Tellza Communications Inc.

TSX : TEL


Tellza Communications Inc.

May 06, 2014 17:23 ET

Tellza Announces 2014 Q1 Financial Results

Revenue climbs to $51M USD in Q1-2014 up 51% from Q1-2013

TORONTO, ONTARIO--(Marketwired - May 6, 2014) - Tellza Communications Inc. (TSX:TEL) announced its unaudited financial results for the three months ended March 31, 2014.

Revenue was US$51.4 Million compared to US$34.0 Million in 2013, a growth of 51%. Net Income was US$0.3 million compared to net income of US$0.4 million in 2013. EBITDA* in Q1 2014 was US$0.8 million compared to US$0.7 million in 2013, an increase of 14%.

Tellza completed Q1 - 2014 with US$2.2 Million in cash and an undrawn credit facility of US$3.5 Million. Since 2011, Tellza has generated US$10.5 Million in Cash Profits* that have been utilized as set out in the below table:

To view 'Cumulative Cash Profits since 2011 $10.5M US', please visit the following link: http://media3.marketwire.com/docs/tell05061.jpg

To view 'Financial Metrics (USD '000's)', please visit the following link: http://media3.marketwire.com/docs/tell05062.jpg

CONSOLIDATED STATEMENTS OF OPERATIONS
[amounts in thousands of U.S. dollars, except per share information]
For the period ended March 31 2014 2013
$ $
(Unaudited) (Unaudited)
Revenue 51,366 34,050
Cost of revenue 49,276 32,430
Gross margin 2,090 1,620
Operating expenses 1,290 875
Depreciation of property and equipment 74 31
Amortization of intangible assets 295 107
Stock-based compensation 3 13
Interest and debt costs 18 12
1,680 1,038
Income before income taxes 410 582
Provision for (recovery of) income taxes
Current - -
Deferred 120 179
120 179
Net and comprehensive income for the year 290 403
Earnings per share
- basic and diluted - -
Weighted-average number of common shares
- basic and diluted 183,631,945 151,231,492

"2014 is showing a continuation of the success achieved in 2013. In Q1-2014 we also completed the acquisition of MatchCom Communications, LLC", said Gary Clifford, Executive Chairman. "We are excited about our growth prospects in the coming years as we look to consolidate traffic in the Carrier Services Market."

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

The Company's corporate profile is located at www.tellza/investors.

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 www.sedar.com which contains all securities files.

*We define EBITDA and Cash Profits 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:

Cumulative
EBITDA Reconciliation 2011 2012 2013 2014 - Q1 2011 - 2014 Q1
$ $ $ $ $
Net Income before tax 2,802 2,321 3,236 410 8,769
Interest and debt costs 338 160 33 18 549
Stock-based compensation 113 53 12 3 181
Amortization of intangible assets 1,056 850 556 295 2,757
Depreciation of property and equipment 517 120 127 74 838
Gain on retirement of debt - (260) - 0 (260)
Mark to fair value of common share warrants (2,290) (1) - 0 (2,291)
EBITDA (Cash Profits) 2,536 3,243 3,964 800 10,543

Contact Information

  • Tellza Communications Inc.
    Gary Clifford
    Executive Chairman & CEO
    +647 281 1831
    gclifford@tellza.com

    Tellza Communications Inc.
    Michael Vazquez
    President
    +954-608-5058
    mike@tellza.com