276 0 Kommentare Hartco Announces 2013 Fourth Quarter and Year-end Results

MONTREAL, QUEBEC--(Marketwired - March 13, 2014) - Hartco Inc. (TSX:HCI) today announced its financial results for the three months and year ended December 31, 2013.

Consolidated results for the three months ended December 31, 2013

Hartco Inc. ("Hartco") posted consolidated revenues of $86.5 million for the three months ended December 31, 2013, compared to $94.8 million for the same period last year, and net earnings of $0.3 million or $0.02 per share on a diluted basis compared to a net loss of $1.0 million or -$0.10 per share on a diluted basis, for the corresponding period in 2012.

"Despite ongoing revenue erosion, effective cost controls contributed to improved earnings for the fourth quarter." said Pat Waid, Hartco's President and Chief Operating Officer. "We completed the outsourcing of the Distribution and Franchising segment's distribution activities, including related restructuring actions, during the fourth quarter, which will allow us to place greater focus on improving Commercial segment results in the future."

Consolidated results for the year ended December 31, 2013

Hartco posted consolidated revenues of $352.3 million for the year ended December 31, 2013, compared to $394.1 million in 2012. Net loss for 2013 was $3.3 million, or -$0.25 per share on a diluted basis, compared to a net loss of $9.0 million, or -$0.68 per share on a diluted basis in 2012.

Financial Position

Hartco ended the fourth quarter of 2013 with a cash position of $29.4 million and no debt.

Hartco Outlook

The transformation of Hartco into a services-led IT solution provider is essential to the Company's long-term success. While reviewing strategic options for the Company, Hartco will continue to adapt its business model in response to changing IT deployment and consumption models, and challenging market conditions.

Detailed Financial Information

Detailed financial information pertaining to Hartco's quarterly and annual results can be accessed at www.sedar.com or at www.hartco.com. The quarterly and annual financial statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS").

About Hartco Inc.

Hartco Inc. (TSX:HCI) has been a leader in the Canadian information technology business for more than thirty years. Through its operating divisions, which together include 47 locations across Canada, Hartco Inc. delivers information technology solutions to private and public sector organizations of every size. For more information, please visit www.hartco.com.

Forward-Looking Statements

This news release contains forward-looking information. Except for historical information contained herein, the statements in this document are forward-looking. Forward-looking statements involve known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from forecasted results. Those risks include, among others, changes in customer demand for information technology products or services, changes in supplier pricing actions or terms, customer orders, pricing actions by competitors, changes in laws and regulations and general changes in economic conditions. Risks that could cause our results to differ materially from our expectations are discussed in our Annual Management's Discussion & Analysis ("MD&A").

FINANCIAL HIGHLIGHTS

(In thousands of dollars, except per share amounts)

		Q4 2013	Q4 2012		YTD 2013		YTD 2012
Revenues		86,498	94,835		352,261		394,120
Adjusted EBITDA (loss)		925	494		(3,009	)	1,836
Net loss		335	(1,006	)	(3,312	)	(8,954	)
Diluted earnings (loss)
	per share	0.02	(0.10	)	(0.25	)	(0.68	)
Free cash flow					1,072		3,460
Adjusted free cash flow					1,837		5,642
Cash					29,434		27,415

Non-IFRS Financial Measures

Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other entities. In the following paragraphs, we have provided a description of our non-IFRS and have reconciled these amounts to IFRS measures. How the non-IFRS measures are used by the Company are described in the captions below.

Adjusted EBITDA

Adjusted EBITDA is a non-IFRS financial measure. Adjusted EBITDA is used by management to evaluate the financial and operating performance of the business at a consolidated level and the contribution of the Company's segments. Management believes that Adjusted EBITDA provides a better indication of the ongoing financial performance of the Company.

The Company defines Adjusted EBITDA as net (loss) earnings excluding financial costs, depreciation and amortization, income tax expense (recovery), non-recurring gains or losses, impairment charges and the share of results of equity investments.

The reconciliation of Adjusted EBITDA from net loss is as follows:

Adjusted EBITDA reconciliation

		Q4 2013		Q4 2012		YTD 2013		YTD 2012
Net earnings (loss)		335		(1,006	)	(3,312	)	(8,954	)
Adjusted for:
	Income tax (recovery) expense	319		900		(312	)	(462	)
	Share of (earnings) of equity investments (net of income tax)	(317	)	(706	)	(1,453	)	(479	)
	Net financial costs	78		221		175		817
	Depreciation and amortization (1)	510		347		1,893		1,180
	Impairment loss on an equity investment	-		738		-		4,800
	Impairment loss on intangible assets and property and equipment	-		-		-		4,934
Adjusted EBITDA (loss)		925		494		(3,009	)	1,836

(1)	Depreciation and amortization is allocated to cost of goods sold, direct expenses, marketing and selling expenses, and general administrative expenses in the Statements of Loss and Comprehensive Loss.

Free Cash Flow and Adjusted Free Cash Flow

Free Cash Flow and Adjusted Free Cash flow are non-IFRS measures and are used as indicators of financial strength and performance. Because they exclude many items included in the financial statements, they should not be used as a measure of the Company's liquidity. Accordingly, investors are encouraged to use IFRS measures when evaluating the Company's financial performance or liquidity.

The Company uses Free Cash Flow to determine its continuing capacity to generate discretionary cash from operations after using cash to maintain or expand its asset base. It does not represent the cash flow in the period available for management to use at its discretion, which may be affected by other sources and non-discretionary use of cash.

Free Cash Flow is defined as cash flows from operating activities as reported in accordance with IFRS, less adjustments for:

financial income; and
total capital expenditures as reported in accordance with IFRS.

Capital expenditures are defined as cash outlays, capital in nature, required to maintain the business at its current operating capacity and efficiency level, including additions to intangible assets.

The Company believes the use of Adjusted Free Cash Flow is meaningful as the use of this financial measure provides the Company and the users of its financial statements with supplemental information about the impact on the Company's cash flows from the items specified below. Adjusted Free Cash Flow is a measure of liquidity that management uses in its business as an alternative to net cash provided by (used in) operating activities.

Adjusted Free Cash Flow is defined as cash flows from operating activities as reported in accordance with IFRS, less adjustments for:

financial income;
total capital expenditures as reported in accordance with IFRS;
dividends received from equity investments; and
the net decrease (increase) in long-term receivables.

The reconciliation of cash flow from operations to Free Cash Flow and Adjusted Free Cash Flow is as follows:

Free Cash Flow and Adjusted Free Cash Flow reconciliation

	2013		2012
Cash flow used in operating activities	1,250		6,157
Financial income	279		277
Additions to property and equipment and intangible assets	(457	)	(2,974	)
Free cash flow	1,072		3,460
Dividends received from equity investments	600		750
Net decrease in long-term receivables	165		1,432
Adjusted free cash flow	1,837		5,642