Report to shareholders
CEO’S REPORT TO SHAREHOLDERS
January 6th, 2014
TO OUR VALUED SHAREHOLDERS:
Platinum continues to make progress on many fronts both in the residential and commercial broadband markets. All of this progress could not have happened without a first rate team. Mergers and acquisitions require focus, perseverance and an attention to detail. The results in 2013 speak for themselves - Platinum continues to expand and upgrade its network footprint throughout Alberta under the capable guidance of its senior management team. Assisting the senior management team are the dedicated specialists working in a variety of demanding functions. The shareholders of Platinum Communications are well served by the Platinum Team.
FINANCIAL HIGHLIGHTS
Highlights for the 2013 fiscal year, include the following:
Platinum generated $8.8 M in revenues from operations - an increase of 25% over 2012 - due to the increase of its customer base by over 2,600 acquired customers. We have reached a new milestone of 12,219 customers now receiving services from 180 points of presence (POPs) throughout Alberta.
Our acquisition strategy has provided an increase in gross profit of 24% and an increase of 45% in earnings before interest, tax, depreciation and amortization (EBITDA) over fiscal 2012 as a result of higher revenues and a continued focus on operating efficiencies.
Cash provided by operating activities was $2,151,542 in fiscal 2013 compared to $1,178,238 in fiscal 2012, an increase of 83%.
Platinum recorded Net Income of $2,148,154 for fiscal 2013 an increase of 987% over the previous year.
OPERATIONAL HIGHLIGHTS
In 2013 the Company pursued and completed the following initiatives:
We acquired and successfully integrated Community Networks, Inc., a wireless ISP northeast of Calgary adding a dozen new POPs and 2,600 subscribers;
We continue to integrate additional Points of Presence (POPs) and tower assets in Southern Alberta that we acquired from Hybrid Networks - adding 14 new locations and 220 subscribers; and
We cannot close off the year without a discussion of the devastation created in Southern Alberta by the 2013 flood and the degree of damage that impacted the residents of High River. In response to the catastrophe the Government of Alberta commissioned a temporary relief camp to house over 1,000 people. Platinum was awarded the contract to provide Internet and within 10 days of the award, Platinum had connected the camp to its network and was installing and provisioning a first class Wi-Fi network as families were moving in. Shortly thereafter we were awarded a contract to provide the residents of Morley who were similarly devastated by the flood.
As previously reported, we have entered into a Letter of Intent to purchase all of the operating assets of Pathcom Wireless Inc. which provides us a gateway into the oil and gas industry in Northern Alberta. This acquisition now provides us with professional engineering capabilities; twelve new POPs; and, a list of blue chip oil and gas producers with long-term service contracts operating in the highly active areas in and around Ft. St. John, Peace River and Ft. McMurray. Acquisitions will continue to be our focus in 2014 as we continue to grow the Company. With the dedication of our energetic and innovative team we anticipate delivering revenue and earnings growth and in turn - creating accretive value for our shareholders. To the shareholders of Platinum we thank you for your continued support.
Sincerely,
Bernard Parkinson, President & Chief Executive Officer
CEO Letter to the Shareholders - Jan 2014