TORONTO--(BUSINESS WIRE)--Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V: HOP) today announced its financial performance during the second quarter ended June 30, 2014.
Telehop is pleased to announce as a result of the acquisitions of G3 Telecom and iRoam Mobile, revenue has increased by 120% to $4,719,619 for the quarter ending June 30, 2014. The Company’s cash balance has also increased to $1,894,363 million.
During the second quarter, Telehop completed the acquisition of iRoam Mobile Solutions and continued to integrate the G3 group of companies acquired in the first quarter. Through the acquisitions Telehop is now diversifying revenues from declining traditional long distance dial around market, to wireless and data services. 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.
Telehop has continued to deliver a positive EBITDA. For the quarter EBITDA was $62,490 after expensing transaction costs of $35,973 incurred during the second quarter related to the acquisitions.
“I am pleased with the direction and the new markets Telehop is now entering through the acquisitions. We are re-aligning brands and devising new marketing campaigns. We expect to see these investments continue to open new opportunities for Telehop and to deliver cost saving synergies across the business lines.” said Rajiv Jagota, President and CEO.
Company highlights during the quarter include:
- Moving to a new corporate headquarters for Telehop, G3 and iRoam in the Toronto area.
- Integrating the businesses of G3 and iRoam.
- Identifying synergies in overhead and operations.
- Successful launch of new portable data roaming devices.
|Consolidated Highlights||Three months ended June 30|
|Gross margin %||36%||45%|
|Net income (Loss)||$||(193,040)||$||45,022|
|Earnings (Loss) per share - basic||$||(0.006)||$||0.002|
1We define EBITDA as earnings before interest costs, taxes, depreciation and amortization. EBITDA is a non-GAAP financial measure, is a measure used in to assist in understanding and comparing operating results. EBITDA is reviewed regularly by management and our Board of Directors in assessing performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. EBITDA is not a measure of financial performance nor do it have a standardized meanings under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts. We have reconciled EBITDA to its most comparable measure calculated in accordance with IFRS, being net income (loss) in the tables below.
Below is a reconciliation of “EBITDA” to net income (loss) for the periods presented:
Three months ended
|Net income (loss)||$||(193,040)||$||45,022|
A complete financial reporting package for the June 30, 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@example.com or via phone at 416-499-5463.
Telehop Communications Inc. also announces today that due to the absence of convening a meeting of shareholders in 2013, its stock option plan that is structured as a 10% rolling plan, was deemed by TSX Venture Exchange policies, to have converted into a fixed plan from and after November 27, 2013. It remained a fixed plan until approval of the shareholders was obtained to the 10% rolling plan at its last shareholders meeting on July 8, 2014.
During the period between November 27, 2013, and July 8, 2014, the plan which was deemed to be a fixed plan, was restricted so that the number of issued and outstanding options at no time be greater than 2,427,208 options. During that period there were no more than 2,408,875 options outstanding at any time, the parameters of which appear in notes 10 of the financial statements for the year ended December 31, 2013, and the three months ended March 31, 2014.
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 current period.
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.