Glentel Inc. announces 4th quarter and year-end results



    Sales increased to $181.2 million and net income per share of $0.62

    TSX Stock Symbol: GLN

    BURNABY, BC, March 15 /CNW/ - Glentel Inc. today reported its results for
the 4th quarter and the year ended December 31, 2006.
    Operating income before interest and taxes for the 4th quarter ended
December 31, 2006 was $4,637,000, compared to $3,389,000 in the 4th quarter of
2005. Net income was $3,246,000, $0.32 per share, compared to $2,999,000,
$0.30 per share, for the same quarter last year.
    Sales for the 4th quarter ended December 31, 2006 increased to
$55,061,000, compared to $50,391,000 in 2005. Growth in sales was due to a 4%
increase in sales in the Retail Division and a 45% increase in sales in the
Business Division. During this period Glentel completed the acquisition of
Time Mobile Communication Inc. ("Time MCI") on November 1st, which had a solid
performance in the Business Division over the final two months of the year.
    The Retail Division sales of cellular products and services grew to
$44,964,000 for the 4th quarter ended December 31, 2006, compared to
$43,442,000 for the same period in 2005. Operating income before interest and
taxes increased 24% to $5,932,000, compared to $4,789,000 in 2005.
WirelessWave continued to have a strong sustainable performance in the 4th
quarter, while Tbooth / La Cabine T had an outstanding turnaround performance
on a year-over-year basis.
    The Business Division sales of terrestrial radio systems, satellite
network services, advanced mobile solutions, and service/engineering support
grew 45%, to $10,097,000 for the 4th quarter ended December 31, 2006, compared
to $6,949,000 for the same period in 2005. Operating income before interest
and taxes was $913,000, compared to $350,000 in 2005. This growth includes the
performance of the acquisition of Time MCI in the 4th quarter.
    Glentel had a very active year in 2006 as the company completed three
acquisitions in its Business Division, improved the operating performance of
Tbooth / La CabineT, and continued to achieve a strong performance from
WirelessWave. Sales increased 27%, to $181,188,000 for the year ended
December 31, 2006, compared to $143,102,000 the previous year. Operating
income before interest and taxes increased to $9,289,000, compared to
$8,900,000 in 2005. Net income for the year was $6,324,000, $0.62 per share,
compared to $6,114,000, $0.65 per share, in 2005. Weighted average number of
shares outstanding was 10,180,000 in 2006, compared to 9,438,000 in 2005.
    Growth in sales and net income was through both organic growth and
acquisitions in 2006. The Retail Division sales grew 27% to $146,238,000 as
WirelessWave opened two new stores during the year, bringing the total to 97
retail mall-based stores. The number of same-store cellular phones and other
wireless devices sold in the year increased 14% over the previous year in
stores that were open throughout both 2006 and 2005. Tbooth / La Cabine T,
acquired in 2005, operated its 49 mall-based stores for a full twelve months
in 2006, compared to seven months in 2005. As a result of the focused efforts
on the turnaround in the performance of this brand, the number of same-store
cellular phones and other wireless devices sold in the year increased 37% over
the previous year. In November 2006, the Company added 15 new store-in-store
kiosks in select Costco Canada stores, which combined with four new stores
opened in the 1st quarter of 2006 and three that were opened in 2005, brings
the total to 22 WIRELESS etc kiosks. Additional kiosks within the remaining
Costco Canada stores are being planned for 2007 and beyond.
    In the Business Division, sales grew 26% during 2006 to $34,950,000
compared to $27,726,000 in 2005. Growth in sales was complemented by three
acquisitions made during the year, which provided strength in breadth and
depth of operations to the Business Division in Ontario and northern British
Columbia. Organic growth in sales has been broad-based in all product segments
of the division, fueled by the strength of the oil and gas sector in Alberta
and northern BC.
    The three acquisitions of businesses that were made expand the reach of
the Business Division, and make it truly a national wireless solutions
provider in the business to business market segment. The 2nd quarter
acquisition of the radio business of Quasar Communications Ltd. in Fort St.
John, B.C. solidified our position in northern British Columbia. The
acquisition of Time MCI on November 1st, combined with the acquisition of
Digital Mobile systems Inc. on July 1, 2006 help to continue to position
Glentel as a strong communications solutions supplier to the public safety and
government sector in Ontario. With these acquisitions, Glentel now has a
terrestrial radio infrastructure of 240 tower sites and over 470 repeaters in
Canada.
    "We are pleased with the strong year of operational performance for
2006," said Thomas Skidmore, Glentel's president and chief executive officer.
"Both the Retail and Business divisions delivered increased sales and
profitability."

    
    Financial highlights, in thousands of Canadian dollars (except percentage
    and per share data), are:

    -------------------------------------------------------------------------
                                   Three months ended         Year ended
                                       December 31           December 31
    -------------------------------------------------------------------------
                                     2006       2005       2006       2005
    -------------------------------------------------------------------------
    Sales                         $  55,061  $  50,391  $ 181,188  $ 143,102
    -------------------------------------------------------------------------
    Income, before interest,
     taxes and amortization           5,880      4,502     13,952     12,872
    -------------------------------------------------------------------------
    Operating income, before
     interest and taxes               4,637      3,389      9,289      8,900
    -------------------------------------------------------------------------
    Net income                    $   3,246  $   2,999  $   6,324  $   6,114
    -------------------------------------------------------------------------
    Net income per share          $    0.32  $    0.30  $    0.62  $    0.65
    -------------------------------------------------------------------------
    

    About Glentel:
    Glentel is an international wireless solutions provider operating 186
corporate locations in Canada through its Retail and Business Divisions, under
the trading names of Glentel Wireless, WirelessWave, The Telephone Booth
("Tbooth"), La Cabine Téléphonique ("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 request a copy of Glentel's annual report, go to www.newswire.ca,
Tools for Investors, and click on reports@cnw.





For further information:

For further information: Thomas E. Skidmore, President & CEO, Tel (604)
431-2302, tskidmore@glentel.com; or Dale B. Belsher, Chief Financial Officer &
Investor Relations, Tel (604) 415-6500

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GLENTEL Inc.

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