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Radiant Communications Announces First Quarter 2010 Results

^{Published on 2010-05-25 16:05:07 - Market Wire}
 

 HIGHLIGHTS: - Revenue of $7.8 million for the quarter ended March 31, 2010 increased by 7.5% compared to revenue of $7.3 million for the quarter ended March 31, 2009; - Gross margin was 40.6% in the quarter; - EBITDA in the first quarter was $468,364 compared to $560,291 in the first quarter of 2009; - Net Income in the first quarter of $122,418 amounted to $0.01 per share; - The Company ended the quarter with cash and short-term investments of $3.3 million and generated cash from operations of $148,681 during the period; - In January Radiant announced a National Broadband Network Investment Agreement with MTS Allstream Inc. that will allow both companies to provide reliable, next generation, high capacity broadband services to Canadian businesses. The new Ethernet First Mile or EFM service has been branded as Surelink; - Subsequent to the end of the quarter Radiant announced and completed two non-brokered private placements. A total of 4.2 million shares were issued at $1.00 for net proceeds of $4.17 million. Proceeds will be used to accelerate the launch and roll out of the new services using the MTS Allstream Inc. facilities. 

 ------------------------------------------------------------------------- ($000s) Q1 2010 Q1 2009 ------------------------------------------------------------------------- Operating Income $ 121 $ 233 Amortization 261 262 Stock-based compensation expense 86 66 ------------------------------------------------------------------------- EBITDA $ 468 $ 561 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 RADIANT COMMUNICATIONS CORP. BALANCE SHEET (Expressed in Canadian dollars) (Unaudited) ------------------------------------------------------------------------- March 31, December 31, 2010 2009 ------------------------------------------------------------------------- Assets Current assets Cash and cash equivalents $ 2,774,832 $ 3,412,781 Short-term investments 533,376 424,376 Restricted short-term investment - 109,000 Trade accounts receivable 3,163,368 2,512,832 Inventories 309,778 358,136 Prepaid expenses and deposits 417,972 295,052 Deferred costs 1,260,769 1,473,487 ------------------------------------------------------------------------- 8,460,095 8,585,664 Property and equipment 1,903,385 1,568,829 Right of Access 168,766 - Goodwill 1,574,228 1,574,228 ------------------------------------------------------------------------- $ 12,106,474 $ 11,728,721 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities Accounts payable and accrued liabilities $ 3,582,206 $ 3,244,082 Customer deposits 122,115 122,115 Deferred revenue 4,523,845 4,679,804 Current portion of deferred lease inducements 33,872 16,050 Current portion of obligations under capital leases 50,539 49,700 ------------------------------------------------------------------------- 8,312,577 8,111,751 Deferred lease inducements 56,328 75,192 Obligations under capital leases 31,086 44,040 ------------------------------------------------------------------------- 8,399,991 8,230,983 ------------------------------------------------------------------------- Shareholders' equity Share capital 3,601,872 3,601,872 Contributed surplus 4,520,258 4,433,931 Deficit (4,415,647) (4,538,065) ------------------------------------------------------------------------- 3,706,483 3,497,738 ------------------------------------------------------------------------- $ 12,106,474 $ 11,728,721 ------------------------------------------------------------------------- ------------------------------------------------------------------------- RADIANT COMMUNICATIONS CORP. STATEMENTS OF OPERATIONS, COMPREHENSIVE INCOME AND DEFICIT (Expressed in Canadian dollars) (Unaudited) ------------------------------------------------------------------------- Three months ended March 31, 2010 2009 ------------------------------------------------------------------------- Revenue $ 7,810,769 $ 7,266,188 Cost of sales 4,639,989 4,101,465 ------------------------------------------------------------------------- Gross profit 3,170,780 3,164,723 ------------------------------------------------------------------------- Expenses Sales and marketing 493,140 537,800 General and administrative 2,295,603 2,131,730 Amortization 261,362 262,216 ------------------------------------------------------------------------- 3,050,105 2,931,746 ------------------------------------------------------------------------- Income before undernoted 120,675 232,977 Interest expense 6,765 16,999 Other (income) expense (8,508) (38,196) ------------------------------------------------------------------------- Net earnings and comprehensive income for the period 122,418 254,174 Deficit, beginning of period (4,538,065) (4,611,649) ------------------------------------------------------------------------- Deficit, end of period $ (4,415,647) $ (4,357,475) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic earnings per share $ 0.01 $ 0.02 Weighted average common shares, used in computing basic earnings per share 10,925,664 10,925,664 Diluted earnings per share $ 0.01 $ - Weighted average common shares, used in computing diluted earnings per share 10,927,684 - ------------------------------------------------------------------------- ------------------------------------------------------------------------- RADIANT COMMUNICATIONS CORP. STATEMENTS OF CASH FLOWS (Expressed in Canadian dollars) (Unaudited) ------------------------------------------------------------------------- Three months ended March 31, 2010 2009 ------------------------------------------------------------------------- Cash flows from operating activities: Income for the period $ 122,418 $ 254,174 Items not involving cash: Amortization of property and equipment 258,128 262,216 Amortization of right of access 3,234 - Stock-based compensation 86,327 65,098 Amortization of deferred lease inducement (1,042) 2,671 Foreign exchange (gain) loss 9,831 (20,790) ------------------------------------------------------------------------- 478,896 563,369 Change in non-cash working capital: Trade accounts receivable (650,536) (337,786) Inventories 48,358 239,458 Prepaid expenses and deposits (122,920) (117,555) Deferred costs 212,718 (38,184) Accounts payable and accrued liabilities 338,124 137,900 Customer deposits - (601) Deferred revenue (155,959) 54,435 ------------------------------------------------------------------------- 148,681 501,036 Cash flows from investing activities: Purchase of property and equipment (592,684) (162,860) Payments for right of access (172,000) - ------------------------------------------------------------------------- (764,684) (162,860) Cash flows from financing activities: Payments under capital leases (12,115) (60,449) Foreign exchange gain (loss) on cash held in foreign currency (9,831) 20,790 ------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents (637,949) 298,517 Cash and cash equivalents, beginning of period 3,412,781 1,810,478 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 2,774,832 $ 2,108,995 ------------------------------------------------------------------------- -------------------------------------------------------------------------