Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V: HOP)
today announced its financial performance for the year ended December
31, 2015.
Revenue for 2015 was up approximately 5% to $17,886,000 compared to
revenue of $17,114,000 in fiscal 2014. For comparative purposes, the
Company had ten months of G3 and eight months of iRoam revenues in 2014
versus twelve months in 2015. The Company’s gross margin for the year
was approximately $6,704,000 or 37% compared to approximately $6,664,000
or 39% in the prior year. Adjusted EBITDA for 2015 was approximately
$501,000 compared to $512,000 in the prior year. The Company had lower
gross margin in 2015 due to higher foreign exchange expense between the
Canadian and US dollar coupled with a sudden spike in expense to a high
destination country. The Company mitigated these charges through cost
efficiencies in general and administrative expenses and higher US dollar
based sales.
“The Company had a transitional year in 2015. The integration of our
previous acquisitions, building new systems and redefining processes
were the key goals in the year. As long distance sales reduce through
expected attrition, the Company has invested into ISP and SMB services
for future growth. As we look to 2016, there is particular focus on
organic growth as well as opportunistic acquisitions that provide
immediate accretive value.” said Rajiv Jagota, President and CEO of
Telehop.
FINANCIAL OVERVIEW
Consolidated Highlights
|
|
Year Ended December 31
|
|
|
|
|
2015
|
|
|
2014
|
|
Revenue
|
|
$
|
17,885,503
|
|
$
|
17,113,670
|
|
Gross margin
|
|
$
|
6,704,369
|
|
$
|
6,664,223
|
|
Gross margin %
|
|
|
37%
|
|
|
39%
|
|
Adjusted EBITDA1
|
|
$
|
500,804
|
|
$
|
511,872
|
|
Net income (Loss)
|
|
$
|
(959,145)
|
|
$
|
(460,318)
|
|
Earnings (loss) per share – basic and diluted
|
|
$
|
(0.030)
|
|
$
|
(0.015)
|
|
Below is a reconciliation of “EBITDA” and “Adjusted EBITDA” to net
income (loss) for the periods presented:
EBITDA and Adjusted EBITDA Reconciliation
|
|
Year Ended December 31
|
|
|
|
|
2015
|
|
|
2014
|
|
Net income (Loss)
|
|
$
|
(959,145)
|
|
$
|
(460,318)
|
|
Income tax recovery
|
|
$
|
(144,532)
|
|
$
|
(48,677)
|
|
Interest costs
|
|
$
|
384,392
|
|
$
|
364,226
|
|
Depreciation and amortization
|
|
$
|
688,620
|
|
$
|
557,999
|
|
EBITDA1
|
|
$
|
(30,666)
|
|
$
|
413,230
|
|
Acquisition transaction costs
|
|
$
|
35,970
|
|
$
|
98,642
|
|
Goodwill and intangible asset impairment charge
|
|
$
|
245,500
|
|
-
|
|
Settlement charge
|
|
$
|
250,000
|
|
-
|
|
Adjusted EBITDA1
|
|
$
|
500,804
|
|
$
|
511,872
|
|
A complete financial reporting package, including the 2015 Consolidated
Financial Statements and Notes to the Financial Statements and MD&A, is
available at our corporate website (www.telehop.com),
at SEDAR website (www.sedar.com)
or via email to investorinquiry@telehop.com
or via phone at 416-499-5463.
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements herein may be “forward looking” statements that
involve known and unknown risks, uncertainties and other factors that
may cause the actual results, performance or achievements of Telehop or
the industry to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Forward looking statements involve significant risks and
uncertainties, should not be read as guarantees of future performance or
results, and will not necessarily be accurate indications of whether or
not such results will be achieved. A number of factors could cause
actual results to vary significantly from the results discussed in the
forward looking statements. These forward looking statements reflect
current assumptions and expectations regarding future events and
operating performance and are made as of the date hereof and Telehop
assumes no obligation, except as required by law, to update any forward
looking statements to reflect new events or circumstances.
Neither the 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 release.
ABOUT TELEHOP
Telehop Communications Inc. (TSX-V: HOP) was founded and headquartered
in Toronto, Ontario in 1993, and has grown into one of the largest
alternative telecommunications providers to both residential and
business customers.
Telehop's dedication and priority is providing residential and
businesses with exceptional phone services at competitive rates without
sacrificing quality service.
1We define EBITDA as earnings before interest costs, taxes,
depreciation and amortization. Adjusted EBITDA also excludes acquisition
costs, settlement charges and impairment charges. EBITDA and Adjusted
EBITDA, which are non-GAAP financial measures, are commonly used
measures used in the telecommunications industry to assist in
understanding and comparing operating results. EBITDA and Adjusted
EBITDA are reviewed regularly by management and our Board of Directors
in assessing performance and in making decisions regarding the ongoing
operations of the business and the ability to generate cash flows.
Generally, a non-GAAP financial measure is a numerical measure of a
company’s performance, financial position or cash flows that either
excludes or includes amounts that are not normally excluded or included
in the most directly comparable measure calculated and presented in
accordance with IFRS. EBITDA and Adjusted EBITDA are not measures of
financial performance nor do they have a standardized meaning under
IFRS. In evaluating these measures, investors should consider that the
methodology applied in calculating such measures may differ among
companies and analysts. We have reconciled EBITDA and Adjusted EBITDA to
its most comparable measure calculated in accordance with IFRS, being
net income (loss) in the tables below.
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