Platinum Communications Corporation Reports Financial Results for the Nine Months Ending May 31, 2014
12 July 2014 - 8:06AM
Business Wire
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
1 Includes 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.
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.
ABOUT PLATINUM COMMUNICATIONSPlatinum Communications
Corporation (TSX-V: PCS) is a leading provider of superior quality
fixed wireless Internet and Broadband solutions utilizing
Next-Generation WiMax technology. The Company caters to urban,
rural and remote markets that are often beyond the reach of
traditional Internet providers. Platinum's custom-built, wireless
broadband network provides high-speed data and voice services to
enterprise operations and residential customers throughout Alberta
and NE British Columbia. For more information, please visit our
website at www.platinum.ca or call 403-301-4591.
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 Parkinson, CEO
Kathy Kirkup, CFO
Phone (403) 301-4591 Phone (403) 301-4594
(PCS)http://www.platinum.ca
Platinum Communications Corp.Bernard D. Parkinson,
403-301-4591CEObparkinson@platcom.caorKathy Kirkup,
403-301-4594CFO
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