KOS (TSX)
MONTREAL, Feb. 4 /PRNewswire-FirstCall/ - Cossette Communication Group Inc. ("Cossette" or the "Company") recorded gross income of $57.9 million for the first quarter of fiscal 2009, ended December 31, 2008, down 2.3% from $59.3 million from the corresponding quarter of the previous fiscal year. Net earnings amounted to $1.6 million ($0.10 per share), compared to $3.4 million ($0.20 per share) in fiscal 2008.
"Over the quarter, the economic slowdown experienced by most sectors did not spare our operations. Nevertheless, we continued to make every effort to consolidate business development. These efforts have borne fruit-particularly in Canada-and have enabled us, in light of current circumstances, to post relatively encouraging quarterly results in terms of revenue," said Claude Lessard, Chairman, Chief Executive Officer and President.
"Although operating profits were satisfactory in the United Kingdom and Canada, the recession made its presence felt more forcefully in the United States. However, I would stress that we have confidence in the potential of the American market. It is a market that continues to be one of our priorities as we support our people who, day in day out, deliver a spectacular product while meeting our clients' communications and business objectives," Mr. Lessard concluded.
For the quarter, earnings from operations were $3.5 million, compared with $5.5 million in 2008. Cash flows from operating activities excluding the net change in non-cash working capital items amounted to $4.7 million, compared to $5.6 million last year.
Management's Discussion and Analysis containing a full analysis of financial results is available on SEDAR (www.sedar.com).
Cossette Communication Group Inc. offers a full range of leading-edge communication services to clients of all sizes, including some of the most prestigious brands in the world. A customer-driven organization built around highly specialized business units, Cossette also offers Convergent CommunicationsTM, a unique working method that brings added value to the client by integrating various services offered by the Group, including strategic planning and research, advertising, media buying and channel planning, sales promotion, direct response, database and direct marketing, customer relationship management, interactive marketing and technology solutions, public relations, organizational communication and change management, sponsorship and alliance marketing, branding and design, ethnic marketing, business-to-business communications (B2B practices) and print and video production. Cossette has approximately 1,630 employees and offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York, Irvine, Los Angeles, London, Moscow and Shanghai.
Forward-looking statements - This press release is not an offer of securities for sale. It may contain forward-looking statements concerning the Company's business, operations and strategies, including forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 in the United States. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties and the Company's actual results may differ materially from those expressed or implied in such statements, due to a variety of factors including downturns in general economic conditions and resulting changes in client business and marketing strategies, consolidation and globalisation of client brand strategies, the highly competitive nature of the communications industry, the greater resources available to much larger global agencies, low entry barriers for new competitors, dependence upon a limited number of clients contributing a significant percentage of income, inability to acquire new clients or new assignments from existing clients due to client policies prohibiting performance of similar services for competing products or companies, our ability to successfully integrate our acquired and to-be-acquired businesses and the retention of key management, creative and technical personnel. Reference should be made to the most recent annual Management's Discussion and Analysis for an in-depth description of major risk factors. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, unless required by applicable laws. In the event the Company does update any forward-looking statements, no inference should be made that the Company will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
Financial analysts are invited to participate in a conference call with management tomorrow February 5, 2009, at 2:00 p.m. The media and any stakeholders may attend the call in listening mode only. Please dial 514-861-1681 or 877-677-7769 (Canada & U.S.) or 00-800-6578-9898 (Global Toll Free). A replay will be available at 514-861-2272 or 800-408-3053, passcode 3279714# until February 21, 2009 and in the Investor Relations section of our website at www.cossette.com.
Appendix: Selected Financial Information
Cossette Communication Group Inc.
Selected Financial Information
(In thousands of Canadian dollars, except the number of shares and
per share data)
Results for the Three-month Periods ended
December 31, 2008 and 2007 (unaudited)
2008 2007
Gross income 57,944 59,292
Operating expenses 54,487 53,804
Earnings from operations 3,457 5,488
Earnings before income taxes and non controlling
interest 3,638 5,671
Earnings after income taxes 2,193 3,814
Non-controlling interest (626) (463)
Net earnings 1,567 3,351
Cash flows from operations
(before the net change in non-cash working capital
items) 4,668 5,639
Net earnings per share
Basic 0.10 0.20
Diluted 0.10 0.20
Weighted average number of shares outstanding ('000)
Basic 15,827 16,621
Diluted 16,197 16,678
Balance sheet
As at As at
Dec. 31, Sept. 30,
2008 2008
(unaudited) (audited)
Cash and cash equivalents 26,324 13,685
Current assets 217,986 225,201
Intangible assets 5,355 5,505
Goodwill 92,211 93,122
Total assets 340,349 348,356
Short-term borrowings, including bank overdraft - 37,649
Current portion of long-term debt 67 99
Balances of purchase price of subsidiaries
(current portion) 14,197 14,566
Long-term debt 7,815 219
Balances of purchase price of subsidiaries 101 106
Shareholders' equity 135,843 134,212
