Consolidated Balance Sheets (Unaudited - Prepared by Management) June 30 September 30 As at 2000 1999 Assets Current assets: Cash $27,244,581 $15,300,454 Accounts receivable 23,922,719 27,229,929 Contract work in process 3,570,237 3,392,111 Prepaid expenses 1,978,254 1,310,608 56,715,791 47,233,102 Restricted cash 850,136 545,982 Capital assets 8,510,589 7,869,486 Goodwill and other assets 34,657,758 22,186,265 Deferred income taxes 678,573 625,587 $101,412,847 $78,460,422 Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $32,130,881 $27,713,688 Deferred revenue	 5,039,335 4,457,822 Income taxes payable 742,540 1,698,638 Current portion of long-term debt 168,758 1,827,086 38,081,514 35,697,234 Long-term debt 5,421,638 2,151,185 Shareholders' equity: Share capital 50,607,772 35,613,907 Retained earnings 7,695,137 5,492,940 Cummulative translation adjustment (393,214) (494,844) 57,909,695 40,612,003 $101,412,847 $78,460,422 Consolidated Statements of Operations and Retained Earnings (Unaudited - Prepared by Management) June 30 June 30 For the nine months ended 2000 1999 Revenue $140,490,919 $101,384,170 Cost of Sales 101,131,951 73,462,770 Gross Margin 39,358,968 27,921,400 Operating expenses: Salaries and benefits 23,524,816 17,346,508 General and administrative 7,190,469 4,746,086 Occupancy costs 1,640,810 987,917 Earnings before interest expense, income taxes, depreciation and goodwill amortization 7,002,873 4,840,889 Depreciation 1,269,901 960,456 Interest expense 245,966 266,130 Income before income taxes and goodwill amortization 5,487,006 3,614,303 Income taxes 2,374,993 1,259,812 Income before goodwill amortization 3,112,013 2,354,491 Goodwill amortization, net of taxes of $18,000 (1999-nil) 909,816 390,691 Net income $2,202,197 $1,963,800 Retained earnings, beginning of period 5,492,940 2,682,142 Less loss on redemption of shares - 65,965 Retained earnings, end of period $7,695,137 $4,579,977 Net income per share - basic $ 0.12 $ 0.14 Net income per share - fully diluted 0.12 0.14 Income per share before goodwill amortization - basic 0.17 0.17 Income per share before goodwill amortization - fully diluted 0.17 0.17 Consolidated Statements of Cash Flows (Unaudited-Prepared by Management) June 30 June 30 For the nine months ended 2000 1999 Cash provided by (used in): Cash flows from operating activities: Net income $2,202,197 $1,963,800 Items not involving cash: Deferred income taxes 1,032 (512,910) Depreciation 1,269,901 960,456 Goodwill amortization 927,816 390,691 Net changes in non-cash working capital balances: Accounts receivable 6,148,981 (10,064,721) Contract work in process (154,227) 852,730 Prepaid expenses (626,661) 215,169 Accounts payable and accrued liabilities (5,371,285) 6,557,363 Income taxes payable (895,264) 1,135,271 Deferred revenue 544,029 3,553,987 Net cash provided by operating activities 4,046,519 5,051,836 Cash flows from financing activities: Long-term debt 3,391,756 5,000,000 Long-term debt repayments (1,779,630) (1,425,240) Issuance of common shares for cash 10,478,808 978,122 Redemption of common shares (65,965) Increase (reduction) in restricted cash (300,854) 365,750 Net proceeds from special warrant issue 7,250,000 Net cash provided by financing activities 11,790,080 12,102,667 Cash flows from investing activities: Acquisition of subsidiaries (net of (bank indebtedness assumed) cash acquired of ($866,031); 1999 - $5,919,627) (2,205,892) (8,676,394) Purchase of capital assets (1,765,020) (830,046) Net cash used in investing activities (3,970,912) (9,506,440) Change in cash balance due to foreign exchange 78,440 (313,410) (Decrease)/Increase in cash 11,944,127 7,334,653 Cash, beginning of period 15,300,454 3,120,158 Cash, end of period $27,244,581 $10,454,811 Supplementary information: Interest paid $218,891 $261,048 Income taxes paid 2,903,844 68,507 Shares issued for non-cash consideration 6,848,173 3,691,800 Consolidated Statements of Operations and Retained Earnings (Unaudited - Prepared by Management) June 30 June 30 For the three months ended 2000 1999 Revenue $44,469,269 $36,911,205 Cost of Sales 30,753,164 25,547,652 Gross Margin 13,716,105 11,363,553 Operating expenses: Salaries and benefits 8,044,640 7,064,106 General and administrative 2,274,531 2,019,347 Occupancy costs 598,192 479,158 Earnings before interest expense, income taxes, depreciation and goodwill amortization 2,798,742 1,800,942 Depreciation 439,684 280,756 Interest expense 82,956 94,964 Income before income taxes and goodwill amortization 2,276,102 1,425,222 Income taxes 930,874 492,110 Income before goodwill amortization 1,345,228 933,112 Goodwill amortization, net of taxes of $6,000 (1999-nil) 374,493 160,774 Net income $970,735 $772,338 Net income per share - basic 0.05 0.05 Net income per share - fully diluted 0.05 0.05 Income per share before goodwill amortization - basic 0.07 0.07 Income per share before goodwill amortization - fully diluted 0.07 0.07 Consolidated Statements of Cash Flows (Unaudited-Prepared by Management) June 30 June 30 For the three months ended 2000 1999 Cash provided by (used in): Cash flows from operating activities: Net income $970,735 $772,338 Items not involving cash: Deferred income taxes 26,189 (209,066) Depreciation 439,684 280,756 Goodwill amortization 380,493 160,774 Net changes in non-cash working capital balances: Accounts receivable 7,571,046 (11,222,175) Contract work in process 4,772,852 39,224 Prepaid expenses (444,966) 191,665 Accounts payable and accrued liabilities (8,706,342) 8,366,110 Income taxes payable 1,469,988 492,109 Deferred revenue (3,207,278) 2,842,509 Net cash provided by operating activities 3,272,401 1,714,244 Cash flows from financing activities: Long-term debt 2,841,756 - Long-term debt repayments (152,764) (756,369) Issuance of common shares for cash 9,915,158 447,072 Redemption of common shares - - Net proceeds from special warrant issue - 7,250,000 Reduction in restricted cash 293,969 365,750 Net cash provided by financing activities 12,898,119 7,306,453 Cash flows from investing activities: Acquisition of subsidiaries (19,687) (7,218,693) Purchase of capital assets (218,818) (137,048) Net cash used in investing activities (238,505) (7,355,741) Change in cash balance due to foreign exchange 155,163 (206,634) (Decrease)/Increase in cash 16,087,178 1,458,322 Cash, beginning of period 11,157,403 8,996,489 Cash, end of period $27,244,581 $10,454,811 Supplementary Information: Interest paid $56,503 $88,711 Income taxes paid 433,861 (3,429) Shares issued for non-cash consideration 4,417,973 470,000 Segmented Information: The Company provides integrated marketing communication services to its clients. While the Company has subsidiaries in Canada and the United States, it operates as a global business and has no distinct operating segments The tables below set out the following information: By Customer Location By Geographic Area June 30, 2000 Revenue Gross Capital Goodwill Margin Assets Canada $36,996,306 $14,537,694 $7,625,559 $23,045,522 United States 103,494,613 24,821,274 885,030 11,256,691 $140,490,919 $39,358,968 $8,510,589 $34,302,213 June 30, 1999 Canada $38,789,962 $13,428,418 $5,642,058 $10,010,206 United States 62,594,208 14,492,982 1,301,277 6,445,206 $101,384,170 $27,921,400 $6,943,335 $16,455,412