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•Revenue for the second quarter increased 19.1 per cent over the prior year •Organic revenue for the second quarter increased 12.4 per cent compared to the second quarter of 2013 •Adjusted EBITDA margin for the second quarter was a healthy 19.3 per cent, Adjusted EBITDA was
"We had a great second quarter and a very strong first half of the year," said
"From both a revenue perspective and bottom-line perspective, our financial results for the quarter significantly exceeded the prior year," said
Torrie added, "Among the factors contributing to our strong second quarter performance were the continued growth in the U.S. outsourcing market as a platform provider to U.S. health insurance exchanges, faster than expected integration of the
Q2 2014 Financial Review
In thousands of dollars
Adjusted EBITDA margin
Normalized Free Cash Flow
For the three months ended
Adjusted EBITDA increased by
Adjusted EBITDA margin was 19.3 per cent, unchanged from the same period in 2013.
During Q2 2014, Normalized Free Cash Flow for the Company decreased by
The Company is maintaining its policy of paying a monthly dividend of
Notice of Conference Call
To assist investors in assessing the Company's financial performance, this news release also makes reference to certain financial measures such as adjusted EBITDA, adjusted EBITDA margin, Normalized Free Cash Flow and Normalized Payout Ratio. The Company believes that adjusted EBITDA, adjusted EBITDA margin, Normalized Free Cash Flow and Normalized Payout Ratio are useful supplemental measures of performance as they are generally used by Canadian businesses as indicators of financial performance. See the Company's MD&A for more details. These financial measures do not have any standard meaning prescribed by International Financial Reporting Standards and therefore may not be comparable to similar measures presented by other issuers.
"Adjusted EBITDA" is defined as profit before finance costs, income tax expenses, depreciation, amortization, impairment losses, and certain unusual expenditures.
"Normalized Free Cash Flow" is defined as cash provided by operating activities, adjusted for changes in noncash operating working capital, capital expenditures, current income taxes (net of income taxes paid), and certain unusual expenditures.
"Normalized Payout Ratio" is defined as dividends declared divided by Normalized Free Cash Flow.
This news release contains "forward-looking statements" within the meaning of applicable securities laws, such as statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Use of words such as "may", "will", "expect", "believe", or other words of similar effect may indicate a "forward-looking" statement. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in the Company's publicly filed documents (available on SEDAR at www.sedar.com) and in the firm's MD&A under the heading "Risks and Uncertainties". Those risks and uncertainties include ability to maintain profitability and manage growth, reliance on information systems and technology, reputational risk, dependence on key clients, reliance on key professionals and economic conditions. Many of these risks and uncertainties can affect the firm's actual results and could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statement made by the Company or on the firm's behalf. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. All forward-looking statements in this news release are qualified by these cautionary statements. These statements are made as of the date of this news release and, except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Company, its financial or operating results or its securities.