TigerTel Communications Inc.
TSX VENTURE : TTL

TigerTel Communications Inc.

December 15, 2006 16:01 ET

TigerTel Communications Inc. Announces Results for the Second Quarter Ending October 31, 2006

MISSISSAUGA, ONTARIO--(CCNMatthews - Dec. 15, 2006) - TigerTel Communications Inc. (TigerTel)(TSX VENTURE:TTL), announced today its operating results for the three-month period ending October 31, 2006. Tigertel reported revenue of $4,269,510, direct costs of $2,358,513 and a gross profit of $1,910,997. Operating expenses amounted to $1,632,497. Net earnings before interest, taxes and amortization for the period was $278,500. Interest, amortization, provision for current income taxes and recovery of future income taxes amounted to $139,561, $254,506, $2,259 and $40,000 respectively resulting in a net loss for the period of $77,826.

For the corresponding period last year the Company reported revenue of $4,325,295, direct costs of $2,017,011 and a gross profit of $2,308,284. Operating expenses amounted to $1,700,262. Net earnings before interest, taxes and amortization for the period was $608,022. Interest, amortization and provision for future income taxes amounted to $125,099, $247,951 and $50,000 respectively resulting in net earnings for the period of $184,972.

For the six months ended October 31, 2006, Tigertel reported revenue of $8,964,642, direct costs of $4,614,995 and a gross profit of $4,349,647. Operating expenses amounted to $3,323,889. Net earnings before interest, taxes and amortization for the period was $1,025,759. Interest, amortization and provision for current and future income taxes amounted to $279,123, $496,743, $4,518 and $80,000 respectively resulting in net earnings for the period of $165,373.

For the corresponding six-month period last year the Company reported revenue of $7,941,119, direct costs of $3,804,769 and a gross profit of $4,136,350. Operating expenses amounted to $3,193,834. Net earnings before interest, taxes and amortization for the period was $942,516. Interest, amortization and provision for future income taxes amounted to $241,357, $480,667 and $50,000 respectively resulting in net earnings for the period of $170,492.

Douglas D. Swift, President and CEO, commented, "The record earnings growth momentum that we had achieved for four consecutive quarters suffered a temporary setback in the most recent quarter. Although a net loss was experienced for the quarter, year-to-date revenues are up over $1,000,000 and net earnings are very close to that of last year's. Some operating inefficiencies crept in during Q2 which have been identified and are being dealt with. We also experienced higher than normal training and rampup costs for new customers and expansion of activities for several existing clients. The revenues that were forecasted to materialize from these activities were delayed by the clients until late into Q2 thus contributing to higher direct costs. We are confident that Q3 will deliver stronger revenues and a return to positive net earnings.

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