Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V: HOP) today announced its financial performance during the third quarter ended September 30, 2013.
Telehop has continued to deliver positive net income and EBITDA by focusing on cost efficiencies of the core business and with the launch of the new Telehop Business Services.
“Our expansion into new markets like Telehop Business Services is now starting to pay off. We will continue to find new products and markets to expand into, that will offset declines in traditional dial around,” said Rajiv Jagota, President CEO, Telehop.
During the third quarter, Telehop saw EBITDA rise to $103,511 from $77,131 during the same period last year. Operating income grew to $59,946 from $52,850 a year ago. Year to date EBITDA is $269,983 and operating income is $133,774.
Company highlights during the third quarter include:
- Expansion of our new Telehop Business Services and integration into full operations of the company.
- Development of agents and resellers of Telehop Business Services
- Expansion of online marketing initiatives focused on the residential market.
FINANCIAL OVERVIEW
Consolidated Highlights | Three months ended September 30 | Nine months ended September 30 | |||||||
2013 | 2012 | 2013 | 2012 | ||||||
Revenue | $2,134,518 | $2,095,027 | $6,313,837 | $6,932,829 | |||||
Gross margin | $901,810 | $984,063 | $2,693,742 | $3,107,223 | |||||
Gross margin % | 42.3% | 47.0% | 42.7% | 44.8% | |||||
EBITDA1 | $103,511 | $77,131 | $269,983 | $63,156 | |||||
Operating income (loss) | $59,946 | $52,850 | $153,222 | $(11,535) | |||||
Net income (loss) | $51,155 | $38,518 | $133,774 | $(39,729) | |||||
Earnings (loss) per share - basic | $0.002 | $0.002 | $0.006 | $(0.002) |
1 We define EBITDA as earnings before interest costs,
taxes, depreciation and amortization. EBITDA, which is a
non-GAAP financial measure, is a standard measure used in the
telecommunications industry 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 meaning
under IFRS. In evaluating these measures, investors should consider that
the methodology applied in calculating such measures may differ among
companies and analysts. Below is a reconciliation of “EBITDA” to net
income (loss) for the periods presented:
EBITDA Reconciliation | Three months ended September 30 | Nine months ended September 30 | |||||||
2013 | 2012 | 2013 | 2012 | ||||||
Net income | $51,155 | $38,518 | $133,774 | $(39,729) | |||||
Interest costs | 8,791 | 14,346 | 26,719 | 32,392 | |||||
Income taxes | - | - | - | - | |||||
Amortization | 43,565 | 24,267 | 109,490 | 70,493 | |||||
EBITDA1 | 103,511 | 77,131 | 269,983 | 63,156 |
A complete financial reporting package, including the September 30, 2013 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 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 September 30, 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.
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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. 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.
Contacts:
Mr. Rajiv Jagota, 416-494-4490
President
and CEO
rjagota@telehop.com