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BCE Emergis Posts Record Results for 1999 - Fourth quarter boosts year-end results

Montreal, Quebec--

BCE Emergis, a leading Internet Commerce service provider,
announced today its results for the 4th quarter and year ended
December 31, 1999. Revenues for the year were $186.7 million,
with an EBITDA profit of $3.9 million.	The Company recorded a
net loss of $65.8 million or $0.82 per share. The net loss for
the year includes $75.5 million of amortization of in-process
R&D, acquired technologies and goodwill related to previous
transactions.

Revenues for the fourth quarter ended December 31, 1999, were
$60.6 million, with an EBITDA profit of $2.7 million and a net
loss of $26.3 million or $0.31 per share. The net loss for the
quarter includes $27.6 million of amortization of in-process R&D,
acquired technologies and goodwill related to previous
transactions. Cash on hand at the end of the quarter reached $75
million. 

"The year 1999 was extraordinary for BCE Emergis and our fourth
quarter continued that momentum", stated Brian Edwards, President
and Chief Executive Officer, BCE Emergis. "By almost any measure
we were able to exceed our targets and to position the Company
for future growth. In terms of revenue, we have continued our
quarterly growth, and now have a run-rate that exceeds $240
million annually and is double that for the same period last
year. Our EBITDA has continued to improve and we are 35% ahead of
the third quarter of 1999. Our focus remains on maximizing
revenue growth while at the same time improving EBITDA."

Edwards went on to discuss the positioning of the Company in the
B2B Internet Commerce space. He noted that the wide range of
applications that BCE Emergis provides with leading-edge
technology companies, gives to its customers world-class
solutions. These solutions are focused and concentrated on
specific verticals markets where BCE Emergis can provide
expertise and market knowledge, and extend both its leadership
and competence. The Company will also continue to expand its
network of alliance partners, both in terms of technology and
marketing. 

During the quarter, BCE Emergis announced a broad
business-to-business e-commerce alliance with California-based
Ariba, the leader in business-to-business e-commerce solutions
for operating resources. In December, BCE Emergis announced a
long-term agreement in which BCE Emergis will provide Bell Canada
and its subsidiaries with a fully-managed business-to-business
corporate exchange marketplace and e-procurement solution. Bell
Canada, one of the largest buyers in Canada, was the first
enterprise to benefit from the buying and selling solution
offered by BCE Emergis through its partnership with Ariba. 

BCE Emergis has successfully launched the e-route pilot and
biller demand is stronger than anticipated. In addition, BCE
Emergis launched, in partnership with the Employee Relocation
Council (ERC), eRelay(tm), the first electronic-commerce network
for the U.S. relocation industry. 

BCE Emergis also announced several marketing transactions with
key business players during the quarter such as General American
Corporation (GAC), a leading U.S. appraisal management company,
Kodak Canada Inc., and Swisscargo, the worldwide air cargo
network of SairGroup. 

Finally, BCE Emergis announced the completion of the purchase of
the shares of SNS/Assure Corp. and of Assure Health Inc. These
acquisitions closed on schedule on November 1, 1999, and have
strengthened the Company's position in vertical markets.

BCE Emergis delivers network-centric Internet-commerce business
solutions that improve customer processes through the exchange of
secure transactions. Combining e-commerce services, network
infrastructure, security services, and payments solutions through
industry vertical applications, BCE Emergis offers a full suite
of core technologies that are the essential building blocks for
electronic commerce. BCE Emergis, is among the top electronic
commerce providers in North America and is listed on the TSE 300
Composite Index. For more information, please refer to
www.emergis.com. 

This news release contains certain forward-looking statements
that reflect the current views and/or expectations of BCE Emergis
with respect to its performance, business and future events. Such
statements are subject to a number of risks, uncertainties and
assumptions. Actual results and events may vary significantly.

			 - end -

For more information: 

Anne Belliveau
General Manager, Public Affairs & Communications, BCE Emergis
(514) 868-2232
Email: abelliveau@emergis.com




Consolidated Statement of Income

			     for the	  for the      for the
			 three-month twelve-month   four-month
			period ended period ended period ended
(millions of dollars,	December 31, December 31, December 31,
except loss per share)		1999	     1999	  1998
			 (unaudited)  (unaudited)    (audited)

Revenue (1) (2) 		60.6	    186.7	  36.2
Direct costs			14.5	     52.7	  12.3
			       -------------------------------
Gross margin			46.1	    134.0	  23.9
			       -------------------------------
Expenses					 
 Operations			19.4	     59.8	   8.8
 Sales and marketing		 6.3	     19.0	   7.0
 Development and integration
  services			10.0	     30.8	   6.0
 General and administrative	 7.7	     20.5	   4.8
			       -------------------------------
				43.4	    130.1	  26.6
			       -------------------------------
						 
Operating income (loss) 
  before undernoted items			 
  and merger rationalization 
  charge			 2.7	      3.9	 (2.7)
Merger rationalization charge	   -		-	  11.1
				------------------------------
						 
Operating income (loss) 
 before undernoted items	 2.7	      3.9	(13.8)
						 
Depreciation and amortization	32.4	     85.0	  20.2
Write-off of capital assets	   -		-	  25.0
Interest income 	       (1.1)	    (3.6)	 (1.3)
Interest expense		 0.5	      1.1	   0.3
Gains on sale of subsidiaries  (3.0)	   (13.8)	    - 
Other expenses			 0.2	      1.0	   0.1
			      --------------------------------
						 
Net loss (2)		      (26.3)	   (65.8)	(58.1)
			      ================================
						 
Loss per share ($) (2)	     ($0.31)	  ($0.82)      ($0.82)
						 
						 
Notes to financial statements:

(1) Includes $22.9 million and $50.5 million, for the three and
twelve month periods respectively, from normal course sales to
entities controlled by the Company's parent, either for their own
use or for resale to third parties.		 

(2) Disposal of a subsidiary	    

In September 1999, in accordance with its plan to divest its
interest in non-core assets, the Company disposed of Totalnet
inc., the subsidiary responsible for providing Internet access to
individuals within the company's network activities for gross
proceeds of $33.9 million.	    

Included in the statement of income for the twelve month periods
ended December 31, 1999 are the following items related to the
Internet access operations:	    

					   Twelve months ended
					     December 31, 1999
					   -------------------
Revenue 						   9.8

Net earnings - internet access operations		   1.0

Gain on sale of subsidiary				  10.8



Consolidated Balance Sheet			 


					    as at	 as at
(millions of dollars)		     December 31, December 31,
					     1999	  1998
--------------------------------------------------------------
				      (unaudited)    (audited)

ASSETS						 
 Current			    
  Cash and temporary cash investments (1)    75.0	  26.2
  Cash held in trust			      0.0	   8.7
  Accounts receivable (2)		     47.1	  30.2
  Other 				     10.4	   3.7
					   -------------------
					    132.5	  68.8
 Capital assets 			    377.3	 171.4
					   -------------------
					    509.8	 240.2
					   -------------------
						 
LIABILITIES					 
 Current			    
  Accounts payable and 
   accrued liabilities (3)		     77.3	  25.9
  Deferred revenue			      5.6	   4.6
  Long-term debt due within one year	      8.7	   2.7
					   -------------------
					     91.6	  33.2
 Long term debt 			     16.2	   1.9
					   -------------------
					    107.8	  35.1
					   -------------------
						 
SHAREHOLDERS' EQUITY				 
 Capital stock				    525.9	 263.2
 Deficit				  (123.9)	(58.1)
					   -------------------
					    402.0	 205.1
					   -------------------
					    509.8	 240.2
					   -------------------
						 
						 
Notes to financial statements:	    

(1) Includes $30.0 million ($20.0 million at December 31, 1998)
invested on a short-term basis with an entity controlled by the
Company's parent.
(2) Includes  $18.1 million ($10.5 million at December 31, 1998)
due from entities controlled by the Company's parent.	      
(3) Includes  $19.4 million ($8.1 million at December 31, 1998)
due to entities controlled by the Company's parent.	      



Consolidated Statement of Cash Flows


			     for the	  for the      for the
			 three-month twelve-month   four-month
			period ended period ended period ended
(millions of dollars)	December 31, December 31, December 31,
				1999	     1999	  1998
			------------ ------------ ------------
			 (unaudited)  (unaudited)    (audited)

Operating activities		    
 Net loss		      (26.3)	   (65.8)	(58.1)
 Depreciation and amortization	32.4	     85.0	  45.2
 Loss on sale of equipment	 0.0	      0.5	   0.0
 Gain on sale of subsidiaries  (3.0)	   (13.8)	   0.0
 Changes in working 
  capital items 		32.5	     34.3	   0.6
			      --------------------------------
				35.6	     40.2	(12.3)
			      --------------------------------
				    
Investing activities		    
 Acquisitions		     (149.3)	  (164.8)	(14.2)
 Proceeds on sale of 
  subsidiaries and investments	 0.5	     29.7	   0.0
 Additions to fixed assets    (17.8)	   (26.4)	 (0.7)
			     ---------------------------------
			     (166.6)	  (161.5)	(14.9)
			     ---------------------------------
				    
Financing activities		    
 Repayment of long-term debt  (15.8)	   (18.8)	 (1.0)
 Issue of common shares        126.9	    180.2	  63.1
			     ---------------------------------
			       111.1	    161.4	  62.1
			     ---------------------------------
				    
Cash position			    
 Increase (decrease)	      (19.9)	     40.1	  34.9
 Beginning balance		94.9	     34.9	   0.0
			     ---------------------------------
 Closing balance		75.0	     75.0	  34.9
			     ---------------------------------
                                    

SOURCE Mobility / Wireless

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