BRANCHEZ-VOUS! increased sales by 9% in the first quarter of 2008 and appoints a new Chief Financial Officer
Montréal, May 30, 2008 -- BRANCHEZ-VOUS! inc. (TSX Venture Exchange: BZV) published its interim financial results for first quarter ended March 31, 2008. Compared to the quarter ended March 31, 2007, revenues increased by 9% and gross profit increased by 8%. As operating expenses increased by 25%, mostly due to the enlargement of the advertising and content teams compared to first quarter 2007, the corporation had a net loss of $ 8,000 in the first quarter of 2008. However, EBITDA was positive, at $ 10,000, and adjusted EBITDA - which eliminates the financial impact of non-cash charges related to stock options - was at $ 27,000 for the first quarter of 2008.The sales and gross profit increases are due to the sustained growth of the Internet advertising market and to some content sales. "Compared to last year, when we sill represented Astral Media sites, we have significantly diversified our offering with a larger number of sites", says Patrick Pierra, CEO of BRANCHEZ-VOUS!. "Our sales team has been able to increase sales with newly represented sites, including TELUS-owned and several France-based sites. We have also started selling content. The sites we acquired during the first quarter - Fanatique.ca and HumourQuebec.com - as well as those we acquired after March 31 - including Showbizz.net, Matin.qc.ca and LeCinema.ca - will also help drive advertising and content sales and gross profit in the next quarters, as we continue building our position as the largest independent player in the Internet media industry in Québec."
CHANGE IN MAIN ITEMS OF THE CONSOLIDATED STATEMENTS OF EARNINGS AND DEFICIT
(Figures in thousand $ except for earnings per share, in $)
Three-month period ended March 31, 2008 ("Q1 2008"); Three-month period ended March 31, 2007 ("Q1 2007"); Change Q1 2008 / Q1 2007; Change Q1 2008 / Q4 2007**
$; $; %; %
Revenues: 950; 875; +9%; -8%
Cost of sales: 423; 388; +9%; -10%
Gross profit: 527; 487; +8%; -6%
Operating expenses: 538; 429; +25%; -
Net earnings: (8); 58; -; -
EBITDA*: 10; 66; -85%; -80%
Adjusted EBITDA*: 27; 78; -64%; -59%
Earnings per share: (0.00); 0.00; -; -
* Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, to which the corporation adds stock-based compensation, as this expense does not result in any use of operating cash flows by the Corporation. Adjusted EBITDA is provided as a supplementary earnings measure to assist readers in determining the ability of BRANCHEZ-VOUS! 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.
** Three-month period ended December 31, 2007.
CHANGE IN MAIN ITEMS OF THE CONSOLIDATED BALANCE SHEETS
(Figures in thousand $ except for book value per share, in $)
March 31, 2008; December 31, 2007
Assets: 2,744; 2,777
Liabilities: 794; 903
Shareholders' equity: 1,951; 1,874
Book value per share: 0.0661; 0.0639
The Board of directors of BRANCHEZ-VOUS! also accepted the resignation of Robert Larocque as Chief Financial Officer. Robert Larocque, who has been CFO as a part-time consultant since October 2001, chose to go back to teaching full-time at the CEGEP de Saint-Jean. "Robert has done an outstanding job in establishing a solid, profitable structure which helped BRANCHEZ-VOUS! experience fast growth in the past seven years", says André Bisson, Chairman of BRANCHEZ-VOUS!. "The board is grateful to him and wishes him well in his future projects."
Effective as at July 1, 2008, Robert Larocque will be replaced as Chief Financial Officer by Ramzy Metwalli, who will also handle investor relations for the Corporation. Until June 30, 2008, investor relations had been handled by Nicholas Powell as a consultant. "Nicholas Powell continuous, far-reaching efforts have made BRANCHEZ-VOUS! better known among Montreal and Toronto investors", says André Bisson. "We gratefully thank him for his long-term involvement with the Corporation, as we will bring back investor relations in-house."
Ramzy Metwalli, CMA, is currently Chief Financial Officer and Human Resources Director of Kooll Desserts, a food producer based in St-Hyacinthe, Quebec. An HEC de Montréal graduate, he previously held various management positions at Ubitrak, a Montreal-based technology start-up firm; at Rachelle-Béry, a Montreal-based health food grocery chain; and at Bristol Myers Squibb, a drug manufacturer in London. "His diversified experience, and his stronger day-to-day involvement in management and investor relations, will help BRANCHEZ-VOUS! pursue its sustained growth in an expanding market," says André Bisson.
ABOUT BRANCHEZ-VOUS!
BRANCHEZ-VOUS! is a leading Montreal-based Internet media company, active in Internet content and advertising.
"BRANCHEZ-VOUS! Advertising" sells Internet advertising space. It commercializes the BRANCHEZ-VOUS! Network, the largest French-language Internet advertising network in Canada with over 200 French-language web sites, over 50 of which are represented on an exclusive basis; these include CommentCaMarche.net, GlobeTrotter.net, LeDevoir.com, JeuxVideo.com and the French version of Canada411.ca. The BRANCHEZ-VOUS! Network reaches approximately 3 million French Canadians each month. BRANCHEZ-VOUS! Advertising also represents the myTELUS.com portal in Quebec.
"BRANCHEZ-VOUS! Content" produces, publishes and commercializes French-language Internet content. It operates BRANCHEZ-VOUS.com, the largest independent portal in Quebec, which includes such sites as Matin.qc.ca (general news), BRANCHEZ-VOUS! Techno (technology news), Fanatique.ca (sports) and Showbizz.net (entertainment news).
BRANCHEZ-VOUS! is listed on the TSX Venture exchange under the symbol BZV and has approximately 30.4 million shares outstanding. Additional information on the Corporation can be obtained on SEDAR and at www.branchez-vous.com/inc/english . The TSX Venture exchange has neither approved nor disapproved the contents of this press release.
- 30 -
Contacts:
Patrick Pierra
President and CEO, BRANCHEZ-VOUS!
514.842.3838 ext.249
Nicholas Powell
Investor Relations consultant
514.904.0084
http://www.branchez-vous.com/contacts/




