Axia Reports Q3 2015 Results

Axia Reports Results for the three and nine month period ended September 30, 2015

CALGARY, Nov. 5, 2015 /CNW/ -

Q3 2015 Highlights

  • FTTO customer connections of 12,845 increased 18% from 10,846 a year ago.
  • Business unit revenue of $36.5 million increased 17% from $31.3 million in Q3 2014. Alberta revenue of $17.0 million grew 15% year-over-year. Reported Covage revenue of $19.5 million grew 18% from Q3 2014. In Euros, Covage revenue increased 10%.
  • Business unit EBITDA of $8.7 million was down from $8.9 million in Q3 2014. Growth in Covage EBITDA was offset by a decline in North America. This decline was a result of investment in Alberta to enable the growth of our private sector business and increased costs not directly related to the ongoing operations of the business of $0.7 million.
  • IFRS net income of $2.2 million or $0.03 per share compared to $0.9 million or $0.01 per share in Q3 2014. Included in Q3 2015 net income is a non-cash, $2.6 million gain on foreign currency translation related to the liquidation of a subsidiary.
  • Total capital expenditure was $14.2 million. Success and maintenance capex, which is primarily associated with connecting new customers to the network, was $7.8 million and growth related investment was $6.5 million.
  • Axia had $20.7 million of cash at September 30, 2015 and total loans payable of $18.5 million.
  • In Alberta, Axia is building FTTH network segments in under-served communities. Axia is actively selling services in one community and market penetration is ahead of plan. In addition, Axia has commenced network builds in two other communities.
  • Subsequent to quarter-end, Covage won a FTTO network in Grand Lyon, France. This network will, once completed, pass 22,340 business and government sites, increasing Covage's addressable FTTO market by almost 50% to 72,000. The FTTO market accounts for the vast majority of Covage's business to date and Covage has been successful in this market with results meeting or exceeding plans.

Summary Metrics


2015

2014


Q3

Q2

Q1

Q4

Q3

Q2

Q1

Business Unit Results ($000s) *








Recurring revenue

32,254

30,645

29,723

29,679

28,171

28,451

27,567

Connection revenue

4,257

3,062

3,525

3,907

3,082

3,920

2,740

Total revenue

36,511

33,707

33,248

33,586

31,253

32,371

30,307

EBITDA

8,715

9,679

7,921

8,833

8,851

7,564

7,412

Success & maintenance

7,782

3,495

5,277

5,697

3,671

4,023

5,242

Growth

6,464

7,967

3,898

6,875

2,694

4,006

3,068

Total Capital expenditures

14,246

11,462

9,175

12,572

6,365

8,029

8,310

IFRS ($000s)








Net income (loss)

2,157

1,121

(160)

(444)

930

(296)

(324)

Earnings (loss) per share

0.03

0.02

0.00

0.00

0.01

0.00

(0.01)

Total cash

20,700

24,074

25,085

29,336

32,652

32,462

36,723

Total assets

154,324

146,063

140,294

137,375

135,172

137,453

139,075

Total loans payable

18,495

13,575

10,813

9,937

4,592

4,425

2,045

Total liabilities

38,431

33,418

28,696

24,737

19,839

20,007

18,055

KPI








FTTO customer connections

12,845

12,034

11,573

11,260

10,846

10,166

9,826

* Axia's business unit summary includes 100% of the financial and operational results of Axia North America and Covage. Please see the condensed consolidated financial statements and related MD&A for more details.

The condensed consolidated financial statements for the three and nine months ended September 30, 2015 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 ir.axiafibrenet.com.

Notice of Conference Call

Axia will hold a conference call with the investment community on Thursday, November 5, 2015 at 9 a.m. (Eastern), 7 a.m. (Mountain). To participate in the conference call, please dial +1 (416) 764-8688 in Toronto and internationally. If you are connecting from other parts of Canada, dial 1-888-390-0546. 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:

http://event.on24.com/r.htm?e=1079413&s=1&k=4BE4EF7A82F9DABF4BAB2A2F943D248B  

A replay of the conference call will be available at (416) 764-8677 or 1-888-390-0541, passcode 812801 from 6 p.m. (Eastern) Thursday, November 5, 2015 to midnight (Eastern) Thursday, November 12, 2015 or through the webcast archives at

www.newswire.ca

About Axia

Axia owns, operates and sells services over fibre optic communications infrastructure.  Axia trades on the Toronto Stock Exchange under the symbol "AXX".

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.axiafibrenet.com, or contact: Glenn Jamieson, Investor Relations, Axia NetMedia Corporation, (905) 582-6169, glenn.jamieson@axia.com


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