MONTREAL, QUEBEC -- (Marketwire) -- 02/26/13 -- This document corrects and replaces the press release that was sent on February 22, 2013 at 14:29 ET.
Hartco Inc. (TSX: HCI) today announced its financial results for the three months and year ended December 31, 2012.
Consolidated results for the three months ended December 31, 2012
Hartco Inc. ("Hartco") posted consolidated revenues of $94.8 million for the three months ended December 31, 2012, compared to $107.2 million for the same period last year, and a net loss of $1.0 million, or -$0.10 per share on a diluted basis compared to net earnings of $0.5 million, or $0.03 per share on a diluted basis, for the corresponding period in 2011.
"Softer than anticipated demand for personal computers, enterprise systems, and related offerings during the fourth quarter of 2012 contributed to disappointing revenues and earnings," said Pat Waid, Hartco's President and Chief Operating Officer. "Despite our business development challenges, we closed the year in a healthy financial position."
Consolidated results for the year ended December 31, 2012
For the year ended December 31, 2012, Hartco's net loss was $9.0 million, or -$0.68 per share on a diluted basis, on consolidated revenues of $394.1 million, compared to net earnings of $3.7 million, or $0.26 per share on a diluted basis, on consolidated revenues of $437.3 million for the same period last year. Consolidated Adjusted EBITDA was $1.8 million in 2012 compared to $5.3 million for the corresponding period in 2011.
The financial results for the year ended December 31, 2012 were negatively impacted by impairment charges of $9.7 million, including $4.9 million pertaining to an internal business transformation project and $4.8 million pertaining to Hartco's investment in ScreenScape.
Hartco ended the fourth quarter of 2012 with a strong cash position and no debt. Hartco's strategy is to leverage its cash to invest in future growth and productivity improvements.
Hartco expects challenging business conditions to continue throughout the first half of 2013, and the company will focus on improving operational execution and operating results.
Detailed Financial Information
Detailed financial information pertaining to Hartco's quarterly and annual results can be accessed at www.sedar.com or at www.hartco.com. The quarterly 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) Year ended December 31 2012 2011 -------------------- $ $Revenues 394,120 437,275Adjusted EBITDA (1) 1,836 5,256Net (loss) earnings (8,954) 3,727Diluted (loss) earnings per share (0.68) 0.26Free cash flow (deficiency) (2) 3,460 1,564Adjusted free cash flow (deficiency) (3) 5,642 (3,007)Cash position 27,415 20,925(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.
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Harold Gervais, Vice-President Finance and
Chief Financial Officer