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Abstract

(CCNMatthews - Aug. 13, 2007) - Divestco Inc. (TSX:DVT) ("Divestco" or the "Company") is pleased to announce its operating results for the three and six months ended June 30, 2007. Divestco generated revenue of $27.5 million for the second quarter of 2007, an increase of $9.4 million (52%) from $18.1 million for the same period in 2006. Earnings before interest, taxes and amortization ("EBITDA") were $14.1 million, a $6.1 million (75%) increase over the same period in 2006. The Company generated funds from operations of $13.8 million for the second quarter, an increase of $5.6 million (68%) as compared to $8.2 million for the same period in 2006.

- On April 20, 2007 The Company closed a new CAD $60 million bank facility with Wells Fargo Financial Corporation Canada ("WFFCC") a part of US based Wells Fargo & Company ("Wells Fargo"). Divestco utilized a portion of the proceeds to replace its previous senior and term debt providers and will utilize the remaining proceeds to fund future growth initiatives.

"Working Capital"; Earnings before interest, taxes, depreciation and amortization ("EBITDA"); "operating income"; "funds from operations", and "funds from operations per share (basic and diluted)" are not measures that have any standardized meaning prescribed by Canadian GAAP and are considered non-GAAP measures. Therefore, these measures may not be comparable to similar measures presented by other issuers. These measures have been described and presented in this press release in order to provide shareholders and potential investors with additional information regarding the Company's results, liquidity, and its ability to generate funds to finance its operations.

Details

Title
Divestco Reports 15th Consecutive Profitable Quarter and Significant Increase in Data Library Sales
First page
1
Publication year
2007
Publication date
Aug 13, 2007
Publisher
Intrado Digital Media Canada Inc.
Source type
Trade Journal
Language of publication
English
ProQuest document ID
447941686
Copyright
Copyright CCNMatthews Aug 13, 2007