CALGARY, ALBERTA--(Marketwired - Jan. 17, 2014) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED). Today, Zedi filed amended financial statements as at and for the three and nine months ended September 30, 2013. While completing a systems conversion for capital asset tracking during Q4 of 2013, the Company discovered an error in the amortization of certain internally generated intangible assets which had resulted in the under-amortization of those assets over a number of years. While the impact on any individual reporting period was not considered significant, the cumulative impact of $1.49 million as of September 30, 2013 was deemed significant enough to cause the Company to elect to restate the most recent financial statements as of that date. Management has conducted a complete review of all capital and internally generated intangible assets and the historical calculation of depreciation and amortization to ensure that no further adjustments in this regard will be necessary.
As the error impacts only amortization and deferred tax amounts which are both non-cash in nature, there was no impact on EBITDA1 or cash flow results previously reported.
The restated Q3 financial statements and MD&A are filed on SEDAR and can be accessed at www.sedar.com or on the Company's website at www.zedi.ca. Note 14 to the amended financial statements details the impact of the restatement, including impact on prior periods and comparative amounts. The impact on the 2013 statement of profit and loss is as follows:
| (all figures, other than per share amounts, are in millions of Canadian dollars) |
For the three months
ended September 30,
2013 |
For the nine months
ended September 30,
2013 |
| |
As
originally
reported |
Impact
of error |
As
restated |
As
originally
reported |
Impact
of error |
As
restated |
| Depreciation and Amortization Expense |
1,867 |
203 |
2,070 |
5,449 |
612 |
6,061 |
| Profit prior to Tax |
2,336 |
(203) |
2,133 |
5,823 |
(612) |
5,211 |
| Taxation |
645 |
(51) |
594 |
1,503 |
(153) |
1,350 |
| Profit for the Period |
1,691 |
(152) |
1,539 |
4,320 |
(459) |
3,861 |
| Basic and diluted earnings per share |
$0.02 |
- |
$0.02 |
$0.04 |
- |
$0.04 |
| EBITDA (1) |
4,413 |
- |
4,413 |
11,728 |
- |
11,728 |
Zedi Inc. (TSX VENTURE:ZED) helps the world's oil and gas producers be more productive, more profitable, and more sustainable through technology backed by expert consultation and services. Our 60 years of continuous operations in North America and recognition as one of the industry's best workplaces, sets us apart in the production operations landscape. With our unique combination of award-winning automation, data management, and field and professional services, we offer solutions to our customers' challenges and help them realize their production potential.
(1) EBITDA is a non-IFRS measure and is defined as earnings (profit) before interest, taxes, depreciation and amortization and is commonly used by industry to normalize non-operating factors that are included in net income and as a proxy for the cash generating potential of a business. See section 9 of the Management Discussion and Analysis for further detail on both of these metrics.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.