TORONTO--(BUSINESS WIRE)--Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V:HOP) today announced its financial performance during the third quarter ending September 30, 2015.
Revenue for Q3 2015 was down 10% to approximately $4,260,000 with a net loss of ($157,000) or ($0.005) loss per common share compared to revenue of $4,734,000 with a net loss of ($105,000) or ($0.003) per common share for Q3 2014. The Company’s gross margin for the third quarter was approximately $1,482,000 or 35% compared to approximately $1,826,000 or 39% in the prior year. EBITDA for Q3 2015 was approximately $109,000 compared to $125,000 in the prior year, a decrease of 13% from 2014.
“Telehop’s sales decline in Q3 is a combination of a seasonal reduction during the summer months and the loss of a major wireless customer in this period compared to last year. Telehop faced headwinds in gross margin due to foreign exchange rates which are equally effecting all carriers in the long distance space. In addition, the sudden rise in rates to a large volume destination was unfavorable this quarter, this was a temporary timing difference which should revert to normal in subsequent quarters. Telehop was able to maintain positive EBITDA through cost cutting of the general and administrative expenses while continuing to grow its overall wireless solutions offering. Wireless sales now account for 20% of all sales and that is expected to grow in future periods through new solutions and distribution channels currently in development.” said Rajiv Jagota, President and CEO of Telehop.
Company highlights during the third quarter include:
- Reduction in General and Admin expenses by 17% due to finding synergies from prior acquisitions
- Wireless sales account for 20% of all sales in 2015, compared to 12% in 2014
|Consolidated Highlights||Quarter ended September 30|
|Gross margin %||35%||39%|
|Net income (Loss)||$||(156,983)||$||(105,014)|
|Earnings per share - basic||($0.005)||($0.003)|
Below is a reconciliation of “EBITDA” to net income (loss) for the periods presented:
|Net income (loss)||$||(156,983)||$||(105,014)|
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 firstname.lastname@example.org 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.
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.
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.