SYS-CON MEDIA Authors: Jason Bloomberg, Eric Brown, Bob Gourley, Sandi Mappic, RealWire News Distribution

News Feed Item

Zedi Amends Q3-2013 Financial Statements for Non-Cash Amortization Expense

CALGARY, ALBERTA -- (Marketwired) -- 01/17/14 -- Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE: ZED). Today, Zedi filed amended financial statements as at and for the three and nine months ended September 30, 2013. While completing a systems conversion for capital asset tracking during Q4 of 2013, the Company discovered an error in the amortization of certain internally generated intangible assets which had resulted in the under-amortization of those assets over a number of years. While the impact on any individual reporting period was not considered significant, the cumulative impact of $1.49 million as of September 30, 2013 was deemed significant enough to cause the Company to elect to restate the most recent financial statements as of that date. Management has conducted a complete review of all capital and internally generated intangible assets and the historical calculation of depreciation and amortization to ensure that no further adjustments in this regard will be necessary.

As the error impacts only amortization and deferred tax amounts which are both non-cash in nature, there was no impact on EBITDA(1) or cash flow results previously reported.

The restated Q3 financial statements and MD&A are filed on SEDAR and can be accessed at www.sedar.com or on the Company's website at www.zedi.ca. Note 14 to the amended financial statements details the impact of the restatement, including impact on prior periods and comparative amounts. The impact on the 2013 statement of profit and loss is as follows:


----------------------------------------------------------------------------
(all figures,
 other than per
 share amounts,
 are in millions       For the three months         For the nine months
 of Canadian           ended September 30,          ended September 30,
 dollars)                      2013                         2013
----------------------------------------------------------------------------
                           As                           As
                   originally   Impact       As originally   Impact       As
                     reported of error restated   reported of error restated
----------------------------------------------------------------------------
Depreciation and
 Amortization
 Expense                1,867      203    2,070      5,449      612    6,061
----------------------------------------------------------------------------
Profit prior to
 Tax                    2,336    (203)    2,133      5,823    (612)    5,211
----------------------------------------------------------------------------
Taxation                  645     (51)      594      1,503    (153)    1,350
----------------------------------------------------------------------------
Profit for the
 Period                 1,691    (152)    1,539      4,320    (459)    3,861
----------------------------------------------------------------------------
Basic and diluted
 earnings per
 share                  $0.02        -    $0.02      $0.04        -    $0.04
----------------------------------------------------------------------------
EBITDA (1)              4,413        -    4,413     11,728        -   11,728
----------------------------------------------------------------------------

Zedi Inc. (TSX VENTURE: ZED) helps the world's oil and gas producers be more productive, more profitable, and more sustainable through technology backed by expert consultation and services. Our 60 years of continuous operations in North America and recognition as one of the industry's best workplaces, sets us apart in the production operations landscape. With our unique combination of award-winning automation, data management, and field and professional services, we offer solutions to our customers' challenges and help them realize their production potential.

(1) EBITDA is a non-IFRS measure and is defined as earnings (profit) before interest, taxes, depreciation and amortization and is commonly used by industry to normalize non-operating factors that are included in net income and as a proxy for the cash generating potential of a business. See section 9 of the Management Discussion and Analysis for further detail on both of these metrics.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.