Welcome To The Radiant Communications Corp. HUB On AGORACOM
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Message: Announces Fiscal 2008 Results
| March 26, 2009 | ||
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Radiant Communications Announces Fiscal 2008 Results
Success In New Products and Services Generates Record Revenue |
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 26, 2009) - Radiant Communications Corp. ("Radiant") (TSX VENTURE:RCN), Canada's leading supplier of Broadband Solutions for Business(TM), today announced its financial results for the fourth quarter and year ended December 31, 2008. HIGHLIGHTS: - Revenue of $24.9 million for the year ended December 31, 2008 increased by 14.3% compared to revenue of $21.8 million for the year ended December 31, 2007. - Revenue in Q4 of 2008 was a record $7.0 million and a 20.0% increase over Q4 of 2007. - Gross margin was 44.4% for the year. - In the fourth quarter of 2008 the Company recorded EBITDA of $162,883 and EBITDA for the year was $591,597 (see EBITDA section for reconciliation to GAAP). - The Net loss in 2008 of $531,433 amounted to $(0.05) per share with Q4 2008 EPS of $(0.01). - The Company ended the current year with cash and short-term investments of $2.3 million and generated cash from operations of $517,102 during 2008. - On September 2, 2008 Radiant announced a significant long term contract with a major North American customer. The 5 year contract for managed services is valued in excess of $20 Million and includes Radiant's state of the art MPLS service being deployed to over 3,000 North American locations. In 2008 Radiant provisioned over 1,200 locations for this customer. - In 2008 Radiant invested in the completion of its MPLS network, built out a second redundant virtual grid in Toronto, installed new real-time network monitoring systems and significantly upgraded its business continuity and disaster recovery capabilities, all while holding capital expenditures at $1.2 million for the year. - During 2008 Radiant commercially launched its AlwaysThere(TM) Solutions portfolio of products including hosted Exchange and hosted applications on virtual grid servers. Radiant deployed over 3,000 hosted Exchange customer seats in the year. Monthly recurring revenues for the AlwaysThere portfolio grew from zero to over $60,000 of Monthly recurring revenue as of Dec 31st. - Radiant's investments in its MPLS network and AlwaysThere solutions portfolio began paying dividends in 2008 with several significant multi-year contract awards. - Radiant continued the roll out of existing high value customers during the year including Wal-Mart, lululemon, Laura, Sony Stores, HDS Retail and Dollarama. "2008 was a very successful transformative year for Radiant," said David Buffett, President and CEO of Radiant. "We invested and launched our SaaS AlwaysThere hosted Exchange offering and built that business from a standing start to over 3,000 seats provisioned by year end. The AlwaysThere Business passed the break even mark in September and is contributing positively to our bottom line. Radiant ended the year with a record backlog of customer sites for roll out in 2009 which positions us very well for the upcoming year. In the face of extremely difficult times for Canadian small and medium business we are experiencing continuing record growth as new and existing customers embrace our secure, reliable and highly cost effective solutions." "In September we signed a 5 year managed services agreement with one of North America's premiere consumer services organizations. The contract, to provide managed connectivity services to over 3,000 locations, is valued in excess of $20 million. We will be continuing the roll out for this customer well into Q2 of 2009 and anticipate that ongoing efficiencies as well as the installed base will assist in margin and EBITDA improvements going forward." "Our new AlwaysThere hosted Exchange offering is now well established with over 3,000 seats provisioned and a strong funnel of opportunities. Although some customers are delaying IT decisions we are finding that our SaaS solution remains attractive due to immediate cost savings and long term reliability and security. We invested carefully in this product offering and our market channels in 2008, with the knowledge it would temporarily reduce EBITDA and cash flows. With excellent early success and a well established customer base and sales team now in place we will continue to invest in marketing and channel growth in 2009." "Throughout 2008 we invested in systems, infrastructure and people to ensure that we can deliver on our goals of high reliability and security and superior customer service while preparing the organization for high growth. I am very pleased with our results and I believe we are extremely well positioned in the market to prosper in these turbulent times. With cash in the bank, no debt, a high growth recurring revenue business model, and a superior customer base, I look forward to ongoing success in 2009," concluded Mr. Buffett. Additional details on the fourth quarter and year end results, including the audited Financial Statements and Management Discussion and Analysis, will be made available at www.sedar.com under Radiant Communications Corp. Radiant will hold a conference call to discuss its results for the year end and fourth quarter ended December 31, 2008 on March 27, at 9:00 a.m. PDT (12:00 p.m. EDT). Access to the call may be obtained by calling the operator at 1-866-215-0058 (Toll Free North America), or 1-416-915-9616 (International) 10 minutes prior to the scheduled start time. 7 days after the call at 1-866-245-6755 (Toll Free North America) or 416-915-1035 (International). The passcode for the playback is 417004. The audio web cast will be archived for replay on Radiant's web site at www.radiant.net. Non-GAAP Measures The Company reports EBITDA because it is a key measure used by management to evaluate the Company's performance. The Company believes that EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and other non-cash expenses. EBITDA is not a recognized measure under Canadian GAAP, and accordingly investors are cautioned that EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with Canadian GAAP as an indicator of the financial performance of the Company or as a measure of the Company's liquidity and cash flows. The Company's method of calculating EBITDA differs from other issuers and, accordingly, EBITDA may not be comparable to similar measures presented by other issuers. Please see the schedule below that sets out the Company's EBITDA calculations. EBITDA Earnings before Interest, Taxes, Depreciation and Amortization is calculated as follows: -----------------------------------------------------------------
($000s) Q4 2008 Q4 2007
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Operating Income (Loss) $ (171) $ 260
Amortization 266 257
Stock-based compensation expense 68 106
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EBITDA $ 163 $ 623
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Year ended Year ended
December 31, December 31,
($000s) 2008 2007
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Operating Income (loss) $ (639) $ 729
Amortization 981 896
Stock-based compensation expense 250 150
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EBITDA $ 592 $1,775
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Radiant Communications Corp. (www.radiant.net) provides businesses with a comprehensive range of IP-based data communications services including the largest on-net DSL footprint across Canada, T1 and E10/E100 fibre broadband, MPLS, IPSec, and SSL private networking. From its data centres in Toronto and Vancouver, Radiant also delivers network-based Microsoft Exchange(R), email archiving, digital voice, credit/debit payment processing, and disaster recovery services via VMware-powered grid computing facilities directly into customers' private networks. In operation since 1996, the company currently serves over 16,000 business locations in Canada and the United States from its offices in Vancouver, Toronto, Montreal, Calgary, and Edmonton. Broadband Solutions for Business and AlwaysThere are registered trademarks of Radiant Communications Corp. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners. This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Radiant, which involve risks and uncertainties. These risks and uncertainties may cause Radiant's actual results to differ materially from those contemplated by the forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, the growth rate of the Internet and telecommunications concerns, constantly changing technology and market acceptance of Radiant's products and services. Investors are also directed to consider the other risks and uncertainties discussed in Radiant's required financial statements and filings. All other companies and products listed herein may be trademarks or registered trademarks of their respective holders. RADIANT COMMUNICATIONS CORP.
STATEMENTS OF OPERATIONS, COMPREHENSIVE INCOME (LOSS) AND DEFICIT
(Expressed in Canadian dollars)
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Three months ended Year ended
December 31, December 31,
2008 2007 2008 2007
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(Unaudited) (Unaudited)
Revenue $ 6,981,267 $ 5,818,927 $ 24,900,158 $ 21,782,269
Cost of sales 4,120,549 2,985,168 13,847,038 10,964,994
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Gross profit 2,860,718 2,833,759 11,053,120 10,817,275
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Expenses
Sales and marketing 583,057 452,106 2,358,755 2,049,463
General and
administrative 2,182,904 1,864,364 8,353,194 7,143,285
Amortization 265,315 256,615 980,623 895,684
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3,031,276 2,573,085 11,692,572 10,088,432
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Income (loss) before
undernoted (170,558) 260,674 (639,452) 728,843
Interest expense 13,558 39,219 92,412 139,315
Non-cash interest
expense on
warrants - - - 3,676
Other (income)
expenses (80,789) 36,473 (200,431) 171,288
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Income and
comprehensive
income (loss) for
the year (103,327) 184,982 (531,433) 414,564
Deficit, beginning
of period (4,508,322) (4,265,198) (4,080,216) (4,494,780)
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Deficit, end
of period $ (4,611,649) $ (4,080,216) $ (4,611,649) $ (4,080,216)
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Basic and diluted
earnings (loss) per
share $ (0.01) $ 0.02 $ (0.05) $ 0.04
Weighted average
common shares,
used in computing
basic and diluted
earnings (loss) per
share 10,925,658 10,925,658 10,925,658 10,898,535
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Radiant Communications Corp.
BALANCE SHEET
(Expressed in Canadian dollars)
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December 31, December 31,
2008 2007
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Assets
Current assets
Cash and cash equivalents $ 1,810,478 $ 2,534,271
Short-term investment 424,000 33,000
Restricted short-term investment 109,000 500,000
Trade accounts receivable 2,534,797 2,342,465
Inventories 674,717 412,972
Prepaid expenses and deposits 275,913 262,741
Deferred costs 1,254,309 535,302
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7,083,214 6,620,751
Property and equipment 1,648,465 1,401,203
Goodwill 1,574,228 1,574,228
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$ 10,305,907 $ 9,596,182
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 2,333,222 $ 2,189,748
Customer deposits 162,086 164,896
Deferred revenue 4,329,351 3,418,737
Current portion of deferred lease
inducements 16,050 16,421
Current portion of obligations
under capital leases 176,218 242,945
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7,016,927 6,032,747
Deferred lease inducements 64,509 11,868
Obligations under capital leases 87,203 133,293
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7,168,639 6,177,908
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Shareholders' equity
Share capital 3,601,872 3,601,872
Contributed surplus 4,147,045 3,896,618
Deficit (4,611,649) (4,080,216)
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3,137,268 3,418,274
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$ 10,305,907 $ 9,596,182
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RADIANT COMMUNICATIONS CORP.
STATEMENTS OF CASH FLOWS
(Expressed in Canadian dollars)
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Three months ended Year ended
December 31, December 31,
2008 2007 2008 2007
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(Unaudited) (Unaudited)
Cash flows from
operating activities:
Income (loss) for
the period $ (103,327) $ 184,982 $ (531,433) $ 414,564
Items not involving
cash:
Amortization 265,315 256,615 980,623 895,684
Stock-based
compensation 68,127 106,471 250,427 150,607
Non-cash interest
expense on
warrants - - - 3,676
Amortization of
deferred lease
inducements (3,827) (18,494) (3,425) (73,974)
Foreign exchange
(gain) loss (49,371) 47,066 (99,807) 174,239
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176,917 576,640 596,385 1,564,796
Change in non-cash
working capital:
Trade accounts
receivable (155,179) (456,651) (192,332) (462,560)
Inventories 114,206 (38,258) (261,745) 17,533
Prepaid expenses
and deposits 146,346 103,993 (13,172) (44,856)
Deferred costs (201,010) 29,949 (719,007) (37,209)
Accounts payable
and accrued
liabilities (276,363) 105,010 143,474 (109,997)
Customer deposits (17) (150) (2,810) (2,250)
Deferred revenue 396,568 134,467 910,614 336,149
Tenant improvement
allowance
reimbursement 55,695 - 55,695 -
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257,163 455,000 517,102 1,261,606
Cash flows from
investing activities:
Purchase of property
and equipment (142,586) (238,194) (1,090,898) (1,085,752)
Short-term investments 391,000 391,000
Restricted short-term
investment (391,000) - (391,000) -
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(142,586) (238,194) (1,090,898) (1,085,752)
Cash flows from
financing activities:
Proceeds from issuance
of common shares - - - 888,437
Payments under
capital leases (42,372) (71,241) (249,804) (517,790)
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(42,372) (71,241) (249,804) 370,647
Foreign exchange gain
(loss) on cash held
in foreign currency 49,371 (47,066) 99,807 (174,239)
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Increase (decrease) in
cash and cash
equivalents 121,576 98,499 (723,793) 372,262
Cash and cash
equivalents,
beginning of period 1,688,902 2,435,772 2,534,271 2,162,009
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Cash and cash
equivalents, end
of period $ 1,810,478 $ 2,534,271 $ 1,180,478 $ 2,534,271
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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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