|By Business Wire||
|May 30, 2014 04:48 PM EDT||
Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V:HOP) today announced its financial performance during the first quarter ended March 31, 2014.
Telehop has continued to deliver a positive Adjusted EBITDA for the quarter of $190,888 compared to $62,478 in 2013. EBITDA for the quarter was $128,219 after considering transaction costs of $62,669 incurred during the quarter related to acquisitions.
The Company is now accelerating our product expansion into higher growth markets of voice and data wireless services. Through the acquisitions of G3 Telecom and, subsequent to the first quarter, iRoam, Telehop is now diversifying revenues from declining traditional long distance dial around markets. Product offerings of SIM cards, data roaming devices and worldwide Wi-Fi roaming solutions are showing opportunities for revenue growth in a variety of enterprise and consumer offerings. The Company expects to continue to explore expansion opportunities in these emerging wireless driven markets.
“This quarter we were able to start integrating G3 operations with Telehop operations and begin delivering on our growth strategy. The G3 acquisition in the first quarter and the iRoam acquisition in the second, are perfect springboards to new markets and customers,” said Rajiv Jagota, President CEO, Telehop.
Company highlights during the quarter include:
- Completed purchase agreement to acquire shares and assets of G3 Telecom long distance and wireless business on February 28, 2014.
- Start operational and sales consolidation of Telehop and G3 companies and develop marketing roadmap for 2014.
- Began the application process for wireless spectrum license transfers with Industry Canada and various jurisdictions in the United States. Industry Canada has subsequently approved the transfers.
The Company announced that it had filed an application with the TSX
Venture Exchange to extend the expiry date of 3.75 million $0.15 share
purchase warrants that were issued on July 24, 2012 and currently are
set to expire July 24, 2014. Telehop is requesting the warrants be
extended to January 31st, 2015.
Three months ended
|Gross margin %||41.5%||40.4%|
|Earnings per share - basic||$||0.000||$||0.002|
1 We define EBITDA as earnings before interest costs, taxes, depreciation and amortization and Adjusted EBITDA as earnings before interest costs, taxes, depreciation, amortization and acquisition transaction costs. EBITDA and Adjusted EBITDA which are both non-GAAP financial measure, is a measure used in to assist in understanding and comparing operating results that exclude costs incurred related to the acquisition transactions which are expensed as incurred and not capitalized.. EBITDA and Adjusted 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 and Adjusted EBITDA are not measures of financial performance nor do they 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 and Adjusted 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” and “Adjusted EBITDA” to net
income (loss) for the periods presented:
Three months ended
|Acquisition transaction costs||62,669||-|
A complete financial reporting package for the March 31, 2014 quarter, including the December 31, 2013 Audited Annual 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, 2013.
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.
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. 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.