Logibec Groupe Informatique Ltd.
TSX : LGI

Logibec Groupe Informatique Ltd.

December 29, 2006 07:00 ET

Logibec Groupe Informatique Ltd.: Increase in Results for 2006 and Restatement of 2005 Financial Statements

MONTREAL, QUEBEC--(CCNMatthews - Dec. 29, 2006) - Logibec Groupe Informatique Ltd. (TSX:LGI) announced today the results of its fiscal year ended September 30, 2006 and the restatement of its consolidated financial statements for 2005. All monetary amounts are expressed in Canadian dollars.

HIGHLIGHTS

- Net earnings up 88% for the fiscal year ended September 30, 2006 to stand at $6.7 million, or $0.75 per share, compared to $3.6 million, or $0.48 per share, for the prior year.

- Revenue for the fiscal year 2006 up 37% to stand at $40.8 million compared to $29.7 million for the prior year.

- Revenue from U.S. sources represents 24% of total revenue in 2006, up from 8% in 2005.

- Complete reimbursement of the term loans set up to finance the acquisition of MDI, despite the Company's continued expansion in the U.S.

RESTATEMENT OF 2005 CONSOLIDATED FINANCIAL STATEMENTS

As a result of an evolution in the interpretation of the accounting principles stated in EIC-142 Revenue Arrangements with Multiple Deliverables issued by the CICA, the Company has restated the accounting treatment of certain revenue elements related to arrangements with multiple deliverables.

Arrangements with multiple deliverables in Canada

Prior to the fourth quarter of fiscal year 2006, the Company recognized revenue from professional services provided for the implementation of its Canadian software products upon delivery of these services. In the course of preparing the 2006 consolidated financial statements, it was determined that the services related to certain software products did not have value for the client on a stand-alone basis and therefore could not be accounted for separately from the rights of use granted to the customer under the terms of the agreements with customers. In such cases, the Company recognizes revenue from professional services on a straight-line basis over the initial term of the related agreements.

Arrangements with multiple deliverables in the United States

Also prior to the fourth quarter of fiscal year 2006, the Company recognized revenue from perpetual software licenses sold by MDI upon delivery of the software products. In the course of preparing the 2006 consolidated financial statements, it was determined that under existing contractual agreements, the fair value of a perpetual license could not be established separately from the fair value of the support and maintenance service provided for in the software license and support agreement. In order to retain the right to use the software, the support and maintenance service fees were not optional. Consequently, the Company must recognize revenue from perpetual software licenses on a straight-line basis over the initial term of the related agreements, which is generally five years.

Accordingly, the Company has restated its retained earnings as at September 30, 2004 as well as its financial statements for the year ended September 30, 2005. The impact of this restatement on the consolidated statements of earnings and consolidated balance sheets is presented in the tables below. The impact of this restatement on the consolidated balance sheet is presented in note 1 to the consolidated financial statements. The restatement has no impact on cash flows from operating activities. The relevant amounts of fiscal year 2005 that are included in this MD&A were restated to reflect the above-mentioned restatement principles.

Reconciliation of Selected Quarterly Financial Data (Restated)
(Quarterly data is unaudited)



Fiscal year ended Sept. 30, 2005
---------------------------------------------------------------------
thousands of dollars Q1 Q2 Q3 Q4
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Revenue previously
reported 6,967 8,165 7,293 9,394
Adjustment (390) (331) (740) (674)
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As restated 6,577 7,834 6,553 8,720
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Net earnings previously
reported 1,007 1,328 1,099 1,091
Adjustment (169) (131) (293) (370)
---------------------------------------------------------------------
As restated 838 1,197 806 721
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Fiscal year ended Sept. 30, 2006
---------------------------------------------------------------------
thousands of dollars Q1 Q2 Q3 Q4(i)
---------------------------------------------------------------------

Revenue previously
reported 10,350 10,790 11,641 10,469
Adjustment (921) (1,187) (386)
---------------------------------------------------------------------
As restated 9,429 9,603 11,255 10,469
---------------------------------------------------------------------

Net earnings previously
reported 1,635 1,805 1,736 2,088
Adjustment (244) (334) 16
---------------------------------------------------------------------
As restated 1,391 1,471 1,752 2,088
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(i) Q4 of fiscal year 2006 is not a restatement. However it is
included in the table to reflect the impact of the appropriate
application of generally accepted accounting principles as discussed
earlier.


ANNUAL INFORMATION

The table below presents selected annual information regarding operating results and cash flow for the fiscal years ended September 30, as well as the financial position as of such dates.



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Thousands of dollars 2004 2005 2006
except per share (Restated for (As restated;
amounts comparison note 1)
purposes)
---------------------------------------------------------------------
OPERATING RESULTS
Revenues 25,417 29,684 40,756
EBITDA (see calculation
below) 8,751 10,738 15,844
Net earnings 2,063 3,563 6,701

EBITDA per share 1.31 1.44 1.77
Earnings per share 0.31 0.48 0.75

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Reconciliation of EBITDA
and net earnings
Net earnings 2,063 3,563 6,701
Interest on indebtedness 758 430 541
Other interest (revenue) (240) (46) (100)
Income tax 978 1,631 2,439
Amortization of fixed assets 1,083 948 1,077
Amortization of intangible
assets and other long-term
assets 4,040 4,212 5,150
Loss on disposition of fixed
assets 69 - 36
EBITDA 8,751 10,738 15,844
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Return on average shareholders'
equity 14% 14% 19%

Internally generated funds 8,522 11,502 19,529
- per common share 1.28 1.55 2.18

Investment in technology, net
of tax credits 2,270 1,717 1,988

FINANCIAL POSITION
Cash and cash equivalents 6,566 3,192 3,098
Total assets 39,579 72,931 72,360
Total indebtedness 4,628 12,345 9
Indebtedness, net of cash and
cash equivalents (1,938) 9,153 (3,089)

Shareholders' Equity 16,681 33,553 37,933
- per common share (as of
Sept. 30)) 2.50 3.81 4.25

Working capital (2,645) (7,580) (9,975)
Working capital ratio 0.83 0.61 0.53

Total debt / EBITDA 0.53 1.15 n. m.
Debt-equity ratio
(total debt / shareholders'
equity) 0.28:1 0.35:1 n. m.

Common shares outstanding
(weighted average, basic) 6,655,272 7,435,006 8,976,322
Common shares outstanding
(as of Sept. 30) 6,674,124 8,806,324 8,931,724

n. m. equals not meaningful


OPERATING RESULTS

This report compares the operating results for the 2006 fiscal year with those of the 2005 fiscal year (restated). The results of the fiscal year ended on September 30, 2006, include the results of Monette as of March 23, 2006, and the business activities of Lagibert as of July 15, 2006.

REVENUE

In 2006, the Company's revenue reached a new high to stand at $40.8 million compared to $29.7 million in 2005, representing an increase of 37%. The Canadian activities generated $3.7 million of the total $11.1 million increase and the American activities generated the remaining $7.3 million. Revenue by sector is presented as follows:



Geographical Revenue Breakdown
(in thousands of Canadian dollars)
2005 2006 Variation %
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Canada 27,259 30,982 3,723 14%
United States 2,425 9,774 7,349 303%
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Consolidated Revenue 29,684 40,756 11,072 37%
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Revenue from Canadian activities

In Canada, the increase in recurring revenue is due to (i) a progression in software rights of use for our administrative and clinical administrative software resulting from implementations during the last two fiscal years, mainly for the Espresso financial software package and the clinical administrative software packages Clinibase and Med-Echo Plus, (ii) revenue recognition associated with the implementation of a regional version of our Clinibase software for one of our clients, (iii) the sale and installation of servers for hosting software developed by Logibec and (iv) special projects carried out for clients using our payroll and human resources management solutions. The increase in revenue from Canadian activities is also due to revenue recognition for professional services associated with the numerous implementations of our solutions over the past few years. It should be noted that the application of the accounting principles contained in EIC-142 has caused revenue from professional services for the implementation of certain software packages to be distributed over the term of the relevant agreements. This application will lessen the effects of seasonal factors on our revenue specifically in the fourth quarter which corresponds to vacation time for our customer base.

Revenue from American activities

For the fiscal year 2006, American revenue increased by $7.3 million. This significant increase is due mainly to the inclusion of MDI's results during the fiscal year compared to a contribution of 102 days in 2005 and is also due to the inclusion of Monette's results beginning March 23, 2006.

OPERATING EXPENSES

Operating expenses, which are composed of service costs, selling, general and administrative expenses and stock-based compensation, increased 32%, representing 61% of revenue for the fiscal year 2006 compared to 63% for the fiscal year 2005.

Service costs. Service costs increased by $3.2 million or 25%, but represent 40% of revenue whereas they represented 44% of revenue in 2005. The variance in service costs is presented in the following table.



Service Costs
(in thousands of Canadian dollars)
2005 2006 Variation
---------------------------------------------------------------------
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Canada 12,262 12,829 566
United States 777 3,439 2,663
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Consolidated Service Costs 13,039 16,268 3,229
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Service Costs / Revenue

2005 2006
---------------------------------------------------------------------
---------------------------------------------------------------------
Canada 45% 41%
United States 32% 35%
---------------------------------------------------------------------
Consolidated 44% 40%
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The $3.2 million increase for this charge is mainly attributable to the increase in American activities resulting from the inclusion of MDI's operations for a full year and Monette's as of March 23, 2006. Service costs for Logibec in Canada (the "Canadian unit") went from $12.3 million in 2005 to $12.8 million in 2006. The increase in Canadian service costs is mainly a result of an increase in the cost of equipment intended for resale. However, service costs have decreased as a ratio of revenue. This ratio for the Canadian unit stands at 41% in 2006 compared to 45% in 2005. The improvement in the ratio is due to Management's ability to maintain a stable payroll despite an increase in sales.

Selling, general and administrative expenses. Selling, general and administrative expenses increased 48% mainly due to the factors stated above for the American unit. However, it should be noted that during the year, the Company significantly decreased MDI's administrative expenses. These savings are mainly due to the significant decrease in total salaries and benefits for MDI management following a reorganization. Administrative expenses for the Canadian unit increased by $0.2 million following the increase of certain professional services fees. Overall, selling, general and administrative expenses stood at 21% of revenue for 2006 compared to 19% for 2005.

Stock-based compensation. The expense for stock-based compensation was $0.2 million for the 2006 fiscal year.

Operating income before depreciation and amortization, loss on disposition of fixed assets, income on temporary investments, financial expenses and income tax stood at $15.9 million for the fiscal year 2006, up 47% compared to the previous year and yielding a margin of 39% of revenue. This margin was 37% in 2005. The increase in operating income is due primarily to resource optimization in the Canadian unit and the strong profitability of MDI's activities.

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

Depreciation and amortization of fixed assets, intangible assets and other long-term assets for the year ended September 30, 2006 rose to $6.2 million, increasing by 21% from the $5.2 million for 2005.

The depreciation of fixed assets increased by $0.1 million or 14% following the consolidation of the depreciation of MDI's and Monette's fixed assets. For the Canadian unit, the depreciation of fixed assets decreased by less than $0.1 million in 2006.

The depreciation of intangible assets and other long-term assets rose $0.9 million or 22% since this charge also includes the depreciation of the customer relationships and technologies acquired from MDI, Monette and Lagibert. These items are the cause of an additional cost of $1.2 million for 2006. The depreciation of Canadian intangible assets and other Canadian long-term assets decreased by approximately $0.3 million in 2006. This decrease is due primarily to a decrease in the depreciation of developed technology.

FINANCIAL EXPENSES

Financial expenses decreased by 15% and are mainly composed of interest charges on the revolving reducing term loans and waiting fees for the unused portion of these credit facilities. As at September 30, 2006, the Company had repaid in full its loans granted in accordance with its credit facilities.

INCOME TAXES

The Company provisioned income tax expense at a rate of 27% of its earnings before income taxes for the fiscal year 2006, that is, $2.4 million, compared to a provision of 31% for the previous year. This variation is mainly explained by the effect of differences in income tax rates on earnings generated in the United States and by the adjustment of future income tax assets and liabilities in Canada.

NET EARNINGS

Net earnings for the fiscal year ended September 30, 2006, increased by 88% to stand at $6.7 million or $0.75 per share ($0.74 on a diluted basis), compared to $3.6 million or $0.48 per share ($0.45 on a diluted basis) for the fiscal year 2005.

The growth in net earnings is due to the contribution throughout the fiscal year 2006 of the acquired MDI operations, the contribution of Monette's activities from March 23, 2006 as well as the profitable growth of the Company's Canadian activities.

SUMMARY OF QUARTERLY RESULTS (AS RESTATED)

A summary of the consolidated financial data drawn from the unaudited interim consolidated financial statements for the last eight quarters is shown below.



Fiscal year ended Sept. 30, 2005
---------------------------------------------------------------------
thousands of dollars Q1 Q2 Q3 Q4
---------------------------------------------------------------------

Revenue 6,577 7,834 6,553 8,720

Operating Expenses
Service costs 3,012 3,446 3,281 3,300
Selling and
administrative expenses 1,199 1,348 877 2,177
Stock-based compensation - - 70 108
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4,211 4,794 4,228 5,585
---------------------------------------------------------------------
Operating Earnings 2,366 3,040 2,325 3,135
---------------------------------------------------------------------

Amortization 1,079 1,278 1,070 1,733
Loss on disposition
of fixed assets - - - -
Income on temporary
investments (22) (5) (13) (6)
Financial expenses 118 62 156 223
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Earnings before Income
Tax 1,191 1,705 1,112 1,184
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Income tax 353 508 306 463
---------------------------------------------------------------------
Net Earnings 838 1,197 806 721
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Net Earnings per Share
Basic 0.12 0.16 0.11 0.09
Diluted 0.12 0.16 0.10 0.08
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Fiscal year ended Sept. 30, 2006
---------------------------------------------------------------------
thousands of dollars Q1 Q2 Q3 Q4(i)
---------------------------------------------------------------------

Revenue 9,429 9,603 11,255 10,469

Operating Expenses
Service costs 3,607 3,824 4,702 4,135
Selling and
administrative expenses 2,240 1,949 2,075 2,039
Stock-based compensation 89 89 30 29
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5,936 5,862 6,807 6,203
---------------------------------------------------------------------
Operating Earnings 3,493 3,741 4,448 4,266
---------------------------------------------------------------------

Amortization 1,496 1,528 1,592 1,611
Loss on disposition of
fixed assets - 18 18 -
Income on temporary
investments (15) (27) (25) (33)
Financial expenses 192 195 184 74
---------------------------------------------------------------------
Earnings before Income
Tax 1,820 2,027 2,679 2,614
---------------------------------------------------------------------

Income tax 429 556 928 526
---------------------------------------------------------------------
Net Earnings 1,391 1,471 1,751 2,088
---------------------------------------------------------------------

Net Earnings per Share
Basic 0.16 0.16 0.19 0.24
Diluted 0.15 0.16 0.19 0.24
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(i) Q4 of fiscal year 2006 is not a restatement. However it is
included in the table to reflect the impact of the appropriate
application of generally accepted accounting principles as discussed
earlier.


The fourth quarter ends on September 30 and coincides with the summer season. Revenue from professional services are typically lower during this quarter because implementation and training activities at customer sites are less frequent given that the majority of the users of the Company's software are on vacation. However, the application of the accounting principles issued in EIC-142 to professional services provided for software implementation reduces the seasonality of the fourth quarter since revenue is distributed on a straight-line basis over the term of the agreements. Recurring revenue on the other hand does not have a seasonal factor. For the fiscal year 2006, the first three quarters benefited from the inclusion of MDI's results whereas in 2005 only the fourth quarter included the results of this American subsidiary. Furthermore, the third and fourth quarters of 2006 included Monette's results.

LIQUIDITY AND SOURCES OF FINANCING

OPERATING ACTIVITIES

For the year ended September 30, 2006, cash flow from operating activities stood at $19.5 million compared to $11.5 million for 2005. The significant increase of $8.0 million is attributable to changes in non-cash working capital items, namely the deferred revenue following the application of the accounting principles issued in EIC-142 and the payment of income tax on earnings after the 2006 year-end.

INVESTING ACTIVITIES

The Company's main investing activities were the acquisitions of Monette and Lagibert, capital expenditures and amounts capitalized as software development costs.

The outstanding common shares of Monette were acquired on March 23, 2006, for cash consideration of $2.7 million and acquisition costs of $48,494. An amount of $0.3 million of the consideration was placed in trust and will be paid to the former Monette shareholders 18 months after the transaction's closing date provided that no liability is recorded during this period for events preceding the acquisition date.

On July 14, 2006, the Company acquired the business activities of Lagibert Inc. for cash consideration of $0.4 million and for conditional consideration equal to 50% of the license sales over a three-year period starting on the acquisition closing date. The acquisition costs for this transaction stood at $29,783.

The Company invested $0.6 million in fixed assets during the fiscal year 2006 compared to an investment of $0.4 million in 2005. The investment in 2006 includes $0.4 million for the Canadian unit and $0.2 million for the American unit. Management believes that the investment in fixed assets will be slightly higher in 2007 due to the relocation of the Monette offices scheduled to take place during the second quarter of fiscal year 2007.

Furthermore, Logibec invested $2.1 million in intangible assets, $2.0 million of which was in the form of capitalized technology development costs. The Company maintains its policy for the capitalization of technology development costs in order to ensure that only the software packages with the greatest potential for generating future revenues are capitalized.

FINANCING ACTIVITIES

Financing activities in 2006 were marked by the $15.4 million repayment in full of the term loans used to finance the MDI acquisition in 2005.

During the year, all excess cash generated by the Company was applied against these loans. The revolving nature of these loans allowed the Company to redraw amounts when operating cash flow was low. This generally occurs during the second quarter since most of the Canadian recurring revenue is billed annually on April 1st. The amounts redrawn by the Company during the year totaled $3.1 million. This amount is included in the repayment mentioned above.

During the fiscal year 2006, 136,000 warrants were exercised at a price of $3.50 each for a cash consideration of $0.5 million and 150,000 stock options were exercised at a weighted average price of $3.50 each for a cash consideration of $0.5 million.

Under a normal course issuer bid, the Company repurchased 160,600 common shares for cash consideration of $2.3 million. Management uses the issuer bid program to counter the dilutive effects of warrant and stock option exercises.

As of September 30, 2006, the Company's indebtedness was solely in the form of a term loan of $8,817. On this date, the Company had cash and cash equivalents of $3.1 million. Of the $13.2 million in credit facilities that the Company had available as at September 30, 2006, only $0.4 million was used for letters of guarantee. Logibec is in compliance with all covenants required by the credit facilities.

Management believes that it is able to continue to grow the Company while remaining in compliance with the covenants of its credit facilities. Amounts available pursuant to the Company's credit facilities combined with its ability to generate operating cash flow in Canada as well as in the United States, provide Logibec with the flexibility required to continue its growth.

ABOUT LOGIBEC

Logibec is among the ten largest Canadian companies specializing in the development, marketing, implementation and support of information systems for the health and social services sector. Logibec serves over 200 clients throughout Quebec and the rest of Canada. Since completing its acquisition of MDI Technologies, Inc. ("MDI"), in June 2005, and Monette Information Systems Corporation ("Monette"), in March 2006, Logibec also serves over 750 clients representing approximately 1,800 facilities throughout the United States. Logibec's services are delivered by an experienced team of approximately 250 employees as at September 30, 2006. The Company has its head office in Montreal as well as offices in Quebec City, Edmonton, Alberta, St. Louis, Missouri, and Smithfield, Virginia.

ACTIVITIES

Software packages offered by the Company are grouped into two main product families, namely administrative information management, which includes financial management, materials management and human resources management, and clinical administrative management, which includes the patient index, admissions, appointment scheduling, care plans and services management as well as a module for tracking residents and patients. Business intelligence solutions allow managers to optimize the use of resulting data.

Professional services offered by Logibec are normally related to the implementation, development, operational support and upgrade of the software packages it markets. These services also include the sale, installation, implementation and technical support of data servers required for optimal use of its software packages.

Logibec also offers hosting services under an application service provider ("ASP") model for payroll processing, financial management, materials management and all software packages sold by MDI.

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.



LOGIBEC GROUPE INFORMATIQUE LTD.
CONSOLIDATED STATEMENTS OF EARNINGS
2006 2005
---------------------------------------------------------------------
---------------------------------------------------------------------
$ $
(As restated)

Revenue 40,756,036 29,683,952
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Operating expenses
Service costs 16,267,711 13,038,744
Selling and administrative expenses 8,303,047 5,601,390
Stock-based compensation 237,184 177,888
---------------------------------------------------------------------
24,807,942 18,818,022
---------------------------------------------------------------------

Earnings before the following items 15,948,094 10,865,930

Amortization of fixed assets 1,076,845 947,742
Amortization of intangible assets and other
long-term assets 5,150,117 4,212,076
Loss on disposal of fixed assets 36,080 -
Income on temporary investments (99,878) (46,272)
Financial expenses 645,046 558,777
---------------------------------------------------------------------
Earnings before income taxes 9,139,884 5,193,607

Income taxes 2,439,000 1,631,000
---------------------------------------------------------------------
Net earnings 6,700,884 3,562,607
---------------------------------------------------------------------
---------------------------------------------------------------------

Net earnings per share
Basic 0.75 0.48
Diluted 0.74 0.45
---------------------------------------------------------------------


Weighted average number of common shares
outstanding
Basic 8,976,322 7,435,006
Diluted 9,049,909 7,890,518
---------------------------------------------------------------------



LOGIBEC GROUPE INFORMATIQUE LTD.
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
2006 2005
---------------------------------------------------------------------
---------------------------------------------------------------------
$ $
(As restated)

Retained earnings, beginning of year
Balance carried forward 9,445,516 5,148,891
Restatement of prior years' financial
statements (1,891,114) (928,406)
---------------------------------------------------------------------
Adjusted balance 7,554,402 4,220,485

Net earnings 6,700,884 3,562,607
---------------------------------------------------------------------
14,255,286 7,783,092

Premium on redemption of common shares (1,818,796) (228,690)
---------------------------------------------------------------------
Retained earnings, end of year 12,436,490 7,554,402
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---------------------------------------------------------------------



LOGIBEC GROUPE INFORMATIQUE LTD.
CONSOLIDATED BALANCE SHEETS
2006 2005
---------------------------------------------------------------------
---------------------------------------------------------------------
$ $
(As restated)
Assets
Current assets
Cash and cash equivalents 3,098,433 3,191,839
Accounts receivable 4,252,261 4,023,036
Income tax credits receivable 2,025,471 1,602,641
Income taxes receivable 165,148 1,147,663
Future income taxes 388,000 338,000
Other current assets 1,391,897 1,664,516
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11,321,210 11,967,695

Fixed assets 4,086,812 4,637,194
Goodwill 31,654,862 30,494,988
Intangible assets and other long-term
assets 25,296,737 25,831,310
---------------------------------------------------------------------
72,359,621 72,931,187
---------------------------------------------------------------------
---------------------------------------------------------------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities 5,668,776 4,700,357
Income taxes 4,083,774 257,965
Future income taxes 232,000 -
Current portion of long-term debt 4,236 4,572,065
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Current liabilities, excluding deferred
revenue 9,988,786 9,530,387

Deferred revenue 11,307,157 10,016,889
---------------------------------------------------------------------
21,295,943 19,547,276

Long-term debt 4,581 7,773,180
Long-term deferred revenue 5,823,432 2,811,472
Future income taxes 7,303,100 9,246,093
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34,427,056 39,378,021
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Shareholders' equity
Share capital 28,435,149 27,755,214
Warrants - 189,837
Contributed surplus 415,072 177,888
Retained earnings 12,436,490 7,554,402
Currency translation adjustment (3,354,146) (2,124,175)
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37,932,565 33,553,166
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72,359,621 72,931,187
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LOGIBEC GROUPE INFORMATIQUE LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
2006 2005
---------------------------------------------------------------------
---------------------------------------------------------------------
$ $
(As restated)
Operating activities
Net earnings 6,700,884 3,562,607
Adjustments for:
Amortization of fixed assets 1,076,845 947,742
Amortization of intangible assets and
other long-term assets 5,150,117 4,212,076
Stock-based compensation 237,184 177,888
Loss on disposal of fixed assets 36,080 -
Future income taxes (1,846,703) 1,239,434
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11,354,407 10,139,747

Changes in non-cash operating working
capital items 7,989,595 1,362,281
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19,344,002 11,502,028
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Investing activities

Business acquisition, net of cash and
cash-equivalents acquired (3,223,835) (35,321,993)
Decrease in advance - 336,676
Proceeds from disposal of fixed assets 32,000 -
Acquisition of fixed assets (588,326) (391,088)
Increase in intangible assets and other
long-term assets, net of investment tax
credits (2,093,982) (2,205,938)
---------------------------------------------------------------------
(5,874,143) (37,582,343)
---------------------------------------------------------------------

Financing activities
Increase in long-term debt 3,100,000 29,488,261
Repayment of long-term debt (15,447,550) (21,770,944)
Redemption of shares (2,329,698) (299,115)
Issuance of shares 1,001,000 15,323,935
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(13,676,248) 22,742,137
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Effect of exchange rate changes on cash
denominated in foreign currency 112,983 (35,918)

Decrease in cash and cash equivalents (93,406) (3,374,096)
Cash and cash equivalents, beginning of
year 3,191,839 6,565,935
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Cash and cash equivalents, end of year 3,098,433 3,191,839
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The TSX Venture accepts no responsibility for the truth or accuracy of this press release.

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
    514-766-9237 (FAX)
    www.logibec.com