Radiant Communications Announces 2013 First Quarter Results

VANCOUVER, May 23, 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 first quarter ended March 31, 2013.

HIGHLIGHTS:

  • Record revenue of $8.3 million for the first quarter ended March 31, 2013 increased by 1.5% compared to revenue of $8.2 million for the first quarter ended March 31, 2012.

  • Gross margin was 40.2% for the quarter compared to 40.0% in the first quarter of 2012.

  • EBITDA for the first quarter ended March 31, 2013, was $622,492 compared to $433,181 in the first quarter of 2012, a growth of 43.9%. Included in the first quarter 2013 EBITDA calculations are expenses related to the proposed plan of arrangement process of $140,000. (See EBITDA section for the reconciliation of EBITDA to Net Income).

  • Net income for the first quarter ended March 31, 2013 was $275,101 or $0.02 per share compared with net income of $39,714 or $0.00 per share in the first quarter of 2012. Included in the first quarter 2013 net income amount are expenses related to the proposed plan of arrangement process of $140,000.

  • The Company ended the quarter with cash and short-term investments of $5.6 million and used $1.1 million of cash for operating activities during the first quarter.

  • On March 8, 2013, the Company entered into an Arrangement Agreement with three 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.  This agreement was later terminated on April 25, 2013.

  • On April 26, 2013, Don Calder resigned as Chairman of the Board of Directors of Radiant.

"The First Quarter of 2013 has proven to be a very successful quarter with strong performance in all areas," said Paul Healey, President and CEO.  "Our expertise across Canada combined with our broad portfolio offers customers a unique customer experience in the market. Radiant is very well positioned as a leading provider of cloud hosting and network solutions across Canada with a strong recurring revenue base and customer focused operation. "

EBITDA

Earnings before Interest, Taxes, Depreciation and Amortization are calculated as follows:    
($000s) Q1 2013 Q1 2012
Operating Income (loss) $ 250 $50
Amortization 333 363
Stock-based compensation expense 40 20
EBITDA $ 623 $ 433

In the first Quarter of 2013, Radiant achieved EBITDA of $622,492 compared to EBITDA of $433,181 in the first quarter of 2012. Included in the EBITDA calculation are expenses of $140,000 related to the proposed plan of arrangement.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts 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

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Radiant Communications Corp.

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