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Pareto announces 2010 second quarter results

^{Published on 2010-08-06 05:06:12 - Market Wire}
 

 Q2 2010 Financial and Operating Highlights: - Revenue increased 51% to $25.8 million from $17.0 million in Q2 2009 - Revenue increased organically by 32% or $7.2 million during Q2 - EBITDA increased 64% to $3.5 million from $2.1 million in Q2 2009 - Net earnings increased 65% to $1.8 million from $1.1 million in Q2 2009 - Earnings per increased 104% to $0.051 per share from $0.025 per share in Q2 2009 - Signed long-term contract with major new customer 

 Pareto Corporation Consolidated Balance Sheets ------------------------------------------------------------------------- June 30 December 31 As at 2010 2009 (unaudited) (audited) ------------------------------------------------------------------------- Assets Current assets Cash $ 142,104 $ 48,623 Accounts receivable 19,978,048 18,766,352 Inventories 2,350,118 1,684,849 Prepaid expenses 640,976 645,236 Current future income tax assets 2,829 41,982 --------------------------- 23,114,075 21,187,042 --------------------------- Loans receivable and other assets 1,720,737 1,570,737 Long-term future income tax assets - 71,243 Capital assets 4,577,819 4,591,668 Intangible assets 1,533,580 1,280,916 Goodwill 25,888,979 21,058,577 --------------------------- $ 56,835,190 $ 49,760,183 --------------------------- Liabilities and Shareholders' Equity Current liabilities Bank indebtedness $ 6,231,356 $ 415,602 Accounts payable and accrued liabilities 11,762,741 11,035,642 Dividends payable 703,910 1,792,129 Deferred revenue 3,235,725 3,044,381 Income taxes payable 1,298,914 2,413,569 Current portion of lease inducements 42,482 42,482 Current portion of long term loan 1,650,000 1,350,000 --------------------------- 24,925,125 20,093,805 --------------------------- Long-term future income tax liabilities 340,969 305,985 Deferred lease inducements 279,019 300,260 Long-term loan 9,319,347 10,191,099 --------------------------- Total liabilities 34,864,463 30,891,149 --------------------------- Shareholders' equity Share capital 15,259,316 12,635,777 Contributed surplus 1,351,601 2,091,495 Retained earnings and accumulated other comprehensive income 5,359,810 4,141,762 --------------------------- Total shareholders' equity 21,970,727 18,869,034 --------------------------- $ 56,835,190 $ 49,760,183 --------------------------- Pareto Corporation Consolidated Statements of Operations and Retained Earnings ------------------------------------------------------------------------- Three months ended Six months ended June 30 (unaudited) June 30 (unaudited) 2010 2009 2010 2009 ------------------------------------------------------------------------- Revenue $ 25,755,148 $ 17,048,569 $ 44,930,298 $ 33,231,565 Operating and admin- itrative expenses 22,258,293 14,914,809 39,531,096 29,686,678 ----------------------------------------------------- 3,496,855 2,133,760 5,399,202 3,544,887 ----------------------------------------------------- Amortization of capital assets 223,855 156,955 478,716 324,005 Amortization of intangible assets 52,778 52,778 105,557 105,557 Interest expense 182,345 51,382 378,452 96,368 Interest income (4,983) (26,005) (9,167) (58,582) Share-based comp- ensation 182,518 231,274 348,525 420,933 ----------------------------------------------------- 636,513 466,384 1,302,083 888,281 Earnings before income taxes 2,860,342 1,667,376 4,097,119 2,656,606 Income taxes 1,088,864 593,413 1,486,852 925,873 ----------------------------------------------------- Net earnings and comprehensive income for the period 1,771,478 1,073,963 2,610,267 1,730,733 Retained earnings, beginning of period 4,292,242 9,329,881 4,141,762 9,317,078 Dividends declared (703,910) (645,159) (1,392,219) (1,289,126) ----------------------------------------------------- Retained earnings, end of period $ 5,359,810 $ 9,758,685 $ 5,359,810 $ 9,758,685 ------------------------------------------------------------------------- Basic and earnings per share $ 0.051 $ 0.025 $ 0.076 $ 0.040 Diluted earnings per share $ 0.047 $ 0.024 $ 0.070 $ 0.038 ------------------------------------------------------------------------- Weighted average number of common shares outstanding: Basic 34,691,521 42,897,760 34,409,531 42,970,815 Diluted 37,315,352 44,735,332 37,144,269 45,209,205 ------------------------------------------------------------------------- Pareto Corporation Consolidated Statements of Cash Flows ------------------------------------------------------------------------- Three months ended Six months ended June 30 (unaudited) June 30 (unaudited) 2010 2009 2010 2009 ------------------------------------------------------------------------- Operating activities Net earnings for the period $ 1,771,478 $ 1,073,963 $ 2,610,267 $ 1,730,733 Items not involving cash: Amortization of capital assets 223,855 156,955 478,716 324,005 Amortization of intangible assets 52,778 52,778 105,556 105,557 Amortization of lease inducement (10,621) (10,620) (21,241) (21,241) Non-cash interest 11,066 (20,599) 28,248 (48,384) Share-based comp- ensation 182,518 231,274 348,525 420,933 Future income tax provision 111,260 178,619 143,194 132,640 ----------------------------------------------------- 2,342,333 1,662,370 3,693,264 2,644,243 Changes in non cash operating accounts (2,589,491) (704,820) (1,637,163) (1,209,261) ----------------------------------------------------- (247,158) 957,550 2,056,101 1,434,982 ----------------------------------------------------- Investing activities Capital asset additions (228,695) (208,320) (397,170) (267,841) Intangible asset additions (228,924) - (358,217) - Loans receivable and other assets - (190,250) (150,000) (190,250) Acquisitions, net of cash - - (3,865,509) - ----------------------------------------------------- (457,619) (398,570) (4,770,896) (458,091) ----------------------------------------------------- Financing activities Bank indebtedness 1,666,723 - 5,815,754 - Repayment of long term debt (300,000) - (600,000) - Dividends paid (688,308) (643,977) (2,480,437) (2,361,223) Repayment of capital lease obligations - (51,407) - (126,777) Repayment of loans receivable - 25,000 - 25,000 Issuance of shares 21,775 - 77,032 - Share issue costs - (4,074) - ----------------------------------------------------- 700,190 (670,384) 2,808,275 (2,463,000) ----------------------------------------------------- Increase (Decrease) in cash for the period (4,586) (111,404) 93,481 (1,486,109) (Bank Indebtedness) /Cash, beginning of period 146,690 (2,029,278) 48,623 (654,573) ----------------------------------------------------- (Bank Indebtedness) /Cash, end of period $ 142,104 $ (2,140,682) $ 142,104 $ (2,140,682) -------------------------------------------------------------------------