Platinum Communications Corporation Reports First Quarter Financial Results
January 16 2013 - 9:30AM
Business Wire
Platinum Communications Corp. (TSX-V: PCS) today
announced financial results for the three months ending November
30, 2012.
Highlights for the three months, include the following:
- Platinum’s revenues from operations for
the three months ending November 30, 3012 increased 22% compared to
the same three month period of fiscal 2012. The acquisition of two
competitors in the previous year contributed 79% to this increase
and accelerated activity with our commercial clients provided the
balance of the increase. In addition, the acquisitions increased
Platinum’s customer base by over 1,700 customers to a milestone of
10,150 customers now serving 180 communities.
- Reduced operational expenses and other
efficiencies provided an increase in gross profit of 19% and an
increase of 65% in earnings before interest, depreciation and
amortization compared to the prior year.
- Cash provided by operating activities
was $468,549 Q1 2013 compared to $269,756 in the same quarter of
fiscal 2012, an increase of 74%. Cash used to acquire property,
plant and equipment and intangible assets was $130,465 in the first
quarter of fiscal 2013, compared to $256,008 in the same quarter of
fiscal 2012. Platinum recorded Net Income of $219,708 for the first
quarter of fiscal 2013 an increase of 209% over the net income
recorded in the same quarter of the previous year.
- As of the date of this release Platinum
has approximately $897,000 of available cash.
SELECTED HIGHLIGHTS1
Three months ended November 30,
2012
2011
%
Change Revenue
$1,960,781 $1,612,238 22
Gross profit2
1,327,101 1,110,649 19
Earnings before interest, depreciation and
amortization3
594,157 359,549 65 Net income
219,708 71,156 209
Earnings per share, basic and diluted
0.0040 0.0013 205 Cash
provided by operating activities
468,549 269,756 74
ARPU(Average revenue per user)
188 182 3 Customers
10,189 8,613 18 Common Shares Outstanding
55,593,398
54,741,654 2 Return on Equity
17.2% 6.0% 187
_____________________________
1 Includes acquisitions of MyCanopy and AlbertaHighSpeed from March
1, 2012 and May 1, 2012 respectively. 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.