Radiant Communications Announces Second Quarter 2012 Results
VANCOUVER, Aug. 30, 2012 /CNW/ - Radiant Communications Corp. ("Radiant") (TSX-V:RCN), a leading provider of managed network and cloud hosting solutions for medium-size enterprises today announced its financial results for the second quarter and six months ended June 30, 2012.
HIGHLIGHTS:
- Revenue of $8.1 million for the second quarter ended June 30, 2012 was flat compared to revenue of $8.1 million for the second quarter ended June 30, 2011. For the six months ended June 30, 2012, revenue of $16.3 million is a record for Radiant and is 1.4% higher than the YTD revenue from the prior year.
- Gross margin increased to 41.9% for the quarter compared to 38.2% in the second quarter of 2011 due to a combination of recurring and one-time activities.
- EBITDA for the second quarter ended June 30, 2012, was a record $710,568 compared to $143,171 in the second quarter of 2011. (See EBITDA section for the reconciliation of EBITDA to Net Income). Year-to-date EBITDA for the six months ended June30, 2012, is $1.1 million compared to $468,684 for the same period of 2011.
- Net income for the second quarter ended June 30, 2012 was $306,940 or $0.02 per share compared with a net loss of $237,569 or $0.02 per share in the second quarter of 2011.
- The Company ended the quarter with cash and short-term investments of $5.5 million and generated $1.1 million of cash from operating activities during the second quarter. In the first six months of 2012 Radiant has generated $1.7 million from operations.
- During the quarter ended June 30, 2012, the Company entered into an agreement with a vendor to provide services at fixed prices over a period of three years. The minimum purchase commitment over this three-year period is $11.6 million.
"I am very pleased to report record EBITDA and cash flows from operations for the second quarter and first six months of 2012." said Paul Healey, President and CEO. "We have made a concerted effort over the past 10 months to re-engineer our business processes, services and solutions to create a sustainable high value business that benefits both our customers and our shareholders. We have successfully managed our cost base to achieve both recurring and one-time savings. As a result our higher margins, reduced operating costs and revenue growth are all excellent indicators that we are progressing towards our goals. Developing and maintaining strong customer relationships is a key driver of our future success in creating return for our shareholders and we expect to utilize the benefit of our efficiencies to invest in our brand and growth opportunities. Radiant will continue to focus on providing a premier customer experience with robust and reliable solutions as a core aspect of our business development strategy."
EBITDA | ||
Earnings before Interest, Taxes, Depreciation and Amortization is calculated as follows: | ||
($000s) | Q2 2012 | Q2 2011 |
Operating Income (loss) | $ 287 | $(236) |
Amortization | 381 | 364 |
Stock-based compensation expense | 42 | 15 |
EBITDA | $ 710 | $ 143 |
In the second quarter of 2012, Radiant achieved EBITDA of $710,568 compared to EBITDA of $143,171 in the second quarter of 2011 |
||
($000s) | Six months ended June 30, 2012 |
Six months ended June 30, 2011 |
Operating Income (loss) | $ 337 | $ (279) |
Amortization | 745 | 713 |
Stock-based compensation expense | 62 | 35 |
EBITDA | $ 1,144 | $ 469 |
In the six months ended June 30, 2012 Radiant achieved positive EBITDA of $1.1 million compared to positive EBITDA of $468,684 in the comparable period of 2011. |
About Radiant
Radiant Communications is a leading provider of managed network and cloud hosting solutions for medium-size enterprises. Leveraging one of the largest Internet footprints across Canada, Radiant offers a comprehensive portfolio of reliable, secure and scalable IT infrastructure services, simplified under a single point of contact. For over 15 years, many of Canada's most recognized brand names have been relying on Radiant to support their mission-critical business operations.
All trademarks, service marks, registered trademarks, or registered service marks are the property of the respective owners.
This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Radiant, which involve risks and uncertainties. These risks and uncertainties may cause Radiant's actual results to differ materially from those contemplated by the forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, the growth rate of the Internet and telecommunications concerns, constantly changing technology and market acceptance of Radiant's products and services. Investors are also directed to consider the other risks and uncertainties discussed in Radiant's required financial statements and filings. All other companies and products listed herein may be trademarks or registered trademarks of their respective holders.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: Radiant Communications, Inc.
Investors: Chuck Leighton, CFO, 604.692.4531, [email protected]
Media: Janice Keay, Senior Director of Marketing, 416. 646.9416, [email protected]
Share this article