VANCOUVER, B.C., May 22, 2007 (PRIME NEWSWIRE) -- Moventis Capital, Inc. (OTCBB:MVTS), an acquisition and management company that acquires small and medium-sized private enterprises (SMEs) and provides resources and management to promote growth and enhance valuation, today announced financial results for the fiscal 2007 third quarter ended March 31, 2007. Highlights include 39% growth in revenue and a 47% increase in net income over the same period in the previous year for portfolio company PTL Electronics, Ltd. (PTL), Moventis' first private-company acquisition.
Fiscal third-quarter results are consolidated and include operations of PTL, which was acquired for US$6.1 million on November 22, 2006. Pro-forma results for PTL for the three months ended March 31, 2007, include revenues of CDN$4,034,594 (US$3,443,661) with EBITDA of CDN$516,950 (US$441,234) and net income of CDN$415,178 (US$354,368), representing a 39% increase in revenue and a 47% increase in net income compared to the same period in fiscal 2006, when PTL recorded revenue of CDN$2,905,776 (US$2,517,349) and net income of CDN$282,747 (US$244,951).
Chief Executive Blake Ponuick commented: "We're pleased with PTL's continuing growth and performance in the fiscal third quarter. Moreover, with approximately US$5 million in purchase orders already scheduled for fulfillment in the fiscal fourth quarter, we look forward to a strong year-end close for fiscal 2007."
On a GAAP basis, Moventis' fiscal third-quarter consolidated revenues were US$3,443,661 with EBITDA of US$78,328 after accounting for stock-based compensation of US$69,400. Net loss for the period was US$100,559. For the third quarter of fiscal 2006, Moventis was engaged in seeking acquisitions and did not record any revenue and reported a net loss of US$217,277.
Ponuick added: "Reflecting our business strategy, we are seeking to acquire additional private companies offering similar growth and profit profiles. We continue to see attractive multiples in the private equity market that would not only benefit our consolidated results going forward but help build value for Moventis shareholders.
"We continue to feel that providing pro-forma selected financial data for our portfolio companies, albeit on a non-GAAP basis, provides shareholders with a better view of the financial performance of these assets and therefore public-market valuation potential," Ponuick said.
Moventis began consolidating operations with PTL as of the acquisition date of November 22, 2006. The Company is providing the pro-forma quarterly year-over-year results for PTL solely for the purpose of communicating the growth trend of its portfolio company asset to investors and shareholders. PTL derives its revenue in Canadian dollars, which is converted into the US dollar equivalent by Moventis for reporting purposes and in with accordance U.S. GAAP based on the Bank of Canada average exchange rate for each specific reporting period.
The financial measures provided in this release are in accordance with U.S. GAAP, unless identified as non-GAAP. EBITDA, defined as earnings before interest, taxes, depreciation and amortization is a non-GAAP measure presented exclusively as a supplemental disclosure because management believes that EBITDA is widely used as a basis for valuation and provides meaningful information regarding the financial performance of Moventis. Management also believes that the EBITDA measure for its recently acquired subsidiary, PTL, may be used by certain investors as one measure of the financial performance of that asset. Reconciliation of EBITDA for Moventis and PTL to the nearest comparable GAAP measure of net income is provided below (in U.S. Dollars):
Reconciliation of EBITA to 3 Months Ended 3 Months Ended
Net Income March 31, 2007 March 31, 2007
(CONSOLIDATED) (PTL ELECTRONICS)
Pro-forma
EBITDA $78,328 $441,234
Less: Interest ($68,279) ($4,985)
Depreciation and Amortization ($70,153) ($52,823)
Interest Revenue $4
Taxes ($29,058) ($29,058)
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Net Income (GAAP) ($100,599) $354,368
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About Moventis Capital, Inc.
Moventis Capital, a Delaware corporation, is a publicly traded acquisition and growth management company that seeks to acquire quality, established small and medium-sized enterprises (SMEs) and provide resources and management to improve growth and enhance valuations. Moventis intends to capitalize on an underserved market of successful SMEs, primarily privately held, that do not meet the size or industry requirements of many acquisition and investment firms. For more information, visit www.moventiscapital.com.
About PTL Electronics, Ltd.
PTL Electronics, Ltd. (PTL), a Moventis portfolio company, provides electronics manufacturing services (EMS) to a niche market of businesses looking to design and produce very high-end and complex products ranging from ultrasound machines to alternative fuel cells. PTL operates in the $115 billion EMS sector and serves some of the world's largest markets, including industrial controls, medical services, telecommunications and computing. For more information on PTL, visit www.ptlelectronics.com.
Safe Harbor
Statements contained in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements include but are not limited to, those discussed in "Risk Factors" in the Company's Forms 10-KSB, Forms 10-QSB, and other filings with the U.S Securities and Exchange Commission. Such risk factors include but are not limited to: uncertainty regarding the Company's ability to realize its business objectives, make acquisitions, and realize higher value for shareholders. Actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The Company does not intend to revise, or update publicly, any forward-looking statements for any reason.
MOVENTIS CAPITAL AND SUBSIDIARIES
Consolidated Statement of Earnings (In U.S. dollars)
(Unaudited Prepared by Management)
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Three months ended Nine months ended
March 31, March 31,
2007 2006 2007 (restated) 2006
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Revenue 3,443,661 -- 7,138,571 --
Cost of Sales 2,740,310 -- 5,811,917 --
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Gross Margin 703,351 -- 1,326,654 --
Operating Expenses
Sales and Marketing 52,735 -- 87,431 --
General and
Administration 473,874 126,156 952,078 346,095
Stock based
compensation 69,400 51,740 282,170 51,740
Foreign currency loss 29,014 -- 145,948 --
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625,023 177,896 1,467,627 397,835
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Earnings Before
Interest, tax,
deprecation and
amortization 78,328 (177,896) (140,974) (397,835)
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Amortization 11,401 37,500 11,401 112,500
Deprecation 63,275 1,881 110,325 7,524
Amortization of
Loans & Debenture 6,878 -- 1,196,068 --
Interest 68,279 -- 149,665 --
Interest Revenue 4 -- 6,530 375
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Earnings (loss)
Before Income Tax (71,500) (217,277) (1,601,903) (517,484)
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Income taxes 29,058 -- 29,058 --
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Net (loss) earnings
for the period (100,559) (217,277) (1,630,961) (517,484)
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Earnings (loss) per
share
Basic and fully
diluted (0.00) (0.01) (0.06) (0.02)
Weighted average
number of shares
Basic and fully
diluted 28,262,326 25,056,843 27,238,400 23,484,166
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Note: Financial results for the fiscal 2007 nine months ended March 31, 2007 include second quarter financial results that have been restated to account for an additional $1,365,607 in non-cash charges.