BRANCHEZ-VOUS! doubled net earnings in the second quarter of 2007
Montréal, August 30, 2007 -- Montreal, August 30, 2007 - - BRANCHEZ-VOUS! inc. (TSX Venture Exchange : BZV) had good financial results during its second quarter ended June 30, 2007. Compared to the quarter ended June 30, 2006, revenues increased by 25 % and net earnings more than doubled. For the six-month period ended June 30, 2007, compared to the six-month period ended June 30, 2006, revenues increased by 32 % and net earnings nearly doubled.Table summarizing the main financial results
Quarter ended June 30, 2007; Quarter ended June 30, 2006; Six months ended June 30, 2007; Six months ended June 30, 2006
Revenues: $ 1,370,000; $ 1,092,000; $ 2,245,000; $ 1,704,000
Gross profit: $ 699,000; $ 669,000; $ 1,186,000; $ 1,073,000
EBITDA*: $ 277,000; $ 120,000; $ 342,000; $ 176,000
Net earnings: $ 268,000; $ 114,000; $ 325,000; $ 164,000
Basic and diluted earnings per share: $ 0.01; $ 0.00; $ 0.01; $ 0.01
(* EBITDA is defined as earnings before interest, income taxes, depreciation and amortization. EBITDA is provided as a supplementary earnings measure to assist readers in determining the ability of the Company to generate cash from operations and to cover financial charges. It is also widely used for business valuation purposes. This measure does not have a standardized meaning prescribed by Canadian generally accepted accounting principles and may not be comparable to similar measures presented by other companies.)
The increase in sales and gross profit is due to the sustained growth of the Internet advertising market. The increase in net earnings is also due to the absence, in 2007, of one-time charges incurred in 2006 related to the signing of an employment agreement with the Vice-president, Sales, of the Corporation.
"BRANCHEZ-VOUS! continued to grow in sync with the Internet advertising market", says Patrick Pierra, CEO of BRANCHEZ-VOUS!. "With net earnings representing 14% of sales for the first six months of 2007 and 19% of sales in the second quarter of 2007, we got back to a satisfying profit margin. We are well positioned to benefit from the sustained growth of our market."
These results contributed to increasing BRANCHEZ-VOUS! shareholders' equity to $ 1.8 million, or 6 cents per share, as at June 30, 2007.
On another matter, the Corporation granted 28,800 options to buy shares of the corporation, at the exercise price of $ 0.60, to a director and a key employee. This now brings to 1,124,800 the total number of options which are currently active.
About BRANCHEZ-VOUS! inc.
BRANCHEZ-VOUS! inc. is a leading Montreal-based Internet media company. It owns and operates the BRANCHEZ-VOUS.com portal and the BRANCHEZ-VOUS! Network.
BRANCHEZ-VOUS.com (www.branchez-vous.com) is the largest independent portal in Quebec. With a news, business and technology focus, it primarily targets an audience of active adults working in and/or interested by technology and reaches over 500,000 users each month.
The BRANCHEZ-VOUS! Network is the largest French-language Internet advertising network, comprised of over 50 web sites for which BRANCHEZ-VOUS! sells national advertising. It reaches over 3 million French Canadians each month And includes such sites as LeDevoir.com, JeuxVideo.com, LesPAC.com and the French version of Canada411.ca.
BRANCHEZ-VOUS! is listed on the TSX Venture exchange under the symbol BZV and has approximately 29.3 million shares outstanding. Additional information on the Corporation can be obtained on SEDAR (www.sedar.com) and at www.branchez-vous.com/inc/english
Financial statements can be downloaded at:
http://www.branchez-vous.com/inc/english/investisseurs/documents_info.html
The TSX Venture exchange has neither approved nor disapproved the contents of this press release.
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Contact:
Patrick Pierra
President and CEO
Phone: 514-842-3838 ext. 249
Nicholas Powell
Investment Relations consultant
Phone: 514-904-0084
http://www.branchez-vous.com/contacts/
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