Ciscom Corp (CISC) Q2 2023 Earnings Release
Toronto, Ontario--(Newsfile Corp. - August 29, 2023) - Ciscom Corp. (CSE: CISC) ("Ciscom" or "the Company") an ICT roll-up corporation, is pleased to announce that it has filed its first quarterly results as a publicly traded entity for the period ended June 30, 2023 (Q2) on August 29, 2023.
Prior year-end and quarterly financial statements along with their respective MD&As for prior periods are in the Final Prospectus filed on SEDAR. The year-end Financial Statements have been audited and the quarterly financial statements were reviewed. On a pro-forma basis for the year ended December 31, 2022, taking into account 12 months of revenue for both Market Focus Direct ("MDF") and Prospect Media Group ("PMG"), combined proforma revenues for Ciscom were $33,835,559.
Year to date June 30, 2023, Ciscom is reporting revenues of $14.2M versus $1.1M for the prior year. This increase is tied to the acquisition of PMG that closed September 30, 2022. On a pro-forma basis, revenues for the first six months of 2022 were also $14.2M. Most of the Company's revenues come from the retail sector which has been tremendously impacted by the current economic conditions. Retail store locations have been closed and a number of brands no longer exist. Overall budgets have been reduced.
The Company was able to maintain its revenue level during this period and all its clients are in good standing. While the company has not experienced bad debt, it is important to note that the majority of the accounts receivable are insured.
The gross profit for the six months ended June 30,2023 was $2.7M versus $0.2M for the same period in 2022. On a pro-forma basis, gross profit for the first six months of 2022 was $2.6M, an increase of $0.1M or 2%.
Typically, the first half of the year sees lower revenue than the second half as the retailers' spend is concentrated in the last four months of the year.
The Company had a net loss for the first six months of 2023 of $1.07M versus $0.70M for the same period in 2022. The 2023 expenses include $237k of restructuring costs (business alignment and staff reductions), $135k of share-based compensation and $760k of amortization (namely intangibles amortization). The Company's spent $288k in professional fees for the first six months of 2023. The professional fees were related for the most part to the prospectus and the Company becoming publicly traded (reporting issuer) on June 30, 2023, consequently the level of professional fees will be reduced in the coming quarters.
"Considering the state of the economy, Ciscom had a strong performance in the first semester. We have now resumed our M&A activities that had to be postponed during the prospectus process. We are building a solid and profitable business with recurring revenue and trust the inherent market value will soon be reflected," said Drew A. Reid Ciscom's Executive Chair & CEO.
"Ciscom is at an exciting juncture and the environment is conducive for the realization of its business strategy. We have the infrastructure in place and solid leaders/operators. We are targeting both organic and acquisition growth. Our team members coupled with our proprietary technology are the basis of our continued performance, market relevance and competitiveness," said Michel Pepin Ciscom's President & CFO.
Ciscom is investing in and managing qualified companies active in the Information, Communication and Technology ("ICT") sector - a broad area. The first 2 acquisitions are in the AdTech/MarTech sector dealing with big data, analytics and technology.
Ciscom Corp. is a Canadian holding (roll-up) company which is acquiring and managing companies in the ICT sector. Potential acquisition targets are entrepreneurs seeking equity, transition or that do not have a defined succession plan. Target companies are generally substantial SMEs and have a proven track record/history of profitability.
With this approach Ciscom enables owners/founders to crystalize the equity, while remaining active in the business. Consequently, acquisitions are immediately accretive to shareholders' value. For more information, please visit www.ciscomcorp.com.
Executive Chairman & CEO
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President & CFO
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This news release contains certain statements that constitute forward-looking statements as they relate to Ciscom and its management. Forward-looking statements are not historical facts but represent management's current expectation of future events and can be identified by words such as "believe", "expects", "will", "intends", "plans", "projects", "anticipates", "estimates", "should", "continues" and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct or will come to pass.
By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to; COVID-19; reliance on key personnel; shareholder and regulatory approvals; jurisdictional risk; risks of future legal proceedings; income tax matters; availability and terms of financing; rising costs related to inflation; effect of market interest on price of securities and potential dilution, all of which are addressed in greater detail in the Company's prospectus dated June 5, 2023 and filed under Ciscom's profile at www.sedar.com. Except as expressly required by applicable securities laws, Ciscom assumes no obligation to update or revise any forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/178746