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Telehop Communications Reports Second Quarter 2009 Financial Results

^{Published on 2009-08-22 13:05:23, Last Modified on 2009-08-22 13:05:24 - Market Wire}
 

 TORONTO, Aug. 19 /CNW/ - Telehop Communications Inc. (TSXV-HOP) is a full-service long distance provider operating within the telecommunications industry and is registered with the Canadian Radio-television and Telecommunications Commission ("CRTC") as a licensed Class "A" Telecom Carrier. ------------------------------------------------------------------------- Consolidated Highlights three months ended six months ended ($Thousands except for per share data) June 30, June 30, June 30, June 30, 2009 2008 2009 2008 ------------------------------------------------------------------------- Consolidated Income Statement ------------------------------ Operating revenues 3,562 4,251 7,039 8,622 Gross margin 1,463 1,462 2,766 3,125 Gross margin % 41.1% 34.4% 39.3% 36.2% Net income (loss) (243) (454) (574) (658) Earnings (loss) per share - basic (0.02) (0.03) (0.04) (0.05) Earnings (loss) per share - diluted (0.02) (0.03) (0.04) (0.05) ------------------------------------------------------------------------- The second quarter showed improved results with a continued focus on our HomePhone introduction. Quarterly financial summary - Year to date gross margin has shown a 3.1% increase to 39.3% over 2008. In the second quarter gross margin held firm even as revenues contracted. This as a result of increased revenue per minute and lower direct costs due to a strengthening of the Canadian dollar relative to the United States dollar. Revenue for second quarter 2009 was $3,562,090 with a net loss of $242,903 or $(0.02) per common share compared to revenue of $4,250,667 and net loss of $454,390 or $(0.03) per common share for the second quarter 2008. Our revenue was $688,577 or 16.2% less quarter for quarter which is attributable to a reduction in our retail long-distance business of $628,542 and a reduction in our wholesale long-distance business of $60,035. Year to date revenue was $7,039,243 with a net loss of $573,607 or $(0.04) per common share compared to revenue of $8,621,861 and net loss of $658,930 or $(0.05) per common share for the first six months of 2008. Operating expenses decreased from $2,128,802 in second quarter 2008 by $405,011 or 19.2% to $1,723,791. The majority of the decrease relates to non-recurring one time charges which occurred in 2008. Year to date operating expenses decreased by $645,101 to $3,497,611 We completed the second quarter with $1,029,174 of cash and working capital of $1,847,950 with no bank debt. We have reduced our expenses on an ongoing basis and have implemented a strategic initiative which we believe will help us increase the value of our Company in the long term. A complete financial reporting package is available on Sedar [ http://www.sedar.com ] or by contacting the company. Certain statements in this press release may constitute "forward looking statements" and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any performance or achievement expressed or implied by such "forward looking statements". The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release 

For further information: Company Contact: Mr. Hersh Spiegelman, President and CEO, (416) 494-4490, [ hersh@telehop.com ]