.6 million compared to $9.0 million for the same period in the previous fiscal year, representing an increase of 6%. Recurring revenue from Canadian activities for this quarter increased 9%.

Revenue from Canadian activities for the nine-month period ended June 30, 2009, stood at $26.0 million compared to $25.3 million for the same period in 2008, representing an increase of 3%. Recurring revenue from Canadian activities for this period increased 7%.

For the quarter and year-to-date period, the increase in recurring revenue was attributable to new contracts for annual software rights of use, software maintenance and support for the Company's clinical administrative and financial solutions, namely eClinibase and the business intelligence solutions. The software rights of use contracts are also subject to an annual price increase as of April 1st. The increase was approximately 3% in 2009. The quarter and nine-month period last year were marked by significant non-recurring revenue associated with special work for our Espresso Payroll/HRM clients and sales of computer equipment on which our solutions are deployed.

As at June 30, 2009, the Canadian segment had $20.6 million in current deferred revenue ($13.2 million as at September 30, 2008) and $3.8 million in long-term deferred revenue ($4.3 million as at September 30, 2008). This revenue, as well as the related costs, will be recognized over the term of the related agreements.

Revenue from American activities

During the third quarter of 2009, revenue from American activities was stable at $9.7 million compared to $9.6 million in 2008. Recurring revenue from American activities increased by 15%, primarily due to the depreciation of the Canadian dollar, but remains stable in American dollars. The decrease in non-recurring revenue is due to the fact that the Company is no longer offering information technology management services to its clients this year. In addition, a more competitive environment during the third quarter resulted in an ever increasing pressure on prices. Following this event of the quarter, so as to comply with its revenue recognition policy, the Company deferred US$0.7 million in non-recurring professional service revenue for the current fiscal year as well as US$0.2 million in related costs. This deferred revenue will be recognized over the term of the related agreements, which is generally three years. The recognition of non-recurring professional service revenue is now homogeneous for all product families in the United States as well as in Canada.

Revenue from American activities for the nine-month period ended June 30, 2009, stood at $31.7 million compared to $24.9 million for the same period in 2008, representing an increase of 27%. This increase is primarily due to the full inclusion of the business activities of Achieve and QuickCare this year. The activities of these two companies were acquired on November 19, 2007 and January 1, 2008, respectively. The increase in revenue from American activities can also be explained by the depreciation of the Canadian dollar against the U.S. dollar between October 1, 2008 and June 30, 2009 compared to the same period last year.

As at June 30, 2009, the American segment had $4.8 million in current deferred revenue ($4.7 million as at September 30, 2008) and $3.5 million in Iong-term deferred revenue ($2.8 million as at September 30, 2008). This revenue as well as the related costs will be recognized over the term of the related agreements.

SERVICE COSTS

Service costs are composed primarily of salaries and benefits for customer support and software development employees and of expenses related to hosting services offered by the Company.

Service costs for the third quarter of fiscal year 2009 stood at $8.7 million compared to $8.3 million for the same period in the previous fiscal year but remain stable as a percent of revenue.



in thousands of Canadian
dollars Q3-2009 Q3-2008 Variance Q3-2009 Q3-2008
--------------------------------------------------------------------------
$ $ $ % % of % of
revenue revenue
Service costs
Canada 3,882 3,589 293 8% 41% 40%
United States 4,796 4,705 91 2% 49% 49%
--------------------------------------------------------------------------
8,678 8,294 384 5% 45% 45%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Service costs for the nine-month period ended June 30, 2009, stood at $26.5
million, representing an increase of 16% compared to $22.8 million for the
same period in the previous fiscal year.

in thousands of 9 months 9 months 9 months 9 months
Canadian dollars 2009 2008 Variance 2009 2008
--------------------------------------------------------------------------
$ $ $ % % of % of
revenue revenue
Service costs
Canada 10,809 10,116 693 7% 42% 40%
United States 15,658 12,709 2,949 23% 49% 51%
--------------------------------------------------------------------------
26,467 22,825 3,642 16% 46% 45%
--------------------------------------------------------------------------
--------------------------------------------------------------------------


Canadian service costs increased $0.3 million or 8% for the third quarter of fiscal year 2009 compared to the same period in the previous fiscal year. For the nine-month period ended June 30, 2009, service costs rose to $10.8 million compared to $10.1 million for the same period last year. The increases of 1% and 2% as a percent of revenue for the quarter and nine-month period respectively can be explained by the previously reported increase in the number of development employees during the current fiscal year to meet the increased demand for the Company's products and services.

American service costs increased $0.1 million or 2% for the third quarter of fiscal year 2009 compared to the same period in the previous fiscal year. For the nine-month period ended June 30, 2009, the significant increase of 23% in American service costs is attributable to the contribution of the business activities of Achieve and QuickCare. The Company has adopted and is continuing to adopt measures to integrate and optimize the acquired American operations. The 2% decrease in American service costs as a percent of revenue for the nine-month period can be explained by cost saving measures. For example, during the current fiscal year, the Company is continuing to terminate the subcontracting of certain hosting activities to third-parties and this is having a positive impact on the gross margin as planned.

SELLING AND ADMINISTRATIVE EXPENSES

Selling and administrative expenses include salaries and benefits, certain marketing activities such as advertising and trade shows as well as overhead such as rent, insurance and professional fees.

Selling and administrative expenses for the third quarter of fiscal year 2009 decreased 4% to stand at $3.7 million compared to $3.8 million for the same period in the previous fiscal year.



in thousands of Canadian
dollars Q3-2009 Q3-2008 Variance Q3-2009 Q3-2008
---------------------------------------------------------------------------
$ $ $ % % of % of
revenue revenue


Selling and administrative
Canada 1,426 1,703 (277) -16% 15% 19%
United States 2,237 2,124 113 5% 23% 22%
--------------------------------------------------------------------------
3,663 3,827 (164) -4% 19% 21%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Selling and administrative expenses for the nine-month period ended June
30, 2009, increased 7% to stand at $11.1 million compared to $10.4 million
for the same period in the previous fiscal year.

in thousands of 9 months 9 months 9 months 9 months
Canadian dollars 2009 2008 Variance 2009 2008
--------------------------------------------------------------------------
$ $ $ % % of % of
revenue revenue
Selling and
administrative
Canada 4,119 4,389 (270) -6% 16% 17%
United States 7,013 5,991 1,022 17% 22% 24%
--------------------------------------------------------------------------
11,132 10,380 752 7% 19% 21%
--------------------------------------------------------------------------
--------------------------------------------------------------------------


The increase in absolute terms for the American segment can be explained by the acquisitions of Achieve and QuickCare. Selling and administrative expenses for the American segment represent, however, a smaller portion of revenue, decreasing from 24% to 22% for the first nine months of the fiscal year compared to the same period in the previous year. This improvement can be explained by the same factors described during the two previous quarters, namely combined sales and marketing activities (each acquired company previously having its own sales and marketing strategy) as well as by certain non-recurring events last year related to the acquisitions such as professional fees and an increase in the allowance for doubtful accounts.

OPERATING EARNINGS

Operating earnings stood at $6.9 million for the quarter ended June 30, 2009 compared to $6.5 million for the same period in the previous fiscal year.



in thousands of Canadian
dollars Q3-2009 Q3-2008 Variance Q3-2009 Q3-2008
--------------------------------------------------------------------------
$ $ $ % % of % of
revenue revenue
Operating earnings
Canada 4,246 3,695 551 15% 44% 41%
United States 2,667 2,783 (116) -4% 27% 29%
--------------------------------------------------------------------------
6,913 6,478 435 7% 36% 35%
--------------------------------------------------------------------------
--------------------------------------------------------------------------


For the nine-month period ended June 30, 2009, operating earnings stood at $20.1 million compared to $17.0 million for the same period in the previous fiscal year. This increase can be explained by the Achieve and QuickCare acquisitions as well as by cost savings in the American segment.



in thousands of 9 months 9 months 9 months 9 months
Canadian dollars 2009 2008 Variance 2009 2008
--------------------------------------------------------------------------
$ $ $ % % of % of
revenue revenue
Operating earnings
Canada 11,087 10,818 269 2% 43% 43%
United States 9,009 6,211 2,798 45% 28% 25%
--------------------------------------------------------------------------
20,096 17,029 3,067 18% 35% 34%
--------------------------------------------------------------------------
--------------------------------------------------------------------------


AMORTIZATION OF FIXED ASSETS, INTANGIBLE ASSETS AND OTHER LONG-TERM ASSETS

Amortization of fixed assets, intangible assets and other long-lived assets for the quarter ended June 30, 2009 rose to $3.2 million ($9.7 million for the nine-month period ended June 30, 2009) compared to $3.0 million ($7.8 million for the nine-month period) for the same period in the previous fiscal year. These increases are primarily due to the amortization of the technology and customer relationships acquired from Achieve and QuickCare.

FINANCIAL INCOME AND EXPENSES

Financial income and expenses are mainly composed of the interest charge on long-term debt, amortization of deferred financing costs, gains and losses on fair value adjustments of certain financial assets and foreign exchange gains and losses.

Financial income of $0.1 million was recorded for the quarter ended June 30, 2009 compared to financial expenses of $0.6 million for the same quarter of the previous fiscal year. The interest charge and other financial costs of the quarter ended June 30, 2009, were fully compensated by a gain of $0.8 million on the variance in fair value of an asset composed of securities from a company acquired on the open market.

For the nine-month period ended June 30, 2009, net financial expenses were $0.1 million compared to $1.8 million for the same period last year. During the first quarter of the current fiscal year, a gain on currency exchange of $0.8 million was recorded for two of the Company's financial assets denominated in U.S. dollars. This gain is due to the depreciation of the Canadian dollar against the U.S. dollar during the period. This foreign exchange gain of the first quarter and the gain during the third quarter on the variance in fair value of the above-mentioned investment have almost fully cancelled the effect of the interest charges and other financial expenses of the period.

NET EARNINGS

Net earnings for the third quarter ended June 30, 2009 stood at $2.7 million, or $0.29 per share, compared to $2.0 million, or $0.21 per share, for the same period in the previous fiscal year.

Net earnings for the nine-month period ended June 30, 2009, stood at $7.3 million, or $0.77 per share, compared to $5.3 million, or $0.55 per share, for the same period in the previous fiscal year.

LIQUIDITY AND SOURCES OF FINANCING

OPERATING ACTIVITIES

For the quarter ended June 30, 2009, operating activities generated cash flows of $14.1 million whereas these same activities generated cash flows of $17.5 million for the same quarter of the previous fiscal year. Over 80% (over $22.0 million in 2009) of the contracts for software rights of use related to Canadian activities are invoiced on April 1st, which explains the significant increase in the working capital in each third quarter. The positive impact of this invoicing on the working capital was offset by other working capital items such as accounts receivable and accounts payable.

For the nine-month period ended June 30, 2009, operating activities generated cash flows of $19,0 million whereas these same activities generated cash flows of $13.3 million for the same period of the previous fiscal year.

INVESTING ACTIVITIES

For the quarters ended June 30, 2009 and 2008, the Company invested $1.4 million in fixed assets and other long-term assets, namely deferred development costs.

The Company used $5.4 million for investing activities during the nine-month period ended June 30, 2009, compared to $43.4 million as at June 30, 2008 for the acquisition of Achieve and QuickCare. During the current fiscal year, the Company made an investment of $1.2 million to acquire the securities of a company in the open market. Amounts of $1.1 million and $3.1 million were invested respectively in fixed assets and other long-term assets, of which $2.6 million were deferred development costs. Certain fixed asset acquisitions were associated with leasehold improvements and are therefore non-recurring.

FINANCING ACTIVITIES

For the quarter ended June 30, 2009, financing activities resulted in a net outflow of $14.4 million. An amount of $4.0 million was borrowed at the beginning of the quarter. Following the cash receipts from the Canadian annual rights of use contracts, the Company repaid $17.5 million on its credit facilities and used $0.9 million to repurchase common shares.

For the nine-month period ended June 30, 2009, the Company borrowed $16.8 million and repaid $25.3 million under its credit facilities, including the repayment of a promissory note of $2.6 million (US$2.2 million) on December 19, 2008. Under its normal course issuer bid, the Company repurchased common shares during the period for cash consideration of $6.9 million. The Company renewed its normal course issuer bid in February 2009.

Under its normal course issuer bid, the Company is authorized to repurchase for cancellation up to 497,041 and 472,189 common shares (approximately 5% of the common shares outstanding) over the course of the twelve-month periods ending respectively February 12, 2009 and February 12, 2010.

ABOUT LOGIBEC

Logibec is among the fastest-growing North American companies specializing in the development, marketing, implementation and support of information systems for the health and social services sector. In 2008, Logibec has continued to expand its American activities with the recent acquisition of the assets of Achieve Healthcare Technologies and QuickCare Software Services and is now a leader in the U.S. with a customer base of approximately 7,000 facilities and communities. Its American activities are now managed under the name MDI Achieve. Logibec's services are delivered by an experienced team of approximately 420 employees. The Company has its head office in Montreal as well as offices in Quebec City, Edmonton, St. Louis, Minneapolis, Dallas, Tampa and Smithfield, Virginia.

This news release contains forward-looking statements reflecting Logibec Groupe Informatique Ltd. objectives, estimates and expectations. Such statements may be marked by the use of verbs such as "believe", "anticipate", "estimate" and "expect" as well as the use of the future or conditional tense. By their very nature, such statements involve risks and uncertainty. Actual results may differ significantly from the Company's forecasts or expectations.



CONSOLIDATED STATEMENTS OF EARNINGS
for periods ended June 30
unaudited

in thousands of Canadian dollars
except per share amounts 2009 2008 2009 2008
---------------------------------------------------------------------------
Quarter Quarter Nine months Nine months
$ $ $ $

Revenue 19,254 18,599 57,695 50,234
---------------------------------------------------------------------------

Operating expenses
Service costs 8,678 8,294 26,467 22,825
Selling and administrative
expenses 3,663 3,827 11,132 10,380
---------------------------------------------------------------------------
12,341 12,121 37,599 33,205
---------------------------------------------------------------------------
Earnings before the
following items: 6,913 6,478 20,096 17,029

Amortization of fixed assets 405 459 1,513 1,177
Amortization of intangible
assets and other long-lived
assets 2,792 2,513 8,216 6,574
Loss on disposal of
fixed assets 2 7 2 18
Financial expenses (income) (43) 612 68 1,773
---------------------------------------------------------------------------
3,156 3,591 9,799 9,542
---------------------------------------------------------------------------
Earnings before income taxes 3,757 2,887 10,297 7,487

Income taxes 1,056 851 3,029 2,196
---------------------------------------------------------------------------
Net earnings 2,701 2,036 7,268 5,291
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Net earnings per share
Basic and diluted 0.29 0.21 0.77 0.55
---------------------------------------------------------------------------

Weighted average number of
of common shares outstanding
Basic 9,393,374 9,854,333 9,455,553 9,579,930
Diluted 9,450,277 9,919,433 9,503,670 9,650,627




CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
for periods ended June 30
unaudited

in thousands of Canadian dollars 2009 2008 2009 2008
-------------------------------------------------------------------------
Quarter Quarter Nine months Nine months
$ $ $ $
Net earnings 2,701 2,036 7,268 5,291
Unrealized gains (losses)
on translation
of financial statements of
self-sustaining foreign
subsidiaries (7,646) (575) 7,767 1,919
-------------------------------------------------------------------------
Comprehensive income (loss) (4,945) 1,461 15,035 7,210
-------------------------------------------------------------------------
-------------------------------------------------------------------------



CONSOLIDATED STATEMENTS OF ACCUMULATED COMPREHENSIVE INCOME (LOSS)
for periods ended June 30
unaudited

in thousands of Canadian dollars 2009 2008 2009 2008
-------------------------------------------------------------------------
Quarter Quarter Nine months Nine months
$ $ $ $

Balance, beginning of period 14,335 (4,005) (1,078) (6,499)
Unrealized gains (losses) on
translation
of financial statements of
self-sustaining foreign
subsidiaries (7,646) (575) 7,767 1,919
-------------------------------------------------------------------------
Balance, end of period 6,689 (4,580) 6,689 (4,580)
-------------------------------------------------------------------------
-------------------------------------------------------------------------



CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
for periods ended June 30
unaudited

in thousands of Canadian dollars 2009 2008 2009 2008
-------------------------------------------------------------------------
Quarter Quarter Nine months Nine months
$ $ $ $

Retained earnings, beginning
of period 20,920 17,234 18,019 15,269
Net earnings 2,701 2,036 7,268 5,291
-------------------------------------------------------------------------
23,621 19,270 25,287 20,560

Premium on repurchase
of common shares (2,354) (132) (4,020) (1,422)
-------------------------------------------------------------------------
Retained earnings, end of
period 21,267 19,138 21,267 19,138
-------------------------------------------------------------------------
-------------------------------------------------------------------------



CONSOLIDATED BALANCE SHEETS
unaudited

in thousands of Canadian dollars June 30, 2009 Sept. 30, 2008
--------------------------------------------------------------------------
$ $

Assets
Current assets
Cash 1,184 3,184
Accounts receivable 8,761 8,012
Income tax credits receivable 2,111 1,166
Future income taxes 831 831
Other current assets 4,258 2,389
--------------------------------------------------------------------------
-------------------------------------------------------------------------

17,145 15,582

Fixed assets 4,077 4,290
Goodwill 69,812 64,483
Intangible assets and other long-lived
assets 52,199 53,278
--------------------------------------------------------------------------
143,233 137,633
--------------------------------------------------------------------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities 10,319 13,304
Income taxes 476 1,099
Future income taxes 27 27
Current portion of long-term debt 6,097 2,288
--------------------------------------------------------------------------
16,919 16,718

Deferred revenue 25,419 17,921
--------------------------------------------------------------------------
42,338 34,639

Long-term deferred revenue 7,323 7,119
Long-term debt 14,710 26,226
Future income taxes 3,388 3,413
--------------------------------------------------------------------------
67,759 71,397
--------------------------------------------------------------------------

Shareholders' equity
Share capital 47,044 48,821
Contributed surplus 474 474
Retained earnings 21,267 18,019
Accumulated other comprehensive income
(loss) 6,689 (1,078)
--------------------------------------------------------------------------
27,956 16,941
--------------------------------------------------------------------------
75,474 66,236
--------------------------------------------------------------------------
143,233 137,633
--------------------------------------------------------------------------
--------------------------------------------------------------------------




CONSOLIDATED STATEMENTS OF CASH FLOWS
for periods ended June 30
unaudited

in thousands of Canadian dollars 2009 2008 2009 2008
--------------------------------------------------------------------------
Quarter Quarter Nine months Nine months
$ $ $ $

Operating activities
Net earnings 2,701 2,036 7,268 5,291
Adjustments for:
Amortization of fixed assets 405 459 1,513 1,177
Amortization of intangible
assets and other long-lived
assets 2,792 2,513 8,216 6,574
Amortization of deferred
financing costs 22 21 64 310
Gain on early payment
of a promissory note - - (91) -
Loss on disposal of
fixed assets 2 7 2 18
Future income taxes - - - (300)
--------------------------------------------------------------------------
5,922 5,036 16,972 13,070

Changes in non-cash operating
working capital items 8,135 12,433 2,053 249
--------------------------------------------------------------------------
14,057 17,469 19,025 13,319
--------------------------------------------------------------------------

Investing activities
Acquisition of investments - - (1,186) -
Acquisition of fixed assets (361) (540) (1,132) (1,206)
Business acquisitions - - - (39,472)
Increase in intangible assets
and other long-lived assets,
net of investment tax credits (1,075) (895) (3,091) (2,717)
--------------------------------------------------------------------------
(1,436) (1,435) (5,409) (43,395)
--------------------------------------------------------------------------

Financing activities
Increase in long-term debt 4,000 6,500 16,800 62,500
Repayment of long-term debt (17,458) (23,240) (25,307) (57,201)
Repurchase of shares (900) (176) (6,869) (1,894)
Credit facilities financing
costs - - - (358)
Issuance of shares - - - 22,879
--------------------------------------------------------------------------
(14,358) (16,916) (15,376) 25,926
--------------------------------------------------------------------------

Effect of exchange rate
changes on cash
denominated in foreign
currency 265 (92) (240) (268)

Decrease in cash (1,472) (974) (2,000) (4,418)

Cash, beginning of period 2,656 3,530 3,184 6,974
--------------------------------------------------------------------------
Cash, end of period 1,184 2,556 1,184 2,556
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Additional information
Interest paid 278 573 1,188 1,570
Income tax paid 3,150 1,100 3,150 5,126
--------------------------------------------------------------------------

Contact Information

  • LOGIBEC GROUPE INFORMATIQUE LTD.
    Claude Roy
    President and Chief Executive Officer
    514-766-0134
    or
    LOGIBEC GROUPE INFORMATIQUE LTD.
    Marc P. Brunet
    Chief Financial Officer
    514-762-3833