COGNICASE Reports Strong Second Quarter Results.Business Editors MONTREAL--(BUSINESS WIRE)--May 7, 2002 Cognicase (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :COGI COGI Coalition on Government Information (also known as the Minnesota Coalition on Government Information, or MNCOGI; promotes open access to public records) ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :COG.) -- Revenues increase 17% year-over-year -- Record EBITDA of $15.0 million and margin improves to 12% -- Gross margin expansion to 34% COGNICASE Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension : "COG", NASDAQ: "COGI"), an innovative IT solutions provider specializing in the development and integration of transactional solutions, today announced its results for the second quarter ended March 31, 2002. All amounts are in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents . Revenues for the second fiscal quarter ended March 31, 2002 increased to $123.1 million, up 17% from $104.8 million in the same period last year and increased 4% on a sequential One after the other in some consecutive order such as by name or number. basis, compared to $118.1 million for the first quarter of fiscal 2002. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Revenues for the six months ended March 31, 2002 increased 22% to $241.2 million, compared to revenues of $198.0 million for the same period last year. For the first six months of fiscal 2002 EBITDA increased 172% to $28.3 million compared to $10.4 million in the same period one year ago. Net income for the first six months ended March 31, 2002 was $13.7 million or EPS of $0.26 as compared to a net loss of $9.9 million or loss per share of $0.37 for the same period last year. Cash net earnings per share of $0.26 in the period is up 74% over the $0.15 reported in the first six months of 2002. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with CICA CICA Competition In Contracting Act of 1984 (USA) CICA Canadian Institute of Chartered Accountants CICA Competition In Contracting Act CICA Criminal Injuries Compensation Authority (UK) recommendations, the Company stopped recording amortization of goodwill on October October: see month. 1, 2001. For comparison purposes, earnings information has been provided on both a net earnings and cash net earnings (net earnings before amortization of goodwill) basis. "We are very pleased with our financial results this quarter as we continue to achieve both revenue and operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before growth," said Ronald Brisebois, COGNICASE Chairman of the Board, President and Chief Executive Officer. "Long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. and recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues continue to represent over 50% of our total revenues. Furthermore, our gross margin has hit a high of 34%, compared to 32% for the same period last year and 32% last quarter, demonstrating the increased contribution from our processing and outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. group." The processing and outsourcing group continued to post positive growth and now accounts for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 65% of total revenues. The revenues in this group increased to $80.4 million, a 5% increase over revenues of $76.4 million for the same period last year. Revenue growth in this division continues to be accompanied ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. by robust profit growth as operating earnings in this group increased from $7.7 million in the second quarter of fiscal 2001 to $11.7 million this quarter, a 52% increase. The systems integration group has continued to deliver improved performance as the business has generated growth in both revenues and profits. Revenues for the second quarter of fiscal 2002 were $42.7 million, a 50% increase over revenues of $28.4 million for the same period last year. Operating earnings have improved significantly from a negative $0.4 million in fiscal 2001 to a positive $2.9 million in the second quarter of fiscal 2002. Operating earnings reflect the benefit of strong performance in the public sector vertical and continued diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d management of operations. "As at March 31, 2002, COGNICASE had cash and cash equivalents of $76.2 million compared to $48.3 million as at September September: see month. 30, 2001. The Company has a strong balance sheet and cash position to continue to support its acquisition and development program aimed at growing its outsourcing and transactional solutions business and to increase market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" in the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. and US market," concluded Mr. Brisebois. Outlook For fiscal 2002, the Company is maintaining revenue guidance of at least 25% growth. Additionally the Company expects to double operating earnings and achieve initial objective of annual EPS growth of over 30%. Effective July July: see month. 1, 2001, the Company adopted section 3062 of the CICA Handbook
This article is about reference works. For the subnotebook computer, see .
An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ." Section 3062 requires that an intangible asset be amortized over its useful life and that goodwill not be amortized but evaluated for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. . In accordance with the new standards, the Company has completed the transitional impairment test for goodwill that existed on July 1, 2001. The impairment on the goodwill balance resulting from adoption of the new standards is estimated to be up to $150 million. This reduction in goodwill will be charged to opening retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. in the fourth quarter of fiscal 2002, thereby not affecting EBITDA or net earnings in the current fiscal year. About COGNICASE COGNICASE (TSX: "COG", Nasdaq: "COGI") is an IT products and services provider specializing in advanced transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. and Internet-based applications. Relying on its results-driven approach, its software and technology and its Application Services See ASP and Web services. Technology Centre, COGNICASE offers secure and scalable solutions that contribute to its customers' economic success in the age of the new economy. The Company is active in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . Forward-Looking Statement forward-looking statementA projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 (US), which involve risks and uncertainties. As a result of a number of factors, including factors that the Company may not currently foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. , the Company's actual results could differ materially from those set forth in the forward-looking statements. Certain other factors that might cause the Company's actual results to differ materially from the forward-looking statements include the Company's ability to (i) successfully develop additional products and services and new applications for its existing products and services and otherwise respond to rapid changes in technology, (ii) successfully compete in its industry for customers and developers and other personnel with expertise in information technology, (iii) successfully identify and consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. acquisitions on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms and integrate acquired businesses, (iv) successfully manage its growth and changing business, (v) be awarded contracts under its IS/IT and Preferred Supplier Agreement with the National Bank of Canada This article is about a commercial bank. For Canada's central bank, see Bank of Canada. National Bank of Canada (Banque Nationale du Canada) TSX: NA is the sixth largest bank in Canada, and so is one of the Big Six banks. , as well as other risks and uncertainties set forth under the heading "Risk and Risk Management" in its 2001 annual report.
COGNICASE Inc.
Consolidated Statements of Earnings
(In thousands of Canadian dollars, except share and per share data)
--------------------------------------------------------------------
Six months Six months Three months Three months
Ended Ended Ended Ended
March 31 March 31 March 31 March 31
2002 2001 2002 2001
--------------------------------------------------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $241,154 $197,953 $123,079 $104,809
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Operating
expenses
Cost of
revenues 161,399 138,926 80,703 71,522
Selling and
administrative
expenses 48,845 42,575 25,066 23,380
Research and
development -
net of tax
credits 3,551 6,481 2,062 3,272
--------------------------------------------------------------------
213,795 187,982 107,831 98,174
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Earnings from
operations
before the
undernoted 27,359 9,971 15,248 6,635
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Financial
expenses
(income) (80) 219 (179) 69
Loss (gain) on
foreign
exchange 55 (244) 179 24
Other expenses
(income) (966) (186) 102 -
Amortization of
capital and
other assets 6,890 3,952 3,867 2,120
--------------------------------------------------------------------
5,899 3,741 3,969 2,213
--------------------------------------------------------------------
Earnings before
income taxes
and amortization
of goodwill 21,460 6,230 11,279 4,422
Provision for
income taxes 7,726 2,170 4,061 1,541
--------------------------------------------------------------------
Earnings before
amortization of
goodwill 13,734 4,060 7,218 2,881
Amortization of
goodwill (net
of future
income taxes) - 13,945 - 7,132
--------------------------------------------------------------------
Net earnings
(loss) $13,734 $(9,885) $7,218 $(4,251)
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--------------------------------------------------------------------
Earnings per
share, before
amortization
of goodwill
Basic $0.28 $0.15 $0.14 $0.11
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--------------------------------------------------------------------
Diluted $0.26 $0.15 $0.13 $0.11
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--------------------------------------------------------------------
Net earnings
(loss) per
share
Basic $0.28 $(0.37) $0.14 $(0.16)
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--------------------------------------------------------------------
Diluted $0.26 $(0.37) $0.13 $(0.16)
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--------------------------------------------------------------------
Weighted
average number
of shares
outstanding
Basic 49,592,682 26,683,381 52,704,268 27,234,397
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--------------------------------------------------------------------
Diluted 52,129,760 26,814,792 56,552,858 27,274,531
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COGNICASE Inc.
Consolidated Balance Sheets
(In thousands of Canadian dollars)
--------------------------------------------------------------------
March 31 September 30
2002 2001
--------------------------------------------------------------------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $76,209 $38,227
Temporary investments - 10,093
Accounts receivable (note 3) 142,773 110,655
Work in process 17,613 14,481
Income taxes recoverable - 15,076
Prepaid expenses 7,241 3,780
Future income taxes 251 -
-------------------------------------------------------------------
244,087 192,312
Capital assets 59,752 42,698
Future income taxes 18,842 18,520
Investments 1,773 1,701
Goodwill 537,597 425,754
Other assets 34,407 3,303
-------------------------------------------------------------------
$896,458 $684,288
-------------------------------------------------------------------
-------------------------------------------------------------------
LIABILITIES
Current liabilities
Bank advances $1,174 $1,887
Accounts payable and accrued
liabilities 80,642 79,022
Income taxes payable 1,795 -
Deferred revenue 21,802 8,419
Future income taxes - 1,432
Current portion of
long-term debt 9,444 4,747
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114,857 95,507
Long-term debt and balance of
purchase price payable 30,257 6,587
Non-controlling interests - 426
-------------------------------------------------------------------
145,114 102,520
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SHAREHOLDERS' EQUITY
Capital stock 753,774 597,687
Retained earnings (deficit) 6,440 (7,294)
Cumulative translation
adjustment (8,870) (8,625)
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751,344 581,768
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$896,458 $684,288
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COGNICASE Inc.
Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)
--------------------------------------------------------------------
Six months Six months Three months Three months
Ended Ended Ended Ended
March 31 March 31 March 31 March 31
2002 2001 2002 2001
--------------------------------------------------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
CASH FLOWS FROM
OPERATING
ACTIVITIES
Net earnings (loss) $13,734 $(9,885) $7,218 $(4,251)
Adjustments for :
Loss on
disposal of
capital assets 103 14 103 14
Gain on
disposal of a
subsidiary (1,069) - - -
Amortization of
capital and
other assets 6,890 3,952 3,867 2,120
Amortization of
goodwill - 14,307 - 7,315
Future income
taxes 2,095 (1,750) 1,549 (1,837)
Non-controlling
interests (368) (200) (368) (21)
Decrease (increase)
in assets Accounts
receivable (10,347) (21,150) (2,371) (8,535)
Income taxes
recoverable 14,755 986 1,563 3,397
Work in process
and prepaid
expenses (5,030) (4,737) (4,461) (5,760)
Other 174 - 174 -
Increase (decrease)
in liabilities:
Accounts payable
and accrued
liabilities (13,944) 4,088 (11,466) (2,325)
Income taxes
payable 1,795 - 1,795 -
Deferred
revenue 4,693 6,032 2,241 4,702
Other - - (222) -
--------------------------------------------------------------------
Net cash flows
from (use in)
operating
activities 13,481 (8,343) (378) (5,181)
CASH FLOWS FROM
INVESTING
ACTIVITIES
Decrease in
temporary
investments 10,093 - - -
Purchase of
capital assets (7,629) (16,247) (2,375) (8,543)
Proceeds on
disposal of
capital assets 69 50 69 31
Business
acquisitions -
net of cash and
cash equivalents
acquired (20,364) 62 (17,887) 75
Proceeds on
disposal of a
subsidiary -
net of cash and
cash equivalents
disposed 872 - - -
Investments - (726) - (506)
Other - (673) 40 (652)
------------------------------------------------------------------
Net cash flows
used in
investing
activities (16,959) (17,534) (20,153) (9,595)
------------------------------------------------------------------
CASH FLOWS FROM
FINANCING
ACTIVITIES
Increase
(decrease) in
bank advances (1,981) 16,005 (1,297) 16,023
Issuance of
long-term debt 4,422 2,748 672 2,748
Repayment of
long-term debt (3,464) (1,562) (2,017) (753)
Issuance of
capital stock 46,161 1,693 922 826
Expenditures
related to
issuance of
capital stock (3,682) - (1,243) -
------------------------------------------------------------------
Net cash flows
from (used in)
financing
activities 41,456 18,884 (2,963) 18,844
------------------------------------------------------------------
Increase (decrease)
in cash and cash
equivalents 37,978 (6,993) (23,494) 4,068
Effect of
exchange rate
changes on cash
and
cash
equivalents 4 773 176 812
Cash and cash
equivalents -
beginning of
period 38,227 17,286 99,527 6,186
------------------------------------------------------------------
Cash and cash
equivalents -
end of period $76,209 $11,066 $76,209 $11,066
------------------------------------------------------------------
------------------------------------------------------------------
COGNICASE Inc.
Notes to consolidated financial statements
(Unaudited )
------------------------------------------------------------------
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim financial statements The interim financial statements as at March 31, 2002 and for the three and six months ended March 31, 2002 and 2001 are unaudited and include all adjustments, consisting only of normal recurring accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. , that management considers necessary for a fair presentation of the financial position, results of operations and cash flows. The disclosures provided for these interim periods do not conform in all respects to the requirements of generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting for annual financial statements; therefore, the interim financial statements should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the annual financial statements for the year ended September 30, 2001. These interim financial statements have been prepared using the same accounting policies and methods of their application as the annual financial statements for the year ended September 30, 2001. Business combinations and goodwill and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. Effective October 1, 2001, the Company adopted the new recommendations of the Canadian Institute of Chartered Accountants' Handbook section 3062, "Goodwill and Other Intangible Assets". This new section requires the use of the non-amortization approach to account for all purchased goodwill and indefinite-lived intangible assets. In the year of adoption of section 3062, recorded goodwill and intangible assets must be evaluated, which may result in certain intangible assets being reclassified into goodwill or alternatively, amounts initially recorded as goodwill being separately identified and recognized apart from goodwill as intangible assets. In addition, prior to the end of the fiscal year in which section 3062 is adopted, the Company must complete an evaluation of the fair value of recorded goodwill and indefinite-lived intangible assets existing at the date of adoption, with any transitional impairment loss being charged to retained earnings. As of March 31, 2002, the Company had allocated its existing goodwill to its reporting units and had completed an initial evaluation of the fair value of such reporting units. Based on the above, the Company has identified reporting units with respect to which goodwill, amounting to approximately $150,000,000, may be impaired See assistive technology. . The Company plans to complete its determination of the amount of impairment of goodwill related to such reporting units no later than the end of the current fiscal year. NOTE 2: BUSINESS ACQUISITIONS On December December: see month. 31, 2001, the Company acquired a 100% interest in M3i Systems Inc. ("M3i"), which is a designer and developer of mission critical Real-time Operation Noun 1. real-time operation - data processing fast enough to keep up with an outside process real-time processing data processing - (computer science) a series of operations on data by a computer in order to retrieve or transform or classify information Management Systems (ROMS ROMS Russian Multimedia and Internet Society ROMS Regional Ocean Model System ROMS Reactor Operations Monitoring System ROMS Rated Officer Monitoring System ROMS Remote Ocean-Surface Measuring Sensor ) for energy, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , and public safety organization, in exchange for total consideration amounting to $34,887,000, consisting of cash of $5,017,000, a balance of purchase price payable in common shares to be issued valued at $14,875,000 and notes payable for $14,140,000 expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. from twelve to forty-eight months after the acquisition date and the insuance of 84,690 common shares valued at $855,000. On March 14, 2002 the Company acquired a 100% interest in Applied Terravision Systems Inc. ("ATS"), which provides proprietary enterprise e-solutions, focusing on the Application Service Provider (ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). ), and business function outsourcing (BFO BFO Beat Frequency Oscillator BFO Basic Formal Ontology BFO Blinding Flash of the Obvious BFO Bunker Fuel Oil BFO Balanced Forearm Orthosis BFO Blood Forming Organ BFO Blazing Flash of the Obvious BFO Best & Final Offer BFO Bug-Fix Only ) delivery models, in exchange for total consideration amounting to $63,393,000, consisting of cash of $6,417,000 and the issuance of 5,933,913 common shares valued at $56,976,000. During the period ended March 31, 2002, the Company acquired 100% interest in 15 other companies ("Other"), which provide strategic consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" and system integration services, software implementation, data conversion, design and development of a proprietary enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ), applications specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. in treasury systems for foreign exchange, an application that automates and manages recruitment recruitment /re·cruit·ment/ (re-krldbomact´ment) 1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged. 2. and hiring processes and electric power engineering software, in exchange for total consideration amounting to $59,672,000, consisting of cash of $12,237,000, a balance of purchase price of $7,775,000 of cash and $16,750,000 of common shares to be issued and the issuance of 2,665,409 common shares valued at $22,910,000
(In thousands of Canadian dollars)
---------------------------------------------------------------------
M3i ATS Other Total
Current assets 12,914 7,739 9,893 30,546
Capital assets 9,822 4,959 1,422 16,203
Future income taxes - - 312 312
Other assets 4,544 10,232 14,978 29,754
---------------------------------------------------------------------
Total assets acquired 27,280 22,930 26,605 76,815
---------------------------------------------------------------------
Current liabilities 13,508 7,771 9,319 30,598
Long-term debt and capital lease
obligations. 1,559 1,767 351 3,677
Future income taxes - - 146 146
---------------------------------------------------------------------
Total liabilities assumed 15,067 9,538 9,816 34,421
---------------------------------------------------------------------
Net identifiable assets acquired 12,213 13,392 16,789 42,394
Goodwill 22,674 50,001 42,883 115,558
---------------------------------------------------------------------
Purchase Price 34,887 63,393 59,672 157,952
Less:
Common shares issued 855 56,976 22,910 80,741
Balance of purchase price 29,015 - 24,525 53,540
Cash and cash equivalents acquired 2,450 363 494 3,307
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Cash paid net of cash and cash
equivalents acquired/ (cash
acquired net of cash and cash
equivalents paid) 2,567 6,054 11,743 20,364
---------------------------------------------------------------------
---------------------------------------------------------------------
The Company is currently completing its final review and
determination of the purchase price allocation with respect to
business acquisitions completed in the second quarter of fiscal year
2002. More specifically, there may be adjustments to acquired
intangible assets, goodwill and future income taxes. Accordingly the
allocation of the purchase price is subject to revision based on the
final determination of the fair values of intangible assets acquired,
if any, pursuant to such acquisitions.
NOTE 3 : ACCOUNTS RECEIVABLE
(In thousands of Canadian dollars) March 31 September 30
2002 2001
--------------------------------------------------------------------
Trade accounts 107,176 85,465
Tax credits receivable 29,695 19,046
Other 5,902 6,144
--------------------------------------------------------------------
142,773 110,655
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NOTE 4: CAPITAL STOCK
Pursuant to the filing of a prospectus dated December 14, 2001,
the Company issued 4,400,000 common shares in Canada for gross cash
proceeds of $10.10 per share. The net proceeds to the Company amounted
to $42,001,000 after deducting underwriting commissions and other
expenses totalling $2,439,000 net of future income taxes of
$1,243,000.
NOTE 5: OUTSTANDING SHARES DATA
As of April 30, 2002, the Company had 60,435,502 common shares and
4,059,715 options outstanding. As of March 31, 2002, the Company has
completed nineteen acquisitions under which capital stock, valued at
$40,535,000, will be issued from three to forty-eight months after the
acquisition dates.
NOTE 6: SEGMENTED INFORMATION
(In thousands of Canadian dollars, except per share data)
--------------------------------------------------------------------
Six months ended March 31, 2002
(Unaudited)
---------------------------------------------------------------------
Processing
Services Systems Reconciliation
& Outsourcing Integration Entries Consolidated
(a) (b)
---------------------------------------------------------------------
Revenues from
external
customers 158,645 82,509 - 241,154
Earnings (loss)
from
Operations (1) 21,285 5,116 958 27,359
Earnings (loss)
before
amortization
of goodwill 10,221 2,265 1,248 13,734
EPS diluted (2) 0.20 0.04 0.02 0.26
----------------------------------------------------------------------
Six months ended March 31, 2001
(Unaudited)
----------------------------------------------------------------------
Processing
Services Systems Reconciliation
& Outsourcing Integration Entries Consolidated
(a) (b)
----------------------------------------------------------------------
Revenues from
external
customers 143,012 54,941 - 197,953
Earnings (loss)
from
Operations (1) 12,651 (1,762) (918) 9,971
Earnings (loss)
before
amortization
of goodwill 6,248 (1,983) (205) 4,060
EPS diluted (2) 0.23 (0.07) (0.01) 0.15
----------------------------------------------------------------------
Three months ended March 31, 2002
(Unaudited)
----------------------------------------------------------------------
Processing
Services Systems Reconciliation
& Outsourcing Integration Entries Consolidated
(a) (b)
----------------------------------------------------------------------
Revenues from
external
customers 80,373 42,706 - 123,079
Earnings (loss)
from
Operations (1) 11,702 2,937 609 15,248
Earnings (loss)
before
amortization
of goodwill 5,564 1,329 325 7,218
EPS diluted (2) 0.10 0.02 0.01 0.13
----------------------------------------------------------------------
Three months ended March 31, 2001
(Unaudited)
----------------------------------------------------------------------
Processing
Services Systems Reconciliation
& Outsourcing Integration Entries Consolidated
(a) (b)
----------------------------------------------------------------------
Revenues from
external
customers 76,379 28,430 - 104,809
Earnings (loss)
from
Operations (1) 7,722 (364) (723) 6,635
Earnings (loss)
before
amortization
of goodwill 3,945 (666) (398) 2,881
EPS diluted (2) 0.14 (0.02) (0.01) 0.11
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(1) Earnings (loss) from operations before financial expenses (income), loss (gain) on foreign exchange, other expenses (income) and amortization of capital and other assets. (2) Net earnings (loss) per share, excluding amortization of goodwill. (3) On October 1, 2001 the Company reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. its corporate structure into two operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . Therefore, management identified two reportable segments, being Processing Services & Outsourcing and Systems Integration. Consequently, comparative figures have been reclassified in order to comply with this new reporting basis. (a) Processing Services & Outsourcing unit includes business process outsourcing, application development outsourcing, and financial processing services and solutions. (b) Systems integration unit includes project-oriented consulting and systems integration services. NOTE 7: COMPARATIVE FIGURES Certain comparative figures have been reclassified in order to comply with the new basis of presentation. |
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