Axia Reports Results for the three and nine months ended September 30, 2014
CALGARY, Nov. 6, 2014 /CNW/ -
- Business unit revenue of $31.3 million grew 18% from $26.5 million for Q3 2013. This increase was driven primarily by increasing market penetration as customer connections grew to 10,846 at September 30, 2014, up 19% from 9,140 a year ago.
- Business unit EBITDA grew 26% to $8.9 million from $7.0 million for the same quarter last year.
- Covage revenue of $16.4 million grew 16% over the same period last year. EBITDA of $5.8 million was up 43% year over year.
- North American revenue of $14.8 million grew 20% and recurring revenue of $12.9 million grew 10% over the same quarter last year. EBITDA was $3.9 million compared to $5.4 million last year due to higher variable costs and continued investment in new business development.
- Axia's planned $20.0 million investment in Alberta to build 1,526 km of fibre between 27 larger communities in the province is on track and on budget. As of September 30, 2014, 68% of the fibre required to complete the community interconnect grid has been deployed with the remainder of the fibre construction anticipated to be completed before the end of the year. The installation of the electronics will be completed in 2015.
- IFRS net income of $0.9 million or $0.01 per share compared to a loss of $2.3 million or $(0.03) per share for the same quarter last year. Covage IFRS net income for Q3 was positive for the first time at $0.4 million.
- The balance sheet remained strong with $32.6 million of cash and $4.6 million of debt which includes $3.2 million drawn on Axia's $20.0 million credit facility.