Komunik: Announces its Fourth Quarter and Year End Results
2008-07-30 07:33:00
Komunik: Announces its Fourth Quarter and Year End Results
MONTREAL, QUEBEC–(EMWNews – July 30, 2008) – Komunik Corporation (“Komunik” or the Company) (TSX:KOM) announces that it has filed its fourth quarter and year end results as well as the related Management’s Discussion and Analysis for the period ending April 30, 2008.
The Consolidated revenues of the Company have decreased in the fourth quarter ended April 30, 2008, in comparison to the third quarter from $26.9M to $23.1M, correlated to this decrease the earnings before interest, tax, depreciation and amortization (EBITDA) declined from $0.323M to a negative $1.074M in the same period, if we consider the non-cash expense of stock based compensation.
Consolidated revenues for the twelve months ended April 30, 2008 were $95M, compared to $8.1M for the twelve months ended April 30, 2007, EBITDA were $1,823M compared to $1,114M in the same period, if we consider the non-cash expense of stock based compensation. This increase is mostly due to the Datamark transaction. Komunik presents a net loss of $6,2M for the most recent year. This loss includes an impairment of goodwill of $2,0M and write-offs and restructuring costs of over $0,6M.
Since the acquisition of Datamark Systems Group in June 2007, the company underwent significant restructuring of its manufacturing activities, including plants merging in Ontario and Alberta and downsizing of its workforce across the country.
“Although some restructuring was initially planned, the cost related to transforming Datamark Systems Group into a more efficient and profitable operation has been much higher than expected and presented many unexpected challenges. Therefore, the positive impacts of those changes are taking more time to materialize, putting additional pressure on financial ratios” mentions Alain Paquin, President and CEO of Komunik.
“Komunik is reviewing its financial strategy and is in discussion with its current lenders. We are also looking at the possibility of refinancing our operations with an Asset Based Lender, since we have strong assets on our balance sheet. Komunik is also in discussion with potential investors who are sensitized to the potential of Komunik’s business long term strategy. ” mentions Sebastien Demers, Chief Financial Officer of Komunik.
These documents are available at www.sedar.com.
About Komunik Corporation
Komunik is a leading provider of end-to-end solutions for Communication Resource Management. We simplify the management of communication resources to help our clients increase efficiency and control over their overall communications.
Komunik develops best of class technology, and provides expertise and support for document management, multi-channel relationship marketing and overall print services. Our clients count on hundreds of experienced employees with experts covering each area of our value proposition. Our nationwide network of 6 production & project development facilities and 5 distribution centres, touch points in every major Canadian city, as well as strategically located offices in the United States, ensures that our clients benefit from local support. For more information about Komunik visit www.komunik.com.
Cautionary note about forward-looking statements
Some of the statements made in this release may constitute forward-looking information or statements within the meaning of securities laws. These statements are based on certain factors and assumptions, which Komunik believes are reasonable as of the current date. While Komunik considers these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. Komunik cautions that actual future performance could be affected by a number of factors, including technological change, regulatory change and competitive factors, many of which are beyond Komunik’s control. Therefore, future events and results may vary substantially from what Komunik currently foresees. While Komunik may elect to, it is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information.
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For more information, please contact Massy-Forget Public Relations |
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