[May 29, 2015] |
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Telehop Announces First Quarter Results
Telehop Communications Inc. ("Telehop" or the "Company"), (TSX-V:HOP)
today announced its financial performance during the first quarter
ending March 31, 2015.
Revenue for Q1 2015 was up 68% to approximately $4,757,000 with a net
loss of ($135,000) or ($0.004) loss per common share compared to revenue
of about $2,834,000 with a net income of $5,000 or $0.000 per common
share for Q1 2014. The Company's gross margin for the first quarter was
approximately $1,879,000 or 40% compared to approximately $1,177,000 or
42% in the prior year. Gross margins have decreased by 2% in 2015
primarily impacted by changes in international exchange rates. EBITDA
for Q1 was approximately $137,000 compared to $127,000 in the prior year.
"Telehop is starting to realize the positive results of the Company's
transformation plan from a long distance carrier into wireless solutions
provider. The results have been $1 million in wireless sales in Q1 and
we look forward to continuing the momentum in 2015." said Rajiv Jagota,
President, CEO, Telehop.
Company highlights during the first quarter include:
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Increased online branding initiatives of Telehop, G3 Telecom, G3
Wireless, and iRoam
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Increased enterprise wireless sales and consumer bundle plans
FINANCIAL OVERVIEW
Consolidated Highlights
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Quarter ended March 31
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2015
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2014
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Revenue
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$4,757,069
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$2,833,843
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Gross margin
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$1,878,550
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$1,177,120
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Gross margin %
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40%
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42%
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EBITDA1
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$136,892
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$126,633
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Net income (Loss)
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$(135,246)
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$4,830
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Earnings per share - basic
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($0.004)
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$0.000
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1 We define EBITDA as earnings before interest costs, taxes,
depreciation and amortization as earnings before interest costs, taxes,
depreciation, and amortization. EBITDA is non-GAAP financial measure
used in to assist in understanding and comparing operating results.
EBITDA is reviewed regularly by management and our Board of Directors in
assessing performance and in making decisions regarding the ongoing
operations of the business and the ability to generate cash flows.
Generally, a non-GAAP financial measure is a numerical measure of a
company's performance, financial position or cash flows that either
excludes or includes amounts that are not normally excluded or included
in the most directly comparable measure calculated and presented in
accordance with IFRS. EBITDA is not a measure of financial performance
nor does it have a standardized meanings under IFRS. In evaluating these
measures, investors should consider that the methodology applied in
calculating such measures may differ among companies and analysts. We
have reconciled EBITDA to its most comparable measure calculated in
accordance with IFRS, being net income (loss) in the tables below.
Below is a reconciliation of "EBITDA" to net income (loss) for the
periods presented:
EBITDA Reconciliation
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Quarter ended March 31
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2015
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2014
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Net income (loss)
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$(135,246)
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$4,830
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Interest costs
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$97,898
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$43,554
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Income taxes
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-
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-
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Amortization
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$174,241
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$78,249
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EBITDA1
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$136,892
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$126,633
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A complete financial reporting package, including the 2015 Interim
Consolidated Financial Statements and Notes to the Financial Statements
and MD&A, is available at our corporate website (www.telehop.com),
at SEDAR website (www.sedar.com)
or via email to [email protected]
or via phone at 416-499-5463.
FCC (News - Alert) APPROVAL AND SHARES RELEASED FROM ESCROW
The Company noted in its annual financial statements that there were
5,000,000 shares in escrow as per the G3 Telecom purchase agreement in
the event the FCC fails to approve the transfer consents of G3 Telecom's
U.S. subsidiary to the Company's control. As of May 28, 2015 the FCC
licences have successfully transferred to the Company and the shares
held in trust will be released by June 12, 2015.
GRANTING OF OPTIONS
Telehop will be granting Rajiv Jagota, President & Chief Executive
Officer, 50,000 stock options at an exercisable price of $0.10 in
accordance with Mr. Jagota's employment contract.
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its plans
constitute "forward-looking statements" within the meaning of Canadian
securities laws. By their nature, forward-looking statements require the
Company to make assumptions and are subject to inherent risks and
uncertainties. The forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially
different from any performance or achievement expressed or implied by
such forward-looking statements. We direct you to our Company's
Management's Discussion and Analysis filed for the period ended December
31, 2014.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
About Telehop
Telehop Communications Inc. (TSX-V: HOP) was founded and headquartered
in Toronto, Ontario in 1993, and has grown into one of the largest
alternative telecommunications providers to both residential and
business customers.
Telehop originally began offering residential and business two-way
monthly 'flat rate' calling services in the Greater Toronto area between
communities where a call would otherwise be a long distance call. In
1994, Telehop became one of Canada's few Equal Access Long Distance
Providers, allowing it to offer its customers full service long distance
calling globally at significantly lower rates. Telehop has broadened
into home phone, business services, and wireless communications. The
Canadian Radio-television and Telecommunications Commission ("CRTC") has
licensed Telehop as a Class "A" telecommunications carrier.
Telehop's dedication and priority is providing residential and
businesses with exceptional phone services at competitive rates without
sacrificing quality service.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150529006060/en/
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