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Telehop Announces Fourth Quarter and Year End 2014 Results
[April 24, 2015]

Telehop Announces Fourth Quarter and Year End 2014 Results


Telehop Communications Inc. ("Telehop" or the "Company"), (TSX-V: HOP) today announced its financial performance during the fourth quarter and year ended December 31, 2014.

Telehop completed two major acquisitions in 2014 by purchasing G3 Telecom in Q1 and iRoam in Q2. The purchases of G3 Telecom and iRoam enable the Company to diversify revenues from declining traditional long distance dial-around markets. The acquisitions enable the Company accelerated product expansion into higher growth markets in the wireless data and voice segments.

Revenue for 2014 was up 106% to approximately $17,114,000 with a net loss of ($460,318) or ($0.015) loss per common share compared to revenue of $8,320,000 with a net income of $89,000 or $0.004 per common share for 2013. The Company's gross margin for 2014 was approximately $6,664,000 or 39% compared to approximately $3,536,000 or 43% for 2013. Gross margins have decreased by 4% in 2014 primarily impacted by drastic changes in international exchange rates and lower margins in the acquired businesses. EBITDA for 2014 was approximately $413,000 compared to $270,000 in the prior year.

"Telehop continues to see strong growth in new channels specifically from wireless data and voice services fostered by the organizations purchased in Q1 and Q2 of 2014. I am proud of our operational efficiency during this year's acquisitions and continue to focus on our new wireless businesses delivering increased revenues." said Rajiv Jagota, President CEO, Telehop.

Company highlights during the year include:

  • Key acquisitions including G3 Telecom and iRoam
  • Expand online branding initiatives of Telehop, G3 Telecom, G3 Wireless, and iRoam
  • Increased sales to enterprise customers for wireless and other telecom services

FINANCIAL OVERVIEW





Consolidated Highlights   Year ended December 31
  2014   2013
Revenue $17,113,670 $8,319,885
Gross margin $6,663,223 $3,535,914
Gross margin % 38.9% 42.5%
EBITDA1 $413,230 $270,201
Net income (Loss) $(460,318) $89,122
Earnings per share - basic

$(0.015)

$0.004

1 We define EBITDA as earnings before interest costs, taxes, depreciation and amortization as earnings before interest costs, taxes, depreciation, and amortization. EBITDA is non-GAAP financial measure used in to assist in understanding and comparing operating results. EBITDA is reviewed regularly by management and our Board of Directors in assessing performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. EBITDA is not a measure of financial performance nor does it have a standardized meanings under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts. We have reconciled EBITDA to its most comparable measure calculated in accordance with IFRS, being net income (loss) in the tables below.

Below is a reconciliation of "EBITDA" to net income (loss) for the periods presented:

EBITDA Reconciliation   Year ended December 31
  2014   2013
Net income (loss) $(460,318) $89,122
Interest costs $364,226 $27,132
Income taxes (48,677) -
Amortization $557,999 $153,947
EBITDA1 $413,230 $270,201

A complete financial reporting package, including the 2014 Audited Annual Consolidated Financial Statements and Notes to the Financial Statements and MD&A, is available at our corporate website (www.telehop.com), at SEDAR website (www.sedar.com) or via email to [email protected] or via phone at 416-499-5463.

GRANTING OF OPTIONS

Telehop also announces effective April 24, 2014 that the Board of Directors has granted Inder Saini, CFO, options to acquire up to 150,000 common shares of the Company for a period of five years, where each stock option represents the right to purchase one (1) common share of the Company, to be exercisable at a price of $0.15.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained herein regarding the Company and its plans constitute "forward-looking statements" within the meaning of Canadian securities laws. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. The forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any performance or achievement expressed or implied by such forward-looking statements. We direct you to our Company's Management's Discussion and Analysis filed for the period ended December 31, 2014.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Telehop

Telehop Communications Inc. (TSX-V: HOP) was founded and headquartered in Toronto, Ontario in 1993, and has grown into one of the largest alternative telecommunications providers to both residential and business customers.

Telehop originally began offering residential and business two-way monthly 'flat rate' calling services in the Greater Toronto area between communities where a call would otherwise be a long distance call. In 1994, Telehop became one of Canada's few Equal Access Long Distance Providers, allowing it to offer its customers full service long distance calling globally at significantly lower rates. Telehop has broadened into home phone, business services, and wireless communications. The Canadian Radio-television and Telecommunications Commission ("CRTC") has licensed Telehop as a Class "A" telecommunications carrier.

Telehop's dedication and priority is providing residential and businesses with exceptional phone services at competitive rates without sacrificing quality service.


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