Platinum Communications Corporation Reports First Quarter Financial Results
January 22 2015 - 6:30PM
Business Wire
Platinum Communications Corp. (TSX-V: PCS) today
announced financial results for the three months ending November
30, 2014.
Highlights for the three months, include the following:
- Platinum’s revenues from operations for
the three months ending November 30, 2014 increased 6% compared to
the same three month period of fiscal 2014. The acquisition of two
competitors in the past year contributed the majority of the
increase and accelerated activity with our commercial clients
provided the balance of the increase.
- Gross profit increased by 4%. Earnings
before interest, tax, depreciation and amortization decreased due
to additional employees and increased operating costs related to
the acquisitions.
- Cash provided by operating activities
was $328,020 in Q1 2015 compared to $378,478 in the same quarter of
fiscal 2014, a decrease of 13%. Platinum recorded Net Income of
$12,781 for the first quarter of fiscal 2015 a decrease of 89% over
the net income recorded in the same quarter of the previous
year.
- As of the date of this release Platinum
has approximately $740,000 of available cash.
SELECTED HIGHLIGHTS1
Three months ended November 30,
2014
2013
%
Change
Revenue
$2,597,446 $2,440,143 6
Gross profit2
1,600,214 1,540,625 4
Earnings before interest, tax,
depreciation and amortization3
507,942 590,647 -14 Net income
12,781 116,389 -89
Earnings per share, basic and diluted
0.0002
0.0021
-90
Cash provided by operating activities
328,020
378,478
-13
ARPU(Average revenue per user)
225 196 15
Common Shares Outstanding
56,448,449
55,966,731
1
Return on Equity
.7%
6.4%
-89
1 Includes the previously announced
acquisitions of Hybrid and Pathcom operations from November 1, 2013
and January 1, 2014 respectively.2Gross 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.3Earnings before interest, tax, 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.
Bernard Parkinson, CEO comments: Our revenue continues to trend
upwards as we increase our sales wins in the large enterprise
market; especially in agriculture and oil & gas. As a result,
commercial revenues now contribute 36% to our overall topline.
Platinum’s repositioning of its commercial sales group to a
professional engineering and construction company, with full safety
accreditation in Alberta and BC, is gaining significant traction
with our existing and newer clients. To meet the increasing demands
for telecommunications, power and IT consulting our Professional
Services Group will begin contributing to overall revenues in
Q2.
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
11,000 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
Phone (403) 301-4591
Katherine Kirkup, CFO
Phone (403) 301-4594
Platinum Communications Corp.Bernard D. Parkinson,
403-301-4591CEObparkinson@platcom.caorKatherine Kirkup,
403-301-4594CFO