Telehop Communications Reports Third Quarter 2010 Financial Results
TORONTO, Nov. 18 /CNW/ - Telehop Communications Inc. (TSXV-HOP) 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.
Consolidated highlights | three months ended | nine months ended | ||
($ Thousands except for per share data) | September 30, 2010 | September 30, 2009 | September 30, 2010 | September 30, 2009 |
Consolidated Income Statement | ||||
Operating revenues | $ 2,907 | $ 3,388 | $ 8,889 | $ 10,427 |
Gross margin | 1,282 | 1,750 | 3,775 | 4,516 |
Gross margin % * | 44.1% | 51.7% | 42.5% | 43.3% |
EBITDA | 96 | 298 | 42 | (254) |
Net income (loss) | 14 | 127 | (156) | (447) |
Earnings (loss) per share - basic | 0.00 | (0.01) | (0.01) | (0.03) |
Earnings (loss) per share - diluted | 0.00 | (0.01) | (0.01) | (0.03) |
* Our gross margin for the third quarter was $1,282,451 or 44.1% compared to a $1,749,933 or 51.7% for the same quarter in 2009. The 2010 decline is due to the positive impact of a CRTC rate adjustment which benefited this quarter in 2009 and was retroactive for the entire year. Year to date margin has shown a 0.8% decrease to 42.5% over 2009.
The third quarter showed improved results with positive EBITDA for the second consecutive quarter, positive net income and an increase in working capital over the quarter.
Quarterly financial summary Revenue for third quarter 2010 was $2,907,425 with a net profit of $13,569 or $0.00 per common share compared to revenue of $3,388,141 with a net profit of $126,714 or $0.01 per common share for the same quarter 2009. Our revenue was $480,716 or 14.2% less quarter for quarter which is attributable to a reduction in our retail long-distance business of $462,470 and a reduction in our wholesale long-distance business of $18,246. Year to date revenue was $8,889,443 with a net loss of $156,132 or $(0.01) per common share compared to revenue of $10,427,383 with a net loss of $446,893 or $(0.03) per common share for the first nine months of 2009.
Operating expenses decreased from $1,541,302 in third quarter 2009 by $284,806 or 18.5% to $1,256,496. The majority of the decrease relates to focusing of our marketing campaigns. Year to date operating expenses decreased by $1,082,606 to $3,959,304, we have reduced our expenses on an ongoing basis to reflect existing market circumstances. We completed the third quarter with $457,662 of cash and working capital of $1,081,135 with no bank debt.
A complete financial reporting package is available on Sedar http://www.sedar.com or by contacting the company.
Certain statements in this press release may constitute "forward looking statements" and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any performance or achievement expressed or implied by such "forward looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release
For further information:
Company Contact:
Mr. Fulvio Ciano
CEO
(416) 494 4490
[email protected]
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