Platinum Communications Corp. Reports Financial Results for the Year Ending August 31, 2014
Calgary, Alberta (FSCwire) - Platinum Communications Corp. (TSX-V: PCS) today announced financial results for the fiscal year ended August 31, 2014.
Highlights for the 2014 fiscal year, include the following:
- Platinum had steady growth of 17% in revenues from operations for fiscal 2014 compared to fiscal 2013 due to two acquisitions, which contributed 43% and commercial revenues which contributed 44% to the increase.
- Our acquisition strategy has provided an increase in gross profit of 5% as a result of higher revenues. Earnings before interest, tax, depreciation and amortization (EBITDA) pulled back 1% compared to fiscal 2013 as a result of transaction and restructuring expenses.
- Cash provided by operating activities was $1,207,552 in fiscal 2014 compared to $2,151,542 in fiscal 2013, a decrease of 44% due to higher accounts receivable balances from commercial revenue growth.
- Platinum recorded Net Income of $164,673 for fiscal 2014 a decrease of 92% over the previous year. The decrease is primarily the result of an income tax recovery of $1.7 million recorded in the previous year.
- As of the date of this release Platinum has approximately $980,000 of available cash.
SELECTED HIGHLIGHTS[1]
|
|
Year ended August 31,
|
|
|
2014
|
2013
|
% Change
|
|
Revenue
|
$10,358,704
|
$8,845,630
|
17
|
|
Gross profit[2]
|
6,232,579
|
5.935,775
|
5
|
|
Earnings before interest, tax, depreciation and amortization[3]
|
2,155,895
|
2,187,136
|
-1
|
|
Net income
|
164,673
|
2,148,154
|
-92
|
|
Earnings per share, basic and diluted
Cash provided by operating activities
|
0.0029
1,207,552
|
0.0385
2,151,542
|
-93
-44
|
|
ARPU(Average revenue per user)
|
848
|
769
|
10
|
|
Customers
Common Shares Outstanding
|
11,437
56,448,449
|
12,219
55,966,731
|
-6
1
|
|
Return on Equity
|
2%
|
30%
|
-93
|
Bernard Parkinson, CEO, commented, "Platinum is now favorably positioned in Alberta as a reliable Internet provider to both residential customers and enterprise clients. Our engineering expertise; operational efficiencies; as well as our commitment to safety have given us a solid foundation in the oil and gas markets in a very short timeframe. Overall, we are bullish that the demand for broadband services will continue as we build out our network and service offerings."
Platinum Communications Corporation (TSX-V: PCS) is a leading provider of superior quality fixed wireless Internet and Broadband solutions in Alberta. Based in Calgary, Platinum operates a wireless broadband network that utilizes
[1] Includes the previously announced acquisitions of Hybrid and Pathcom operations from November 1, 2013 and January 1, 2014 respectively.
[2] Gross 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.
[3] Earnings 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.
Next-Generation Wimax technology to bring fast, reliable and affordable Internet and digital phone service to residents and businesses across the province. Serving more than 11,000 customers in over 180 communities, Platinum caters primarily to rural and near-urban markets that are often beyond the reach of traditional Internet providers. Platinum’s high quality infrastructure, excellent service record and ever-growing network and capabilities, make it the provider of choice for customers within its vast coverage area. For more information please visit our website at www.platinum.ca or call 403-301-4591.
- 30 –
This news release may contain forward-looking statements. These forward-looking statements do not guarantee future events or performance and should not be relied upon. Actual outcomes may differ materially due to any number of factors or uncertainties, many of which are beyond Platinum's control. Some of these risks and uncertainties may be described in Platinum's corporate filings (posted at www.sedar.com). Platinum has no intention or obligation to update or revise any forward-looking statements due to new information or events.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
For further information please contact:
Bernard D. Parkinson, CEO Katherine Kirkup, CFO
Phone (403) 301-4591 Phone (403) 301-4594
Source: Platinum Communications Corporation (PCS)http://www.platinum.ca
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/platinum12152014.pdfSource: Platinum Communications Corporation (TSX Venture:PCS) http://www.platinum.ca/
Maximum News Dissemination by FSCwire. http://www.fscwire.com
Copyright © 2014 Filing Services Canada Inc.