MOUNT REAL CORPORATION
TSX : MRF

MOUNT REAL CORPORATION

August 12, 2005 17:37 ET

Mount Real Corporation Announces Second Quarter Results: Changes in the Presentation of the Statement of Earnings Better Reflect Core Business

MONTREAL, QUEBEC--(CCNMatthews - Aug. 12, 2005) - Mount Real Corporation (TSX:MRF) ("Mount Real") today announced its financial results for the second quarter ended June 30, 2005.

Revenue for the six-months ended June 30, 2005 were $16.2 million, an increase of five percent compared to $15.5 million for the same period in 2004. Net earnings were $3.0 million for the six-months ended June 30, 2005 as compared to $5.2 million for the same period in 2004. Earnings per share were $0.35 for June 2005, compared to $0.57 in 2004.

Revenue for the three-months ended June 30, 2005 decreased to $4.8 million compared to $8.5 million for the same period in 2004. "The anticipated decrease in revenue for the three months was due in part to the ongoing conversion of existing magazine subscriptions into Extended or X-Plans. This conversion is needed to leverage market trends and this will push growth in subsequent periods," said Lino Matteo, CEO of Mount Real.

Net earnings were $0.3 million for the three months ended June 30, 2005 compared to $2.0 million for the same period in 2004.

To better reflect its core business, Mount Real has made changes in the presentation of the statement of earnings. Beginning in the 2005 second quarter report, revenue will no longer include interest and investment income and will be comprised of service revenue only. Furthermore, gross margin on revenue is also shown separately. Mount Real anticipates these changes will enable shareholders, stakeholders and the public to better understand the nature of its business.

"We strongly believe in the growth potential of this company," said Lino Matteo, CEO, Mount Real. "At the core of our unique business model we feel that TMI, allied with our strong relationships with partners and clients, will enable the company to grow steadily; we are confident about our future growth prospects."

About Mount Real

Mount Real provides information management services to the media and technology sector. Mount Real uses a business intelligence system, Tactics Marketing Intelligence (TMI), to enable its clients to more efficiently manage their business. Mount Real is listed under the stock-trading symbol MRF on the Toronto Stock Exchange.

For the complete Second Quarter Report including the Management Discussion and Analysis, Financial Statements and Notes, please consult the company website at www.mountreal.com or the company's SEDAR filings at www.sedar.com.

Contact Information

  • Please direct all media requests and inquiries to:
    Fleishman-Hillard Montreal
    Julie Tremblay, Account Executive,
    (514) 866-6776 extension 240
    (514) 866-8981 (FAX)
    tremblju@fleishman.com
    or
    Source:
    Lino P. Matteo
    Chief Executive Officer
    or
    General Information:
    (514) 762-2500
    (514) 762-6535 (FAX)
    info@mountreal.com
    www.mountreal.com