Tellza Communications Inc.

Tellza Communications Inc.

March 31, 2014 08:17 ET

Tellza Announces 2013 Financial Results

Revenue climbs to $155M in 2013 up from $103M in 2012

TORONTO, ONTARIO--(Marketwired - March 31, 2014) - Tellza Communications Inc. (TSX:TEL) announced its audited financial results for the year ended December 31, 2013.

Revenue was $156 Million compared to $103 Million in 2012, a growth of 52%. Net Income was $2.4 million or $0.02/share compared to net income of $2.4 million or $0.02 in 2012. EBITDA* in 2013 was $4.0 million compared to $2.2 million in 2012, an increase of 80% or $1.8 million.

Tellza also completed 2013 with $3.0 Million in cash and an undrawn credit facility of $3.5 Million. Over the last 24 months, the Company has also acquired and cancelled 15.5 million common shares.

[amounts in thousands of U.S. dollars, except per share information]
Years ended December 31 2013 2012
$ $
Revenue 155,506 102,896
Cost of revenue 146,904 95,850
Gross margin 8,603 7,046
Operating expenses 4,639 3,803
Depreciation of property and equipment 127 120
Amortization of intangible assets 556 850
Stock-based compensation 12 53
Interest and debt costs 33 160
Gain on retirement of debt - (260 )
Mark to fair value of common share warrants - (1 )
5,367 4,725
Income before income taxes 3,236 2,321
Provision for (recovery of) income taxes
Current 215 15
Deferred 661 (76 )
876 (61 )
Net and comprehensive income for the year 2,360 2,382
Earnings per share
- basic and diluted 0.02 0.02
Weighted-average number of common shares outstanding
- basic and diluted 155,723,491 156,936,971
Balance sheet metrics ($'000's of US dollars) 2013 2012
Cash and cash equivalents $ 2,990 $ 2,288
Total Assets $ 33,180 $ 21,794
Total Debt Nil Nil
Total Shareholders' equity $ 17,576 $ 11,156

"We are pleased with our progress in 2013. We are excited about our recent acquisition of Matchcom and we are looking forward to continued growth in 2014. "Said Gary Clifford, Executive Chairman.

The Company's financial statements and other disclosures are available on SEDAR.

About Tellza

Tellza is a global communications company operating under several brands including Route Dynamix, Phonetime, Tel3, MatchCom and Tellza Technologies. Tellza is a public company listed on the Toronto Stock Exchange (TEL).

Caution Regarding Forward Looking Information:

This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Tellza's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. See which contains all securities files.

*We define EBITDA as earnings before taxes, depreciation and amortization, stock based compensation, and interest. EBITDA, which is a non- GAAP financial measure, it is a standard measure used in the telecommunications industry to assist in understanding and comparing operating results. EBITDA is 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 is not a measure of financial performance nor does it have a standardized meaning under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating as such measures may differ among companies and analysts. Below is a reconciliation of "EBITDA" to net income for the periods presented:

EBITDA Reconciliation 2013 2012
Net Income before tax 3,236 2,321
Interest and debt costs 33 -
Stock-based compensation 12 15
Amortization of intangible assets 556 (76 )
Depreciation of property and equipment 127 (61 )
EBITDA $ 3,963 $ 2,199

Contact Information

  • Gary Clifford
    Tellza Communications Inc.
    Executive Chairman & CEO
    +647 281 1831

    Michael Vazquez
    Tellza Communications Inc.