Glentel Inc GLNIF

Results

[Berzy]

TSX Stock Symbol: GLN BURNABY, BC, July 28 /CNW/ - Glentel Inc. today reported its results for the 2nd quarter ended June 30, 2005. The 2nd quarter sales increased 38% to $29,834,000 compared to $21,577,000 in the same quarter of 2004. Operating income before interest and taxes grew to $2,396,000 compared to $993,000 in 2004. Net income for the quarter increased by 119% to $1,370,000, $0.16 per share, compared to net income of $627,000, $0.08 per share, in the 2nd quarter of the previous year. For the six months ended June 30, 2005, sales increased 28% to $53,265,000 compared to $41,725,000 in the same period of 2004. Operating income before interest and taxes grew to $2,748,000 compared to $1,852,000 in 2004. Net income for the same period increased by 38% to $1,613,000, $0.19 per share, compared to net income of $1,168,000, $0.14 per share, in the first six months of 2004. Consolidated sales grew in both the Retail Division and the Business Division in the 2nd quarter. In the Retail Division, sales of retail cellular products and services grew 43%, to $22,663,000 for the 2nd quarter, compared to $15,824,000 for the same quarter in 2004. Operating income before interest and taxes for the division grew 63% to $3,475,000 for the 2nd quarter of 2005 compared to $2,127,000 in the same quarter the previous year. The growth in sales was due to the division operating 90 WirelessWave retail mall-based stores as at June 30th, compared to a total of 72 stores at the same time last year. The 2nd quarter results also include one month of operations of The Telephone Booth/La Cabine Telephonique that was acquired effective May 29, 2005. With the strength of WirelessWave and the acquisition of The Telephone Booth/La Cabine Telephonique, the division has become an increasingly stronger channel to market, which complements the carrier partners' dealer base. As a result, increased benefits from its carrier partners are being realized by the division. The Business Division sales of terrestrial radio systems, satellite network services, advanced mobile solutions, and service/engineering support grew 25% to $7,171,000 for the 2nd quarter compared to $5,753,000 for the same quarter in 2004. Operating income before interest and taxes for the division grew significantly, to $355,000 in the 2nd quarter compared to $9,000 for the same quarter in 2004. During the quarter, the division experienced strong growth in its core terrestrial radio systems segment. This included the implementation of a large radio system in Alberta. Additionally, with the recent acquisition of the Remote Telecom business unit from Wireless Matrix Corporation, the Business Division has successfully integrated the satellite customers into its system and has already begun to see growth in the customer base following the acquisition, which was effective April 30, 2005. "We have had an extremely busy 2nd quarter," said Thomas Skidmore, Glentel's president and chief executive officer. "During the quarter, we engineered two strategic acquisitions - one for each division. We negotiated additional debt financing with our bank and raised additional equity to fund the acquisitions. Our Business Division completed its 4th consecutive quarter of profitability, and our Retail Division enhanced its position in the multi-carrier cellular mall-market with the acquisition of The Telephone Booth/La Cabine Telephonique, adding to the previously established strength of WirelessWave." Financial highlights, in thousands of Canadian dollars (except per share data), are as follows: << ------------------------------------------------------------------------- Three months ended Six months ended June 30th June 30th ------------------------------------------------------------------------- 2005 2004 2005 2004 ------------------------------------------------------------------------- Sales $29,834 $21,577 $53,265 $41,725 ------------------------------------------------------------------------- Income, before interest, taxes and amortization 3,301 1,753 4,484 3,356 ------------------------------------------------------------------------- Income, before interest, taxes and amortization (% of Sales) 11.1% 8.1% 8.4% 8.0% ------------------------------------------------------------------------- Operating income, before interest and taxes 2,396 993 2,748 1,852 ------------------------------------------------------------------------- Net income $ 1,370 $ 627 $ 1,613 $ 1,168 ------------------------------------------------------------------------- Income per share $ 0.16 $ 0.08 $ 0.19 $ 0.14 ------------------------------------------------------------------------- About Glentel: Glentel is an international wireless solutions provider operating 150 corporate locations in Canada, including 90 WirelessWave and 49 Telephone Booth/La Cabine Telephonique mall-based multi-carrier cellular stores. Through its 11 Wireless Business Centres, Glentel provides voice and data wireless radio equipment; maintenance, and engineered solutions; and operates fixed/mobile terrestrial and satellite wireless systems throughout North America. Glentel is an authorized dealer for such companies as Rogers Wireless, Fido Solutions, Bell Mobility, Motorola, Mobile Satellite Ventures, SkyBitz, Tait, Telesat, Eonsat, Globalstar, Canon, Orthogon, Zetron, and Microwave Data Systems. Forward-Looking Statements: Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third-party manufacturing, managing rapid growth, limited intellectual property protection, and other risks and uncertainties described in Glentel's public filings with securities regulatory authorities. NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN. To request a copy of Glentel's annual report, go to www.newswire.ca, Tools for Investors, and click on reports@cnw. >> For further information: Thomas E. Skidmore, President & CEO, Tel [phone], [e-mail] or Investor Relations: Dale B. Belsher, Chief Financial Officer, Tel [phone]; To request a free copy of this organization's annual report, please go to https://www.newswire.ca and click on reports@cnw.