TigerTel Communications Inc.

TigerTel Communications Inc.

March 28, 2005 16:05 ET

TigerTel Communications Inc. Announces Results for the Third Quarter Ending January 31, 2005


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TIGERTEL COMMUNICATIONS INC.

TSX VENTURE SYMBOL: TTL

MARCH 28, 2005 - 16:05 ET

TigerTel Communications Inc. Announces Results for the
Third Quarter Ending January 31, 2005

MISSISSAUGA, ONTARIO--(CCNMatthews - March 28, 2005) - TigerTel
Communications Inc. (TSX VENTURE:TTL) (TigerTel), announced today its
consolidated operating results for the three-month period ending January
31, 2005. Tigertel reported consolidated consolidated revenue of
$4,239,583, direct costs of $2,099,625 and a gross profit of $2,139,958.
Operating expenses amounted to $1,614,336. Net earnings before interest,
taxes, depreciation and amortization for the period was $525,622.
Interest, depreciation & amortization and income taxes amounted to
$124,413, $243,007 and $0 respectively resulting in net earnings for the
period of $158,202.

For the corresponding period last year the Company reported consolidated
revenue of 4,101,639, direct costs of $2,003,168 and a gross profit of
$2,098,471. Operating expenses amounted to $1,539,472. Net earnings
before interest, taxes, depreciation and amortization for the period was
$558,999. Interest, depreciation & amortization and income taxes
amounted to $124,367, $330,441 and $2,000 respectively resulting in net
earnings for the period of $102,191.

For the nine months ended January 31, 2005, Tigertel reported
consolidated revenue of $11,871,474, direct costs of $6,022,309 and a
gross profit of $5,849,165. Operating expenses amounted to $4,678,049. A
net gain of $218,532 was recorded from the sale of its Edmonton, Alberta
branch. Net earnings before interest, taxes, depreciation and
amortization for the period was $1,389,648. Interest, depreciation &
amortization and income taxes amounted to $363,498, $716,564 and $0
respectively resulting in net earnings for the period of $309,586.

For the corresponding nine-month period last year the Company reported
consolidated revenue of 11,084,331, direct costs of $5,581,678 and a
gross profit of $5,502,653. Operating expenses amounted to $4,296,444.
Net earnings before interest, taxes, depreciation and amortization for
the period was $1,206,209. Interest, depreciation & amortization and
income taxes amounted to $365,004, $771,428 and $28,012 respectively
resulting in net earnings for the period of $41,765.

Douglas D. Swift, President and CEO, commented, "Our third quarter
produced record revenue for the Company. Typically this is a very strong
period and this year was exceptionally strong as a result of the Company
assisting several international agencies involved with the tsunami
relief efforts. The urgency of the situation and the magnitude of the
task was an incredible test of this Company's technological and human
resources. Everyone in this organization is to be applauded for the
dedication and effort that went into ensuring we delivered service
second to none. I am very proud of the response from our people and
their accomplishments during the quarter.

Year to date revenue has increased almost $788,000 (7.1%) over the same
period last year. Direct costs as a percentage of revenue have remained
stable and EBITDA has increased by $183,000 (15.2%) from last year. The
sale of our Edmonton operation in Q2, has proven to be a positive
strategic move for the Company. Our continued investment in the
Company's technology infrastructure has positioned us well for continued
growth. We remain very optimistic about the potential that these and
other initiatives represent for the Company."

TigerTel's management remains committed to its focus on growth,
profitability and the creation of long-term shareholder value through
strategic acquisitions, which will generate revenue, facilitate
corporate development and strengthen its management team.

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

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    TigerTel Communications Inc.
    P. Livingstone
    (905) 629-7190
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    responsibility for the adequacy or accuracy of the content on this news
    release.