Platinum Communications Corporation Reports First Quarter Financial Results

CALGARY, Alberta--()--Platinum Communications Corp. (TSX-V: PCS) today announced financial results for the three months ending November 30, 2014.

Highlights for the three months, include the following:

  • Platinum’s revenues from operations for the three months ending November 30, 2014 increased 6% compared to the same three month period of fiscal 2014. The acquisition of two competitors in the past year contributed the majority of the increase and accelerated activity with our commercial clients provided the balance of the increase.
  • Gross profit increased by 4%. Earnings before interest, tax, depreciation and amortization decreased due to additional employees and increased operating costs related to the acquisitions.
  • Cash provided by operating activities was $328,020 in Q1 2015 compared to $378,478 in the same quarter of fiscal 2014, a decrease of 13%. Platinum recorded Net Income of $12,781 for the first quarter of fiscal 2015 a decrease of 89% over the net income recorded in the same quarter of the previous year.
  • As of the date of this release Platinum has approximately $740,000 of available cash.

SELECTED HIGHLIGHTS1

  Three months ended November 30,
  2014   2013   %

Change

Revenue $2,597,446 $2,440,143 6

Gross profit2

1,600,214 1,540,625 4

Earnings before interest, tax, depreciation and amortization3

507,942 590,647 -14
Net income 12,781 116,389 -89

Earnings per share, basic and diluted

 

 

0.0002

 

 

0.0021

 

 

-90

 

 

Cash provided by operating activities

328,020

378,478

-13

ARPU(Average revenue per user) 225 196 15

Common Shares Outstanding

 

 

56,448,449

 

 

55,966,731

 

 

1

 

 

Return on Equity

.7%

6.4%

-89

1 Includes the previously announced acquisitions of Hybrid and Pathcom operations from November 1, 2013 and January 1, 2014 respectively.
2Gross 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.
3Earnings 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.

Bernard Parkinson, CEO comments: Our revenue continues to trend upwards as we increase our sales wins in the large enterprise market; especially in agriculture and oil & gas. As a result, commercial revenues now contribute 36% to our overall topline. Platinum’s repositioning of its commercial sales group to a professional engineering and construction company, with full safety accreditation in Alberta and BC, is gaining significant traction with our existing and newer clients. To meet the increasing demands for telecommunications, power and IT consulting our Professional Services Group will begin contributing to overall revenues in Q2.

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 11,000 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 and capabilities, make it the provider of choice for customers within its vast coverage area. For more information please visit our website at www.platinum.ca or call 403-301-4591.


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) 301-4591

Katherine Kirkup, CFO

Phone (403) 301-4594

Contacts

Platinum Communications Corp.
Bernard D. Parkinson, 403-301-4591
CEO
bparkinson@platcom.ca
or
Katherine Kirkup, 403-301-4594
CFO

Contacts

Platinum Communications Corp.
Bernard D. Parkinson, 403-301-4591
CEO
bparkinson@platcom.ca
or
Katherine Kirkup, 403-301-4594
CFO