Telehop Communications Reports Third Quarter 2009 Financial Results

TORONTO , Nov. 12 /CNW/ - Telehop Communications Inc. (TSXV-HOP) ("TelepHop" or the "Company") is a full-service long distance provider operating within the telecommunications industry and is registered with the Canadian Radio-television and Telecommunications Commission ("CRTC") as a licensed Class "A" Telecom Carrier.

    
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    Consolidated Highlights           Three months ended   Nine months ended
    ($Thousands except for            Sept. 30, Sept. 30, Sept. 30, Sept. 30,
     per share data)                      2009      2008      2009      2008
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    Consolidated Income Statement
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    Operating revenues                $  3,388  $  3,985  $ 10,427  $ 12,607

    Gross margin                         1,438     1,628     4,516     4,754
    Gross margin %                       51.6%     40.9%     43.3%     37.7%

    Net income (loss)                      127      (102)     (447)     (762)
    Earnings (loss) per share - basic     0.01     (0.01)    (0.03)    (0.06)
    Earnings (loss) per share - diluted   0.01     (0.01)    (0.03)    (0.05)
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Quarterly financial summary -

Revenue for third quarter 2009 was $3,388,141 with a net profit of $126,714 or $0.01 per common share compared to revenue of $3,985,669 and net loss of $102,676 or $(0.01) per common share for the same quarter 2008. The Company reported revenue of $597,528 or 15.0% less quarter for quarter which is attributable to a reduction in our retail long-distance business of $510,557 and a reduction in TeleHop's wholesale long-distance business of $86,971 . Year-to-date revenue was $10,427,383 with a net loss of $446,893 or $(0.03) per common share compared to revenue of $12,607,530 and net loss of $761,606 or $(0.06) per common share for the first nine months of 2008.

TeleHop reported a gross margin for the third quarter of $1,749,933 or 51.6% compared to a $1,628,391 or 40.9% for the same quarter in 2008. This was a result of increased revenue per minute and lower direct costs due to a strengthening of the Canadian dollar relative to the United States dollar. Year-to-date margin has shown a 5.6% increase to 43.3% over 2008.

The Company reported a decrease in operating expenses from $1,774,552 in third quarter 2008 by $233,250 or 13.1% to $1,541,302 . The majority of the decrease relates cost saving measures implemented in 2009. Year-to-date operating expenses decreased by $875,263 to $5,041,910 , as the Company continues to reduce operating expenses on an ongoing basis.

A complete financial reporting package is available on SEDAR at www.sedar.com or by contacting the Company.

Certain statements contained herein are forward-looking statements, including statements relating to TeleHop's operations; business prospects, and strategies. Forward-looking information typically contains statements with words such as "intends," "anticipate," "estimate," "expect," "potential," "could," "plan" or similar words suggesting future outcomes. Readers are cautioned not to place undue reliance on forward-looking information because it is possible that expectations, predictions, forecasts, projections and other forms of forward-looking information will not be achieved by TeleHop. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties. A change in any one of these factors could cause actual events or results to differ materially from those projected in the forward-looking information. Although TeleHop believes that the expectations reflected in such forward-looking statements are reasonable, TeleHop can give no assurance that such expectations will prove to be correct. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by TeleHop and described in the forward-looking statements or information. The forward-looking statements are based on a number of assumptions which may prove to be incorrect. Readers should be aware that the list of factors, risks and uncertainties set forth above are not exhaustive. Readers should refer to TeleHop's current filings, which are available at www.sedar.com, for a detailed discussion of these factors, risks and uncertainties. The forward-looking statements or information contained in this news release are made as of the date hereof and TeleHop undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws or regulatory policies.

Neither 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 News Release.

%SEDAR: 00004365E

For further information: Mr. Fulvio Ciano, Acting CEO, [phone], [email protected]