RE:Q2 earnings Overall Performance
Three months ended February 28, Six months ended February 28,
2014 2013 Change 2014 2013 Change
Statements of comprehensive income (loss)
Revenues Gross profit 1
Earnings before interest, tax, depreciation and amortization 2 Net income (loss) and comprehensive income (loss) Earnings (loss) per share, basic
$2,524,622 1,568,568 583,992
19,628 0.0004
$1,961,273 29% 1,329,729 18% 270,414 116%
( 98,024) -120% ( 0.0018) -120%
$4,964,765 3,109,193 1,174,638
136,015 0.0024
$3,922,054 27% 2,656,830 17% 864,570 36%
121,684 12% 0.0022 9%
Statements of cash flows
Cash provided by operating activities Cash used in investing activities Cash provided by financing activities
181,201 ( 704,864) 792,445
358,134 -49% ( 95,801) 636% 1,854,872 -57%
559,679 ( 1,229,652) 436,725
826,682 -32% ( 226,266) 443% 1,711,642 -74%
Other measurables
Shares outstanding Options outstanding Subs cribers
55,966,731 3,540,000 12,074
55,593,398 1% 3,959,500 -11% 10,074 20%
55,966,731 3,540,000 12,074
55,593,398 1% 3,959,500 -11% 10,074 20%
1 Gross profit is shown because it 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 financial performance or liquidity. Platinum's gross profit is unlikely to be comparable to similar measures presented by other companies.
2 Earnings before interest, tax, depreciation and amortization (EBITDA) 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, tax, 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.
Highlights for the three months ended February 28, 2014, include the following:
Revenues increased 29% compared to the same period in fiscal 2013. Gross profit was $1,568,568 compared to $1,329,729 for the same period in fiscal 2013, an 18% increase.
Earnings before interest, tax, depreciation and amortization increased by 116% to $583,992 from $270,414 in the same period of 2013.
Platinum posted net income and comprehensive income of $19,628 from operations for the quarter, an increase of $117,652 over the same quarter of fiscal 2013. The net income includes a charge for deferred taxes of $6,542. The increase is due primarily to increased revenues and gross profit from the acquisition of Community Networks, Hybrid and Pathcom.
Cash provided by operating activities was $181,201 compared to $358,134 for fiscal 2013. Cash used in investing activities was $704,764, 636% higher than in fiscal 2013. This was primarily due to the use of $600,000 in cash for the acquisition of Pathcom Wireless. Cash provided by financing activities was $792,445 in the quarter ending February 28, 2014 compared to cash provided by financing activities of $1,854,872 in fiscal 2013, a decrease of 57%. Cash provided by financing activities includes $5,100,000 of new financing from Alberta Treasury Branch, which was used to pay out the two term loans and two promissory notes for a total of of $4,025,926. The balance of the funds were used to purchase Pathcom and provide working capital.