AMADEUS DISCLOSES THIRD QUARTER 2006 RESULTS
Quarter Highlights:
- Appointment on January 12th, 2006 of Mr. Yves Leblanc as President and Chief Executive Officer.
- Desjardins Financial Security, fourth ranked provider among life and health insurers in Canada and first in Quebec, chooses Amadeus’ solution for their compliance business processes.
- Closing of a private placement of $1,000,000 subscribed on February 9th, 2006 in convertible debentures, with a limited number of Canadian institutional investors.
- On May 2nd, 2006, the Company announced a transaction to sell the assets of its Corporate Governance and Financial Compliance Consulting Unit, formerly known as M3K Solutions, for an amount of $3,580,795.
Quebec City, June 1st, 2006 – Amadeus International, Inc. (TSX: AML), disclosed today its Q3-2006 results. The biggest highlight of this quarter is without a doubt the implementation of eQCM across Desjardins Financial Security, fourth ranked provider among life and health insurers in Canada and first in Quebec. The Amadeus eQCM solution was chosen at Desjardins Financial Security to manage legal references associated with people insurers, compliance risks, and ultimately non-conformances and corrective actions. Amadeus also maintained operations of its Corporate Governance and Financial Compliance Consulting Unit, M3K Solutions, a service group that assists organizations in their corporate governance compliance initiatives. Last May, the Consulting Unit was sold for an amount of $3 580 795.
Third Quarter Financial Results
Amadeus’ revenues increased by 207.6% to $1,413,811 for the third quarter ended March 31st, 2006, as opposed to $459,581 for the same quarter last year. Such an increase is mainly attributable to the revenues stemming from the acquisition of M3K Solutions on June 1st, 2005.
Research and development expenses decreased by 25.7% to $269,401 in the third quarter of 2006, as opposed to $362,503 in the third quarter of 2005. Investment in research and development is a priority for the Amadeus’ management team.
Due mainly to the strengthening of the sales force to better serve the U.S. market and from additional expenses incurring in managing a public company, operating expenses increased by 63.1% to a total of $967,289 for the third quarter of 2006, compared with $593,111 for the same quarter in fiscal 2005.
Depreciation and amortization expenses rose 256.8% to $243,683 in this quarter, as opposed to $68,293 in 2005. This increase is attributable to the amortization of the identifiable intangible assets arising from the acquisition of M3K Solutions in June 2005.
As a result, Amadeus incurred a net loss of $853,213 or $0.02 per share in the third quarter of 2006, compared with a net loss of $668,011 or $0.03 per share the previous year. The weighted average number of common shares issued and outstanding rose from 20,644,327 in March 2005 to 34,831,379 in the third quarter of 2006, due, on one hand, to the issue of 7,050,000 and 2,756,463 common shares respectively in connection with the qualifying transaction and the concurrent private placement in December 2004, and, on the other hand, to the issue of 5,428,571 common shares as part of the acquisition of M3K Solutions in June 2005.
Financial Position
The Company had total assets of $5,673,115 as at March 31st, 2006, up from $2,264,952 on December 31st, 2005. Current assets amounted to $2,264,952 as at March 31st, 2006, versus $2,535,425 a quarter earlier.
Total liabilities amounted to $6,855,756 at the closing of the third quarter of fiscal 2006, compared with $6,718,256 as at December 31st, 2005. As for current liabilities, they totalled $2,746,986 as at March 31st, 2006, versus $2,338,443 a quarter earlier. Amadeus posted a working capital deficiency of $482,034 as at March 31, 2006.
Shareholders’ equity deficit is $1,182,641 at the end of the third quarter, down from equity of $558,359 as at December 31, 2005. The number of common shares issued and outstanding stood at 34,381,378 by the close of the third quarter of fiscal 2006.
Forward-looking Statements
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties or other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Amadeus International is a pioneer and leader in compliance process control solutions and corporate governance services. Its flagship product, eQCM®, is a flexible, Web-based integrated suite of applications that allow organizations to map regulated business processes such as CAPA, non-conformances, customer complaints, EH&S, corporate governance, and other related quality and business processes. Also, Amadeus’ Consulting Services division offers world-class professional services for corporate governance that comply with global regulations like Sarbanes-Oxley, Basel II, and others. The application suite is coupled with powerful business intelligence capabilities, enterprise content management, and related technologies that help organizations achieve sustained compliance. Amadeus International’s global headquarters are located in Quebec City, with satellite offices in Chicago, Montreal, New Jersey, Paris, Minnesota and Philadelphia. Amadeus solutions are distributed across four continents.
Financial Highlights
|
Quarter ended March 31st, 2006 |
Quarter ended March 31st, 2005 |
|
|
|
Revenues |
$1,413,811 |
$459,581 |
Gross profit |
$734,764 |
$413,634 |
Operating expenses |
$1,480,373 |
$1,023,907 |
EBITDA * |
$(452,311) |
$(541,980) |
Net loss |
$(853,213) |
$(668,011) |
Weighted average number of shares issued and outstanding |
34,831,913 |
29,040,685 |
|
As at March 31st, 2006 |
As at March 31st, 2005 |
Total assets |
$5,673,115 |
$2,877,574 |
Long-term debt |
$1,115,118 |
$48,909 |
Shareholders’ equity (Deficit) |
$(1,182,641) |
$158,845 |
* Definition of EBITDA: Earnings (loss) before financial expenses, income tax on earning and amortization. EBITDA is presented as an additional measurement of earnings in order to assist the reader to establish the Company’s ability to generate cash from activities and to acquit its financial charges. It is also an indicator generally used for purposes of evaluation. Canadian generally accepted accounting principles give no standard interpretation to this measurement and it cannot therefore be compared to similar measurements used by other enterprises.
About Amadeus International
Amadeus International is a pioneer and leader in compliance process control solutions. Its flagship product, eQCM®, is a flexible, Web-based integrated suite of applications that allow organizations to map regulated business processes such as CAPA, non-conformances, customer complaints, audits, and other related quality and business processes. The application suite is coupled with powerful business intelligence capabilities, enterprise content management, and related technologies that help organizations achieve sustained compliance. Amadeus International's global headquarters are located in Quebec City. Amadeus solutions are distributed across four continents.
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For further information:
Frédéric Garand, Chief Financial Officer
Phone: +1 (418) 525-0606 ext. 2268
E-mail: frederic.garand@amadeussolutions.com
