News..XDM earns $0.09/share in 2009
Xentel DM earns $2.32-million in 2009
2010-05-04 15:04 ET - News Release
Mr. David Winograd reports
XENTEL REPORTS DECEMBER 31, 2009 FISCAL YEAR END RESULTS
Xentel DM Inc. is releasing its financial results for the three and 12 months ended Dec. 31, 2009.
Three months Fiscal year
Period ended Dec. 31, 2009 2008 2009 2008
(
00s, except per share amounts)
Revenue $ 22,544 $ 24,455 $ 92,474 $ 96,219
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Gross Margin 4,904 4,844 21,138 22,757
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Net (loss) earnings 371 (187) 2,322 1,518
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EBITDA 911 213 5,021 5,275
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EPS, fully diluted $ 0.01 $ 0.00 $ 0.09 $ 0.06
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EBITDA, per share, fully diluted $ 0.04 $ 0.01 $ 0.20 $ 0.20
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(i)EBITDA - Net Earnings before income taxes, interest, depreciation and
amortization. Since Gross Margin, EBITDA and diluted EBITDA
per share have no standardized GAAP meaning, the
comparability of these amounts to other enterprises may not
be possible if the basis of calculation of differs.
For the year ended 2009 compared to 2008, revenues decreased $3,745 thousand or 4% from $96,219 thousand in 2008 to $92,474 thousand in 2009. However, net earnings improved $804 thousand from $1,518 thousand in 2008 to $2,322 thousand in 2009 producing an improvement of
.03 per fully diluted share moving from
.06 per fully diluted share in 2008 to
.09 per fully diluted share in 2009. Cash and cash equivalents increased from $1,356 thousand in 2008 to $3,445 thousand in 2009 and similarly, working capital increased by $2,320 thousand to $5,266 thousand at December 31, 2009.
Net earnings for the three months ended December 31 , 2009 was $371 thousand compared to a net loss of $187 thousand for the same period in 2008. Revenues for the same periods were $22,544 thousand and $24,455 respectively.
There were a number of significant events in 2009, as follows:
-- The Company paid its first ever dividend of
.02 per share in May 2009 amounting to $500 thousand;
-- The Company extinguished the amounts due to and from related party by making payments of $1,615 throughout the year;
-- The Company continued its normal course issuer bid program and purchased a further 453 thousand of its issued and outstanding shares for a consideration of $72 thousand.
Subsequent to the year end, the Company merged with The Responsive Marketing Group Inc. (RMG) by issuing 8,270 thousand Class A common shares in exchange for the issued and outstanding shares of RMG. RMG was in a complimentary business to the Company in Canada and this merger broadens the Company's market to include direct contact marketing for political entities.
Looking back at the year 2009 and the year end results, Michael Platz noted, "We stabilized profitability, strengthened the balance sheets and built a strong viable enterprise through a capable and committed management team. I am excited about moving into 2010 and beyond."
Added David Winograd, President, "The RMG merger adds a dimension to the Canadian operations giving us an entirely new business model and sales channel in the political arena. This is a new and diverse business model to build on for the US operations going forward."
Consolidated Statements of Operations and Retained Earnings
For the years ended December 31 2009 2008
('000s, except per share amounts)
Revenue $ 92,474 $ 96,219
Cost of revenue 71,336 73,462
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Gross margin 21,138 22,757
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Corporate expenses
Branch overhead and corporate administration 16,117 17,482
Interest expense 120 427
Amortization of equipment 900 977
Amortization of intangible assets 7 1,306
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17,144 20,192
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Earnings before undernoted items 3,994 2,565
Other item
Expenses related to 2003 privatization lawsuit - (74)
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Earnings before income taxes 3,994 2,491
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Income tax expense
Current income tax expense 211 240
Future income tax expense 1,461 733
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1,672 973
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Net earnings 2,322 1,518
Retained earnings, beginning of year 3,027 1,509
Dividends paid 500 -
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Retained earnings, end of year $ 4,849 $ 3,027
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Basic net earnings per share $ 0.09 $ 0.06
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Diluted net earnings per share $ 0.09 $ 0.06
We seek Safe Harbor.
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