TORONTO--(BUSINESS WIRE)--Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V:HOP) today announced its financial performance during the first quarter ending March 31, 2015.
Revenue for Q1 2015 was up 68% to approximately $4,757,000 with a net loss of ($135,000) or ($0.004) loss per common share compared to revenue of about $2,834,000 with a net income of $5,000 or $0.000 per common share for Q1 2014. The Company’s gross margin for the first quarter was approximately $1,879,000 or 40% compared to approximately $1,177,000 or 42% in the prior year. Gross margins have decreased by 2% in 2015 primarily impacted by changes in international exchange rates. EBITDA for Q1 was approximately $137,000 compared to $127,000 in the prior year.
“Telehop is starting to realize the positive results of the Company’s transformation plan from a long distance carrier into wireless solutions provider. The results have been $1 million in wireless sales in Q1 and we look forward to continuing the momentum in 2015.” said Rajiv Jagota, President, CEO, Telehop.
Company highlights during the first quarter include:
- Increased online branding initiatives of Telehop, G3 Telecom, G3 Wireless, and iRoam
- Increased enterprise wireless sales and consumer bundle plans
Quarter ended March 31
|Gross margin %||40%||42%|
|Net income (Loss)||$(135,246)||$4,830|
|Earnings per share - basic||($0.004)||$0.000|
1 We define EBITDA as earnings before interest costs, taxes, depreciation and amortization as earnings before interest costs, taxes, depreciation, and amortization. EBITDA is non-GAAP financial measure used in to assist in understanding and comparing operating results. EBITDA is reviewed regularly by management and our Board of Directors in assessing performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. EBITDA is not a measure of financial performance nor does it have a standardized meanings under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts. We have reconciled EBITDA to its most comparable measure calculated in accordance with IFRS, being net income (loss) in the tables below.
Below is a reconciliation of “EBITDA” to net income (loss) for the periods presented:
|EBITDA Reconciliation||Quarter ended March 31|
|Net income (loss)||$(135,246)||$4,830|
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 email@example.com or via phone at 416-499-5463.
FCC APPROVAL AND SHARES RELEASED FROM ESCROW
The Company noted in its annual financial statements that there were 5,000,000 shares in escrow as per the G3 Telecom purchase agreement in the event the FCC fails to approve the transfer consents of G3 Telecom’s U.S. subsidiary to the Company’s control. As of May 28, 2015 the FCC licences have successfully transferred to the Company and the shares held in trust will be released by June 12, 2015.
GRANTING OF OPTIONS
Telehop will be granting Rajiv Jagota, President & Chief Executive Officer, 50,000 stock options at an exercisable price of $0.10 in accordance with Mr. Jagota’s employment contract.
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, 2014.
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. Telehop has broadened into home phone, business services, and wireless communications. 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.