GLENTEL INC. SHAREHOLDERS APPROVE STOCK SPLIT AND GLENTEL ANNOUNCES REVISED FINANCIAL HIGHLIGHTS

BURNABY, BC, May 9 /CNW/ - GLENTEL Inc. (TSX: GLN) shareholders voted in favour of a two-for-one stock split at the Company's Annual Meeting of Shareholders held on May 4, 2011. The stock split is pending regulatory approval, with a record date of May 18, 2011, and trading on a divided basis on the opening of business on May 16, 2011, the second trading day preceding the record date.

Upon completion of the stock split, the number of outstanding shares would double from approximately 11 million to approximately 22 million, with each shareholder of record receiving one additional common share for each common share held on the record date.

On May 3, 2011, GLENTEL announced basic net income per share of $0.39 for the three-month period ended March 31, 2011. On finalization of the unaudited interim condensed financial statements for filing under International Financial Reporting Standards ("IFRS"), an adjustment to reduce the net income attributable to the non-controlling interest was determined. As a result, for the three-month period ended March 31, 2011, the Company reports net income attributable to common shareholders of $4,745,000, an increase of $0.04 per share from $0.39 per share to $0.43 per share.

Under IFRS, the Company has recorded the present value of the redemption amount of the financial instrument related to the put option held by the non-controlling interest in Diamond Wireless, which is accreted to its fair value over the term of the put option. This is presented on the balance sheet as a long-term liability and therefore the non-controlling interest share of income will not be recorded separately in earnings or equity. Accretion costs are recognized in the statement of operations and comprehensive income over the term of the put option.

Revised financial highlights (tabular amounts in thousands of Canadian dollars, except per share data), are:

  Three months ended
March 31
  2011 2010
Sales $121,062 $74,785
Income, before interest, taxes and amortization $10,763 $5,298
Operating income, before accretion, interest and taxes $8,195 $3,411
Net income attributable to common shareholders $4,745 $2,327
Basic net income per share $0.43 $0.21
Diluted net income per share $0.42 $0.21

Revised adjusted financial highlights:

  Three months ended
March 31
  2011 2010
Net income as reported $4,745 $2,327
Add: Redeemable financial instrument accretion costs $972 -
Less: Non-controlling interest $(467) -
Adjusted net income (1) $5,250 $2,327
Adjusted basic net income per share (1) $0.48 $0.21
Adjusted diluted net income per share (1) $0.47 $0.21

(1) Our financial results are prepared in accordance with International Financial Reporting Standards ("IFRS"). This press release refers to adjusted net income, adjusted basic and diluted net income per share, which are not measures recognized under IFRS in Canada and do not have a standardized meaning prescribed by IFRS. Adjusted net income excludes the effect of accretion costs recorded on a redeemable financial instrument of $972 and records non-controlling interest share of earnings of $467 for the three months ended March 31, 2011. These measures may differ from those used by, and may not be comparable to such measures as reported by other issuers. We disclose these measures, which have been derived from our financial statements and applied on a consistent basis, because we believe they are of assistance in understanding the results of our operations and financial position and are meant to provide further information about our financial results to investors.

About GLENTEL
GLENTEL (TSX: GLN) is a leading provider of innovative and reliable telecommunications services and solutions in Canada and the United States. Founded in 1963 and headquartered in Burnaby, BC, GLENTEL comprises three operating divisions - Retail Canada, Retail US and Business - that service thousands of consumers and commercial communications customers. The company operates 290 stores across Canada located primarily in retail malls and Costco Wholesale, as well as 155 stores in the United States. To its business and government customers, GLENTEL offers wireless service, rental equipment, satellite and terrestrial network systems, tower sites, and wireless asset monitoring. As the largest multi-carrier mobile phone retailer in Canada, it offers a choice of network carrier and wireless device or phone to Canadian consumers. GLENTEL operates its business under the trading names Glentel Wireless, WIRELESSWAVE, WAVE SANS FIL, Tbooth wireless, la cabine T sans fil, WIRELESS etc. and SANS FIL etc., and Diamond Wireless - Verizon National Premium Retailer in the U.S.

Forward-Looking Statements
Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third-party manufacturing, managing rapid growth, limited intellectual property protection, and other risks and uncertainties described in GLENTEL's public filings with securities regulatory authorities.

NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

 

SOURCE Glentel Inc.

For further information:

Investor Relations Contact:             Media Contact:
        Jas Boparai, Chief Financial Officer                    Melanie Mitchell
        GLENTEL Inc.                       GLENTEL Inc.
        604.415.6500                       604.415.7002
        investors@glentel.com                    melanie.mitchell@glentel.com

To secure a copy of GLENTEL's annual report or for additional information visit www.glentel.com or www.sedar.com.

 

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Glentel Inc.

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