TigerTel Communications Inc.
TSX VENTURE : TTL

TigerTel Communications Inc.

March 27, 2006 16:31 ET

TigerTel Communications Inc. Announces Results for the Third Quarter Ending January 31, 2006

MISSISSAUGA, ONTARIO--(CCNMatthews - March 27, 2006) - TigerTel Communications Inc. (TigerTel) (TSX VENTURE:TTL), announced today its operating results for the three-month period ending January 31, 2006. Tigertel reported revenue of $4,543,627, direct costs of $2,280,022 and a gross profit of $2,263,605. Operating expenses amounted to $1,688,823. Net earnings before interest, taxes and amortization for the period was $574,782. Interest, amortization and provision for future income taxes amounted to $130,879, $263,054 and $52,500 respectively resulting in net earnings for the period of $128,349.

For the corresponding period last year the Company reported 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 nine months ended January 31, 2006, Tigertel reported revenue of $12,484,746, direct costs of $6,084,791 and a gross profit of $6,399,955. Operating expenses amounted to $4,882,657. Net earnings before interest, taxes and amortization for the period was $1,517,298. Interest, amortization and future income taxes amounted to $372,236, $743,721 and $102,500 respectively resulting in net earnings for the period of $298,841.

For the corresponding nine-month period last year the Company reported 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.

Douglas D. Swift, President and CEO, commented, "The third quarter of this fiscal year just ended proved to be another Company best in terms of total revenues. Although quarterly EBITDA came in slightly lower from its record level of Q2 we are very pleased with the overall year to date results. Short-term high volume campaign revenues were much more apparent in the revenue mix in the current quarter. Although this type of work aids in boosting overall revenues, inherent in its nature are tighter operating margins. Current quarter revenues were over $300,000 more than last quarter and are running over $600,000 more year to date versus last year. Year to date direct costs as a percentage of revenue remain at their lowest level in the Company's history. Looking at our net earnings before provision for future income taxes versus our operating earnings from last year, excluding the one time gain from the sale of the Edmonton branch, we have achieved a 440% year over year increase in operating earnings. Our ongoing investment in the Company's technology infrastructure continues to position us well for continued growth.

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