Telehop Announces Second Quarter Results

TORONTO--()--Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V:HOP) today announced its financial performance during the second quarter ending June 30, 2015.

Revenue for Q2 2015 was up 1% to approximately $4,759,000 with a net loss of ($135,000) or ($0.004) loss per common share compared to revenue of $4,720,000 with a net loss of ($193,000) or ($0.007) per common share for Q2 2014. The Company’s gross margin for the second quarter was approximately $1,774,000 or 37% compared to approximately $1,697,000 or 36% in the prior year. EBITDA for Q2 2015 was approximately $137,000 compared to $60,000 in the prior year, an increase of 128% over 2014.

“Telehop continues to yield positive results of the Company’s transformation plan from a long distance carrier into a wireless solutions provider. The results have been $2 million in wireless sales in the first half of 2015 versus $2.5 million in wireless sales in all of 2014. Our efforts and results in the wireless segment of our business continue to confirm that wireless solutions provides a key growth area in our future.” said Rajiv Jagota, President CEO, Telehop.

Company highlights during the second quarter include:

  • Reduction in General and Admin expenses by 13% due to finding synergies from prior acquisitions
  • Wireless sales are almost 60% higher than the same quarter last year

FINANCIAL OVERVIEW

Consolidated Highlights     Quarter ended June 30
      2015       2014
Revenue   $ 4,758,702   $ 4,719,619
Gross margin   $ 1,773,761   $ 1,697,277
Gross margin %     37%     36%
EBITDA1   $ 136,661   $ 59,603
Net income (Loss)   $ (135,202)   $ (193,041)
Earnings per share - basic     ($0.004)     ($0.007)

1 We define EBITDA as earnings before interest costs, taxes, depreciation and amortization as earnings before interest costs, taxes, depreciation, and amortization. EBITDA is non-GAAP financial 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 does 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:

EBITDA Reconciliation     Quarter ended June 30
        2015       2014
Net income (loss)   $ (135,202)   $ (193,041)
Interest costs   $ 97,764   $ 91,347
Income taxes     -     -
Amortization   $ 174,099   $ 161,297
EBITDA1   $ 136,661   $ 59,603

A complete financial reporting package, including the 2015 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 416-499-5463.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Telehop or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Telehop assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.

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's dedication and priority is providing residential and businesses with exceptional phone services at competitive rates without sacrificing quality service.

Contacts

Telehop Communications Inc.
Mr. Rajiv Jagota, 416-499-5463
President and CEO
rjagota@telehop.com

Release Summary

Q2 2015 financials release

Contacts

Telehop Communications Inc.
Mr. Rajiv Jagota, 416-499-5463
President and CEO
rjagota@telehop.com