Telehop Communications Reports Third Quarter 2010 Financial Results
November 18 2010 - 4:31PM
PR Newswire (Canada)
TORONTO, Nov. 18 /CNW/ -- 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 three months ended nine months ended
highlights ($ Thousands September 30, September 30, September 30,
September 30, except for per 2010 2009 2010 2009 share data)
Consolidated Income Statement Operating $ 2,907 $ 3,388 $ 8,889 $
10,427 revenues 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 14 127
(156) (447) (loss) Earnings (loss) per share - 0.00 (0.01) (0.01)
(0.03) basic Earnings (loss) per share - 0.00 (0.01) (0.01) (0.03)
diluted * 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 pCompany Contact:br/ Mr. Fulvio Cianobr/ CEObr/ (416) 494
4490br/ a href="mailto:fciano@telehop.com"fciano@telehop.com/a/p
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