LAVAL, QC, Aug. 18 /CNW Telbec/ - Mercator Transport Group Corporation
("Mercator") (TSX VENTURE: GMT), announces its financial results for the
fiscal year ending April 30, 2008.
Financial Highlights
Selected Consolidated Results
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(in thousands of April 30, 2008 April 30, 2007
Canadian dollars)
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Revenue 16 550 9 958
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Gross Profit 1 900 1 184
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EBITDA (426) (244)
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Net Profit (Net Loss) (407) (166)
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As part of Mercator's sustained growth, sales increased by $ 6 592 000
(66%), to $ 16 550 000, compared to $ 9 958 000 in 2007. Such increase is
mainly attributed to Mercator's Organic Growth as well as its acquisition of
Cap Canada Distribution inc. in December of 2007, representing additional
sales of .$ 1 073 000 for the year.
The Gross Margin is at 11.5% for the fiscal year, compared to 11.9% in
2007. This decrease in Gross Profits is mainly the result of an increase in
revenues from merchandise importing, as opposed to exporting activities, a
situation generally recognized as conducive to the realization of lower profit
margins.
Mercator has a negative EBITDA of $ 426 000 for 2008, comparing to a loss
of $ 244 000 in 2007. The ratio, however, has remained stable at 2.6% of
sales, comparing to 2.5% of sales in 2007.
Such stability has been maintained regardless of an increase in the cost
of services (mainly attributed to fuel cost increases) and of the appreciation
of the Canadian to the US dollar. Mercator has successfully managed to counter
the negative impact of such factors by increasing its sales and sales prices
over the course of the year.
Mercator's free cash flows (representing the difference between operation
cash flows and net property, plant and equipment acquisitions) have
significantly increased from $ 619 000 to $ 55 000, compared to $ 674 000 in
2007.
In the words of Jean-Pierre Apelian, President and CEO of Mercator,
"quality of customer service has been the main driving force behind Mercator's
success for this year. In addition, the purchase of Cap Canada inc.'s assets
in December 2007 has allowed us to develop a new sector of activity, namely
distribution. The number of transactions we have processed over the course of
the last year has made it possible for us to reach a historical peak".
For further information, please refer to Mercator's management's annual
report and annual audited financial statements, available on Sedar.com.
About Mercator
Mercator specializes in freight forwarding, international logistics and
distribution. Mercator offers high value-added services in global supply chain
management, and designs tailor-made solutions. Customer intimacy and
commitment differentiates Mercator in its ability to implement customers'
requirements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00020866EF
