GLENTEL Inc. 2nd quarter earnings increase 42%

BURNABY, BC, July 28 /CNW/ - GLENTEL Inc. (TSX: GLN) today reported its results for the 2nd quarter and six months ended June 30, 2010.

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

    
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                                      Three months ended   Six months ended
                                            June 30             June 30
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                                        2010      2009      2010      2009
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    Sales                              $78,970   $67,849  $153,755  $135,293
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    Income, before interest, taxes
     and amortization                    7,669     5,408    12,967    10,414
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    Operating income, before
     interest and taxes                  5,747     3,897     9,158     7,410
    -------------------------------------------------------------------------
    Net income                          $3,761    $2,644    $6,088    $5,060
    -------------------------------------------------------------------------
    Basic net income per share           $0.34     $0.24     $0.55     $0.47
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    Diluted net income per share         $0.34     $0.24     $0.54     $0.46
    -------------------------------------------------------------------------
    

Consolidated sales for the three months ended June 30, 2010 grew 16%, to $78,970,000 compared to $67,849,000 in the same period of 2009. Income before interest, taxes and amortization for the three months was $7,669,000 compared to $5,408,000 in 2009. Operating income before interest and taxes for the three months was $5,747,000 compared to $3,897,000 in 2009. Net income and basic earnings per share for the three months were $3,761,000, and $0.34 per share respectively, compared to $2,644,000, and $0.24 per share, for the same period in 2009.

Consolidated sales for the six months ended June 30, 2010 grew 14%, to $153,755,000 compared to $135,293,000 in the same period of 2009. Income before interest, taxes and amortization for the six months was $12,967,000 compared to $10,414,000 in 2009. Operating income before interest and taxes for the six months was $9,158,000 compared to $7,410,000 in 2009. Net income and basic earnings per share for the six months were $6,088,000, and $0.55 per share respectively, compared to $5,060,000, and $0.47 per share, for the same period in 2009.

"We are delighted with the significant growth in our net income for the quarter," stated Thomas Skidmore, GLENTEL's President and Chief Executive Officer. We continue to grow in sales and profitability in both our Retail and Business Divisions. In particular, our retail store sales grew 20% in the 2nd quarter and same store sales increased 10% compared to the same period last year. Smartphones continue to be very popular with our customers. The new iPhone4 will be available in our retail stores nationally on Friday, July 30. We are also pleased to welcome "chatr" today to our stable of brands - Rogers, Fido, Bell, Virgin and Solo - as our 6th carrier brand available in all stores operated by GLENTEL. With our strategic positioning in the mall marketplace and the Costco channel, and with the ongoing consumer interest in new smartphone releases, we look forward to a strong second half 2010."

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, B.C., GLENTEL comprises two operating divisions - Retail and Business - that service thousands of consumers and commercial telecommunications customers. Together with its divisions, the company operates more than 280 locations across Canada located in retail malls and high pedestrian-traffic street-front locations, Costco Wholesale stores, and business centers. As the largest multi-carrier mobile phone retailer in Canada, it offers a choice of network carrier and wireless device or phone. To its business and government customers, GLENTEL offers wireless service, rental equipment, satellite and terrestrial network systems, tower sites, and wireless asset monitoring. GLENTEL operates its business under the trading names Glentel Wireless, WirelessWave, The Telephone Booth (Tbooth and la cabine T) and WIRELESS etc.

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.

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

SOURCE GLENTEL Inc.

For further information: For further information: Investor Relations Contact: Jas Boparai, Chief Financial Officer, GLENTEL INC., 604.415.6500, investors@glentel.com; Media Contact: Shafiq Jamal, VP, James Hoggan & Associates, 604.739.7500, sjamal@hoggan.com

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GLENTEL Inc.

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