Telehop Announces First Quarter 2012 Financial Results
29 Mai 2012 - 11:00PM
PR Newswire (Canada)
TORONTO, May 29, 2012 /CNW/ - Telehop Communications Inc.
("Telehop" or the "Company"), today announces financial results for
the first quarter ended March 31, 2012 in accordance with
International Financial Reporting Standards ("IFRS"). The first
three months of 2012 the company has realized a number of changes
and improvements which will help to accelerate the growth of the
company in the future: -- Completion and successful transition to
new upgraded switch technology and increased capacity to expand
customers base. -- Operating expenses were down $242,818 or 18% due
to a strong focus on cost reduction and efficiencies over the
entire business. -- Increased sales focus on driving sales of
subscription services such as Long Distance, VoIP Phone and High
Speed Internet. FINANCIAL OVERVIEW
_____________________________________________________________ |
Consolidated Highlights |Three months ended March31,|
|________________________________|___________________________| | |
2012| 2011|
|________________________________|__________|_________________|
|Revenue |$2,448,700| $2,671,104|
|________________________________|__________|_________________|
|Gross margin |$1,027,191| $1,138,532|
|________________________________|__________|_________________|
|Gross margin % | 42%| 43%|
|________________________________|__________|_________________|
|EBITDA1 | $(41,123)| $(147,599)|
|________________________________|__________|_________________|
|Operating income (loss) | $(69,596)| $(202,382)|
|________________________________|__________|_________________|
|Net loss | $(93,560)| $(157,980)|
|________________________________|__________|_________________|
|Basic and diluted loss per share| $(0.01)| $(0.01)|
|________________________________|__________|________________|
Earnings before interest, taxes, depreciation and amortization
("EBITDA") should not be considered as a substitute for net loss
determined in accordance with IFRS. A reconciliation of EBITDA to
net loss is detailed in a separate section. EBITDA is a standard
used in the telecommunications industry to assist in understanding
and comparing operating results. The Company believes that EBITDA
is a useful measure of the Company's ability to service debt,
invest in capital equipment or distribute dividends to its
shareholders. Revenue decreased by 8% to $2.4 million in the first
quarter of 2012 compared to $2.7 million in 2011. This decrease was
driven by declines in casual calling and wholesale services, which
were partially offset by growth in subscription services. Lower
casual calling revenue was lower year over year due to the shift in
customer pattern from using traditional landline services to using
wireless services and online long distance competitors such as
Skype. The decline in quarter over quarter wholesale revenue
can be attributed to aggressive price competition and multiple
entrants in the market. Subscription revenue will continue to
be the driving force for next quarter's earnings with more product
choices and features, price plans and marketing initiatives geared
towards subscriber acquisition and retention. The decrease in gross
margin was primarily due to a decline in revenue coupled with
increased telecommunication costs related to the new switch
implementation and customer migration. EBITDA increased by $107,954
in the first quarter 2012, compared to the first quarter in 2011.
The increase in EBITDA was primarily attributable to overall cost
savings initiatives across the company. A complete financial
reporting package, including the 2011 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
investorinquiry@telehop.com or via phone at 416-494-4490.
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,
2011. 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. , 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. Telehop Communications Inc. CONTACT:
Company Contact:Mr. Rajiv JagotaPresident and CEO(416) 494
4490rjagota@telehop.com
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