Radiant Communications Announces 2012 Annual and Fourth Quarter Results

VANCOUVER, March 20, 2013 /CNW/ - Radiant Communications Corp. ("Radiant") (TSX-V: RCN), a leading provider of managed network and cloud hosting solutions for medium-size enterprises today announced its financial results for the fourth quarter and year ended December 31, 2012.

HIGHLIGHTS:

  • Record revenue of $32.7 million for the year ended December 31, 2012 increased by 1.2% compared to revenue of $32.3 million for the year ended December 31, 2011. Fourth quarter revenue of $8.2 million increased by 0.9% compared to the fourth quarter of 2011.

  • Gross margin was 40.2% for the year and 38.6% in the fourth quarter.

  • Amortization for the year ended December 31, 2012 was $1.5 million and amortization in the fourth quarter was $367,399.

  • EBITDA for the year ended December 31, 2012 was $2.0 million and EBITDA in the fourth quarter was $240,802. (See EBITDA section for the reconciliation of EBITDA to Net Income).

  • The Net Income for the year was $409,630 or $0.03 per share with a Net Loss of $150,707 or $0.01 per share in the fourth quarter.

  • The Company ended the year with cash and short-term investments of $6.9 million and generated $3.8 million of cash from operating activities during the year.

  • During 2012 Radiant re-signed several existing customer relationships, continued to add new services with existing customers and sold new services to many small and medium businesses.

  • On March 5, 2012, Paul Healey was appointed President and CEO by the Board of Directors.

  • On March 9, 2012, Rolf Dekleer resigned from the Radiant Board of Directors.

  • On July 5, 2012, at the Annual General Meeting of Shareholders Greg Gutmanis was elected to the Board of Director and appointed as the Chair of the Audit Committee. Ian Power did not stand for re-election.

  • On March 8, 2013, the Company entered into an Arrangement Agreement with two controlling shareholders under which the Company would be taken private pursuant to a plan of arrangement under the provisions of the Canada Business Corporations Act

"The past year has been focused on delivering secure, reliable managed networks and cloud hosting solutions to meet our customer's business-critical needs.  We've made tremendous progress overall and I am very pleased with our growth and results to date." said Paul Healey, President and CEO.  "We are delivering on our growth plan, and have generated significant cash flow and record profits for our shareholders.  Moving forward into 2013, we will remain focused on the demands of our medium-size enterprise customers and vision for growth including secure, high performance and scalable network services and solutions. "

EBITDA

Earnings before Interest, Taxes, Depreciation and Amortization is calculated as follows:

     
($000s) Q4 2012 Q4 2011
Operating Income $ (171) $ 43
Amortization 367 366
Stock-based compensation expense 45 11
EBITDA $ 241 $ 420

In the fourth quarter of 2012, Radiant achieved EBITDA of $240,802 compared to EBITDA of $419,625 in the fourth quarter of 2011.

     
($000s) Year ended
December 31, 2012
Year ended
December 31, 2011
Operating Income  (loss) $  399 $  (684)
Amortization 1,478 1,445
Stock-based compensation expense 153 60
Restructuring costs - 523
EBITDA $ 2,030 $ 1,344

In the twelve months ended December 31, 2012 Radiant achieved positive EBITDA of $2.0 million compared to positive EBITDA of $1.3 million in the comparable period of 2011.

About Radiant
Radiant Communications is a leading provider of managed network and cloud hosting solutions for medium-size enterprises. Leveraging one of the largest Internet footprints across Canada, Radiant offers a comprehensive portfolio of reliable, secure and scalable IT infrastructure services, simplified under a single point of contact. For over 15 years, many of Canada's most recognized brand names have been relying on Radiant to support their mission-critical business operations.

All trademarks, service marks, registered trademarks, or registered service marks are the property of the 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: Radiant Communications Corp.

For further information:

Investors:  Chuck Leighton, CFO, 604.692.4531, cleighton@radiant.net
Media: Janice Keay, Senior Director,Marketing, 416. 646.9416, jkeay@radiant.net