TORONTO--(BUSINESS WIRE)--Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V: HOP) today announced its financial performance during the fourth quarter and year ended December 31, 2012.
Telehop has returned operations to positive EBITDA and profitability for the year due to management’s sustained focus on operations and utilization of staffing and resources. The consecutive year-over-year performance improvements create opportunities for management to strengthen its market-facing efforts and expand into new markets.
“Telehop has made significant progress on our longer-term strategic initiatives and has become a stronger, better positioned company with positive results and talented people,” said Rajiv Jagota, President CEO, Telehop.
During the fourth quarter, Telehop saw EBITDA rise to $128,493 from $(380,599) during the same period last year. Operating income grew to $85,085 from $(602,192) a year ago. EBITDA for the year is positive $191,649 compared to $(749,678) in 2011 a change of $941,327.
Company highlights during the year include:
- Launch of the new #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.
- The Company completed a private placement for the gross proceeds of CDN $750,000 through the issuance of 7,500,000 common shares for net proceeds of $653,024.
- The Company has gone through a rebranding strategy and developed a new logo and look and feel to the Company, with a focus on a master brand strategy versus standalone brand advertising.
- Improved accounts receivable and collections process reducing accounts receivable and bad debts exposure.
- Successfully completed network and switching infrastructure upgrades to enhance quality of service, product offerings, and cost efficiencies.
Three months ended
|Gross margin %||44%||34%||45%||42%|
|Operating income (loss)||$85,085||$(602,192)||$73,550||$(1,104,682)|
|Net income (loss)||$84,179||$(945,515)||$44,449||$(1,329,578)|
|Earnings (loss) per share - basic||$0.00||$(0.06)||$0.00||$(0.09)|
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 2012 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 firstname.lastname@example.org 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 December 31, 2012.
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.