CHICAGO, May 30, 2013 /PRNewswire/ -- Acquity Group Limited ("Acquity Group" or the "Company") (NYSE MKT: AQ) today reported the following unaudited financial results for the first quarter 2013.
Financial highlights for the three month period ended March 31, 2013, compared to the three month period ended March 31, 2012
Non-IFRS Financial Measures
Acquity Group provides non-IFRS financial measures to complement reported IFRS results. Management believes these measures help illustrate underlying trends in the Company's business and uses the measures to establish budgets and operational goals, communicated internally and externally, for managing the Company's business and evaluating its performance. The Company anticipates that it will continue to report both IFRS and certain non-IFRS financial measures in its financial results, including non-IFRS results that exclude interest, income tax provisions, depreciation and amortization, IPO costs, equity in losses of its associates, acquisition costs and other related charges, and share based payment expenses among other costs. Consequently, Acquity Group's non-IFRS financial measures should not be evaluated in isolation or as a substitute for IFRS measures; but, should be considered together with its consolidated financial statements, which are prepared according to IFRS.
Special Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "aim," "anticipate," "believe," "confident," "continue," "estimate," "expect," "future," "intend," "is currently reviewing," "it is possible," "likely," "may," "plan," "potential," "will," or other similar expressions or the negative of these words or expressions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy, and financial needs. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements and are subject to change, and such change may be material and may have a material adverse effect on the Company's financial condition and results of operations for one or more periods. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained, either expressly or impliedly, in any of the forward-looking statements in this announcement. Potential risks and uncertainties include, but are not limited to, the risks outlined in the Company's Registration Statement on Form F-1 and other documents filed with the U.S. Securities and Exchange Commission. Unless otherwise specified, all information provided in this announcement and in the attachments is as of the date of this announcement, and the Company does not undertake any obligation to update any such information, except as required under applicable law.
About Acquity Group
Acquity Group is a leading Brand eCommerce™ and Digital Marketing company that leverages the Internet, mobile devices, and social media to enhance its clients' brands and e-commerce performance. It is the digital agency of record for a number of well-known global brands in multiple industries. Acquity Group has served more than 600 companies and their global brands through thirteen offices in North America. For more information about Acquity Group, visit acquitygroup.com.
Investor Relations Contact
Jessica Barist Cohen
Ogilvy Financial, New York
Phone: (646) 460-9989
E-mail: aq@ogilvy.com
Acquity Group Limited | ||||||||
Consolidated Statements of Comprehensive Income - Unaudited | ||||||||
(Amounts in thousands, except per share data) | ||||||||
Three Month Periods Ended | ||||||||
March 31, 2013 | March 31, 2012 | |||||||
Revenues | $ 33,763 | 100.0% | $ 34,493 | 100.0% | ||||
Cost of revenues | 20,563 | 60.9% | 18,458 | 53.5% | ||||
Gross profit | 13,200 | 39.1% | 16,035 | 46.5% | ||||
Selling and marketing expenses | 2,919 | 8.6% | 2,110 | 6.1% | ||||
Administrative expenses | 8,829 | 26.1% | 6,707 | 19.4% | ||||
Costs associated with initial public offering | - | 0.0% | 116 | 0.3% | ||||
Operating profit | 1,452 | 4.3% | 7,102 | 20.6% | ||||
Other non-operating expense, net | (5) | 0.0% | - | 0.0% | ||||
Finance income/(costs), net | 19 | 0.1% | (15) | (0.0%) | ||||
Equity in losses of associates | - | 0.0% | (442) | (1.3%) | ||||
Profit before tax | 1,466 | 4.3% | 6,645 | 19.3% | ||||
Income tax expense | 642 | 1.9% | 2,864 | 8.3% | ||||
Profit | $ 824 | 2.4% | $ 3,781 | 11.0% | ||||
Profit/(loss) attributable to: | ||||||||
Equity holders of the Company | $ 824 | 2.4% | $ 3,845 | 11.1% | ||||
Non-controlling interests | - | 0.0% | (64) | (0.2%) | ||||
Profit | $ 824 | 2.4% | $ 3,781 | 11.0% | ||||
Other comprehensive profit: | ||||||||
Profit | $ 824 | 2.4% | $ 3,781 | 11.0% | ||||
Currency translation differences | (2) | 0.0% | (2) | (0.0%) | ||||
Comprehensive profit | $ 822 | 2.4% | $ 3,779 | 11.0% | ||||
Comprehensive profit attributable to: | ||||||||
Equity holders of the Company | $ 822 | 2.4% | $ 3,843 | 11.1% | ||||
Non-controlling interests | - | 0.0% | (64) | (0.2%) | ||||
Comprehensive profit | $ 822 | 2.4% | $ 3,779 | 11.0% | ||||
Profit per share attributable to equity holders of the Company: | ||||||||
American depositary shares (1) | $ 0.04 | $ 0.21 | ||||||
Ordinary shares | $ 0.02 | $ 0.10 | ||||||
Shares used in computing profit per share: | ||||||||
American depositary shares (1) | 23,516.4 | 18,738.6 | ||||||
Ordinary shares | 47,032.8 | 37,477.3 | ||||||
(1) | On May 2, 2012, the Company completed the IPO of its American depositary shares representing ordinary shares and is now listed on NYSE MKT under the stock symbol "AQ." Pursuant to our registration statement filed with the U.S. Securities and Exchange Commission, each American depositary share presented in the consolidated statement of comprehensive income represents two ordinary shares outstanding. | |||||||
Acquity Group Limited | ||||||
Consolidated Balance Sheets - Unaudited | ||||||
(Amounts in thousands) | ||||||
March 31, 2013 | December 31, 2012 | |||||
Assets | ||||||
Non-current assets: | ||||||
Property and equipment, net | $ 5,571 | $ 5,872 | ||||
Intangible assets | 23,204 | 23,849 | ||||
Other non-current assets | 87 | 87 | ||||
Investment in associates | 189 | 189 | ||||
Deferred tax assets | 6,043 | 5,985 | ||||
35,094 | 35,982 | |||||
Current assets: | ||||||
Trade receivables, net | 27,483 | 26,641 | ||||
Unbilled receivables | 10,779 | 9,865 | ||||
Due from customers under fixed-price contracts | 479 | 62 | ||||
Prepayments and other receivables | 1,945 | 1,852 | ||||
Cash and cash equivalents | 31,387 | 36,454 | ||||
72,073 | 74,874 | |||||
Total assets | $ 107,167 | $ 110,856 | ||||
Equity and Liabilities | ||||||
Equity: | ||||||
Issued capital | $ 5 | $ 5 | ||||
Capital reserve | 96,577 | 96,577 | ||||
Additional paid in capital | 622 | - | ||||
Other comprehensive profit | (2) | - | ||||
Retained loss | (3,335) | (4,159) | ||||
Equity attributable to equity holders of the Company | 93,867 | 92,423 | ||||
Non-current liabilities: | ||||||
Other | 6,856 | 6,590 | ||||
6,856 | 6,590 | |||||
Current liabilities: | ||||||
Trade payables | 1,971 | 2,343 | ||||
Other payables and accruals | 4,314 | 8,508 | ||||
Due to customers under fixed-price contracts | 159 | 154 | ||||
Accrued income taxes | - | 838 | ||||
6,444 | 11,843 | |||||
Total liabilities | 13,300 | 18,433 | ||||
Total equity and liabilities | $ 107,167 | $ 110,856 | ||||
Acquity Group Limited | ||||||||||||||||||
Consolidated Statements of Changes in Equity - Unaudited | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Issued Capital | Capital Reserve | Additional | Other | Retained | Equity Attributable | Non-Controlling | Total Equity | |||||||||||
As of 1 January 2012 | $ 4 | $ 71,030 | $ - | $ 68 | $ (7,413) | $ 63,689 | $ 745 | $ 64,434 | ||||||||||
Profit/(loss) for the period | - | - | - | - | 3,845 | 3,845 | (64) | 3,781 | ||||||||||
Other comprehensive profit | - | - | - | 2 | - | 2 | - | 2 | ||||||||||
Total for the period | - | - | - | 2 | 3,845 | 3,847 | (64) | 3,783 | ||||||||||
As of 31 March 2012 | $ 4 | $ 71,030 | $ - | $ 70 | $ (3,568) | $ 67,536 | $ 681 | $ 68,217 | ||||||||||
Profit/(loss) for the period | - | - | - | - | 1,154 | 1,154 | (40) | 1,114 | ||||||||||
Other comprehensive profit | - | - | - | (69) | - | (69) | - | (69) | ||||||||||
Issuance of American depositary shares (1) | 1 | 28,666 | - | - | - | 28,667 | - | 28,667 | ||||||||||
American depositary shares offering costs (1) | - | (3,119) | - | - | - | (3,119) | - | (3,119) | ||||||||||
Total for the period | 1 | 25,547 | - | (69) | 1,154 | 26,633 | (40) | 26,593 | ||||||||||
As of 30 June 2012 | $ 5 | $ 96,577 | $ - | $ 1 | $ (2,414) | $ 94,169 | $ 641 | $ 94,810 | ||||||||||
Profit/(loss) for the period | - | - | - | - | 3,177 | 3,177 | (42) | 3,135 | ||||||||||
Other comprehensive profit | - | - | - | (44) | - | (44) | - | (44) | ||||||||||
Total for the period | - | - | - | (44) | 3,177 | 3,133 | (42) | 3,091 | ||||||||||
As of 30 September 2012 | $ 5 | $ 96,577 | $ - | $ (43) | $ 763 | $ 97,302 | $ 599 | $ 97,901 | ||||||||||
Loss for the period | - | - | - | - | (4,922) | (4,922) | (571) | (5,493) | ||||||||||
Other comprehensive profit | - | - | - | 43 | - | 43 | (28) | 15 | ||||||||||
Total for the period | - | - | - | 43 | (4,922) | (4,879) | (599) | (5,478) | ||||||||||
As of 31 December 2012 | $ 5 | $ 96,577 | $ - | $ - | $ (4,159) | $ 92,423 | $ - | $ 92,423 | ||||||||||
Profit for the period | - | - | - | - | 824 | 824 | - | 824 | ||||||||||
Share based payments | - | - | 622 | - | - | 622 | - | 622 | ||||||||||
Other comprehensive profit | - | - | - | (2) | - | (2) | - | (2) | ||||||||||
Total for the period | - | - | 622 | (2) | 824 | 1,444 | - | 1,444 | ||||||||||
As of 31 March 2013 | $ 5 | $ 96,577 | $ 622 | $ (2) | $ (3,335) | $ 93,867 | $ - | $ 93,867 | ||||||||||
(1) | During the three month period ended June 30, 2012, the Company recorded an additional issued capital and capital reserve related to the issuance of the Company's IPO of American depositary shares, which began trading on NYSE MKT on April 27, 2012, and was offset by costs associated with the IPO in accordance with IFRS rules. | |||||||||||||||||
Acquity Group Limited | ||||||
Consolidated Statements of Cash Flows - Unaudited | ||||||
(Amounts in thousands) | ||||||
Three Month Periods Ended | ||||||
March 31, 2013 | March 31, 2012 | |||||
Operating activities: | ||||||
Profit before tax | $ 1,466 | $ 6,645 | ||||
Adjustments to reconcile profit before tax to net cash flows from operating activities: | ||||||
Non-cash: | ||||||
Depreciation of property and equipment | 679 | 481 | ||||
Amortization of intangible assets and straight-line rent | 626 | 652 | ||||
Impairment loss of trade receivables | 222 | 126 | ||||
Finance costs, net | (19) | 15 | ||||
Equity in losses of associates | - | 442 | ||||
Share based payments | 622 | - | ||||
Other | 3 | 2 | ||||
Working capital adjustments: | ||||||
Trade receivables and unbilled receivables | (1,978) | (6,010) | ||||
Due from customers under fixed-price contracts | (417) | (222) | ||||
Prepayment and other receivables | (4) | (667) | ||||
Trade payables | (372) | 366 | ||||
Other payables and accruals | (4,165) | (2,342) | ||||
Due to customers under fixed-price contracts | 5 | (23) | ||||
Other non-current assets | - | (4) | ||||
Income tax paid | (1,357) | (189) | ||||
Net cash flows used in operating activities | (4,689) | (728) | ||||
Investing activities: | ||||||
Purchase of property and equipment | (378) | (881) | ||||
Increase in restricted cash | - | (2,162) | ||||
Net cash flows used in investing activities | (378) | (3,043) | ||||
Net decrease in cash and cash equivalents | (5,067) | (3,771) | ||||
Cash and cash equivalents at the beginning of the period | 36,454 | 6,875 | ||||
Cash and cash equivalents at the end of the period | $ 31,387 | $ 3,104 | ||||
Acquity Group Limited | ||||||
Reconciliation of Non-IFRS Financial Measures to IFRS Profit - Unaudited (1) | ||||||
(Amounts in thousands, except per share data) | ||||||
Three Month Periods Ended | ||||||
March 31, 2013 | March 31, 2012 | |||||
IFRS profit attributable to equity holders, as reported | $ 824 | $ 3,845 | ||||
Finance (income)/costs, net | (19) | 15 | ||||
Income tax expense | 642 | 2,864 | ||||
Depreciation and amortization: | ||||||
Property and equipment | 679 | 481 | ||||
Intangible assets | 645 | 645 | ||||
Costs associated with initial public offering (2) | - | 116 | ||||
Equity in losses of associates | - | 442 | ||||
Share based payments | 622 | - | ||||
Non-IFRS adjusted EBITDA | $ 3,393 | $ 8,408 | ||||
Three Month Periods Ended | ||||||
March 31, 2013 | March 31, 2012 | |||||
IFRS operating profit, as reported | $ 1,452 | $ 7,102 | ||||
Costs associated with initial public offering (2) | - | 116 | ||||
Amortization of intangible assets | 645 | 645 | ||||
Share based payments | 622 | - | ||||
Non-IFRS operating profit | $ 2,719 | $ 7,863 | ||||
Three Month Periods Ended | ||||||
March 31, 2013 | March 31, 2012 | |||||
IFRS profit attributable to equity holders, as reported | $ 824 | $ 3,845 | ||||
Costs associated with initial public offering (2) | - | 116 | ||||
Amortization of intangible assets, net of tax | 387 | 381 | ||||
Share based payments, net of tax | 398 | - | ||||
Non-IFRS adjusted profit | $ 1,609 | $ 4,342 | ||||
Adjusted profit per share attributable to equity holders of the Company: | ||||||
American depositary shares (3) | $ 0.07 | $ 0.23 | ||||
Ordinary shares | $ 0.03 | $ 0.12 | ||||
Shares used in computing profit per share: | ||||||
American depositary shares (3) | 23,516.4 | 18,738.6 | ||||
Ordinary shares | 47,032.8 | 37,477.3 | ||||
(1) | The Company includes these adjusted calculations for the three month periods ended March 31, 2013 and March 31, 2012 because management believes they are useful to investors in that they provide for greater transparency with respect to supplemental information used by management in its financial and operational decision making.
Accordingly, the Company believes that the presentation of this analysis, when used in conjunction with IFRS financial measures, is a useful financial analysis tool that can assist investors in assessing the Company's operating performance and underlying prospects. This analysis should not be considered in isolation or as a substitute for profit/(loss) prepared in accordance with IFRS. This analysis, as well as the other information in this press release, should be read in conjunction with the Company's financial statements and related footnotes contained in the documents that the Company files with the U.S. Securities and Exchange Commission. | |||||
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