Softchoice Announces Strong Profitability Growth for the Third Quarter of 2011
- Revenue grows 16.3 percent - EBITDA grows 75.7 percent in the quarter - Softchoice announces acquisition of UNIS LUMIN - The Company renegotiates its ABL credit facility for a new five-year term and secures the option for early repayment of its term loan
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 11/08/11 -- Softchoice Corporation (TSX: SO), a leading North American provider of technology solutions and services, today reported its financial results for the third quarter of 2011.
For the three-month period ended September 30, 2011, the Company reported revenue of US$227.4 million compared to US$195.5 million for the third quarter of 2010, representing an increase of 16.3 percent. Due to fluctuations in foreign exchange between periods, Softchoice reported a net loss of US$0.47 million compared to net earnings of US$2.1 million for the same quarter the year prior. Adjusting for the impact of foreign exchange gains and losses, net earnings in the quarter amounted to US$2.7 million, or US$0.14 per share (basic and fully diluted), compared to adjusted net earnings of US$0.8 million, or US$0.04 per share (basic and fully diluted) for the third quarter of 2010. Adjusted net earnings per share grew 250.0 percent year-over-year.
Microsoft sales demonstrated strong growth, increasing by 46.9 percent in the quarter, while sales of hardware infrastructure solutions and other software grew by 6.7 percent and 4.3 percent, respectively. Softchoice's U.S. operations reported solid growth with revenues increasing 28.1 percent compared to the same period the year prior.
"Our performance reflects the traction our expanded telesales organization is now starting to generate for our business," said David MacDonald, President and CEO of Softchoice. "Our increased coverage of the small and medium business segment is fuelling strong gains in our Microsoft market share. This is consistent with our strategy of leveraging our strength in Microsoft as an entry point for the introduction of other value-added solutions and services over time."
Gross profit was US$40.7 million in the quarter, representing an increase of 13.7 percent compared to gross profit of US$35.8 million reported for the third quarter of 2010. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 75.7 percent to US$8.0 million delivering a 120 basis point year-over-year increase in EBITDA margin to 3.5 percent.
"With the acquisition of UNIS LUMIN, one of the country's most-respected networking and managed services companies, we have bolstered our position as Canada's preeminent provider of IT solutions and services," added Mr. MacDonald. "We are delighted to welcome our new team and to take another step in shifting our business toward higher margin projects such as networking and converged infrastructure that emphasize deep expertise in pre-sales, professional services and technical consulting."
Softchoice is also pleased to announce that it has renegotiated its existing asset-backed loan agreement for a five-year term reflective of current market rates and covenants. The Company has also secured an option with HSBC Capital to repay its five-year term loan by November 30th, 2011. Management notes that the early retirement of this loan will have a positive effect on the Company's financial performance in 2012. As at September 30, 2011, Softchoice had a net cash position of $34.7 million.
Softchoice's interim consolidated financial statements and MD&A are available at and .
Additional Quarterly Highlights
Third Quarter Earnings Call Participant Details
Softchoice will host its third-quarter earnings call on November 9, 2011 at 8:00 am EDT.
The call will be moderated by David MacDonald, Softchoice's President and CEO and Chief Financial Officer, David Long. The conference call will begin with a brief web presentation followed by a question-and-answer session.
Third Quarter Earnings Call Details
Local Dial in number: 416 800 1066
Toll Free Dial in number: 1 866 212 4491
Webcast URL:
To ensure participation, please dial in at least 10 minutes prior to the start of the conference at 8:00 am EDT.
For those unable to attend the call, a link will be made available on the Softchoice website to an archived web and audio version on November 10, 2011.
About Softchoice
As a leading North American provider of technology solutions and services, Softchoice combines the efficiency and reliability of a national IT supplier with the personal touch and technical expertise of a local solutions provider. Softchoice's holistic approach to technology includes solution design, implementation and asset management services, as well as access to one of the most comprehensive and cost-effective technology distribution networks in North America. With over 950 employees located in more than 40 branch offices, Softchoice manages the technology needs of almost 15,000 corporate and public sector organizations across the United States and Canada.
Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the trading symbol "SO." The common shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to expectations, intentions and plans contained in this press release that are not historical fact. When used in this press release, the words "anticipate", "expect", "will" and similar expressions generally identify forward-looking statements. These statements reflect our current expectations and are subject to a number of risks and uncertainties including, but not limited to, change in technology and general market conditions, many of which are set out or incorporated by reference in the Company's latest Annual Information Form. Due to the many risks and uncertainties, Softchoice cannot assure that the forward-looking statements contained in this press release will be realized.
To view a link of the Interim Consolidated Statements of Changes in Equity, please visit the following link: .
Contacts:
Media Contact:
Softchoice Corporation
Eric Gardiner
Manager of Communications
416.588.9002 Ext. 2358
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Datum: 08.11.2011 - 16:32 Uhr
Sprache: Deutsch
News-ID 1054923
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