TORONTO--(BUSINESS WIRE)--Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V: HOP) today announced its financial performance during the first quarter ended March 31, 2013.
Telehop has continued to deliver positive net income and EBITDA by continuing to focus on operational improvements and creating opportunities to expand into new markets. The first quarter saw the company sustain improvements over the prior year, and ready itself for a new business services product offering in the second quarter.
“I’m pleased that Telehop has had four consecutive profitable quarters. We will continue to expand our product offering outside of traditional residential long distance by expanding our #100 service on to other wireless providers and our new business services.” said Rajiv Jagota, President CEO, Telehop.
During the first quarter, Telehop saw EBITDA rise to $69,102 from $(41,123) during the same period last year. Operating income grew to $44,221 from $(69,596) a year ago.
Company highlights during the first quarter include:
- Marketing initiatives around the #100 mobile dial around service on the TELUS mobility network offering all TELUS prepaid and post-paid customers an easy dial around solution from their mobile phones.
- Planning for new enhanced billing platform to create operational efficiencies and customer account self-service options.
- Development of a new business services offering which was launched at the beginning of the second quarter.
FINANCIAL OVERVIEW
| Consolidated Highlights |
Three months ended |
|||
| 2013 | 2012 | |||
| Revenue | $2,030,517 | $2,448,700 | ||
| Gross margin | $820,237 | $1,027,191 | ||
| Gross margin % | 40% | 42% | ||
| EBITDA1 | $69,102 | $(41,123) | ||
| Operating income (loss) | $44,221 | $(69,596) | ||
| Net income (loss) | $37,597 | $(93,560) | ||
| Earnings (loss) per share - basic | $0.00 | $(0.01) | ||
1 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.
A complete financial reporting package, including the March 31, 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 March 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.
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.
