Platinum Communications Corporation Reports Financial Results for the Six Months Ending February 28, 2013
April 05 2013 - 7:08PM
Business Wire
Platinum Communications Corporation (TSX-V: PCS) today
announced financial results for the six months ending February 28,
2013.
Highlights for the six months, include the following:
- Platinum’s revenues from operations for
the six months ending February 28, 2013 increased 21% compared to
the same six month period of fiscal 2012. The acquisition of two
competitors in the previous year contributed 82% of this
increase.
- Gross profit increased by 18%. Earnings
before interest, depreciation and amortization increased by 14%.
These increases were due to the acquisitions completed in the
previous year’s third quarter.
- Platinum recorded Net Income of
$121,684 for the first six months of fiscal 2013 a decrease of 23%
from the net income of $157,578 recorded for the six months ending
February 29, 2012. Legal and other expenses of $135,000 related to
acquisitions were entirely expensed during the first half of
2013.
- Cash provided by operating activities
was $826,682 for the first six months of fiscal 2013 compared to
$391,673 in the same period of fiscal 2012, an increase of 111%.
Cash used to acquire property, plant and equipment and intangible
assets was $226,266 in the first half of fiscal 2013, compared to
$397,174 in the same period of fiscal 2012.
- As of the date of this release Platinum
has $1,466,000 of available cash.
SELECTED HIGHLIGHTS1
Six months ended
February 28,2013
February 29, 2012
%Change
Revenue
$3,922,054 $3,251,524 21
Gross profit2
2,656,830 2,246,802 18
Earnings before interest, depreciation and
amortization3
864,570 757,403 14 Net income
121,684 157,578 -23
Earnings per share, basic and diluted
Cash provided by operating activities
0.0022
826,682
0.0029
391,673
-24
111
ARPU (Average revenue per user)
380 367 3 Customers
Common Shares Outstanding
Return on Equity
10,074
55,593,398
4.8%
8,636
54,243,654
6.4%
17
2
-25
1 Includes acquisitions of MyCanopy and AlbertaHighSpeed from
March 1, 2012 and May 1, 2012 respectively. Does not include the
previously announced acquisition of Community Networks Inc. which
closed effective March 1, 2013.
2 Gross Profit is a widely accepted measure of financial
performance used by some analysts and investors to analyze and
compare companies on the basis of operating performance. Gross
profit is not defined under IFRS and should not be considered in
isolation or as an alternative to, or more meaningful than, net
income or cash flow as determined in accordance with IFRS as an
indicator of the Corporation’s performance or liquidity. Platinum’s
gross profit is unlikely to be comparable to similar measures
presented by other companies.
3 Earnings before interest, depreciation and amortization is a
widely accepted financial indicator used by some analysts and
investors to analyze and compare companies on the basis of
liquidity. Earnings before interest, depreciation and amortization
is not defined under IFRS and should not be considered in isolation
or as an alternative to, or more meaningful than, net income or
cash flow as determined in accordance with IFRS as an indicator of
the Corporation’s financial performance or liquidity.
Platinum is a leading provider of superior quality fixed
wireless Internet and Broadband solutions in Alberta. Based in
Calgary, Platinum operates a wireless broadband network that
utilizes Next-Generation Wimax technology to bring fast, reliable
and affordable Internet and digital phone service to residents and
businesses across the province. Serving approximately 13,000
customers in over 180 communities, Platinum caters primarily to
rural and near-urban markets that are often beyond the reach of
traditional Internet providers. Platinum’s high quality
infrastructure, excellent service record and ever-growing network
and capabilities, make it the provider of choice for customers
within its vast coverage area. For more information please visit
our website at www.platinum.ca or call 403-301-4591.
This news release may contain forward-looking statements. These
forward-looking statements do not guarantee future events or
performance and should not be relied upon. Actual outcomes may
differ materially due to any number of factors or uncertainties,
many of which are beyond Platinum's control. Some of these risks
and uncertainties may be described in Platinum's corporate filings
(posted at www.sedar.com). Platinum has no intention or obligation
to update or revise any forward-looking statements due to new
information or events.
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.
For further information please contact:
Bernard Parkinson, CEO
Katherine Kirkup, CFO Phone (403) 301-4591 Phone
(403) 301-4594