Axia Reports Results for the three and six months ended June 30, 2014
CALGARY, Aug. 12, 2014 /CNW/ -
Business unit revenue of $32.3 million grew 21% from $26.7 million.
This increase is driven primarily by increasing market penetration as
customer connections grew to 10,166 at June 30, 2014, up 12% from 9,041
a year ago.
Business unit EBITDA of $7.6 million increased from $7.5 million for the
same quarter last year. Included in EBITDA was $2.2 million of new
business development costs versus $0.1 million a year ago.
In Covage, revenue of $18.2 million grew 28% over the same period last
year. EBITDA of $5.6 million was up 21% year over year.
North American revenue of $14.1 million grew 13% and recurring revenue
of $12.4 million grew 10% over the same quarter last year.
Axia's planned $20.0 million investment in Alberta to build 1,526 km of
fibre between 25 larger communities in the province is on track and on
budget. As of June 30, 2014, 59% of the fibre required to complete the
community interconnect grid has been deployed.
IFRS net loss of $0.3 million or $0.00 per share compared to a loss of
$0.4 million or $(0.01) per share for the same quarter last year.
The balance sheet remained strong with $32.5 million of cash and $4.4
million of debt which includes $2.7 million drawn on Axia's $20.0
million credit facility.
* Axia's business unit summary includes 100% of the financial and
operational results of Axia North America and Covage. Please see the
condensed consolidated interim financial statements and related
Management's Discussion & Analysis (MD&A) for more details.
The condensed consolidated interim financial statements for the three
and six months ended June 30, 2014 and related 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 ir.axia.com 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
Tuesday, August 12, 2014 at 9 a.m. (Eastern), 7 a.m. (Mountain). To
participate in the conference call, please dial +1 (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 81331655 from 6 p.m. (Eastern) Tuesday, August
12, 2014 to midnight (Eastern) Tuesday, August 19, 2014 or through the
webcast archives at: www.newswire.ca
Axia owns, operates and sells services over fibre optic communications
infrastructure. Axia trades on the Toronto Stock Exchange under the
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 and amount of future dividend payments, 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.
SOURCE: Axia NetMedia Corporation
For further information:
please visit Axia's website at www.axia.com, or contact:
Axia NetMedia Corporation