TORONTO, ONTARIO--(Marketwired - March 25, 2015) - Tellza Communications Inc. ("Tellza") (TSX:TEL) announced today its audited financial results for 2014.
2014 represents Tellza's third consecutive year of profitability. Revenue for 2014 was $243 Million USD compared to $155 Million USD in 2013, representing year over year growth of 56%.
The Company's cash position at December 31, 2014 was $6.5 Million, or $0.04/share of cash, compared to $3.0 Million, or $0.02/share, in 2013. In 2014, Tellza also expanded availability under its senior debt facility to $5.0 Million from $3.5 Million in 2013. The Company had no borrowings under its senior debt facility at each of December 31, 2014 and 2013.
Tellza has acquired and cancelled 26 million shares or 15% of its outstanding shares over the last three years. Management considers this purchase and cancellation to be a benefit to shareholders as if the Company had issued, in each of the past three years, a 5% tax-free stock dividend on its common shares. Tellza will continue to acquire and cancel shares as long as shares remain available for acquisition at favorable pricing. In 2014, Tellza retired 10.5 million common shares, 8.5 million common shares in 2013 and 7.5 million common shares in 2012.
In addition to the above financial metrics, the Company also achieved other key milestones in 2014 and has plans to achieve additional goals in 2015:
Tellza Technologies
- Ali Kivilcim was promoted to Chief Executive Officer of Tellza Technologies.
- Tellza Technologies completed development on Console Enterprise, its platform version of its ERP solution for Telecommunication Carriers.
- Tellza Technologies deployed of its VoIP.net proprietary Softswitch technology at Phonetime in 2014.
- Tellza Technologies to deploy its Console Enterprise and VoIP.net platform at Matchcom in 2015.
- Tellza Technologies to offer third party carriers the ability to deploy its Softswitch and ERP platform starting in 2015.
Tellza Communications
- Mike Vazquez was named Chief Executive Officer of Tellza Communications in 2014.
- Tellza Communications acquired 90% of Matchcom Communications (International voice business) in February 2014.
- MatchCom to deploy Tellza Technologies ERP platform and Softswitch technology in 2015.
"We want to thank our shareholders for their continued support. Management remain focused on our core business and we are excited about the prospect of bringing our technology to third party carriers in 2015." said, Gary Clifford, 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, and MatchcoM. Tellza Technologies develops platform based technology for deployments at Telecommunications carriers. 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.
Tellza Communications Inc. | ||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||
[amounts in thousands of U.S. dollars] | ||||
As at December 31 | ||||
2014 | 2013 | |||
$ | $ | |||
ASSETS | ||||
Current | ||||
Cash and cash equivalents | 6,486 | 2,990 | ||
Accounts receivable, net | 17,070 | 11,808 | ||
Prepaid expenses and deposits | 1,381 | 1,099 | ||
Total current assets | 24,937 | 15,897 | ||
Deferred tax assets | 37 | 12 | ||
Property and equipment, net | 1,455 | 1,092 | ||
Intangible assets, net | 4,908 | 4,984 | ||
Goodwill | 11,679 | 11,195 | ||
43,016 | 33,180 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current | ||||
Accounts payable | 9,507 | 6,029 | ||
Accrued liabilities | 13,750 | 8,334 | ||
Customer deposits | 952 | 976 | ||
Income taxes payable | 481 | 29 | ||
Total current liabilities | 24,690 | 15,368 | ||
Deferred tax liabilities | 450 | 235 | ||
Total liabilities | 25,140 | 15,603 | ||
Shareholders' equity | ||||
Common shares | 16,197 | 16,601 | ||
Contributed surplus | 2,547 | 2,721 | ||
Deficit | (1,019 | ) | (1,745 | ) |
Equity attributable to shareholders | 17,725 | 17,577 | ||
Non-controlling interest | 151 | - | ||
Total shareholders' equity | 17,876 | 17,577 | ||
43,016 | 33,180 | |||
Tellza Communications Inc. | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
[amounts in thousands of U.S. dollars, except per share information] | |||
Years ended December 31 | |||
2014 | 2013 | ||
$ | $ | ||
Revenue | 242,779 | 155,506 | |
Cost of revenue | 233,570 | 146,903 | |
Gross margin | 9,209 | 8,603 | |
Operating expenses | 6,244 | 4,639 | |
Depreciation of property and equipment | 298 | 127 | |
Amortization of intangible assets | 1,281 | 556 | |
Stock-based compensation | - | 12 | |
Interest and debt costs | 28 | 33 | |
7,851 | 5,367 | ||
Income before income taxes | 1,358 | 3,236 | |
Provision for income taxes | |||
Current | 271 | 215 | |
Deferred | 121 | 661 | |
392 | 876 | ||
Net income and comprehensive income for the year | 966 | 2,360 | |
Net income and comprehensive income attributable to | |||
Shareholders | 948 | 2,360 | |
Non-controlling interests | 18 | - | |
966 | 2,360 | ||
Earnings per share attributable to shareholders | |||
- basic and diluted | 0.01 | 0.02 | |
Weighted-average number of common shares outstanding | |||
- basic and diluted | 185,853,378 | 155,723,491 | |
Tellza Communications Inc. | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
[amounts in thousands of U.S. dollars] | |||||
Years ended December 31 | |||||
2014 | 2013 | ||||
$ | $ | ||||
OPERATING ACTIVITIES | |||||
Net income and comprehensive income for the year attributable to Shareholders | 948 | 2,360 | |||
Add items not affecting cash | |||||
Depreciation of property and equipment | 298 | 127 | |||
Amortization of intangible assets | 1,281 | 556 | |||
Stock-based compensation | - | 11 | |||
Minority interest | 18 | - | |||
Deferred income taxes | 120 | 658 | |||
2,665 | 3,712 | ||||
Changes in non-cash working capital balances related to operations | |||||
Accounts receivable, net | (3,650 | ) | (4,420 | ) | |
Prepaid expenses and deposits | (282 | ) | (966 | ) | |
Accounts payable and accrued liabilities | 6,800 | 3,940 | |||
Income taxes payable | 452 | (3 | ) | ||
Customer deposit | (24 | ) | 207 | ||
3,296 | (1,242 | ) | |||
Cash provided by operating activities | 5,961 | 2,470 | |||
INVESTING ACTIVITIES | |||||
Purchase of property and equipment and intangible assets | (814 | ) | (866 | ) | |
Cash acquired (used) on Acquisition | (243 | ) | 6 | ||
Cash used in investing activities | (1,057 | ) | (860 | ) | |
FINANCING ACTIVITIES | |||||
Share issuance cost | (20 | ) | (70 | ) | |
Cancellation of common shares | (1,388 | ) | (838 | ) | |
Cash used in financing activities | (1,408 | ) | (908 | ) | |
Net increase in cash during the year | 3,496 | 702 | |||
Cash and cash equivalents, beginning of year | 2,990 | 2,288 | |||
Cash and cash equivalents, end of year | 6,486 | 2,990 |
Contact Information:
Tellza Communications Inc.
Chief Executive Officer
Phone - +954 608 5058
Email: mike@tellza.com
Gary Clifford
Tellza Communications Inc.
Executive Chairman
Phone - +647 281 1831
Email - gclifford@tellza.com