Three months ended Nine months ended October 31, October 31, October 31, October 31, 2012 2011 2012 2011 ------------------------------------------------------REVENUE $ 7,111,096 $ 7,254,171 $ 23,086,247 $ 22,989,576COST OF REVENUE 4,006,235 4,113,037 14,359,724 13,297,569 ------------------------------------------------------GROSS PROFIT 3,104,861 3,141,134 8,726,523 9,692,007 ------------------------------------------------------OPERATING EXPENSESSelling, general and administrative 1,628,968 2,003,991 5,595,347 6,029,205Research and development, net of investment tax credits 914,360 1,346,790 3,062,304 4,341,088Foreign exchange loss 8,967 17,428 2,273 11,305 ------------------------------------------------------ Total operating expenses 2,552,295 3,368,209 8,659,924 10,381,598 ------------------------------------------------------OPERATING INCOME (LOSS) BEFORE OTHER ITEMS 552,566 (227,075) 66,599 (689,591)Realized gain (loss) on sale of short-term investments - - (27,220) -Net interest income: Interest income 2,614 12,222 47,589 25,498 Interest expense (1,827) (1,474) (11,149) (5,799) ------------------------------------------------------INCOME (LOSS) BEFORE INCOME TAXES 553,353 (216,327) 75,819 (669,892)Income tax recovery (expense): Current (10,782) 15,692 (18,735) 46,694 Deferred - - (26,283) - ------------------------------------------------------NET INCOME (LOSS) $ 542,571 $ (200,635) $ 30,801 $ (623,198) ------------------------------------------------------ ------------------------------------------------------OTHER COMPREHENSIVE LOSS, NET OF TAXESChange in fair value of available-for-sale investments (3,820) - (3,820) - ------------------------------------------------------ Total other comprehensive loss, net of taxes (3,820) - (3,820) - ------------------------------------------------------COMPREHENSIVE INCOME (LOSS) $ 538,751 $ (200,635) $ 26,981 $ (623,198) ------------------------------------------------------ ------------------------------------------------------NET EARNINGS (LOSS) PER SHARE Basic $ 0.01 $ (0.00) $ 0.00 $ (0.01) Diluted $ 0.01 $ (0.00) $ 0.00 $ (0.01) Weighted average number of shares outstanding - basic 57,502,268 58,410,946 58,082,876 57,018,768 Weighted average number of shares outstanding - diluted 57,506,101 58,410,946 58,089,327 57,018,768 International Datacasting Corporation Unaudited Condensed Consolidated Statements of Cash Flows For the periods ended October 31, 2012 and 2011 (Canadian dollars) Three months ended Nine months ended October 31, October 31, October 31, October 2012 2011 2012 31, 2011 ----------------------------------------------------OPERATING ACTIVITIESNet income (loss) $ 542,571 $ (200,635) $ 30,801 $ (623,198)Add items not requiring an outlay of cash: Depreciation and amortization 122,739 239,136 401,229 771,018 Deferred and current taxes 17,537 (15,508) 43,820 (46,525) Realized loss on sale of short-term investment - - 27,220 - Realized and unrealized losses on derivatives 111,727 30,299 125,296 181,562 Stock-based compensation 21,452 20,705 42,744 127,198 ---------------------------------------------------- 816,026 73,997 671,110 410,055Net change in non-cash working capital: Accounts receivable (250,873) 1,483,787 (1,449,374) 4,259,490 Inventories 547,296 (458,735) 1,313,598 (1,081,114) Other assets 31,894 (102,873) 116,428 (185,048) Accounts payable and accrued liabilities 3,790 112,940 355,257 (1,578,166) Customer deposits (782,773) (245,760) (508,989) (1,094,020) Deferred revenue 252,902 (200,077) (78,104) 231,658 Provisions (50,937) 26,370 (236,619) (73,020) ----------------------------------------------------Net cash provided by operating activities 567,325 689,649 183,307 889,835 ----------------------------------------------------INVESTING ACTIVITIESPurchase of capital assets (13,291) (121,448) (125,443) (454,663)Proceeds from redemption of short-term investment 2,309,580 - 2,309,580 -Purchase of short-term investment - - (75,000) -Purchase of available- for-sale investments (1,999,990) - (1,999,990) - ----------------------------------------------------Net cash provided by (applied to) investing activities 296,299 (121,448) 109,147 (454,663) ----------------------------------------------------FINANCING ACTIVITIESRepayments of obligations under capital leases (9,036) (13,780) (27,829) (42,079)Issue of common shares, net of issue costs - 1,375 4,481 151,137Repurchase of common shares, net of costs - - (16,124) - ----------------------------------------------------Net cash provided by (applied to) financing activities (9,036) (12,405) (39,472) 109,058 ----------------------------------------------------Net increase in cash during the period 854,588 555,796 252,982 544,230CASH - Beginning of period 4,313,160 6,691,058 4,914,766 6,702,624 ----------------------------------------------------CASH - End of period $ 5,167,748 $ 7,246,854 $ 5,167,748 $ 7,246,854 ---------------------------------------------------- ---------------------------------------------------- International Datacasting Corporation Non-GAAP Financial Measure Reconciliation Adjusted Earnings Before Income Taxes, Depreciation, and Amortization (EBITDA) For the periods ended October 31, 2012 and 2011 (Canadian dollars) Three months ended Nine months ended October 31, October 31, October 31, October 31, 2012 2011 2012 2011 --------------------------------------------------Net income (loss) $ 542,571 $ (200,635) $ 30,801 $ (623,198)Add back: Shareholder dissent expense 10,000 - 413,439 - Incremental external business acquisition expense - - 213,940 - Depreciation and amortization expense 122,739 239,136 401,229 771,018 Restructuring expense 96,377 35,851 287,665 35,851 Income tax expense (recovery) 10,782 (15,692) 45,018 (46,694) --------------------------------------------------Adjusted EBITDA $ 782,469 $ 58,660 $ 1,392,092 $ 136,977 -------------------------------------------------- --------------------------------------------------
In this release, IDC has presented Adjusted EBITDA, which is a "non-GAAP financial measure" and accordingly it is not an earnings measure recognized by IFRS and does not carry standard prescribed significance. Moreover, IDC's method for calculating Adjusted EBITDA may differ from that used by other companies using the same designation. Accordingly, we caution readers that Adjusted EBITDA should not be substituted for determining net income (loss) as an indicator of operating results or as a substitution for cash flows from operating and investing activities.
We believe Adjusted EBITDA is a meaningful and useful financial metric to investors and analysts for measuring and predicting its operating performance by excluding income taxes, depreciation and amortization as well as unusual charges (shareholder dissent, and incremental external business acquisition costs), and restructuring.
Contacts:
International Datacasting Corporation
Christine Rozak
Director, Marketing and Communications
613-596-4120
crozak@datacast.com
