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Platinum Communications Corporation > Q3 Earnings Released on Friday,July 11 2014

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Post by apainter on Jul 14, 2014 1:01pm

Q3 Earnings Released on Friday,July 11 2014

Platinum Communications Corp. (TSX-V: PCS) today announced financial results for the nine months ending May 31, 2014.

Highlights for the nine months, include the following:

Platinum’s revenues from operations for the nine months ending May 31, 2014 increased 19%, compared to the same nine month period of fiscal 2013. The acquisition of three competitors since March 2013 contributed to the majority of the increase while accelerated activity with our commercial and energy clients provided the balance of the increase.
Gross profit increased by 8% and Earnings before interest, tax, depreciation and amortization increased by 2%.

Cash provided by operating activities was $867,738 for the nine months ending 2014 compared to $1,494,680 in the same period of fiscal 2013, a decrease of 42%. The majority of the reduction in cash provided by operating activities is due to the increase in accounts receivable for several transactions with commercial companies.
Platinum recorded Net Income of $201,519 for the nine months of fiscal 2014, a decrease of 49% over the net income recorded in the same nine months of the previous year. The decrease in net income is primarily due to two non cash expenses, a provision for deferred income taxes of $67,172, due to Platinum’s ability to generate continuous earnings, and a loss on settlement of debt of $72,993 which resulted from the refinancing completed during first nine months of fiscal 2014.
As of the date of this release Platinum has approximately $1,120,000 of available cash.

SELECTED HIGHLIGHTS¹

	Nine months ended May 31,

	2014	2013	% Change

Revenue	$7,602,233	$6,386,781	19
Gross profit²	4,653,478	4,314,407	8
Earnings before interest, tax, depreciation and amortization³	1,670,854	1,639,025	2
Net income	201,519	395,321	-49
Earnings per share, diluted	0.0035	0.0071	-51
Cash provided by operating activities	867,738	1,494,680	-42
ARPU(Average revenue per user)	627	498	26
Customers	11,839	12,551	-6
Common Shares Outstanding	56,448,449	55,966,731	1
Return on Equity	3.6%	9.82%	-172

¹Includes the previously announced acquisitions of Community Networks Inc., Hybrid southern Alberta residential customers and Pathcom from March 1, 2013, November 1, 2013 and January 1, 2014 respectively.
²Gross Profit 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 performance or liquidity. Platinum’s gross profit is unlikely to be comparable to similar measures presented by other companies.
³Earnings before interest, tax, depreciation and amortization 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, 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.

Read more at https://www.stockhouse.com/news/press-releases/2014/07/11/platinum-communications-corporation-reports-financial-results-for-the-nine#OuWyMCjleu01FIAM.99

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