[May 27, 2016] |
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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, 2016.
Revenue for Q1 2016 was down 15% to approximately $4,021,000 with a net
loss of ($92,000) or ($0.003) loss per common share compared to revenue
of about $4,757,000 with a net loss of ($135,000) or ($0.004) per common
share for Q1 2015. The Company's gross margin for the first quarter was
approximately $1,490,000 or 37% compared to approximately $1,879,000 or
39% in the prior year. Gross margins have decreased by 2% in 2016
primarily impacted by changes in international foreign exchange rates.
EBITDA for Q1 was approximately $126,000 compared to $137,000 in the
prior year.
"The decrease in wireless roaming sales was unfortunate due to the loss
of a key supplier relationship. Our team was able to mitigate the
decrease in sales through a keen effort to decrease general and
administrative expenses. Also, revenue from new business efforts is
increasingly offsetting traditional long distance declines. Therefore,
despite sales decreasing by 15% our EBITDA only decreased by 8%. In
2016, we will look to build new supplier relationships for wireless
roaming services and other enterprise solutions that offer more
consistent revenue," said Rajiv Jagota, CEO of Telehop Communications.
FINANCIAL OVERVIEW
Consolidated Highlights
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Quarter ended March 31
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2015
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2016
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Revenue
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$4,757,069
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$4,021,000
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Gross margin
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$1,878,550
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$1,490,000
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Gross margin %
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39%
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37%
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EBITDA1
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$136,892
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$126,037
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Net income (Loss)
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$(135,246)
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$(91,683)
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Earnings per share - basic
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($0.004)
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($0.003)
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1We define EBITDA as earnings before interest costs, taxes,
depreciation and amortization as earnings before interest costs, taxes,
depreciation, and amortization. EBITDA is non-GAAP financial measure
used in to assist in understanding and comparing operating results.
EBITDA is reviewed regularly by management and our Board of Directors in
assessing performance and in making decisions regarding the ongoing
operations of the business and the ability to generate cash flows.
Generally, a non-GAAP financial measure is a numerical measure of a
company's performance, financial position or cash flows that either
excludes or includes amounts that are not normally excluded or included
in the most directly comparable measure calculated and presented in
accordance with IFRS. EBITDA is not a measure of financial performance
nor does it have a standardized meanings under IFRS. In evaluating these
measures, investors should consider that the methodology applied in
calculating such measures may differ among companies and analysts. We
have reconciled EBITDA to its most comparable measure calculated in
accordance with IFRS, being net income (loss) in the tables below.
Below is a reconciliation of "EBITDA" to Net income (loss) for the
periods presented:
EBITDA Reconciliation
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Quarter ended March 31
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2015
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2016
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Net income (loss)
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$(135,246)
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$(91,683)
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Finance costs, net
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$97,898
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$89,052
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Depreciation & Amortization
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$174,241
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$128,668
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EBITDA1
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$136,892
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$126,037
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A complete financial reporting package, including the 2016 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.
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, 2015.
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/20160527005834/en/
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