PNI Digital Media Reports Fiscal First Quarter 2012 Financial Results


VANCOUVER, BRITISH COLUMBIA--(Marketwire -03/06/12)- PNI Digital Media (TSX: PN.TO - News)(OTC.BB: PNDMF.OB - News) ("PNI"), the leading innovator in digital media solutions for retailers, reported financial results for the first quarter of fiscal 2012 ended December 31, 2011.


Fiscal Q1 2012 Financial Highlights

--  Revenue was $6.9 million compared to $7.7 million in the same year-ago
--  Transactional revenue was $5.8 million or 83% of total revenue for the
--  Generated IFRS profit before income taxes of $1.0 million for the
    quarter, compared to $1.5 million in the same year-ago quarter
--  Non-IFRS adjusted EBITDA(1) was $1.7 million, compared to $2.3 million
    in fiscal Q1 2011
--  Processed 6.7 million transactions over the PNI Digital Media Platform,
    up 5% from the same year-ago quarter
--  Strong balance sheet of $5.4 million in cash and no debt

Fiscal Q1 2012 Operational Highlights & Recent Events

--  Signed multi-year agreement with Rite Aid Corporation to provide and
    operate all-new online photo center
--  Signed multi-year agreement with Costco Canada to provide and operate
    all-new online business printing service
--  Launched new Photo Art Library for Tesco's online photo center
--  Moved from the TSX-Venture Exchange to the Toronto Stock Exchange on
    October 18, 2011
--  Flagship social stationery offering now live and taking orders at

"Our revenue continues to transition as consumer buying patterns migrate from prints to personalized products," said Kyle Hall, CEO of PNI Digital Media. "We're excited about this next chapter for our company with the launch of our new Stationery and Business Printing product lines taking us into new markets."

Conference Call

The Company will host a conference call Tuesday, March 6 at 4:30 p.m. ET (1:30 p.m. PT) to discuss these financial results. PNI Digital Media's CEO Kyle Hall, and CFO, Simon Bodymore, will host the presentation, followed by a question and answer period.

Dial-In Number: 1-888-241-0394

International: 1-647-427-3413

Conference ID#: 54944014

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

PNI Digital Media will also provide a live webcast and slide presentation, which will be available on the company's website at An archived replay of the webcast will be available on the company's website for 45 days following the live event.


Consolidated Statements of Financial Position

                                      December 31, 2011 September 30, 2011


 Current assets
  Cash and cash equivalents          $        5,390,268 $        3,936,176
  Accounts receivable                         5,302,272          4,535,912
  Prepaid expenses and other current
   assets                                       507,447            460,140

                                             11,199,987          8,932,228

 Property and equipment                       4,827,264          5,140,150
 Deferred income tax asset                    7,020,783          7,065,857
 Intangible assets                            1,100,587            680,437
 Goodwill                                       640,715            654,222


                                     $       24,789,336 $       22,472,894


 Current liabilities
  Accounts payable and accrued
   liabilities                       $        4,417,827 $        3,284,311
  Current portion of deferred revenue           352,661            250,323
  Current portion of finance lease
   obligations                                        -                  -

                                              4,770,488          3,534,634

 Deferred revenue                               282,145             33,898
                                              5,052,633          3,568,532

 Shareholders' Equity

 Share capital                       $       66,526,598 $       66,420,572
 Contributed surplus                         19,495,570         19,522,420
                                             86,022,168         85,942,992

 Deficit                                    (65,972,144)       (67,012,367)

 Accumulated other comprehensive loss          (313,321)           (26,263)

                                            (66,285,465)       (67,038,630)

                                             19,736,703         18,904,362

                                     $       24,789,336 $       22,472,894

Consolidated Statements of Income and Comprehensive Income

                                                 Three Months Ended
                                      December 31, 2011  December 31, 2010

 Revenue                             $        6,950,376 $        7,733,805
 Cost of sales                                2,591,569          2,654,525
 Gross Profit                                 4,358,807          5,079,280

  Software development                        2,164,177          2,305,854
  General and administration                  1,093,029          1,100,309
  Sales and marketing                           170,954            323,845

                                              3,428,160          3,730,008

 Profit from operations                         930,647          1,349,272

 Foreign exchange gain                          105,286            170,439
 Finance income                                     559                 48
 Finance costs                                        -             (5,536)


                                                105,845            164,951

 Profit (loss) before income tax              1,036,492          1,514,223

 Current income tax recovery
  (expense)                                           -                  -
 Deferred income tax recovery
  (expense)                                       3,731           (534,533)
 Income tax recovery (expense)                    3,731           (534,533)

 Profit for the period                        1,040,223            979,690

 Other comprehensive gain (loss):

  Cumulative translation adjustment            (287,058)          (456,637)

 Total comprehensive income for the
  period                             $          753,165 $          523,053

 Earnings (loss) per share
 Basic                               $             0.03 $             0.03
 Fully diluted                       $             0.03 $             0.03

Non-IFRS Financial Measures

                                                 Three Months Ended
                                      December 31, 2011  December 31, 2010

Net profit in accordance with IFRS   $        1,040,223 $          979,690
Amortization                                    670,106            689,379
Interest expense                                      -              5,536
Income taxes                                     (3,731)           534,533
Stock based compensation expense                 79,269            329,634
Unrealized foreign exchange (gain)              (95,672)          (195,888)

Adjusted EBITDA                      $        1,690,195 $        2,342,884


1 - Non-IFRS Measures

The Company continues to provide all information required in accordance with IFRS, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only IFRS financial measures. Accordingly, the Company uses non-IFRS financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. The primary non-IFRS financial measures utilized by the Company include adjusted EBITDA. Adjusted EBITDA is non-IFRS financial measure which the Company defines as net profit plus amortization, interest expense, tax expense, share-based compensation expense and unrealized foreign exchange loss (gain).

To supplement the Company's financial statements presented on an IFRS basis, we believe that these non-IFRS measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. These adjustments to the Company's IFRS results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results and trends and performance. Management uses these non-IFRS measures to evaluate the Company's financial results, develop budgets, manage expenditures, and determine employee compensation. The presentation of additional information is not meant to be considered in isolation or as a substitute for or superior to net (loss) earnings or net (loss) earnings per share determined in accordance with IFRS.


All amounts are expressed in Canadian dollars. This notice is qualified in its entirety by reference to the Company's financial statements and accompanying Management Discussion and Analysis, which are accessible on the SEC'S website at and on SEDAR at

About PNI Digital Media- Founded in 1995, PNI Digital Media operates the PNI Digital Media Platform, which provides transaction processing and order routing services for major retailers. The PNI Digital Media Platform connects consumer-ordered digital content, whether from online, in-store kiosks, desktop software or mobile phones, with retailers that have on-demand manufacturing capabilities for the production of personalized products such as photos, photo books and calendars, business cards and stationery. PNI Digital Media successfully generates millions of transactions each year for retailers and their thousands of locations worldwide.

Further information on our company can be found at

The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties. PNI Digital Media's actual results could differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changes in technology, employee retention, inability to deliver on contracts, failure of customers to continue marketing the online solution, competition, general economic conditions, foreign exchange and other risks detailed in the Company's annual report and other filings. Additional information related to the Company can be found on SEDAR at and on the SEC'S website at The information contained herein is subject to change without notice. PNI Digital Media shall not be liable for technical or editorial errors or omissions contained herein.

The TSX has neither approved nor disapproved the information contained in this release. PNI Digital Media relies upon litigation protection for "forward-looking" statements.

PNI Digital Media is a registered trademark of PNI Digital Media Inc. All other trademarks are property of their respective owners.

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


PNI Digital Media Inc. - Financial Information
Simon Bodymore
(604) 893-8955 ext.229
PNI Digital Media Inc. - Investor Relations and Press
Simon Cairns
(866) 544-4881
Twitter: @pni_media
Liolios Group, Inc.
Michael Koehler or Matt Glover

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