BRANCHEZ-VOUS! discloses its results for the third quarter ended September 30, 2004
Montréal, November 29, 2004 -- The quarter ended September 30, 2004 showed strong results for BRANCHEZ-VOUS! inc. (TSX Venture: BZV), due to a general increase in advertising sales. Compared to Q3 2003, sales increased by 56 % and gross margin increased by 64 %. Because of a non-recurring charge of $ 50,000 for corporate fees related to a projected reorganization, net income increased by only 39 %. Earnings per share remained nil.These results helped the corporation strengthen its balance sheet. As at September 30, 2004, shareholder.s equity grew to $ 650,000 . 42 % of which related to the long-term investment of $ 274,000 held by the corporation in Passeport Media International (.PMI.), a Montreal-based media company offering electronic advertising in airports..
For the third quarter 2004, BRANCHEZ-VOUS! had revenues of $ 420,000, compared to revenues of $ 270,000 for Q3 2003. This increase of $ 150,000 or 56 % is due to increased advertising sales. On a sequential basis, compared to revenues of $ 490,000 in Q2 2004, revenues decreased by $ 70,000 or 14 %, due to softer advertising sales than in the previous quarter. For the first nine months of 2004, BRANCHEZ-VOUS! had revenues of $ 1,217,000, an increase of $ 325,000 or 36 % compared to revenues of $ 892,000 for the first nine months of 2003. This increase is due to increased advertising sales.
On a quarterly basis, Income from continuing operations increased by $ 28 000 or 43 %, from 47,000 $ in Q3 2003 to $ 75,000 in Q3 2004. This is mostly due to increased advertising sales. As a percentage of sales, income from operations remained stable, from 17% in Q3 2003 to 18% in Q3 2004. On a sequential basis, Income from continuing operations decreased by $ 86,000 or 43 %, compared to $ 161 000 in Q2 2004. This is mostly due to lower advertising sales than in the previous quarter. For the nine-month period, Income from operations increased by $ 140,000 or 109 %, from $ 128,000 for the first nine months of 2003 to $ 268,000 for the first nine months of 2004. This is mostly due to increased advertising sales.
On April 1st, 2004, the Corporation entered into the final phase of a projected corporate reorganization initiated in 2002. In Q3 2004, $50,000 was registered as non recurring extraordinary expenses, including provisions, for non-recurring fees to accountants, legal advisers, sponsor and securities commissions related to this projected reorganization. Corporate fees related to a projected reorganization registered as non recurring extraordinary expenses were $ 24,000 in Q3, 2003, $ 80,000 in Q2, 2003, $130,000 of the first nine months of 2004 and $ 24,000 for the first nine-months of 2003. Management expects additional such fees to be incurred in Q4, 2004, if the corporate reorganization project is continued.
In Q3 2004, the net income increased by $ 7,000 or 39 %, from $ 18,000 for Q3 2003 to $ 25,000 in Q3 2004. As a percentage of sales, net income remained stable, from 7% in Q3 2003 to 6% in Q3 2004. On a sequential basis, the net income increased by $ 26,000 or 51 %, compared to $ 51,000 in Q2 2004. This is mostly due to a decrease in sales. For the nine-month period, the net income increased by $ 22,000 or 23 %, from $ 96,000 in the first nine months of 2003 to $ 118,000 in the first nine months of 2004. This is mostly due to an increase in sales, partly offset by the registration of corporate fees for the projected corporate reorganization.
On a per share basis, the earnings per share was essentially nil in Q3 2004, in Q3 2003, in Q2 2004, in the first nine months of 2003 and in the first nine months of 2004.
As at September 30, 2004, the Corporation had 28,935,117 issued and outstanding common shares.
In 2002, the Corporation entered into a long-term corporate reorganization project, as detailed in the Financial statements, which would include the sale of its Internet operations to three founding shareholders and the acquisition for stock and cash of 100 % of PMI. Such acquisition would be considered as a Reverse take-over of the Corporation by PMI. Management is now planning to obtain the TSX Venture Exchange.s, regulatory and shareholders. approvals which are still required for these transactions before the end of the first quarter of 2005.
About BRANCHEZ-VOUS! inc.
BRANCHEZ-VOUS! is a leading Montreal-based new media company. It currently derives most of its revenues from advertising on proprietary web sites, including the BRANCHEZ-VOUS.com portal, and on third-party Web sites, including sites owned by Astral Media. The company also owns 5,236 preferred shares (convertible into common shares representing 25% of the capital-stock) of Passeport Media International, a media company offering electronic advertising in airports. PMI currently operates electronic billboards within the Montreal-Trudeau International Airport and the Calgary International Airport.
Additional information on the Corporation can be obtained on SEDAR (www.sedar.com).
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Source:
Patrick Pierra
President and CEO
Phone: 514-842-3838 ext. 249
http://www.BRANCHEZ-VOUS.com/contacts




