TORONTO--(BUSINESS WIRE)--Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V: HOP) today announced its financial performance for the year ended December 31, 2015.
Revenue for 2015 was up approximately 5% to $17,886,000 compared to revenue of $17,114,000 in fiscal 2014. For comparative purposes, the Company had ten months of G3 and eight months of iRoam revenues in 2014 versus twelve months in 2015. The Company’s gross margin for the year was approximately $6,704,000 or 37% compared to approximately $6,664,000 or 39% in the prior year. Adjusted EBITDA for 2015 was approximately $501,000 compared to $512,000 in the prior year. The Company had lower gross margin in 2015 due to higher foreign exchange expense between the Canadian and US dollar coupled with a sudden spike in expense to a high destination country. The Company mitigated these charges through cost efficiencies in general and administrative expenses and higher US dollar based sales.
“The Company had a transitional year in 2015. The integration of our previous acquisitions, building new systems and redefining processes were the key goals in the year. As long distance sales reduce through expected attrition, the Company has invested into ISP and SMB services for future growth. As we look to 2016, there is particular focus on organic growth as well as opportunistic acquisitions that provide immediate accretive value.” said Rajiv Jagota, President and CEO of Telehop.
|Consolidated Highlights||Year Ended December 31|
|Gross margin %||37%||39%|
|Net income (Loss)||$||(959,145)||$||(460,318)|
|Earnings (loss) per share – basic and diluted||$||(0.030)||$||(0.015)|
Below is a reconciliation of “EBITDA” and “Adjusted EBITDA” to net income (loss) for the periods presented:
EBITDA and Adjusted EBITDA
|Year Ended December 31|
|Net income (Loss)||$||(959,145)||$||(460,318)|
|Income tax recovery||$||(144,532)||$||(48,677)|
|Depreciation and amortization||$||688,620||$||557,999|
|Acquisition transaction costs||$||35,970||$||98,642|
|Goodwill and intangible asset impairment charge||$||245,500||
A complete financial reporting package, including the 2015 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.
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.
1We define EBITDA as earnings before interest costs, taxes, depreciation and amortization. Adjusted EBITDA also excludes acquisition costs, settlement charges and impairment charges. EBITDA and Adjusted EBITDA, which are non-GAAP financial measures, are commonly used measures used in the telecommunications industry to assist in understanding and comparing operating results. EBITDA and Adjusted EBITDA are 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 and Adjusted EBITDA are not measures of financial performance nor do they have a standardized meaning 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 and Adjusted EBITDA to its most comparable measure calculated in accordance with IFRS, being net income (loss) in the tables below.