BRANCHEZ-VOUS! restates its interim financial statements for the second quarter of 2007
Montréal, September 7, 2007 -- BRANCHEZ-VOUS! inc. (TSX Venture Exchange : BZV) today restated its financial results for its second quarter ended June 30, 2007, due to an internal accounting error. An amount of $32,000 in expenses had been mistakenly registered in the third quarter of 2007 instead of the second quarter of 2007. Consequently, these expenses were not included in the financial statements issued on August 29, 2007, resulting in net earnings being mistakenly inflated by the same amount within these previously issued financial statements."We apologize to our shareholders for this error which, however, does not change the general profile of that quarter's results", says Patrick Pierra, CEO of BRANCHEZ-VOUS!.
Compared to the quarter ended June 30, 2006, revenues for the quarter ended June 30, 2007, 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 increased by 78%.
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*: $ 244,000; $ 120,000; $ 309,000; $ 176,000
Net earnings: $ 235,000; $ 114,000; $ 293,000; $ 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.
These results contributed to increasing BRANCHEZ-VOUS! shareholders' equity to almost $ 1.8 million, or 6 cents per share, as at June 30, 2007.
On another matter, the Corporation granted 300,000 options to buy shares of the corporation, at the exercise price of $ 0.65, to an officer. This now brings to 1,424,800 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. Its technology content is promoted on the Sympatico-MSN and AOL Canada portals.
The BRANCHEZ-VOUS! Network (www.branchez-vous.com/reseau/) is the largest French-language Internet advertising network, comprised of over 50 web sites for which BRANCHEZ-VOUS! sells national advertising. It reaches approximately 3 million French Canadians each month And includes such sites as LeDevoir.com, JeuxVideo.com, LesPAC.com and the French version of Canada411.
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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