MONTREAL, June 2 /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 three-month period ended on March 31, 2009.
2009 First Quarter Highlights
- 23% revenue increase from Q1 2008. - Continued to gain traction in the OSS space with increased R&D efforts.
Montec Consolidated Interim Financials
Sales in the first quarter of 2009 totalled $1.6 million, an increase of $0.3 million, or 23%, from $1.3 million during the same period in 2008. All Montec revenues are generated by its wholly owned subsidiary Datex Billing Services Inc.
Gross margin in the first quarter of 2009 was 46% of sales compared to 62% during the same period in 2008, due to the product mix; DMS revenues, providing a 24% gross margin, increased by 46%, compared to a decrease of 5% in DBS segment, with an 86% gross margin.
Operating expenses in the first quarter of 2009 totalled $1.1 million, an increase of $0.1 million from $1.0 million during the same period in 2008. This increase mainly results from investments in research and development expenses, increased sales force to improve customer relations and service for anticipated contracts that have been delayed due to the economic downturn.
Consolidated net loss and comprehensive loss of the first quarter of 2009 stood at $320,000, or a basic and diluted net loss per share of $0.006, compared to a net loss of $155,000, or a basic and diluted loss per share of $0.007, for the same period in 2008.
As of May 29, 2009, the authorized capital of Montec consisted of an unlimited number of Montec Common shares, Series A preferred shares and Series B preferred shares of which 49,704,500 Common shares, 7,294,118 Series A preferred shares, 1,253,342 options and 3,450,000 common share purchase warrants shall be issued and outstanding. Of these, a total of 1,808,999 common shares, 2,188,238 preferred shares and 909,000 purchase warrants are held in escrow.
During the first quarter of 2009, Datex Billing Services Inc. entered into an agreement to provide its customer management and billing services to Melaleuca Inc. Under the terms of the agreement, Datex and Bell Canada will provide Melaleuca with turn-key telecommunications services, technology, billing and customer care to be marketed under the Melaleuca brand.
Datex continued to gain traction in the Operating and Support Systems (OSS) space, with an increase in R&D oriented towards customized projects for its customers.
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
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In thousands Three months ended
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March 31,
2009
(unaudited)
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Loss before income taxes and non-controlling interest $ 338.1
Amortization 218.9
Interest expense 32.4
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Normalized EBITDA $ (87.8)
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Changes to Board of Directors
Effective May 15th, Lisa Mercier resigned as Secretary of the Board of Montec for personal reasons. Montec's Board members and management thank her very much and wished her the best in her new challenges. Madam Mercier has been replaced as secretary of the Board by Marvin Garellek, effective June 2, 2009.
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