Click here to close now.

Welcome!

News Feed Item

Hartco Announces 2012 Third Quarter Results

MONTREAL, QUEBEC -- (Marketwire) -- 11/08/12 -- Hartco Inc. (TSX:HCI) today announced its financial results for the three and nine month periods ended September 30, 2012.

Consolidated results for the three months ended September 30, 2012

Hartco Inc. ("Hartco") posted consolidated revenues of $89.8 million for the three months ended September 30, 2012, compared to $99.3 million last year, and a net loss of $0.3 million, or -$0.02 per share on a diluted basis compared to net earnings of $2.0 million, or $0.14 per share on a diluted basis, for the corresponding period in 2011.

"A significant slowdown in demand for personal systems and related offerings during the quarter ended September 30th, 2012 had an adverse impact on our revenues and earnings," said Pat Waid, Hartco's President and Chief Operating Officer. "In spite of difficult conditions, effective management of working capital enabled us to maintain a healthy financial position."

Consolidated results for the nine months ended September 30, 2012

For the nine months ended September 30, 2012, Hartco's net loss was $7.9 million, or -$0.60 per share on a diluted basis, on consolidated revenues of $299.3 million, compared to net earnings of $3.2 million, or $0.23 per share on a diluted basis, on consolidated revenues of $330.1 million for the same period last year. Consolidated Adjusted EBITDA was $1.3 million in 2012 compared to $3.8 million for the corresponding period in 2011.

The financial results for the nine months ended September 30, 2012 were negatively impacted by impairment charges of $9.0 million, including $4.9 million pertaining to an internal business transformation project and $4.1 million pertaining to Hartco's investment in ScreenScape. Excluding the impact of these non-recurring items, earnings for the nine months ended September 30, 2012 were almost at breakeven.

Financial Position

Hartco ended the third quarter of 2012 with a cash position of $20.6 million and no debt.

Hartco Outlook

Hartco expects challenging business conditions to persist throughout the remainder of 2012, and the company will focus on improving operational execution and maximizing operating results.

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 third quarter 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 49 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.


FINANCIAL HIGHLIGHTS                                                        
(In thousands of dollars, except per share amounts)                         
                                                                            
                                Three months ended       Nine months ended  
                                       September 30            September 30 
                                  2012         2011       2012         2011 
                           -------------------------------------------------
                                     $            $          $            $ 
Revenues                        89,808       99,315    299,285      330,124 
Adjusted EBITDA (1)                 53        2,938      1,340        3,809 
                                                                            
Net (loss) earnings               (320)       2,000     (7,948)       3,240 
                                                                            
Diluted (loss) earnings per                                                 
 share                           (0.02)        0.14      (0.60)        0.23 
Free cash flow (deficiency)                                                 
 (2)                             1,163       11,789     (2,379)      (4,001)
Adjusted free cash flow                                                     
 (deficiency) (3)                1,945        6,039       (230)      (8,621)
                                                                            
Cash position                   20,613       15,363     20,613       15,363 

(1) Adjusted EBITDA is defined as net earnings (loss) excluding financial costs, depreciation and amortization, income tax expense, non-recurring gains or losses, impairment charges, and share of results of equity investments. Adjusted EBITDA is a non-IFRS measure as defined in the MD&A.

(2) Cash flow from continuing and discontinued operating activities less capital expenditures. Free Cash Flow is a non-IFRS measure as defined in the MD&A.

(3) Cash flow from continuing and discontinued operating activities, less capital expenditures, net of proceeds from disposal of assets, plus net investing activities, plus net collection of loans and other assets. Adjusted Free Cash Flow is a non-IFRS measure as defined in the MD&A.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Overgrown applications have given way to modular applications, driven by the need to break larger problems into smaller problems. Similarly large monolithic development processes have been forced to be broken into smaller agile development cycles. Looking at trends in software development, microservices architectures meet the same demands. Additional benefits of microservices architectures are compartmentalization and a limited impact of service failure versus a complete software malfunction. ...
"We help to transform an organization and their operations and make them more efficient, more agile, and more nimble to move into the cloud or to move between cloud providers and create an agnostic tool set," noted Jeremy Steinert, DevOps Services Practice Lead at WSM International, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
The basic integration architecture, as defined by ESBs, hasn’t changed for more than a decade. Most cloud integration providers still rely on an ESB architecture and their proprietary connectors. As a result, enterprise integration projects suffer from constraints of availability and reliability of these connectors that are not re-usable across other integration vendors. However, the rapid adoption of APIs and almost ubiquitous availability of APIs amongst most SaaS and Cloud applications are ra...
Agile, which started in the development organization, has gradually expanded into other areas downstream - namely IT and Operations. Teams – then teams of teams – have streamlined processes, improved feedback loops and driven a much faster pace into IT departments which have had profound effects on the entire organization. In his session at DevOps Summit, Anders Wallgren, Chief Technology Officer of Electric Cloud, will discuss how DevOps and Continuous Delivery have emerged to help connect dev...
"What Dyn is able to do with our Internet performance and our Internet intelligence is give companies visibility into what is actually going on in that cloud," noted Corey Hamilton, Product Marketing Manager at Dyn, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Manufacturing has widely adopted standardized and automated processes to create designs, build them, and maintain them through their life cycle. However, many modern manufacturing systems go beyond mechanized workflows to introduce empowered workers, flexible collaboration, and rapid iteration. Such behaviors also characterize open source software development and are at the heart of DevOps culture, processes, and tooling.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies drivi...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
Live Webinar with 451 Research Analyst Peter Christy. Join us on Wednesday July 22, 2015, at 10 am PT / 1 pm ET In a world where users are on the Internet and the applications are in the cloud, how do you maintain your historic SLA with your users? Peter Christy, Research Director, Networks at 451 Research, will discuss this new network paradigm, one in which there is no LAN and no WAN, and discuss what users and network administrators gain and give up when migrating to the agile world of clo...
SYS-CON Events announced today that JFrog, maker of Artifactory, the popular Binary Repository Manager, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based in California, Israel and France, founded by longtime field-experts, JFrog, creator of Artifactory and Bintray, has provided the market with the first Binary Repository solution and a software distribution social platform.
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at th...
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult – let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and liv...