Axia Reports Results for the Year Ended December 31, 2012
ANNUALIZED FINANCIAL AND OPERATIONAL HIGHLIGHTS
2012 adjusted EBITDA increased 32% over the prior year to $14.3 million
due to continuing market penetration growth.
Comparable net income for 2012 totalled $11.9 million or $0.19 per share
compared to $4.9 million or $0.08 per share in 2011. Comparable net
income excludes the fair value and deferred tax adjustments recorded in
Covage's NGN Services revenue grew 30% over the prior year, to $41.9
million for 2012. Axia's 50% proportionate view was $20.9 million.
Revenue generating customers have grown by 26% to 8,740. Our focus is to
continue to grow our customer base. In Singapore, OpenNet had 272,000
end users at December 31, 2012.
- A term sheet for a revised concession agreement was signed with the Government of Catalonia in Spain for the sale of services to both the government and the private sector.
QUARTERLY FINANCIAL HIGHLIGHTS
NGN Services revenue of $17.8 million grew 18% over the prior year.
Total revenue for the quarter was $19.0 million, up 8% from $17.7
million a year ago.
EBITDA of $3.6 million was up 17% from $3.1 million a year ago.
Loss per share of ($0.04) compared to earnings per share of $0.02 a year
ago. Included in this quarter's earnings is a $6.1 million or $0.10 per
share related to a deferred tax adjustment in France. Excluding this
adjustment, earnings per share was $0.06.
- Axia's share of OpenNet's net income totaled $3.0 million for the quarter compared to $0.8 million a year ago.
CALGARY, March 18, 2013 /CNW/ - During the year, the Corporation changed its fiscal year end from June 30 to December 31. As a result, the Corporation had a six month fiscal year from July 1, 2012 to December 31, 2012 and the next full fiscal year commenced on January 1, 2013. Due to the change in the Corporation's year end the financial information above has been adjusted to reflect the twelve month periods ended December 31. This change was done to facilitate the reading and comparison of information to the results presented as at December 31, 2012.
|6 Months||12 Months||12 Months||12 Months||3 Months||3 Months|
|($000s)||Dec 31, 2012||June 30, 2012||Dec 31, 2012||Dec 31, 2011||Dec 31, 2012||Dec 31, 2011|
|NGN Services revenue||34,790||62,142||67,042||61,335||17,806||15,067|
|Net income before tax||6,395||8,612||12,548||5,428||3,206||1,402|
|Net income per share||0.01||0.13||0.11||0.08||(0.04)||0.02|
The audited consolidated financial statements for the six months ended December 31, 2012 and related Management's Discussion & Analysis (MD&A) have been reviewed and approved by Axia's Audit Committee and Board of Directors. Axia recognizes that the majority of its investors are now accessing Axia's corporate and financial information either through pushed news services, directly from Axia's corporate website or SEDAR. Thus, Axia has prepared this truncated news release to alert investors to its results and that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR at www.sedar.com and also posted at www.axia.com.
Notice of Conference Call
Axia will hold a conference call with the investment community on Monday, March 18, 2013 at 9 a.m. (Eastern), 7 a.m. (Mountain). To participate in the conference call, please dial (647) 427-7450 in Toronto and internationally. If you are connecting from other parts of Canada, dial 1-888-231-8191. Please call ten minutes prior to the start of the call. In addition, a live webcast (listen only mode) of the conference call will be available at:
A replay of the conference call will be available at (416) 849-0833 or 1-855-859-2056, passcode 16815064 from 6 p.m. (Eastern) Monday, March 18, 2013 to midnight (Eastern) Monday, March 25, 2013 or through the webcast archives at www.newswire.ca.
Axia sells services over fibre optic communications infrastructure in jurisdictions that have implemented the Axia NGN Solution. To date, Axia has networks in Alberta, France, Singapore, Spain and Massachusetts. Axia trades on the Toronto Stock Exchange under the symbol "AXX".
This News Release contains forward-looking statements, including, without limitation, statements containing the words "should", "believe", "anticipate", "may", "plan", "will", "continue", "intend", "expect", "estimate" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. These statements are based on our current expectations, estimates, forecasts and assumptions about the operating environment, economies and markets in which we operate and are subject to important assumptions, risks and uncertainties that are difficult to predict. Examples of these statements would include those where Axia forecasts its success and timing in winning new NGN business, the timing of completion and estimated total costs of our networks, the revenues and operating costs associated with these networks over time, and Axia's ability to generate future cash flows and avail itself of other financing alternatives given current market conditions. The assumptions, risks and uncertainties that could cause actual results to differ materially from the forward-looking information, include, but are not limited to, changes in customer markets, changes in demand for our services, our inability to deliver services in a timely and cost efficient manner, technological change, general economic conditions and other risks detailed from time to time in our ongoing filings with the Canadian securities regulatory authorities, including those in our Annual Information Form, which filings can be found at www.sedar.com. Given these assumptions, risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise.
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