Attention Business/Financial Editors:
Netgraphe Inc. - Results for the fiscal year 2000: Strong increase in traffic and revenue
MONTREAL, August 10 /CNW/ - Today, Netgraphe Inc. (``Netgraphe''; TSE WWW) announces its results for the fiscal year 2000 ending Wednesday, May 31st, 2000.
``Our first fiscal year was marked by major transactions that positioned Netgraphe as the Internet leader in Québec. These acquisitions gave us a better than ever positioning and, since then, we have grown in terms of traffic on our sites, of revenue from advertizing and from developing e-commerce'', indicated Normand Drolet, president and CEO of Netgraphe Inc.
With its two portal sites, La Toile du Québec and InfiniT.com, as well as its specialised sites (jobboom.com, webfin.com, Multimédium and Mégagiciel), Netgraphe attracts over 15 millions visitors each month, of which 2.2 million are unique visitors. These, who are stemming from everywhere in the French speaking world and include 60 % of all Quebec Web surfers, view over 60 million pages per month.
HIGHLIGHTS OF THE YEAR:
NETGRAPHE BECAME A PUBLIC COMPANY
In July 1999, through the reverse takeover of Ressources Cristobal, Netgraphe became the first Internet company in Québec to be listed publicly.
REVERSE TAKEOVER BY INFINIT INC.
December 13th, 1999 saw the conclusion of an agreement with InfiniT Inc. to join its assets to Netgraphe's. Structured as a reverse takeover, the transaction placed 60 % of the company's common shares in the hands of
InfiniT Inc. shareholders who also injected $11.7 million in Netgraphe's Treasury to finance its development.
ACQUISITION OF JOBBOOM INC. IN STAGES
In April 2000, Netgraphe completed the acquisition of 25% of Jobboom, taking its interest to 100%, for a cumulative amount of $7.7 million. This acquisition brought to Netgraphe one of Québec's most flourishing e-commerce ventures.
ACQUISITION OF WEBFIN.COM INC. IN STAGES
Also in April 2000, the acquisition of 100% of webfin.com - Quebec's most popular financial site - spread out over many months, was completed for a total consideration of $3.5 million.
Acquisition of Ma Carrière inc.
On April 11th, 2000, to support its strategy in the recruiting and career management sector with Jobboom inc., Netgraphe acquired Ma Carrière inc. for $2.2 million.
Netgraphe's results for the fiscal 2000 cover a nine-month period ending May 31st, 2000. These consolidated results reflect those of InfiniT inc. from its inception on September 1st, 1999 and include those of Netgraphe Inc. from December 13th, 1999.
Consolidated revenue reached $3,223,784 for the fiscal 2000 of which $1,934,791 were recorded in the last quarter. These were primarily composed of advertizing sales from the sites InfiniT.com and Toile du Québec and of e-commerce and consulting services from the recruiting site jobboom.com.
Operating, sales and administrative expenses reached $8,418,863 for fiscal 2000. Salaries accounted for close to 39% of this amount, while marketing and promotion expenses represented 26%, mainly as a result of the market launch of InfiniT.com.
Depreciation reached $872,245 during the fiscal year, of which $530,959 was related to fixed assets - primarily in computer equipment and $341,286 to development expenses for site creation and improvement.
Financial charges amounted to $32,208.
For the fiscal year 2000, Netgraphe recorded a net loss before income tax and goodwill amortization of $6,099,532 or 8 cents per share. The corresponding loss for the last quarter was $3,611,492 or 4 cents.
Taking into account deferred income taxes of $139,622, minority interest in Jobboom inc. and Webfin.com inc. for the amount of (157 905 $) and goodwill amortization of $4,249,971 related to transactions described previously, Netgraphe recorded a net loss of $10,051,976 $ or 14 cents per share. The net loss per share for the last quarter was 8 cents.
The weighted average number of common shares outstanding was 70 387 558.
``Our financial results met our expectations and reflect our development and acquisition strategy; goodwill amortization coming mainly from the accounting treatment used to record goodwill related to the reverse takeover by InfiniT'', emphasised Normand Drolet.
Netgraphe is an Internet editor that creates, acquires and manages high-traffic sites. It focuses on business opportunities in the Internet sector, in Quebec and in the French speaking world, in content, advertizing, e-commerce and other services such as Web site design, production management. Among its products are La Toile du Québec, the portal site InfiniT.com, jobboom.com and webfin.com. Netgraphe is a public company listed on the Toronto Stock Exchange under the WWW symbol.
enc. Consolidated financial results and balance sheet
For the nine-month period ended May 31, 2000
Revenues $3 223 784
Operating, selling and administrative expenses 8 418 863
Operating loss before financial charges
depreciation and other items (5 195 079)
Financial charges 32 208
Depreciation 872 245
Loss before income taxes, non-controlling interest
and amortization of goodwill (6 099 532)
Income taxes 139 622
Non-controlling interest 157 905
Loss before amortization of goodwill (5 802 005)
Amortization of goodwill 4 249 971
Net loss ($10 051 976)
Amounts per share
Loss before amortization of goodwill ($0,08)
Net loss ($0,14)
Weighted average number of common shares
outstanding 70 387 558
Consolidated Balance Sheet
as at May 31, 2000
Cash and cash equivalents $7 297 978
Accounts receivable 2 959 326
Work in progress and prepaid expenses 103 936
10 361 240
Fixed assets 4 056 460
Other assets 64 069 334
78 487 034
Accounts payable and accrued liabilities 2 498 706
Deferred revenues 311 115
2 809 821
Capital stock 82 241 766
Contributed surplus 3 790 666
Deficit (10 355 219)
75 677 213
$78 487 034