Glentel Inc. reports earnings per share increase of 22% for the year ended 2011
BURNABY, BC, March 15, 2012 /CNW/ - GLENTEL Inc. (TSX: GLN) today reported its results for the 4th quarter and year ended December 31, 2011. Financial highlights (tabular amounts in thousands of Canadian dollars, except per share data) follow.
Three months ended December 31 |
Year ended December 31 |
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2011 | 2010 | 2011 | 2010 | |
Sales | $174,883 | $161,672 | $583,653 | $412,307 |
Income before amortization, change in fair value of redeemable financial instruments, finance income and expenses, and taxes |
$15,901 | $19,872 | $53,280 | $44,034 |
Income before change in fair value of redeemable financial instruments, finance income and expenses, and taxes |
$14,149 | $17,046 | $43,311 | $35,431 |
Net income | $9,654 | $10,723 | $28,696 | $23,362 |
Basic net income per common share | $0.43 | $0.49 | $1.29 | $1.06 |
Diluted net income per common share | $0.43 | $0.48 | $1.28 | $1.05 |
"Sales for the company increased 42% and our earnings increased 22% year over year," stated Thomas Skidmore, GLENTEL's President and Chief Executive Officer, "We are very pleased with the performance of our divisions throughout 2011."
Consolidated highlights
4th Quarter 2011 compared to 2010
- Consolidated sales increased 8%, to $174.9 million compared to $161.7 million.
- Income was $15.9 million before amortization, change in fair value of redeemable financial instruments, finance income and expenses, and taxes, compared to $19.9 million.
- Operating income before change in fair value of redeemable financial instruments, interest and taxes decreased to $14.1 million, compared to $17.0 million.
- Net income and basic earnings per common share were $9.7 million, and $0.43 per share respectively, compared to $10.7 million and $0.49 per share.
Full year 2011 compared to 2010
- Consolidated sales increased 42%, to $583.7 million compared to $412.3 million.
- Income was $53.3 million before amortization, change in fair value of redeemable financial instruments, finance income and expenses, and taxes, compared to $44.0 million.
- Operating income before change in fair value of redeemable financial instruments, interest and taxes increased to $43.3 million, compared to $35.4 million.
- Net income and basic earnings per common share were $28.7 million and $1.29 per share respectively, compared to $23.4 million and $1.06 per share.
Highlights for each business unit are:
Retail Canada
4th Quarter 2011 compared to 2010
- Sales of retail mobile phone products and services in the Retail Canada Division increased 4% to $113.1 million, compared to $108.6 million.
- Operating income before change in fair value of redeemable financial instruments, interest and taxes decreased to $14.9 million, compared to $18.8 million.
- WIRELESSWAVE and Tbooth wireless delivered strong results in this quarter, whereas WIRELESS etc. was impacted by the absence of a top selling smartphone in its product lineup introduced to the market in the 4th quarter of 2011 compared to extraordinary sales performance of its predecessor model sold by WIRELESS etc. in the same quarter of 2010.
Full year 2011 compared to 2010
- Sales of retail mobile phone products and services in the Retail Canada Division increased 15% to $380.7 million, compared to $330.2 million.
- Operating income before change in fair value of redeemable financial instruments, interest and taxes increased to $49.6 million, compared to $47.4 million.
Retail U.S.
4th Quarter 2011 compared to 2010 (1)
- Sales of retail mobile phone products and services in the Retail U.S. Division increased 18% to $53.1 million, compared to $45.1 million.
- Operating income before change in fair value of redeemable financial instruments, interest and taxes increased to $4.8 million, compared to $4.0 million.
Full year 2011 compared to 2010 (1)
- Sales of mobile phone products and services in the Retail U.S. Division increased 278% to $170.2 million, compared to $45.1 million.
- Operating income before change in fair value of redeemable financial instruments, interest and taxes increased to $13.6 million, compared to $4.0 million.
(1) Diamond Wireless (Retail U.S) was acquired October 1, 2010
Business Division
4th Quarter 2011 compared to 2010
- Business Division sales of terrestrial narrowband and broadband radio systems, satellite network services, and implementation services increased 10% to $8.7 million, compared to $7.9 million.
- Operating income before change in fair value of redeemable financial instruments, interest and taxes increased to $0.5 million, compared to a loss of $1.0 million.
Full year 2011 compared to 2010
- Sales of terrestrial narrowband and broadband radio systems, satellite network services, and implementation services in the Business Division decreased 12% to $32.8 million, compared to $37.7 million.
- Operating income before change in fair value of redeemable financial instruments, interest and taxes increased to $0.2 million, compared to a loss of $1.3 million.
Corporate
4th Quarter 2011 compared to 2010
- Corporate operating and administrative expenses increased to $5.8 million (3% of sales), compared to $4.6 million (3% of sales). This includes Retail U.S. corporate costs of approximately $1.3 million (2010 - $0.9 million) and corporate development costs of $0.2 million.
Full year 2011 compared to 2010
- Corporate operating expenses increased to $19.3 million (3% of sales), compared to $13.9 million (3% of sales). This includes Retail U.S. corporate costs of approximately $3.9 million (2010 - $0.9 million) and corporate development costs of $0.3 million.
About GLENTEL
GLENTEL (TSX: GLN) is the largest multi-carrier mobile phone retailer in Canada and a leading provider of innovative and reliable telecommunications services and solutions in North America. The company operates more than 325 locations across Canada located in retail malls, Costco Wholesale stores, and business centers, as well as more than 195 mall-based retail stores across 15 states in the United States. GLENTEL offers a choice of network carrier and wireless device or phone to Canadian consumers and is a Verizon National Premium Retailer in the U.S. To its business and government customers, GLENTEL offers wireless service, rental equipment, satellite and terrestrial network systems, tower sites, and wireless asset monitoring. GLENTEL operates its business under the trading names Glentel Wireless, WIRELESSWAVE, WAVE SANS FIL, Tbooth wireless, la cabine T sans fil, WIRELESS etc., WAVE SANS FIL etc., Mac Station - an Apple Specialist, and Diamond Wireless - Verizon National Premium Retailer in the U.S.
Forward-Looking Statements
Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third-party manufacturing, managing rapid growth, limited intellectual property protection, and other risks and uncertainties described in GLENTEL's public filings with securities regulatory authorities.
NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
For a copy of GLENTEL's annual report or for additional information visit www.glentel.com or www.sedar.com.
Investor Relations Contact:
Jas Boparai, Chief Financial Officer
GLENTEL Inc.
604.415.6500
[email protected]
Media Contact:
Melanie Mitchell
GLENTEL Inc.
604.415.7002
[email protected]
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