TigerTel Communications Inc.
TSX VENTURE : TTL

TigerTel Communications Inc.

July 15, 2005 16:01 ET

TigerTel Communications Inc. Announces Results for the Fourth Quarter and Year-Ending April 30, 2005

MISSISSAUGA, ONTARIO--(CCNMatthews - July 15, 2005) - TigerTel Communications Inc. (TSX VENTURE:TTL) (TigerTel), announced today its consolidated operating results for the three month period ending April 30, 2005. Tigertel reported consolidated revenue of $3,431,411, direct costs of $1,721,469 and a gross profit of $1,709,942. Operating expenses amounted to $1,512,063. Gain on sale of branch was adjusted upwards by $2046. Net earnings before interest, taxes, depreciation and amortization for the period was $197,879. Interest, depreciation & amortization and future income tax expense amounted to $117,673, $242,842 and $77,158 respectively resulting in a net loss for the period of $239,794.

For the corresponding period last year the Company reported consolidated revenue of $3,943,012, direct costs of $2,022,293 and a gross profit of $1,920,719. Operating expenses amounted to $1,511,349. Net earnings before interest, taxes, depreciation and amortization for the period was $409,370. Interest, depreciation & amortization and income tax recoveries amounted to $124,311, $361,945 and $88,032 respectively resulting in net earnings for the period of $11,146.

For the year-ended April 30, 2005, Tigertel reported consolidated revenue of $15,302,885, direct costs of $7,743,778 and a gross profit of $7,559,107. Operating expenses amounted to $6,192,158. A net gain of $220,578 was recorded from the sale of one of its branches. Net earnings before interest, taxes, depreciation and amortization for the year was $1,587,527. Interest, depreciation & amortization, and future income tax expenses amounted to $481,171, $959,406, $77,158 respectively resulting in net earnings for the year of $69,792.

For the previous year the Company reported consolidated revenue of $15,027,343, direct costs of $7,603,971 and a gross profit of $7,423,372. Operating expenses amounted to $5,807,793. Net earnings before interest, taxes, depreciation and amortization for the period was $1,615,579. Interest, depreciation & amortization, and income tax recoveries amounted to $489,315, $1,053,873 and $60,020 respectively resulting in net earnings for the year of $132,411.

Douglas D. Swift, President and CEO, commented, "After achieving record revenue levels and operating profits in the third quarter of this fiscal year, we expected traffic volumes and revenue to soften, but not to the extent or duration that we experienced. However, late in the final quarter we began to experience a recovery in revenues which has continued into our new fiscal year. Despite a weak fourth quarter the Company finished the year with revenue growth in excess of $275,000, direct costs as a percentage of revenue remaining unchanged at 50.6% and a positive bottom line."

About TigerTel/UTR

Canada call centers organization TigerTel/UTR specializes in inbound and outbound call center solutions and services for clients throughout North America. With multiple call centers in Canada, TigerTel/UTR has built an infrastructure that provides personalized services to our clients while at the same time delivering world-class results at every level.

This news release contains forward-looking statements that involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in forward-looking statements.


TIGERTEL COMMUNICATIONS INC.

Douglas D. Swift

President and Chief Executive Officer

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content on this news release.

Contact Information

  • TigerTel Communications Inc.
    P. Livingstone
    (905) 629-7190