CALGARY, AB / ACCESSWIRE / December 9, 2015 / Platinum Communications Corp. (TSX-V: PCS) today announced financial results for the fiscal year ending August 31, 2015.
Highlights for 2015 fiscal year, include the following:
- Platinum's revenues from operations for the fiscal year ending August 31, 2015 decreased by 2% compared to fiscal 2014. The corporation's commercial revenues increased 18% while its residential revenues decreased 12% as a result of the increased focus on commercial customers.
- Gross profit also decreased by 2% due to increased costs to service commercial customers. Earnings before interest, tax, depreciation and amortization decreased due to increased transaction costs related to the sale of company as well as the reduction in gross profit for the year ended 2015 compared to fiscal 2014.
- Cash provided by operating activities was $1,610,216 for fiscal 2015 compared to $1,207,552 in fiscal 2014, an increase of 33%. Platinum recorded Net Income of $149,978 for the fiscal 2015 a decrease of 9% over the net income recorded in the same period of the previous year.
As previously reported Platinum has entered into an arrangement agreement with Xplornet Communications Inc. whereby Xplornet will acquire all of the issued and outstanding common shares of Platinum for cash consideration of $.16 per share. The transaction has been approved by the TSXV, the security holders and Court of Queen's Bench of Alberta. The original outside date for the closing of the transaction of November 30, 2015 has been extended to December 18, 2015.
Platinum is a leading provider of superior quality fixed wireless Internet and Broadband solutions in Alberta. Based in Calgary, Platinum operates a wireless broadband network that utilizes Next-Generation Wimax technology to bring fast, reliable and affordable Internet and digital phone service to residents and businesses across the province. Serving approximately 10,000 customers in over 180 communities, Platinum caters primarily to rural and near-urban markets that are often beyond the reach of traditional Internet providers. Platinum's high quality infrastructure, excellent service record and ever-growing network andcapabilities, make it the provider of choice for customers within its vast coverage area. For more information please visit our website at www.platinum.ca orcall 403-301-4591.
Notes:
1) Includes the previously announced acquisitions of Hybrid and Pathcom customers from November 1, 2013 and January 1, 2014 respectively.
2) Gross Profit is a widely accepted measure of financial performance used by some analysts and investors to analyze and compare companies on the basis of operating performance. Gross profit is not defined under IFRS and should not be considered in isolation or as an alternative to, or more meaningful than, net income or cash flow as determined in accordance with IFRS as an indicator of the Corporation's performance or liquidity. Platinum's gross profit is unlikely to be comparable to similar measures presented by other companies.
3) Earnings before interest, tax, depreciation and amortization is a widely accepted financial indicator used by some analysts and investors to analyze and compare companies on the basis of liquidity. Earnings before interest, depreciation and amortization is not defined under IFRS and should not be considered in isolation or as an alternative to, or more meaningful than, net income or cash flow as determined in accordance with IFRS as an indicator of the Corporation's financial performance or liquidity.
This news release may contain forward-looking statements. These forward-looking statements do not guarantee future events or performance and should not be relied upon. Actual outcomes may differ materially due to any number of factors or uncertainties, many of which are beyond Platinum's control. Some of these risks and uncertainties may be described in Platinum's corporate filings (posted at www.sedar.com). Platinum has no intention or obligation to update or revise any forward-looking statements due to new information or events.
Neither 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 news release.
For further information please contact:
Bernard Parkinson, CEO
Phone (403) 301-4590
Katherine Kirkup, CFO
Phone (403) 301-4594
(PCS) http://www.platinum.ca
SOURCE: Platinum Communications Corporation
