MONTREAL, Sept. 29, 2011 /CNW Telbec/ - Prestige Telecom Inc. ("Prestige" or "the Company") (TSXV: PR) a leader in providing engineering, materials furnishing, installation
and support services (commonly referred to as EF&I services), as well
as technical and aerial services to the Canadian communications and
broadcast industries reported its unaudited financial results today for
the first quarter ended June 30, 2011, and filed its financial
statements and MD&A for the period. All figures are in Canadian
Prestige posted sales of $33.4 million for the first quarter of fiscal
2012, compared to $33.5 million a year ago. Revenues for the
construction segment were down 36% to $11.9 million, engineering
segment revenues were up 58% to $16.5 million as the Company continues
to grow this business segment and installation segment revenues were up
10% to $5 million due to an increase in wireline business activity.
Gross margin for the first quarter decreased by $1.2 million to $5.6
million (17% of sales) from $6.8 million (20% of sales) last year,
mainly due to the construction segment, where gross margin as a
percentage of sales decreased from 17% to 11%. Lower construction sales
volumes in the first quarter had a negative impact on the recovery of
General and administrative expenses decreased by $0.7 million to $4.2
million (13% of sales) for the first quarter from $4.8 million (14% of
sales) a year ago. General and administrative expenses as a percentage
of sales continued to decrease in the first quarter due to the impact
of cost-cutting measures initiated in the last fiscal year.
EBITDA¹ for the quarter was $1.3 million, compared to $1.7 million last
For the first quarter ended June 30, 2010, Prestige recorded a net loss
of $0.7 million or $0.006 per share, compared to net loss of $0.4
million or $0.004 per share for the same period last year.
Working capital stood at $(14.2) million as at June 30, 2011, compared
to $(13.4) million as at March 31, 2011. The Company also has access to
a $24 million revolving credit facility, of which $25.1 million was
used as at June 30, 2011.
At June 30, 2011, total assets were $54.8 million, shareholders' equity
was ($5.9) million and net debt was $40.6 million. A total of 118.2
million shares were outstanding.
EBITDA is defined herein as earnings before interest, taxes,
depreciation and amortization, gain (loss) on disposal of property,
plant and equipment, foreign exchange gain (loss), stock-based
compensation, litigation settlement, and reorganization costs.
Extension of the time for calling the annual general meeting
The Company also announces today that the Quebec Superior Court has
granted the Company an order extending the time to call the annual
general meeting of the shareholders to December 15, 2011. As
previously reported, the Company filed on September 23, 2011 a request
for an extension of the deadline for calling its annual general meeting
of the shareholders, on the basis that a meeting at this point in time
would not constitute the best use of the Company's management time and
financial resources as it works towards furthering its strategic review
A copy of the court order will be filed on SEDAR and will therefore be
available to the public by accessing the Company's profile at www.sedar.com.
About Prestige Telecom
Prestige Telecom is a leading provider of network engineering, materials
furnishing, installation and support services (commonly referred to as
EF&I services) required to construct, operate and maintain wireline,
wireless and cable television networks. Prestige assists
telecommunications original equipment manufacturers and service
providers to engineer, install and upgrade their infrastructures to
support enhanced voice, high-speed data and video services. Prestige
Telecom also provides technical and aerial services to the Canadian
communications and broadcast industries, including tower supply,
engineering, site construction, and infrastructure and equipment
In Canada, Prestige has over 1,000 professional and technical personnel
operating from nineteen (19) service locations in nine (9) provinces.
Prestige's head office is located in Baie-D'Urfé (Montréal), Québec.
This press release contains certain forward-looking statements with
respect to the Company. Such forward-looking statements are dependent
upon a certain number of factors and are subject to risks and
uncertainties. Management does not assume any obligation to update or
revise any forward-looking statements, whether as a result of new
information or future events, except when required by the regulatory
The TSX Venture Exchange has not reviewed the contents of this press
release and accepts no responsibility for the adequacy or the accuracy
SOURCE PRESTIGE TELECOM INC.
For further information:
Prestige Telecom Inc.
Director - Corporate Affairs
Tel: (514) 457-4488 ext: 273