BURNABY, BC, Jul 27, 2011, 2011 (Canada NewsWire via COMTEX News Network) --
2nd QUARTER EARNINGS INCREASE BY 64%
GLENTEL Inc. (TSX: GLN) today reported its results for the 2nd quarter and six months ended June 30, 2011.
Financial highlights (tabular amounts in thousands of Canadian dollars, except per share data):
Three months ended June 30 Six months ended June 30 2011 2010 2011 2010Sales $137,965 $78,970 $259,027 $153,755Income, before $12,445 $7,669 $23,208 $12,967interest, taxes andamortizationOperating income, $9,610 $5,747 $17,805 $9,158before accretion,interest and taxesNet income $6,191 $3,761 $10,936 $6,088Basic net income
.28
.17
.49
.27per shareDiluted net income
.28
.17
.49
.27per share
Adjusted financial highlights:
Three months ended June Six months ended June 30 30 2011 2010 2011 2010Net income as $6,191 $3,761 $10,936 $6,088reported Add: Redeemable $781 - $1,753 - financial instrument accretion costs Less: $(567) - $(1,034) - Non-controlling interestAdjusted net income $6,405 $3,761 $11,655 $6,088(1)Adjusted basic net
.29
.17
.53
.27income per share (1)Adjusted diluted net
.29
.17
.52
.27income per share (1)
((1)) Our financial results are prepared in accordance with International Financial Reporting Standards ("IFRS"). This press release refers to adjusted net income, adjusted basic and diluted net income per share, which are not measures recognized under IFRS in Canada and do not have a standardized meaning prescribed by IFRS. Adjusted net income excludes the effect of accretion costs recorded on a redeemable financial instrument of $781 and records non-controlling interest share of earnings of $567 for the three months ended June 30, 2011, and accretion costs recorded on a redeemable financial instrument of $1,753, and records non-controlling interest share of earnings of $1,034 for the six months ended June 30, 2011. These measures may differ from those used by, and may not be comparable to, such measures as reported by other issuers. We disclose these measures, which have been derived from our financial statements and applied on a consistent basis, because we believe they are of assistance in understanding the results of our operations and financial position and are meant to provide further information about our financial results to investors.
Consolidated sales for the three months ended June 30, 2011 grew 75%, to $137,965,000 compared to $78,970,000 in the same period of 2010. Income before interest, taxes and amortization for the three months was $12,445,000 compared to $7,669,000 in 2010. Operating income before accretion, interest and taxes for the three months was $9,610,000 compared to $5,747,000 in 2010. Net income and basic earnings per share for the three months were $6,191,000, and
.28 per share respectively, compared to $3,761,000, and
.17 per share, for the same period in 2010. Adjusted net income and basic earnings per share for the three months ended June 30, 2011, were $6,405,000, and
.29 per share respectively.
Consolidated sales for the six months ended June 30, 2011 grew 69%, to $259,027,000 compared to $153,755,000 in the same period of 2010. Income before interest, taxes and amortization for the six months was $23,208,000 compared to $12,967,000 in 2010. Operating income before accretion, interest and taxes for the six months was $17,805,000 compared to $9,158,000 in 2010. Net income and basic earnings per share for the six months were $10,936,000, and
.49 per share respectively, compared to $6,088,000, and
.27 per share, for the same period in 2010. Adjusted net income and basic earnings per share for the six months ended June 30, 2011, were $11,655,000, and
.53 per share respectively.
"Smartphone sales continue to drive sales and profits in both our retail divisions," stated Thomas Skidmore, GLENTEL's President and Chief Executive Officer. "We are very pleased with our record increases in revenues and earnings."
In the 2nd quarter of 2011, sales of retail mobile phone products and services in the Retail Canada Division grew 30% to $90,106,000 compared to $69,285,000 in 2010. Operating income before interest and taxes for the division was $11,342,000 for the 2nd quarter of 2011, compared to $8,863,000 the same period the previous year.
For the six months ended June 30, 2011, sales of retail mobile phone products and services in the Retail Canada Division grew 26% to $167,132,000 compared to $132,540,000 in 2010. Operating income before interest and taxes for the division was $21,226,000 for the 2nd quarter of 2011, compared to $15,243,000 the same period the previous year.
In the 2nd quarter of 2011, sales of retail mobile phone products and services in the Retail U.S. Division were $39,503,000. Operating income before interest, and taxes for the division was $4,109,000 for the 2nd quarter of 2011.
For the six months ended June 30, 2011, sales of mobile phone products and services in the Retail U.S. Division were $75,937,000. Operating income before interest, and taxes for the division was $6,145,000 for the six months ended 2011.
Business Division sales for the 2nd quarter of 2011 of terrestrial narrowband and broadband radio systems, satellite network services, and implementation services were $8,356,000 compared to $9,685,000 in 2010. For the six months ended June 30, 2011, sales of terrestrial narrowband and broadband radio systems, satellite network services, and implementation services in the Business Division decreased 25% to $15,958,000 compared to $21,215,000 in 2010.
As a result, operating loss before interest and taxes for the division for the 2nd quarter of 2011 was $548,000 compared to an income of $50,000 the same period the previous year.Forthe six months ended June 30, 2011, operating loss before interest and taxes for the division was $758,000 compared to an income of $127,000 in the same period the previous year.
Corporate operating and administrative expenses for the 2nd quarter ended June 30, 2011 were $5,127,000 compared to $2,993,000 the previous year. Operating expenses for the six months ended June 30, 2011 increased to $8,498,000 (3.3% of sales) compared to $5,874,000 (3.8% of sales) last year. This includes Retail U.S. corporate costs of approximately $801,000 for the 2nd quarter of 2011 and $1,701,000 for the six months ended June 30, 2011, while there were no Retail U.S. corporate costs for 2010.
About GLENTEL
GLENTEL (TSX: GLN) is a leading provider of innovative and reliable telecommunications services and solutions in Canada and the United States. Founded in 1963 and headquartered in Burnaby, BC, GLENTEL comprises three operating divisions - Retail Canada, Retail U.S. and Business - that service thousands of consumers and commercial communications customers. The company operates more than 300 locations across Canada located in retail malls, Costco Wholesale stores, and business centers, as well as 168 retail locations in the United States. To its business and government customers, GLENTEL offers wireless service, rental equipment, satellite and terrestrial network systems, tower sites, and wireless asset monitoring. As the largest multi-carrier mobile phone retailer in Canada, it offers a choice of network carrier and wireless device or phone to Canadian consumers. GLENTEL operates its business under the trading names Glentel Wireless, WIRELESSWAVE, WAVE SANS FIL, Tbooth wireless, la cabine T sans fil, WIRELESS etc. and WAVE SANS FIL etc., and Diamond Wireless - Verizon National Premium Retailer in the U.S.
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.
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SOURCE: Glentel Inc.
Investor Relations Contact: Media Contact: Jas Boparai, Chief FinancialOfficer Melanie Mitchell GLENTEL Inc. GLENTEL Inc.604.415.6500 604.415.7002 investors@glentel.commelanie.mitchell@glentel.com To secure a copy of GLENTEL's annual report or foradditional information visitwww.glentel.comor
www.sedar.com.
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