|Page (1) of 1 - 05/10/12||email article||print page|
Hartco Announces 2012 First Quarter Results(May 10, 2012)
MONTREAL, QUEBEC -- (Marketwire) -- 05/10/12 -- Hartco Inc. (TSX:HCI) today announced its financial results for the first quarter ended March 31, 2012.
Consolidated results for the quarter ended March 31, 2012
Hartco posted consolidated revenues of $107.3 million for the first quarter, compared to $115.3 million last year, and a net loss of $3.6 million, or -$0.25 per share on a diluted basis compared to net earnings of $0.4 million, or $0.03 per share on a diluted basis, for the corresponding quarter in 2011.
"A $4.9 million impairment charge pertaining to an internal business transformation project along with higher severances contributed to the operating loss during the first quarter." said Pat Waid, Hartco's President and Chief Operating Officer. "We achieved improved gross profit margins, reduced SG&A expenses, and increased adjusted EBITDA by $1.1 million compared to the first quarter of 2011".
Effective management of working capital enabled Hartco to end the first quarter of 2012 with a cash position of $19.4 million and no debt.
"Although challenging business conditions are expected to prevail throughout 2012, we are committed to improving our operational execution." said Pat Waid. "We will maintain our focus on continuously enhancing our performance and increasing our profitability."
Detailed Financial Information
Detailed financial information pertaining to Hartco's first quarter and annual results can be accessed at www.sedar.com. The first quarter and annual financial statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS").
About Hartco Inc.
Hartco Inc. (TSX:HCI) has been a leader in the Canadian information technology business for more than thirty years. Through its operating divisions, which together include 49 locations across Canada, Hartco Inc. delivers information technology solutions to private and public sector organizations of every size. For more information, please visit www.hartco.com.
This news release contains forward-looking information. Except for historical information contained herein, the statements in this document are forward-looking. Forward-looking statements involve known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from forecasted results. Those risks include, among others, changes in customer demand for information technology products or services, changes in supplier pricing actions or terms, customer orders, pricing actions by competitors, changes in laws and regulations and general changes in economic conditions. Risks that could cause our results to differ materially from our expectations are discussed in our Annual Management's Discussion & Analysis.
FINANCIAL HIGHLIGHTS (In thousands of dollars, except per share amounts) Quarter ended March 31 2012 2011 ------------------------ $ $ Revenues 107,314 115,349 Adjusted EBITDA ((1)) 447 (671) Net (loss) earnings (3,558) 360 Diluted (loss) earnings per share (0.25) 0.03 Free Cash Flow (deficiency) ((2)) (2,828) (4,611) Adjusted Free Cash Flow (deficiency) ((3)) (1,492) (4,595) Cash position 19,394 19,563 1. Adjusted EBITDA is defined as net earnings (loss) excluding financial costs, depreciation and amortization, income tax expense, non-recurring gains or losses, impairment charges, and share of results of equity investments. Adjusted EBITDA is a non-IFRS measure as defined in the MD&A. 2. Cash flow from continuing and discontinued operating activities less capital expenditures. Free Cash Flow is a non-IFRS measure as defined in the MD&A. 3. Cash flow from continuing and discontinued operating activities, less capital expenditures, net of proceeds from disposal of assets, plus net investing activities, plus net collection of loans and other assets. Adjusted Free Cash Flow is a non-IFRS measure as defined in the MD&A.
Vice-President Finance and Chief Financial Officer
Copyright @ Marketwire
Related Keywords: Hartco Inc. , Finance, Business Issues, Law & Regulations, Management, Finance/Accounting, Finance/Accounting, Canada, Montreal, Marketwire, Inc., , IT (Information Technology), Financial, Computer Science, Business, Other,