intrapower delivers on 1st quarter

ASX Release
Brisbane, October 24, 2007: IntraPower Limited (ASX:IPX)
IntraPower delivers on 1st Quarter
(Appendix 4C attached)
Dear Shareholders,
Due to the fact that this is the first official reporting of the company results since our
listing in July, 2007 we would like to thank all shareholders for your strong support in
our IPO and continued support over the last few months.
We are pleased to report strong operating results with revenue exceeding forecast and
showing an 11% growth in the 1st Quarter. Along with new customer sales, increased
spend from our existing base and significant cost savings from our integration and
supply aggregation we were able to deliver an EBIT which is tracking ahead of the IPO
forecast.
This strong profit result generated free operating cash flow of $489,000 for the 1st
Quarter and allows us to confirm guidance of our 5 cents per share fully franked
dividend for the year.
The strategy of the company in delivering diverse, high availability networks and
services to corporate Australia at the best value has generated significant demand and
proven to ensure high customer retention.
As business software and telecommunications become more Internet Protocol (IP) based
IntraPower is well placed to save our customers time and money whilst providing a high
quality service. This is enabled by our unique technology platform, Visibility.X that
allows us to very efficiently measure, manage and service these new networks. Lack of
similar alternatives in the marketplace strengthens our value proposition and allows us
to protect and grow our margins.
IntraPower is on target to post an annual 30% growth this year with minimal capital
expenditure due to our established diversified infrastructure and “build on demand”
model. We are nearing successful integration of the two acquired businesses and are on
schedule to service all 1,500 customers on our Visibility.X platform next month.
We have identified a number of further acquisition targets that meet our criteria and will
update the market as these are completed. In the meantime we continue to make a
concerted effort to grow the business and I would like to personally thank the
IntraPower team who have made heroic efforts to achieve our 1st Quarter result.
Yours sincerely,
Greg Kennish
Group CEO and Managing Director
-- ENDS
Investor Information: Mr. Greg Kennish – Phone: 0407050162
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
24/10/2005 Appendix 4C Page 1
Rule 4.7B
Appendix 4C
Quarterly report
for entities admitted
on the basis of commitments
Introduced 31/3/2000. Amended 30/9/2001, 24/10/2005.
Name of entity
IntraPower Limited
ABN Quarter ended ( “current quarter”)
26 123 699 043 September 2007
Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter
$A’000
Year to date
(3 months)
$A’000
1.1 Receipts from customers
6,608 6,608
1.2 Payments for (a) staff costs
(b) advertising and marketing
(c) research and development
(d) leased assets
(e) Telecom. and IT
(f) other working capital
1,533
1
140
78
3,930
376
1,533
1
140
78
3,930
376
1.3 Dividends received 0 0
1.4 Interest and other items of a similar nature received 32 32
1.5 Interest and other costs of finance paid 18 18
1.6 Income taxes paid 75 75
1.7 Other (provide details if material) 0 0
Net operating cash flows
489
489
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
Appendix 4C Page 2 24/10/2005
Current quarter
$A’000
Year to date
(3 months)
$A’000
1.8 Net operating cash flows (carried forward) 489 489
Cash flows related to investing activities
1.9 Payment for acquisition of:
(a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
6,850
0
0
92
300
6,850
0
0
92
300
1.10 Proceeds from disposal of:
(a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
0
0
0
0
0
0
0
0
0
0
1.11 Loans to other entities 0 0
1.12 Loans repaid by other entities 0 0
1.13 Other (Business acquisition advisory costs) 393 393
Net investing cash flows
(7,635)
(7,635)
1.14 Total operating and investing cash flows (7,146) (7,146)
Cash flows related to financing activities
1.15 Proceeds from issues of shares, options, etc. 0 0
1.16 Proceeds from sale of forfeited shares 0 0
1.17 Proceeds from borrowings 0 0
1.18 Repayment of borrowings 0 0
1.19 Dividends paid ** 425 425
1.20 Other (IPO related costs)
Other (Directors and Shareholders loans)
1,261
842
1,261
842
Net financing cash flows (2,528) (2,528)
Net increase (decrease) in cash held
(9,674)
(9,674)
1.21 Cash at beginning of quarter/year to date 12,776 12,776
1.22 Exchange rate adjustments to item 1.20
1.23 Cash at end of quarter 3,102 3,102
** Payment of completion dividend to the former owners of Mercury Connect Pty Ltd as disclosed on page 67
of the IntraPower Ltd prospectus.
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
24/10/2005 Appendix 4C Page 3
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current quarter
$A'000
1.24
Aggregate amount of payments to the parties included in item 1.2
842
1.25
Aggregate amount of loans to the parties included in item 1.11
0
1.26
Explanation necessary for an understanding of the transactions
Repayment of Directors’ and Shareholders’ loans as previously disclosed on page 10 of the
IntraPower Ltd prospectus .
(section 2.3 – Use of Proceeds of the Offer).
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets
and liabilities but did not involve cash flows
Partial consideration for Mercury Connect Pty Ltd and F652 Pty Ltd (ASP evolution) totalling
2,000,000 at $1 per share on the 4th of July 2007. As per the IntraPower Ltd prospectus.
(section 2.2 – Capital Structure).
2.2 Details of outlays made by other entities to establish or increase their share in businesses in which
the reporting entity has an interest
NA
Financing facilities available
Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).
Amount available
$A’000
Amount used
$A’000
3.1 Loan facilities
250
171
3.2 Credit standby arrangements
0 0
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
Appendix 4C Page 4 24/10/2005
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as
shown in the consolidated statement of cash flows) to
the related items in the accounts is as follows.
Current quarter
$A’000
Previous quarter
$A’000
4.1 Cash on hand and at bank 3,023 12,688
4.2 Deposits at call 0 0
4.3 Bank overdraft 79 88
4.4 Other (provide details) 0 0
Total: cash at end of quarter (item 1.23) 3,102 12,766
Acquisitions and disposals of business entities
Acquisitions (as disclosed in the IntraPower Ltd Propectus)
(Item 1.9(a))
5.1 Name of entity Mercury Connect Pty Ltd and F652 Pty Ltd
5.2 Place of incorporation
or registration
L14 167 Eagle Steet, Brisbane QLD 4000
5.3 Consideration for
acquisition or disposal
The consideration payable for the shares is:
(a) $1,645,000 in cash, payable as follows:
• a cash payment on completion of $600,000 (4/7/07);
• a cash payment on a date being six months from completion of
$600,000; and
• a cash payment on the earlier of twelve months from completion
or 30 April 2008, of $445,000 (Final Date).
(b) that number of Shares issued at the Offer Price that equates to the
value of $2,000,000 (4/7/07); and
(c) a further cash payment on the Final Date equal to 4.5 times the
excess of the Mercury Connect and F652 EBIT for the financial year ended
30 June 2007 over $810,000, to a maximum payment of $355,000.
5.4 Total net assets $432,267
5.5 Nature of business
Provider of corporate data and voice telecommunications services.
5.1 Name of entity Destra Communications Pty Ltd
5.2 Place of incorporation
or registration
L14 167 Eagle Steet, Brisbane QLD 4000
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
24/10/2005 Appendix 4C Page 5
5.3 Consideration for
acquisition or disposal
Total consideration payable for the shares in Destra Communications
$6,250,000, which was payable in cash on completion of the Destra
Agreement (5/7/07).
5.4 Total net assets $707,309
5.5 Nature of business Provider of corporate data and voice telecommunications services.
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting
standards as defined in the Corporations Act (except to the extent that information is not
required because of note 2) or other standards acceptable to ASX.
2 This statement does give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: ....24th October, 2007.........
(Director/Company secretary)
Print name: .......Greg Kennish................................
Notes
1. The quarterly report provides a basis for informing the market how the entity’s activities
have been financed for the past quarter and the effect on its cash position. An entity
wanting to disclose additional information is encouraged to do so, in a note or notes
attached to this report.
2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this
report except for the paragraphs of the Standard set out below.
• 6.2 - reconciliation of cash flows arising from operating activities to
operating profit or loss
• 9.2 - itemised disclosure relating to acquisitions
• 9.4 - itemised disclosure relating to disposals
• 12.1(a) - policy for classification of cash items
• 12.3 - disclosure of restrictions on use of cash
• 13.1 - comparative information
3. Accounting Standards. ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address a topic, the
Australian standard on that topic (if any) must be complied with.