VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 6, 2012) - PNI Digital Media (TSX:PN)(OTCBB:PNDMF) ("PNI"), the leading innovator in digital media solutions for retailers, reported financial results for the first quarter of fiscal 2012 ended December 31, 2011.
Fiscal Q1 2012 Financial Highlights
- Revenue was $6.9 million compared to $7.7 million in the same year-ago quarter
- Transactional revenue was $5.8 million or 83% of total revenue for the quarter
- Generated IFRS profit before income taxes of $1.0 million for the quarter, compared to $1.5 million in the same year-ago quarter
- Non-IFRS adjusted EBITDA1 was $1.7 million, compared to $2.3 million in fiscal Q1 2011
- Processed 6.7 million transactions over the PNI Digital Media Platform, up 5% from the same year-ago quarter
- Strong balance sheet of $5.4 million in cash and no debt
Fiscal Q1 2012 Operational Highlights & Recent Events
- Signed multi-year agreement with Rite Aid Corporation to provide and operate all-new online photo center
- Signed multi-year agreement with Costco Canada to provide and operate all-new online business printing service
- Launched new Photo Art Library for Tesco's online photo center
- Moved from the TSX-Venture Exchange to the Toronto Stock Exchange on October 18, 2011
- Flagship social stationery offering now live and taking orders at www.foldedwords.com
"Our revenue continues to transition as consumer buying patterns migrate from prints to personalized products," said Kyle Hall, CEO of PNI Digital Media. "We're excited about this next chapter for our company with the launch of our new Stationery and Business Printing product lines taking us into new markets."
Conference Call
The Company will host a conference call Tuesday, March 6 at 4:30 p.m. ET (1:30 p.m. PT) to discuss these financial results. PNI Digital Media's CEO Kyle Hall, and CFO, Simon Bodymore, will host the presentation, followed by a question and answer period.
Dial-In Number: 1-888-241-0394
International: 1-647-427-3413
Conference ID#: 54944014
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.
PNI Digital Media will also provide a live webcast and slide presentation, which will be available on the company's website at www.pnimedia.com/webcast. An archived replay of the webcast will be available on the company's website for 45 days following the live event.
| Consolidated Statements of Financial Position |
|
December 31, 2011 |
September 30, 2011 |
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Assets |
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Current assets |
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Cash and cash equivalents |
$ |
5,390,268 |
|
$ |
3,936,176 |
|
|
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Accounts receivable |
|
5,302,272 |
|
|
4,535,912 |
|
|
|
Prepaid expenses and other current assets |
|
507,447 |
|
|
460,140 |
|
|
|
|
|
|
|
|
|
|
11,199,987 |
|
|
8,932,228 |
|
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|
|
|
|
|
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Property and equipment |
|
4,827,264 |
|
|
5,140,150 |
|
|
Deferred income tax asset |
|
7,020,783 |
|
|
7,065,857 |
|
|
Intangible assets |
|
1,100,587 |
|
|
680,437 |
|
|
Goodwill |
|
640,715 |
|
|
654,222 |
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$ |
24,789,336 |
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$ |
22,472,894 |
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Liabilities |
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Current liabilities |
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Accounts payable and accrued liabilities |
$ |
4,417,827 |
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$ |
3,284,311 |
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Current portion of deferred revenue |
|
352,661 |
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|
250,323 |
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|
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Current portion of finance lease obligations |
|
- |
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- |
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|
|
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|
|
|
4,770,488 |
|
|
3,534,634 |
|
|
|
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|
|
|
|
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Deferred revenue |
|
282,145 |
|
|
33,898 |
|
|
|
5,052,633 |
|
|
3,568,532 |
|
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Shareholders' Equity |
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Share capital |
$ |
66,526,598 |
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$ |
66,420,572 |
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Contributed surplus |
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19,495,570 |
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|
19,522,420 |
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|
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86,022,168 |
|
|
85,942,992 |
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Deficit |
|
(65,972,144 |
) |
|
(67,012,367 |
) |
|
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|
|
|
|
|
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Accumulated other comprehensive loss |
|
(313,321 |
) |
|
(26,263 |
) |
|
|
|
|
|
|
|
|
|
(66,285,465 |
) |
|
(67,038,630 |
) |
|
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|
|
|
|
|
|
|
19,736,703 |
|
|
18,904,362 |
|
|
|
|
|
|
|
|
|
$ |
24,789,336 |
|
$ |
22,472,894 |
|
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| Consolidated Statements of Income and Comprehensive Income |
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Three Months Ended |
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December 31, 2011 |
December 31, 2010 |
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Revenue |
$ |
6,950,376 |
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$ |
7,733,805 |
|
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Cost of sales |
|
2,591,569 |
|
|
2,654,525 |
|
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Gross Profit |
|
4,358,807 |
|
|
5,079,280 |
|
|
|
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Expenses |
|
|
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|
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Software development |
|
2,164,177 |
|
|
2,305,854 |
|
|
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General and administration |
|
1,093,029 |
|
|
1,100,309 |
|
|
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Sales and marketing |
|
170,954 |
|
|
323,845 |
|
|
|
|
|
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3,428,160 |
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|
3,730,008 |
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Profit from operations |
|
930,647 |
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|
1,349,272 |
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Foreign exchange gain |
|
105,286 |
|
|
170,439 |
|
|
Finance income |
|
559 |
|
|
48 |
|
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Finance costs |
|
- |
|
|
(5,536 |
) |
|
|
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|
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|
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|
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|
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|
105,845 |
|
|
164,951 |
|
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Profit (loss) before income tax |
|
1,036,492 |
|
|
1,514,223 |
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Current income tax recovery (expense) |
|
- |
|
|
- |
|
|
Deferred income tax recovery (expense) |
|
3,731 |
|
|
(534,533 |
) |
|
Income tax recovery (expense) |
|
3,731 |
|
|
(534,533 |
) |
|
|
|
|
|
|
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Profit for the period |
|
1,040,223 |
|
|
979,690 |
|
|
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Other comprehensive gain (loss): |
|
|
|
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|
|
|
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|
|
|
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Cumulative translation adjustment |
|
(287,058 |
) |
|
(456,637 |
) |
|
|
|
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|
|
|
|
Total comprehensive income for the period |
$ |
753,165 |
|
$ |
523,053 |
|
|
|
|
|
|
|
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Earnings (loss) per share |
|
|
|
|
|
|
|
Basic |
$ |
0.03 |
|
$ |
0.03 |
|
|
Fully diluted |
$ |
0.03 |
|
$ |
0.03 |
|
| Non-IFRS Financial Measures |
|
Three Months Ended |
|
December 31, 2011 |
December 31, 2010 |
|
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| Net profit in accordance with IFRS |
$ |
1,040,223 |
|
$ |
979,690 |
|
| Amortization |
|
670,106 |
|
|
689,379 |
|
| Interest expense |
|
- |
|
|
5,536 |
|
| Income taxes |
|
(3,731 |
) |
|
534,533 |
|
| Stock based compensation expense |
|
79,269 |
|
|
329,634 |
|
| Unrealized foreign exchange (gain) |
|
(95,672 |
) |
|
(195,888 |
) |
|
|
|
|
|
|
|
| Adjusted EBITDA |
$ |
1,690,195 |
|
$ |
2,342,884 |
|
Notes:
1 - Non-IFRS Measures