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Radiant Communications Announces Second Quarter 2010 Results

^{Published on 2010-08-24 15:40:32 - Market Wire}
 

 HIGHLIGHTS: - Revenue of $7.8 million for the quarter ended June 30, 2010 increased by 5.2% compared to revenue of $7.4 million for the quarter ended June 30, 2009. - Gross margin was 38.9% in the quarter; - EBITDA in the second quarter was $124,778 compared to $670,854 in the second quarter of 2009. - Net loss in the second quarter of $198,062 amounted to a loss of $0.01 per share. - The Company ended the quarter with cash and short-term investments of $6.8 million and generated cash from operations of $425,473 during the second quarter. - During the second quarter Radiant commercially launched the new Surelink service and signed up over 40 new customers. Surelink uses existing copper infrastructure to provide the reliability and bandwidth of fiber at a far more economical price point with a much lower installation cost. - In the second 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 $4.0 million. Proceeds will be used to accelerate the launch and roll out of the new services using the MTS Allstream Inc. facilities. - Subsequent to the close of the financing Johnny Ciampi was appointed to the Board of Directors. 

 EBITDA Earnings before Interest, Taxes, Depreciation and Amortization is calculated as follows: ------------------------------------------------------------------------- ($000s) Q2 2010 Q2 2009 ------------------------------------------------------------------------- Operating Income (loss) $ (207) $ 338 Amortization 271 260 Stock-based compensation expense 61 73 ------------------------------------------------------------------------- EBITDA $ 125 $ 671 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- ($000s) Six months Six months ended ended June 30, June 30, 2010 2009 ------------------------------------------------------------------------- Operating Income (loss) $ (85) $ 571 Amortization 532 523 Stock-based compensation expense 146 137 ------------------------------------------------------------------------- EBITDA $ 593 $ 1,231 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 RADIANT COMMUNICATIONS CORP. BALANCE SHEET (Expressed in Canadian dollars) (Unaudited) ------------------------------------------------------------------------- June 30, December 31, 2010 2009 ------------------------------------------------------------------------- Assets Current assets Cash and cash equivalents $ 6,233,110 $ 3,412,781 Short-term investments 533,376 424,376 Restricted short-term investment - 109,000 Trade accounts receivable 2,868,470 2,512,832 Inventories 240,610 358,136 Prepaid expenses and deposits 422,313 295,052 Deferred costs 1,059,417 1,473,487 ------------------------------------------------------------------------- 11,357,296 8,585,664 Property and equipment 1,922,160 1,568,829 Right of Access 840,678 - Goodwill 1,574,228 1,574,228 ------------------------------------------------------------------------- $ 15,694,362 $ 11,728,721 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities Accounts payable and accrued liabilities $ 3,453,801 $ 3,244,082 Customer deposits 122,115 122,115 Deferred revenue 4,401,379 4,679,804 Current portion of deferred lease inducements 33,463 16,050 Current portion of obligations under capital leases 47,828 49,700 ------------------------------------------------------------------------- 8,058,586 8,111,751 Deferred lease inducements 48,269 75,192 Obligations under capital leases 16,724 44,040 ------------------------------------------------------------------------- 8,123,579 8,230,983 ------------------------------------------------------------------------- Shareholders' equity Share capital 7,511,130 3,601,872 Contributed surplus 4,673,392 4,433,931 Deficit (4,613,739) (4,538,065) ------------------------------------------------------------------------- 7,570,783 3,497,738 ------------------------------------------------------------------------- $ 15,694,362 $ 11,728,721 ------------------------------------------------------------------------- ------------------------------------------------------------------------- RADIANT COMMUNICATIONS CORP. STATEMENTS OF OPERATIONS, COMPREHENSIVE INCOME (LOSS) AND DEFICIT (Expressed in Canadian dollars) (Unaudited) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2010 2009 2010 2009 ------------------------------------------------------------------------- Revenue $ 7,758,217 $ 7,374,185 $ 15,568,986 $ 14,640,373 Cost of sales 4,738,033 4,105,573 9,378,022 8,207,038 ------------------------------------------------------------------------- Gross profit 3,020,184 3,268,612 6,190,964 6,433,335 ------------------------------------------------------------------------- Expenses Sales and marketing 648,791 493,887 1,141,931 1,031,686 General and administrative 2,306,749 2,176,077 4,602,352 4,307,807 Amortization 271,151 260,322 532,513 522,538 ------------------------------------------------------------------------- 3,226,691 2,930,286 6,276,796 5,862,031 ------------------------------------------------------------------------- Income (loss) before undernoted (206,507) 338,326 (85,832) 571,304 Interest expense 5,052 14,439 11,817 31,438 Other (income) expenses (13,467) 99,811 (21,975) 61,616 ------------------------------------------------------------------------- Net earnings (loss) and comprehensive income (loss) for the period (198,092) 224,076 (75,674) 478,250 Deficit, beginning of period (4,415,647) (4,357,475) (4,538,065) (4,611,649) ------------------------------------------------------------------------- Deficit, end of period $ (4,613,739) $ (4,133,399) $ (4,613,739) $ (4,133,399) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted earnings (loss) per share $ (0.01) $ 0.02 $ (0.01) $ 0.04 Weighted average common shares, used in computing basic and diluted earnings (loss) per share 14,433,356 10,925,664 14,777,598 10,925,664 ------------------------------------------------------------------------- ------------------------------------------------------------------------- RADIANT COMMUNICATIONS CORP. STATEMENTS OF CASH FLOWS (Expressed in Canadian dollars) (Unaudited) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2010 2009 2010 2009 ------------------------------------------------------------------------- Cash flows from operating activities: Income (loss) for the period $ (198,092) $ 224,076 $ (75,674) $ 478,250 Items not involving cash: Amortization 255,188 260,322 513,316 522,538 Amortization of right of access 15,963 - 19,197 - Stock-based compensation 60,134 72,206 146,461 137,304 Amortization of deferred lease inducements (8,468) 2,671 (9,510) 5,342 Foreign exchange (gain) loss (9,458) 98,932 373 78,142 ------------------------------------------------------------------------- 115,267 658,207 594,163 1,221,576 Change in non-cash working capital: Trade accounts receivable 294,898 736,447 (355,638) 398,661 Inventories 69,168 (99,204) 117,526 140,254 Prepaid expenses and deposits (4,341) (160,173) (127,261) (277,728) Deferred costs 201,352 (207,630) 414,070 (245,814) Accounts payable and accrued liabilities (128,405) 130,359 209,719 268,259 Customer deposits - (750) - (1,351) Deferred revenue (122,466) 145,876 (278,425) 200,311 ------------------------------------------------------------------------- 425,473 1,203,132 574,154 1,704,168 Cash flows from investing activities: Purchase of property and equipment (278,716) (149,030) (871,400) (311,890) Payments for right of access (687,875) - (859,875) - ------------------------------------------------------------------------- (966,591) (149,030) (1,731,275) (311,890) Cash flows from financing activities: Payments under capital leases (12,320) (42,085) (24,435) (102,534) Proceeds from issuance of common shares 4,002,258 - 4,002,258 - ------------------------------------------------------------------------- 3,989,938 (42,085) 3,977,823 (102,534) Foreign exchange gain (loss) on cash held in foreign currency 9,458 (98,932) (373) (78,142) ------------------------------------------------------------------------- Increase in cash and cash equivalents 3,458,278 913,085 2,820,329 1,211,602 Cash and cash equivalents, beginning of period 2,774,832 2,108,995 3,412,781 1,810,478 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 6,233,110 $ 3,022,080 $ 6,233,110 $ 3,022,080 ------------------------------------------------------------------------- -------------------------------------------------------------------------