MONTREAL, Nov. 28 /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 quarter ended on September 30, 2008.
Third Quarter Highlights
- 12% revenue increase from the second quarter of 2008.
- 25% revenue increase from the first quarter of 2008.
- Third quarter positive EBITDA of $58,000.
- Signed agreements integrating and expanding customer base.
Montec Consolidated Financials
Consolidated revenue for the third quarter ended September 30, 2008 was $1.7 million, a non-material decrease of $0.1 million from $1.8 million during the same period in 2007. All Montec revenues are generated by its 51% owned subsidiary Datex Billing Services Inc.
Gross margin in the third quarter of 2008 was 49% of sales compared to 50% during the same period in 2007, a level comparable between both periods and consistent with the revenue mix.
Consolidated net loss and comprehensive loss of the third quarter of 2008 stood at $194,000, or a basic and diluted net loss per share of $0.009, compared to a net loss and comprehensive loss of $247,000, or a basic and diluted loss per share of $0.011, for the same period in 2007.
"The Q3 statements show positive results as compared to the previous quarter," commented Myer Bentob, Chairman and CEO. "We are pleased with our success in the integration of the customer's of Contour Telecom and Angus Dortmans Associates and are optimistic that the positive trend in our financial results will continue. The proposed acquisition of the remaining 49% of Datex by Montec, announced on April1st, 2008, should further improve our overall performance."
As of November 26, 2008, there were 14,454,500 common shares, 7,294,118 Series A preferred shares, and 3,030,000 common share purchase warrants of the Corporation issued and outstanding. Of these, an aggregate of 4,236,299 common shares, 3,282,357 Series A preferred shares and 1,363,500 common share purchase warrants are still held in escrow pursuant to the policies of the TSX Venture Exchange. There are stock options outstanding in respect of an aggregate of 283,270 common shares held by the directors and officers of the Corporation. The weighted average exercise price of these options is $0.19 per share and expires five years after the date of the grant.
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 earnings before interest, income taxes, depreciation and amortization (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
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In thousands Three month
period ended
September 30,
2008
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Loss before income taxes and
minority interest $ (86,7)
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Depreciation and amortization $ 128,5
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Interest expense $ 15,9
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EBITDA $ 57,7
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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