ECGI - doubled up here. Should be much more than current level. Good sales, cash and debt positions. Check this ER from May.
TORONTO, May 20 /PRNewswire-FirstCall/ - Envoy's second quarter results have improved significantly over the previous year, excluding non-recurring items and discontinued/sold operations. Envoy recorded revenues of $10.6 million for the three months ending March 31, 2004, compared to $8.7 million for the three months ending March 31, 2003. Net revenue in the prior year included $0.7 million from subsidiaries disposed of or shutdown during fiscal 2003. Net revenue from continuing business increased 33% in the three months ended March 31, 2004, compared to the same period of fiscal 2003.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") also showed significant improvement, excluding discontinued/sold operations. EBITDA for the three months ending March 31, 2004 was $0.6 million, compared to earnings of $0.5 million for the three months ending March 31, 2003. EBITDA in the prior year included a deferred foreign exchange gain of $0.8 million relating to the shutdown of one of our subsidiaries. Excluding the foreign exchange gain, EBITDA increased $0.9 million in the three months ended March 31, 2004, compared to the same period of fiscal 2003.
As a result of Envoy's refinancing during the first quarter ended December 31, 2003 and the repayment of its long-term debt during the second quarter ended March 31, 2004, Envoy incurred a non-cash, imputed interest charge of $2.6 million as well as a cash penalty and interest expense of $0.4 million. Linda Gilbert, CFO of Envoy, said "Envoy will not only save millions of dollars in interest expense over the next several years as a result of the debt repayment, but will also generate interest income, due to the strong cash position on its balance sheet."
Envoy recorded a loss on disposal of $0.5 million, due to the sale of its wholly-owned subsidiary, Communique Incentive Inc. Excluding the one-time loss from the sale of Communique and the non-cash interest expense, Envoy incurred a net loss of $.02 per share.
Envoy has successfully completed two equity financings for gross proceeds of approximately $67.8 million. Envoy raised gross proceeds of $40.2 million during the second quarter and additional gross proceeds of $27.6 million during the third quarter. The $27.6 million additional gross proceeds will be reflected in our third quarter balance sheet. These two equity financings significantly strengthened Envoy's balance sheet and will allow Envoy to implement its strategic acquisition and investment plan. At this time, Envoy does not foresee a need to raise any further capital.
Geoff Genovese, CEO of Envoy, states: "One of our important goals this year was to establish a strong foundation on which to build for future growth. We now have this foundation in place, which includes a strengthened balance sheet with over $51 million in cash available for investment and acquisitions. Envoy has a strategic acquisition plan in place. This plan includes acquiring companies that will be synergistic with our current businesses, both in the United Kingdom and North America. Consequently, we have recently initiated discussions with potential target companies."
In addition to Envoy's strategic acquisition plan, it has a strong management team at its operations level. This team is focused on growing the businesses of its clients as well as the Envoy Group of Companies. This is evidenced by Envoy's 33% organic growth from operations in this quarter. Envoy's management team is confident that Envoy can turn the accomplishments of the past 12 months into continued growth and profitability in the coming quarters and beyond.
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