MONTREAL, April 30 /CNW Telbec/ - Montec Holdings Inc. ("Montec" or the "Company") (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 year ended on December 31, 2008.
2008 Highlights
- 23% revenue increase from 2007.
- 10% revenue increase from the third quarter of 2008.
- Normalized EBITDA of $155,000 in 2008.
Montec Consolidated Financials
Consolidated sales during the year 2008 totaled $6.4 million, an increase of $1.2 million from $5.2 million during the same period in 2007. All Montec revenues are generated by its wholly owned subsidiary Datex Billing Services Inc. The increase is the result of the acquisition of Contour at the end of the second quarter of 2007 and ADA at the beginning of the third quarter of 2007.
Gross margin for the year 2008 was 53% of sales compared to 66% during the same period in 2007. Gross margin is not comparable between the two periods under review since the results of the year 2007 included two quarters and three weeks of operations of Contour, acquired at the end of the second quarter of 2007, and 22 weeks of ADA, acquired at the beginning of the third quarter of 2007.
Consolidated net loss and comprehensive loss for 2008 stood at $0.9 M or a basic and diluted loss per share of $0.041, compared to a loss of $0.5 M or $0.023 per share for the same period in 2007.
As of April 30, 2009, the authorized capital of Montec consists of an unlimited number of Montec Common shares, Series A preferred shares and Series B preferred shares and Common share purchase warrants of which 30,961,000 Common shares, 7,294,118 Series A preferred shares, 18,743,500 Series B preferred shares and 3,450,000 common share purchase warrants shall be issued and outstanding.
2008 was a year of expansion in both capabilities and capacity for Montec's subsidiary Datex Billing Services Inc. Research and Development expense increased to $432,000 (6.8% of revenue) from $119,000 in 2007. This was mainly due to an increase in focus on its Operating Support Systems (OSS) area. Management views this as having a strong potential in providing additional functionality of provisioning orders from clients, which dovetails well with existing Datex' capabilities and clients. Already this month Datex has applied its OSS services to a client. We expect this business sector to expand over the remainder of 2009.
The integration of our Management Division (DMS) has now been completed achieving a financial a break-even. Throughout the rest of 2009 we expect to bring the DMS division to profitability.
Datex has secured a number of new agreements with high profile customers - such as Bell Canada and Cisco Systems - which has driven an increase in technical headcount by 50%. We expect to make some additional announcements in the coming months.
While our current cash-flow is essentially sufficient to maintain our existing operations with no short or long-term debt, Montec is currently holding negotiations with a number of financial institutions and individuals - primarily to secure additional funding for expansion and acquisitions.
Additional information about the Company, including the management report and financial results may be found on SEDAR at www.sedar.com.
Non GAAP Financial Measure
The Corporation uses only one financial measure that is not consistent with generally accepted accounting principles in Canada (GAAP), namely normalized earnings before interest, income taxes, depreciation and amortization (normalized EBITDA). Such a measure is used because management believes it provides meaningful information on the Corporation's performance and operating results. Such a non-GAAP measure has no standardized meaning as prescribed by GAAP and may not be comparable to similarly titled measures presented by other companies. Accordingly, it should not be considered in isolation. Please refer to conciliation table below.
Reconciliation of EBITDA
-------------------------------------------------------------------------
December 31,
2008
audited
-------------------------------------------------------------------------
Profit (Loss) before income taxes and
non-controlling interest $ (1 036,2)
Amortization $ 531,2
Interest expense (income) $ 115,1
Goodwill and intangible asset impairment loss $ 545,7
Normalized EBITDA $ 155,8
-------------------------------------------------------------------------
Increase of Stock Options
On April, 24, 2009 Montec's Board of Directors deemed it is advisable to increase the number of common shares which may be issued under the 2004 Stock Option Plan to a maximum of three million (3,000,000) shares. In order to satisfy the requirements set out in Policy 4.4 of the TSX Venture Exchange Incentive Stock Options, the Board of Directors also deemed it advisable to make certain non-material amendments to the 2004 Stock Option Plan. The amendment would take effect immediately following regulatory and shareholder approval.
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, Montec's mandate is to acquire shareholdings of a number of synergistic companies and 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.
%SEDAR: 00020865E