MONTREAL, Aug. 29 /CNW/ - Montec Holdings Inc. (TSX-V : MTE), a holding company focused on acquiring and developing a diversified portfolio of high-growth technology companies, today announced its operational and financial results for the fiscal quarter ended on June 30, 2007.
Second quarter highlights
- Acquired the telecom expense management services business of Contour
Telecom Inc.
- Generated revenues of $ 2.3 M in first half of 2007.
"In the second quarter we have once again showed our capacity to deliver on promises and complete another acquisition that strengthens the Montec Holdings portfolio", said Myer Bentob, President and Chief Executive Officer of Montec Holdings Inc. "Our subsidiary company, Datex Billing Services, has successfully integrated all the operating platforms of Contour Telecom Inc. with remarkable speed. This accomplishment is testimony of Datex's scalability and demonstrates the synergistic potential of Montec Holdings. As with the acquisition of Angus Dortmans Associates Inc. subsequent to the quarter's end, we will continue implementing our strategy of acquiring profitable companies in certain segments of the high-tech sector. Montec's on-going support will continue to enhance economies of scale and thus create additional value for our shareholders".
Financials
Given the acquisition of Datex at the end of the previous quarter, and the acquisition of Contour Telecom Inc. on June 1, 2007, the Company's statement of operations for the quarter ended June 30, 2007 has been consolidated to include Contour within Datex' operations. In the quarter ended June 30, 2006, the Company was a "capital pool company" focused on identifying and evaluating opportunities to acquire shares or businesses in order to complete a "qualifying transaction" (as defined in Policy 2.4 of the TSX Venture Exchange). Thus, comparison of results for this quarter and the six-month period versus the quarter and six-month period ended June 30, 2006 will reveal no pertinent information.
Total revenue for the second quarter ended June 30, 2007 was $ 1,230,990 and $ 2,349,731 for the six-month period.
Earnings before interests, taxes, depreciation and amortization and net of one time charges relating to the purchase of Contour Telecom Inc. were positive and totalled $ 56,232. Net loss for the quarter ended June 30, 2007 was $ 192,314 after tax or $ 0.009 per basic and diluted share.
The Company had cash and cash equivalents totaling $ 70,000 at June 30, 2007.
Working capital decreased by $ 600,000 to a negative $ 585,000. The decrease is mainly the result of the acquisition of Contour in June 2007 whereby the acquired business provides telecom management services including consolidated billing thus a major impact on accounts receivables and payables.
As of June 30, 2007, there were 14,454,500 common shares issued and outstanding and 7,294,118 Series A preferred shares issued and outstanding. Of these, an aggregate of 2,538,000 common shares were held in escrow pursuant to the policies of the TSX Venture Exchange relating to capital pool companies.
Additional information about the Company, including the management report and financial results may be found on SEDAR at www.sedar.com.
About Montec Holdings Inc.
Montec Holdings Inc. is listed on the TSX Venture Exchange (TSX-V: MTE). Montec's objective is to create shareholder value by building a profitable technology entity with high-growth potential. Structured as a holding company, it will acquire, in each case, at least 51% shareholdings of a number of synergetic companies and it will develop a diversified portfolio of high-growth technology companies. For more information about Montec Holdings, please visit our website at www.montecholdings.com
Forward Looking Statements
This press release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The Company disclaims any obligation to update these forward-looking statements.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Consolidated Statement of Operations (unaudited)
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For the three months For the six months
ended June 30 ended June 30
2007 2006 2007 2006
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SALES $ 1,230,990 $ - $ 2,349,731 $ -
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COST OF SALES 399,733 - 652,779 -
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831,257 - 1,696,952 -
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EXPENSES
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Salaries and benefits 418,869 - 797,713 -
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Professional fees 108,848 89,271 207,305 89,767
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Bad debts 77,098 - 151,828 -
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Travel and promotion 54,435 24,337 125,100 25,665
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Rent and utilities 54,972 4,014 91,741 8,011
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Amortization of
intangible assets 33,462 33 66,870 66
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Amortization of
property and equipment 45,451 - 71,076 -
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Office expenses 34,828 8,643 57,622 9,522
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Stock exchange and
transfer agent fees 903 12,666 12,198 17,188
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Interest and bank
charges 33,218 50 36,805 92
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Insurance 747 5,241 9,166 10,482
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Consulting 19,905 9,500 24,665 9,500
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882,736 153,755 1,652,089 170,293
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INTEREST INCOME - 4,955 - 10,595
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INCOME (LOSS) BEFORE
INCOME TAXES AND
MINORITY INTEREST (51,479) (148,800) 44,863 (159,698)
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INCOME TAXES
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Current 90,715 - 192,974 -
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Future (13,300) - (12,000) -
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77,415 - 180,974 -
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LOSS BEFORE MINORITY
INTEREST (128,894) (148,800) (136,111) -
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MINORITY INTEREST 63,420 - 153,800 -
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NET LOSS AND
COMPREHENSIVE LOSS
FOR THE PERIOD (192,314) (148,800) (289,911) (159,698)
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DEFICIT, beginning
of period (552,980) (265,866) (455,383) (254,968)
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DEFICIT, end of period (745,294) $ (414,666) (745,294) $ (414,666)
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Basic and diluted net
loss per share $ (0.009) $ (0.020) $ (0.013) $ (0.020)
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Weighted average
number of shares
outstanding 21,748,618 8,004,500 21,748,618 8,004,500
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Consolidated Balance Sheets
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As at As at
June 30, December 31,
2007 2006
(Unaudited) (Audited)
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ASSETS
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CURRENT
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Cash $ 70,110 $ 613,241
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Accounts receivable 2,598,162 606,581
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Prepaid expenses and deposits 96,717 39,305
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Due from a company owned by a director 2,945 2,945
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Unbilled revenue 315,455 -
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3,083,389 1,262,072
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PROPERTY AND EQUIPMENT 351,105 334,602
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DUE FROM A SHAREHOLDER 426,695 288,682
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INTANGIBLE ASSETS 1,939,241 2,006,111
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GOODWILL (note 4) 1,413,615 1,122,405
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$ 7,214,045 $ 5,013,872
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LIABILITIES
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CURRENT
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Bank indebtedness $ 190,000 $ 120,054
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Accounts payable and accrued liabilities 2,726,403 451,272
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Dividends payable 200,000 309,779
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Income taxes payable 267,856 79,329
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Refundable security deposits 52,003 50,000
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Due to a company owned by a shareholder of
the Corporation 149,930 194,930
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Current portion of obligations under
capital leases 82,167 68,156
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3,668,359 1,273,520
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OBLIGATIONS UNDER CAPITAL LEASES 55,091 105,578
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FUTURE INCOME TAX 677,194 689,194
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MINORITY INTEREST 153,800 -
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4,554,444 2,068,292
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SHAREHOLDERS' EQUITY
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SHARE CAPITAL (note 5) 3,109,380 3,109,380
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WARRANTS (note 5) 179,929 179,929
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CONTRIBUTED SURPLUS 115,586 111,654
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DEFICIT (745,294) (455,383)
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2,659,601 2,945,580
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$ 7,214,045 $ 5,013,872
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%SEDAR: 00020865E