Announcement • Jul 09
mdf commerce inc. acquired EcoInteractive, Inc. from Alpine SG, LLC. mdf commerce inc. acquired EcoInteractive, Inc. from Alpine SG, LLC on July 9, 2024. SEG Capital Advisors, LLC acted as financial advisor for EcoInteractive, Inc. William Blair & Company, L.L.C. acted as financial advisor for mdf commerce inc.mdf commerce inc. completed the acquisition of EcoInteractive, Inc. from Alpine SG, LLC on July 9, 2024. Announcement • May 19
Funds managed by Kohlberg Kravis Roberts & Co. L.P. completed the acquisition of mdf commerce inc. (TSX:MDF) from Long Path Partners L.P and others. Funds managed by Kohlberg Kravis Roberts & Co. L.P. entered into an arrangement agreement to acquire mdf commerce inc. (TSX:MDF) from Long Path Partners L.P and others for approximately CAD 260 million on March 11, 2024. As reported, mdf commerce shareholders will receive CAD 5.80 in cash per share, representing CAD 255 million in total equity value. KKR has obtained an equity commitment letter in an aggregate amount in cash equal to CAD 275 million to fund the consideration. Upon completion of the transaction, mdf commerce will become a privately held company. Upon closing of the Transaction, KKR intends to cause the Common Shares to be delisted from the TSX. A termination fee of CAD 7.65 million would be payable by mdf to KKR in certain circumstances, in case of termination of agreement. KKR shall pay a reverse termination fee to mdf in an amount equal to CAD 7.65 million in case of termination event. The transaction is subject to the receipt of the required approvals from mdf’s shareholders, the Interim Order and the Final Order have each been obtained, certain regulatory approvals including HSR Act Clearance, the shareholders shall not have exercised their Dissent Rights in connection with the arrangement with respect to more than 10% of the issued and outstanding shares, as well as the satisfaction of other customary closing conditions. The transaction is not subject to any financing condition and KKR is providing an equity-back stop for all the Consideration payable pursuant to the transaction. The mdf Board unanimously recommends that shareholders vote in favour of the transaction. The special meeting of mdf’s shareholders will be held on May 10, 2024. As of May 15, 2024, the transaction was approved by the court. The transaction is expected to close in the second quarter of calendar 2024. As of May 10, 2024, the transaction was approved by the target's shareholders and expected to close on or about May 17, 2024.
Scotia Capital Inc. and Desjardins Securities Inc. are acting as financial advisors and fairness opinion providers to the Board of Directors of mdf. Scotiabank and Desjardins provided a verbal opinion to the Board that the consideration to be received by the shareholders is fair. Hadrien Montagne of McCarthy Tétrault LLP and Rachael V. Martinez, Dovi Adlerstein, Gregory Husisian, Casey D. Knapp, Gregory E. Neppl, Aaron K. Tantleff and Jordan J. Bergmann of Foley & Lardner LLP are acting as legal advisors to mdf. Stikeman Elliott LLP and Soo-ah Nah, David Passey, Ken Young, Jonathan Stott, and Stephanie Haas of Dechert LLP are acting as legal advisors to KKR. Computershare Investor Services Inc. acted as transfer agent to mdf. William Blair & Company, L.L.C. acted as buy side advisor to KKR.
Funds managed by Kohlberg Kravis Roberts & Co. L.P. completed the acquisition of mdf commerce inc. (TSX:MDF) from Long Path Partners L.P and others on March 17, 2024. Announcement • May 18
The Shares of mdf commerce Expects to Be Delisted from the Toronto Stock Exchange at the Close of Trading on or About May 22, 2024 mdf commerce inc. announced the closing of the previously announced plan of arrangement under the Canada Business Corporations Act (the Arrangement) involving the Company and an entity affiliated with funds managed by KKR, a leading global investment firm. As a result of the Arrangement, the Shares are expected to be delisted from the Toronto Stock Exchange (TSX) at the close of trading on or about May 22, 2024. The Company intends to submit an application to cease to be a reporting issuer under applicable Canadian securities laws and to otherwise terminate the Company's public reporting requirements. Announcement • May 11
MDF Commerce Obtains Shareholder OK for Go-Private Deal and KKR Intends to Cause MDF Commerce's Shares to be Delisted from the Toronto Stock Exchange At mdf commerce Inc.'s special meeting of its shareholders held earlier May 10, 2024, an overwhelming majority of shareholders voted in favour of the special resolution approving the previously announced statutory plan of arrangement under the Canada Business Corporations Act involving the company and 9511-1357 Quebec Inc. (the purchaser), an entity affiliated with funds managed by KKR & Co. Inc. (NYSE:KKR), pursuant to which the purchaser will acquire all of the issued and outstanding common shares in the capital of the company for $5.80 in cash per share, the whole subject to the terms and conditions of the arrangement agreement dated March 11, 2024, between the company and the purchaser. Approval of the arrangement resolution required the affirmative vote of at least two-thirds (66 2/3 per cent) of the votes cast by shareholders virtually present or represented by proxy and entitled to vote at the meeting (each holder of shares being entitled to one vote per share). MDF anticipates returning to the Superior Court of Quebec (the ‘Court’) on May 15, 2024 to seek a final order of the Court approving the arrangement. Completion of the arrangement remains subject to closing conditions as set forth in the arrangement agreement, including approval of the Court. Assuming that the conditions to closing are satisfied or waived (if permitted), it is expected that the arrangement will be completed on or about May 17, 2024. Following completion of the arrangement, KKR intends to cause the shares to be delisted from the Toronto Stock Exchange (‘TSX’) and applications will be made for MDF to cease to be a reporting issuer under applicable securities laws. New Risk • Feb 16
New major risk - Revenue and earnings growth Earnings have declined by 30% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Announcement • Jan 31
mdf commerce inc. to Report Q3, 2024 Results on Feb 14, 2024 mdf commerce inc. announced that they will report Q3, 2024 results on Feb 14, 2024 Reported Earnings • Nov 10
Second quarter 2024 earnings released: CA$0.018 loss per share (vs CA$2.04 loss in 2Q 2023) Second quarter 2024 results: CA$0.018 loss per share (improved from CA$2.04 loss in 2Q 2023). Revenue: CA$30.7m (down 7.4% from 2Q 2023). Net loss: CA$784.0k (loss narrowed 99% from 2Q 2023). Revenue is forecast to grow 4.6% p.a. on average during the next 2 years, compared to a 6.8% growth forecast for the Interactive Media and Services industry in Canada. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 25% per year, which means it has not declined as severely as earnings. Announcement • Oct 14
mdf commerce inc. to Report Q2, 2024 Results on Nov 08, 2023 mdf commerce inc. announced that they will report Q2, 2024 results on Nov 08, 2023 Price Target Changed • Sep 03
Price target increased by 13% to CA$4.50 Up from CA$4.00, the current price target is an average from 4 analysts. New target price is 34% above last closing price of CA$3.37. Stock is up 48% over the past year. The company posted a net loss per share of CA$1.93 last year. New Risk • Aug 12
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -CA$27m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$27m free cash flow). Earnings have declined by 52% per year over the past 5 years. Reported Earnings • Aug 11
First quarter 2024 earnings released: CA$0.12 loss per share (vs CA$0.14 loss in 1Q 2023) First quarter 2024 results: CA$0.12 loss per share (improved from CA$0.14 loss in 1Q 2023). Revenue: CA$31.0m (down 3.7% from 1Q 2023). Net loss: CA$5.12m (loss narrowed 19% from 1Q 2023). Revenue is forecast to grow 3.3% p.a. on average during the next 2 years, compared to a 9.3% growth forecast for the Interactive Media and Services industry in Canada. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Buying Opportunity • Jul 06
Now 20% undervalued Over the last 90 days, the stock is up 19%. The fair value is estimated to be CA$4.72, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has declined by 59%. Revenue is forecast to grow by 0.3% in a year. Earnings is forecast to grow by 87% in the next year. Announcement • Jun 29
mdf commerce inc., Annual General Meeting, Sep 19, 2023 mdf commerce inc., Annual General Meeting, Sep 19, 2023. Agenda: Annual General and Special Meeting. New Risk • Jun 29
New major risk - Revenue and earnings growth Earnings have declined by 54% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$30m free cash flow). Earnings have declined by 54% per year over the past 5 years. Minor Risk Currently unprofitable and not forecast to become profitable next year (CA$8.9m net loss next year). Reported Earnings • Jun 29
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: CA$1.93 loss per share (further deteriorated from CA$0.64 loss in FY 2022). Revenue: CA$128.3m (up 19% from FY 2022). Net loss: CA$85.0m (loss widened 255% from FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 25%. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • Jun 16
mdf commerce inc. to Report Q4, 2023 Results on Jun 28, 2023 mdf commerce inc. announced that they will report Q4, 2023 results on Jun 28, 2023 Price Target Changed • Jun 12
Price target decreased by 13% to CA$4.00 Down from CA$4.62, the current price target is an average from 4 analysts. New target price is 16% above last closing price of CA$3.46. Stock is up 21% over the past year. The company is forecast to post a net loss per share of CA$2.59 next year compared to a net loss per share of CA$0.64 last year. Announcement • May 17
mdf Commerce Inc. Appoints Martial Vincent as Member of its Board of Directors mdf commerce Inc. announced that Martial Vincent, CPA, an experienced corporate director with extensive experience in the electrical and electronic manufacturing industry, will be joining its team as a member of its Board of Directors. Mr. Vincent will serve on the Human Resources and Governance Committee, as well as on the Audit Committee, where he will be replacing Pierre Chadi, who will continue to serve as Board Chair and Chair of the Human Resources and Governance Committee. Leveraging his highly active role in the business community, Mr. Vincent plays a strategic advisory role for a variety of organizations. Since 2022, he is a Board member of Sharethrough, a leader in the programmatic advertising industry, and the Centre de Collaboration MiQro Innovation (C2MI), a collaborative marketing solution for digital technology components. Since 2021, he has been the Board Chair of Astus, which designs adapted management solutions for vehicle fleets and mobile assets. In addition, he has been a member of the University of Sherbrooke Assembly since 2018. From 2018 to 2022, Mr. Vincent served as President and CEO of TCP Cable, a Canadian leader in the manufacturing of electric harnesses. From 2014 to 2022, he was Board Chair of Développement économique Longueuil (DEL). He is also a founding member of Propulsion Quebec, the electric and smart transportation cluster. From 2019 to 2021, Mr. Vincent was the Board Chair of R3D, a company specializing in IT and digital management solutions. And from 2017 to 2020, he was a Board member of Fresche Solutions, a key player in IBM modernization and systems management. In addition, from 2013 to 2018, he was Board Chair of the Pôle d’excellence québécois en transport terrestre (ground transportation cluster). It should also be noted that in 2015, during his tenure as CEO of Varitron, Mr. Vincent successfully transformed this company into the #1 SME in Quebec, based on the rankings of business publication Les Affaires. Major Estimate Revision • Feb 20
Consensus EPS estimates upgraded to CA$1.92 loss The consensus outlook for fiscal year 2023 has been updated. 2023 losses forecast to reduce from -CA$2.23 to -CA$1.92 per share. Revenue forecast steady at CA$127.8m. Interactive Media and Services industry in Canada expected to see average net income growth of 17% next year. Consensus price target up from CA$4.62 to CA$4.92. Share price was steady at CA$3.64 over the past week. Reported Earnings • Feb 14
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: CA$0.34 (up from CA$0.11 loss in 3Q 2022). Revenue: CA$31.7m (up 3.3% from 3Q 2022). Net income: CA$15.1m (up CA$19.8m from 3Q 2022). Profit margin: 48% (up from net loss in 3Q 2022). Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) also surpassed analyst estimates significantly. Revenue is forecast to stay flat during the next 2 years compared to a 5.0% growth forecast for the Interactive Media and Services industry in Canada. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Announcement • Feb 04
mdf commerce inc. to Report Q3, 2023 Results on Feb 13, 2023 mdf commerce inc. announced that they will report Q3, 2023 results on Feb 13, 2023 Major Estimate Revision • Nov 21
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 expected loss increased from -CA$0.44 to -CA$2.23 per share. Revenue forecast unchanged at CA$126.1m. Interactive Media and Services industry in Canada expected to see average net income growth of 2.7% next year. Consensus price target broadly unchanged at CA$4.45. Share price fell 13% to CA$2.96 over the past week. Reported Earnings • Nov 16
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: CA$2.04 loss per share (further deteriorated from CA$0.19 loss in 2Q 2022). Revenue: CA$33.2m (up 32% from 2Q 2022). Net loss: CA$89.8m (loss widened CA$83.5m from 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates significantly. Revenue is forecast to grow 1.4% p.a. on average during the next 2 years, compared to a 5.2% growth forecast for the Interactive Media and Services industry in Canada. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Mary-Ann Bell was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Price Target Changed • Oct 06
Price target increased to CA$4.33 Up from CA$3.50, the current price target is an average from 6 analysts. New target price is 44% above last closing price of CA$3.01. Stock is down 52% over the past year. The company is forecast to post a net loss per share of CA$0.39 next year compared to a net loss per share of CA$0.64 last year. Announcement • Oct 06
SPS Commerce, Inc. (NasdaqGS:SPSC) acquired InterTrade Systems, Inc. from mdf commerce inc. (TSX:MDF) for CAD 65.8 million. SPS Commerce, Inc. (NasdaqGS:SPSC) acquired InterTrade Systems, Inc. from mdf commerce inc. (TSX:MDF) for CAD 65.8 million on October 5, 2022. SPS acquired all the issued and outstanding shares of InterTrade for a total, all-cash consideration, subject to certain customary post-closing adjustments. The total consideration consists of an upfront payment of CAD 62.7 million, which is net of amounts in escrow for customary indemnification purposes and the completion of certain transition services within prescribed timing, the whole subject to customary purchase price adjustments. The proceeds from the sale will be used to repay the mdf commerce’s term facility of CAD 21.7 million in full at Closing. The balance of net proceeds will go towards repaying the mdf commerce’s revolving facility drawn in US and Canadian dollars.
SPS Commerce, Inc. (NasdaqGS:SPSC) completed the acquisition of InterTrade Systems, Inc. from mdf commerce inc. (TSX:MDF) on October 5, 2022. Announcement • Sep 21
mdf commerce inc. Announces Executive Changes mdf commerce inc. at the annual general meeting held on September 20, 2022, elected Brian Nelson on the Board of Directors and Ms. Catherine Roy, Mr. Gilles Laporte and Mr. Jean-François Sabourin did not stand for re-election at the Meeting. Major Estimate Revision • Aug 18
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast increased from CA$130.8m to CA$132.9m. Forecast EPS reduced from -CA$0.31 to -CA$0.40 per share. Interactive Media and Services industry in Canada expected to see average net income growth of 1.7% next year. Consensus price target down from CA$3.80 to CA$3.60. Share price rose 21% to CA$2.03 over the past week. Price Target Changed • Aug 15
Price target decreased to CA$3.60 Down from CA$4.00, the current price target is an average from 4 analysts. New target price is 74% above last closing price of CA$2.07. Stock is down 73% over the past year. The company is forecast to post a net loss per share of CA$0.33 next year compared to a net loss per share of CA$0.64 last year. Reported Earnings • Aug 12
First quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2023 results: CA$0.14 loss per share. Revenue: CA$32.2m (up 43% from 1Q 2022). Net loss: CA$6.32m (loss widened 48% from 1Q 2022). Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) missed analyst estimates by 70%. Over the next year, revenue is forecast to grow 13%, compared to a 18% growth forecast for the industry in Canada. Announcement • Aug 04
mdf commerce inc. to Report Q1, 2023 Results on Aug 11, 2022 mdf commerce inc. announced that they will report Q1, 2023 results on Aug 11, 2022 Board Change • Aug 01
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Chairman Pierre Chadi was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Jul 06
Consensus revenue estimates fall by 12% The consensus outlook for revenues in 2023 has deteriorated. 2023 revenue forecast decreased from CA$147.9m to CA$130.8m. Forecast losses increased from -CA$0.28 to -CA$0.31 per share. Interactive Media and Services industry in Canada expected to see average net income growth of 3.4% next year. Consensus price target down from CA$6.80 to CA$4.00. Share price fell 42% to CA$1.92 over the past week. Board Change • Jul 05
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Chairman Pierre Chadi was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Jul 01
mdf commerce inc., Annual General Meeting, Sep 20, 2022 mdf commerce inc., Annual General Meeting, Sep 20, 2022. Reported Earnings • Jun 30
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: CA$0.64 loss per share (down from CA$0.38 loss in FY 2021). Revenue: CA$108.3m (up 28% from FY 2021). Net loss: CA$23.9m (loss widened 215% from FY 2021). Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) also missed analyst estimates by 25%. Over the next year, revenue is forecast to grow 37%, compared to a 23% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has fallen by 33% per year, which means it is significantly lagging earnings. Announcement • Jun 01
mdf commerce inc. to Report Q4, 2022 Results on Jun 29, 2022 mdf commerce inc. announced that they will report Q4, 2022 results on Jun 29, 2022 Price Target Changed • May 12
Price target decreased to CA$6.80 Down from CA$7.33, the current price target is an average from 4 analysts. New target price is 182% above last closing price of CA$2.41. Stock is down 80% over the past year. The company is forecast to post a net loss per share of CA$0.51 next year compared to a net loss per share of CA$0.38 last year. Major Estimate Revision • Feb 16
Consensus EPS estimates fall by 21% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CA$116.0m to CA$111.4m. Losses expected to increase from CA$0.42 per share to CA$0.51. Interactive Media and Services industry in Canada expected to see average net income growth of 1.6% next year. Consensus price target down from CA$10.10 to CA$8.00. Share price rose 13% to CA$4.86 over the past week. Reported Earnings • Feb 12
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: CA$0.11 loss per share (up from CA$0.14 loss in 3Q 2021). Revenue: CA$30.7m (up 43% from 3Q 2021). Net loss: CA$4.67m (loss widened 64% from 3Q 2021). Revenue missed analyst estimates by 7.3%. Earnings per share (EPS) exceeded analyst estimates by 57%. Over the next year, revenue is forecast to grow 40%, compared to a 38% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. Announcement • Feb 04
mdf commerce inc. to Report Q3, 2022 Results on Feb 09, 2022 mdf commerce inc. announced that they will report Q3, 2022 results on Feb 09, 2022 Buying Opportunity • Jan 19
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 19%. The fair value is estimated to be CA$6.24, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has been flat over the last 3 years. Reported Earnings • Nov 13
Second quarter 2022 earnings released: CA$0.19 loss per share (vs CA$0.036 loss in 2Q 2021) The company reported a soft second quarter result with increased losses and weaker control over costs, although revenues improved. Second quarter 2022 results: Revenue: CA$25.1m (up 21% from 2Q 2021). Net loss: CA$6.31m (loss widened CA$5.67m from 2Q 2021). Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Recent Insider Transactions • Oct 03
Independent Director recently bought CA$74k worth of stock On the 30th of September, Christian Dumont bought around 12k shares on-market at roughly CA$6.03 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$564k more in shares than they have sold in the last 12 months. Executive Departure • Sep 17
Independent Director Gilles Laurin has left the company On the 9th of September, Gilles Laurin's tenure as Independent Director ended after 12.6 years in the role. As of June 2021, Gilles still personally held only 3.00k shares (CA$33k worth at the time). A total of 5 executives have left over the last 12 months. The current median tenure of the management team is 1.83 years, which is considered inexperienced in the Simply Wall St Risk Model. Announcement • Sep 02
mdf commerce inc. has completed a Follow-on Equity Offering in the amount of CAD 67.84 million. mdf commerce inc. has completed a Follow-on Equity Offering in the amount of CAD 67.84 million.
Security Name: Subscription Receipts
Security Type: Common Stock
Securities Offered: 8,480,000
Price\Range: CAD 8
Discount Per Security: CAD 0.4 Reported Earnings • Aug 13
First quarter 2022 earnings released: CA$0.15 loss per share (vs CA$0.075 loss in 1Q 2021) The company reported a soft first quarter result with increased losses and weaker control over costs, although revenues improved. First quarter 2022 results: Revenue: CA$22.6m (up 9.9% from 1Q 2021). Net loss: CA$4.29m (loss widened 246% from 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jun 16
Consensus forecasts updated The consensus outlook for 2022 has been updated. Expected to report loss instead of -CA$0.15 instead of CA$0.013 per share profit previously forecast. . Revenue forecast unchanged at CA$96.9m Interactive Media and Services industry in Canada expected to see average net income decline 3.3% next year. Consensus price target down from CA$18.50 to CA$16.30. Share price fell 3.7% to CA$10.00 over the past week. Reported Earnings • Jun 12
Full year 2021 earnings released: CA$0.38 loss per share (vs CA$0.39 loss in FY 2020) The company reported a soft full year result with increased losses and weaker control over costs, although revenues improved. Full year 2021 results: Revenue: CA$84.7m (up 12% from FY 2020). Net loss: CA$7.59m (loss widened 32% from FY 2020). Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Price Target Changed • Jun 12
Price target decreased to CA$16.30 Down from CA$18.50, the current price target is an average from 5 analysts. New target price is 56% above last closing price of CA$10.43. Stock is up 74% over the past year. Price Target Changed • Mar 20
Price target decreased to CA$17.90 Down from CA$19.75, the current price target is an average from 5 analysts. New target price is 43% above last closing price of CA$12.56. Stock is up 357% over the past year. Recent Insider Transactions • Mar 18
Independent Director recently bought CA$102k worth of stock On the 15th of March, Jean-François Sabourin bought around 7k shares on-market at roughly CA$14.50 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold CA$4.4m more in shares than they bought in the last 12 months. Announcement • Mar 16
mdf commerce inc. has completed a Follow-on Equity Offering in the amount of CAD 80.000009 million. mdf commerce inc. has completed a Follow-on Equity Offering in the amount of CAD 80.000009 million.
Security Name: Common Shares
Security Type: Common Stock
Securities Offered: 5,517,242
Price\Range: CAD 14.5
Discount Per Security: CAD 0.8265 Announcement • Mar 11
mdf Commerce Inc. Signs Five-Year Strategic Sourcing Renewal for Its Contract Lifecycle Management Solution with Premier Alaska Native Corporation mdf commerce inc. announced a five-year renewal agreement with Alutiiq Professional Consulting, LLC. APC is a sister company to Alutiiq, LLC. The renewed mdf commerce contract lifecycle management solution for APC has dramatically improved team collaboration and operational efficiency. This enterprise-grade solution streamlines the complete contract lifecycle, which provides uniform and comprehensive visibility to all contracts and ensures proactive and automated CLM processes. Included is efficient document storage and administration as well as dynamic search capability and reporting. Complying with US Federal Government regulations is of paramount importance to all federal contractors, and APC, Alutiiq and its companies can count on the CLM system’s integrated clause management feature to ensure the tracking of Federal Acquisition Regulation and Defense Federal Acquisition Regulation Supplement clauses, the associated versions, and the subsequent government regulations consistent with contracted tasks. Announcement • Mar 05
mdf commerce inc. Commerce Adds Enhanced Collaboration Features to its Contract Lifecycle Management Solution mdf commerce inc. announced the launch of significant enhancements to its contract lifecycle management (CLM) solution called ASC. These improved features boost efficiencies for clients and underscore the commitment of mdf commerce to innovation and maintaining market leadership in the strategic sourcing and contract lifecycle management industries. These new capabilities include a complete workflow integration with the CLM and RFx modules allowing users to easily perform and track online document editing and review functions directly within the mdf commerce Strategic Sourcing modules. The advances equip users with progressive online document collaboration features such as: A single-view of in-progress collaborations; Task management such as task filters, collaborator status, review reminders and assignment delegation; Real-time notifications when reviewers are tagged for review or comments or tasks are assigned; The ability to add unlimited unlicensed and/or external collaborators; A version history which records a complete list of all document revisions and who made each change. These features are available standard in both out-of-the-box value and configurable premium solution offerings. The mdf commerce CLM and sourcing solutions are designed to create efficiencies for contract, RFx and invoicing management for international clients, including AIMCo (Alberta, Canada), BGIS and AMD (International), and thousands of government, education and healthcare agencies and systems across North America. Announcement • Mar 04
Mdf Commerce and Contentserv Join Forces to Deliver A Seamless Product Data Experience to Customers mdf commerce inc. delighted to announce a partnership between its Supply Chain platform InterTrade and Contentserv, a global Product Experience Platform leader. By combining the InterTrade Product Catalogue and Contentserv’s integrated Product Information Management (PIM) and Digital Asset Management (DAM) solution, clients will be able to easily manage and enrich large volumes of product data from multiple sources. This will enable them to deliver high-quality and consistent product content across all sales channels, in turn providing an outstanding product experience for end consumers. InterTrade’s Product Catalogue is used by major retailers to aggregate detailed and clean product data from many suppliers at once before it enters a PIM system. Contentserv’s PIM and DAM solution enables manufacturers and retailers to centrally enrich, validate, manage and share product information. This partnership allows both parties to provide an improved end-to-end information flow to clients that are seeking to reduce time to market while boosting efficiencies and global market opportunities. Executive Departure • Feb 21
VP of Corporate Development & Chief Legal Officer has left the company On the 16th of February, Hélène Hallak's tenure as VP of Corporate Development & Chief Legal Officer ended after 1.2 years in the role. As of December 2020, Hélène personally held 21.42k shares (CA$263k worth at the time). A total of 2 executives have left over the last 12 months. Reported Earnings • Feb 12
Third quarter 2021 earnings released: CA$0.14 loss per share (vs CA$0.13 loss in 3Q 2020) The company reported a soft third quarter result with increased losses and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: CA$21.4m (up 18% from 3Q 2020). Net loss: CA$2.85m (loss widened 52% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Feb 12
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 300%. Over the next year, revenue is forecast to grow 13%, compared to a 79% growth forecast for the Interactive Media and Services industry in Canada. Is New 90 Day High Low • Feb 05
New 90-day high: CA$15.95 The company is up 61% from its price of CA$9.91 on 06 November 2020. The Canadian market is up 13% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Interactive Media and Services industry, which is up 76% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$6.96 per share. Announcement • Jan 26
InterTrade Solution of Mdf Commerce to Provide Essential Digital Supply Chain Services to Indigo mdf commerce inc. announces that Indigo Books & Music Inc. has signed a service agreement with InterTrade, the supply chain solution of mdf commerce for EDI fulfilment services. With this new partnership, Indigo underscores InterTrade’s reliable advanced supply chain technology and superior customer service. Through this agreement, mdf commerce provides cloud-based electronic fulfillment (EDI) services and vendor enablement support to Indigo. This helps to support Indigo’s growth objectives and improve operating efficiencies with vendors. This partnership also includes extensive additional support to further help Indigo implement industry best practices and optimize vendor supply chain processes. Is New 90 Day High Low • Jan 19
New 90-day high: CA$14.01 The company is up 40% from its price of CA$10.01 on 20 October 2020. The Canadian market is up 13% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Interactive Media and Services industry, which is up 78% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$5.69 per share. Announcement • Jan 13
Mdf Commerce Strategic Sourcing Platform Successfully Implements Comprehensive Contract Lifecycle Management Solution for Alberta Investment Management Corporation mdf commerce inc. announced an agreement with the Alberta Investment Management Corporation and the successful implementation of CLM tools and services from its Strategic Sourcing ASC solution. The solution implemented for AIMCo enables effective online contract and invoice management, document storage and administration, robust searching and reporting as well as many other powerful features designed to streamline the contract and invoicing process and save the organization thousands of work hours through automation. From February to June 2020, close to 1,000 invoices were processed on the mdf commerce CLM system, representing $19 million in invoices.