Glentel Inc. increases 2nd quarter earnings to $0.17 per share ($0.11 per share in 2007)



    BURNABY, BC, July 30 /CNW/ - Glentel Inc. (TSX: GLN) today reported its
results for the 2nd quarter ended June 30, 2008.
    Consolidated sales for the 2nd quarter increased 25%, to $60,494,000
compared to $48,571,000 for the same period of 2007. Operating income before
interest and taxes was $2,640,000 for the 2nd quarter of 2008 compared to
$1,822,000 in 2007. Net income for the quarter was $1,819,000, $0.17 per
share, compared to $1,128,000, $0.11 per share, for the same quarter in 2007,
representing an increase of 54%.
    Consolidated sales for the six months ended June 30, 2008 increased 22%,
to $111,212,000 compared to $91,339,000 for the same period of 2007. Operating
income before interest and taxes increased to $3,037,000 compared to
$2,252,000 in 2007. Net income for the same period was $2,076,000, $0.19 per
share, compared to $1,349,000, $0.13 per share, for the first six months of
2007.
    "I am pleased to report that Glentel has completed the 2nd quarter of
2008 with increased earnings and growth," said Thomas Skidmore, Glentel's
president and chief executive officer. "We are pleased with the operating
progress of both divisions. Our Business Division remains on course with a
focus on an engineered wireless solution sales strategy that should yield a
higher earnings potential, while our Retail Division continues to enjoy
stellar results from the brisk activity of its three retail banners."
    Retail Division sales of mobile phone products and services grew 29%, to
$50,506,000 for the 2nd quarter compared to $39,317,000 for the 2nd quarter of
2007. The growth in sales was due to the division operating 236 stores during
the 2nd quarter in 2008 compared to 178 stores in the same period of 2007. In
addition, same-store mobile phones and other wireless devices sold in the
Retail Division grew 7% for the 2nd quarter of 2008 over the corresponding
period in 2007 for stores that were open throughout both periods.
    As a result of the strong sales in the quarter, operating income before
interest and taxes for the division grew 39% to $5,517,000 for the 2nd quarter
of 2008 compared to $3,976,000 for the same period the previous year.
    During the quarter, the Retail Division continued its expansion plans and
opened nine new stores: three in Tbooth/la cabine T and six WIRELESS etc.
stores in Costco Wholesale. The division currently operates 102 WirelessWave
and 65 Tbooth/la cabine T mall-based stores, and 69 WIRELESS etc. stores in
Costco Wholesale in Canada.
    Business Division sales of terrestrial radio systems, satellite network
services, and technical and engineering services increased 8%, to $9,988,000
for the 2nd quarter compared to $9,254,000 in the 2nd quarter of 2007. The
Business Division's sales and earnings continued to be relatively the same in
the 2nd quarter of 2008, as the division focuses on transitioning to a
communications solutions provider from a communications products reseller that
will provide a greater value proposition to its customers. As a result,
operating income before interest and taxes for the division was an operating
loss of $1,000 for the 2nd quarter of 2008 compared to an operating loss of
$46,000 for the same period the previous year. During the quarter, the
Business Division was successful in winning certain public safety bids which
will generate revenue in future quarters.
    Corporate operating expenses for the 2nd quarter of 2008 increased to
$2,747,000 compared to $2,048,000 for the 2nd quarter of 2007.

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

    -------------------------------------------------------------------------
                                      Three months ended    Six months ended
                                          June 30th             June 30th
    -------------------------------------------------------------------------
                                        2008      2007       2008      2007
    -------------------------------------------------------------------------
    Sales                             $60,494   $48,571   $111,212   $91,339
    -------------------------------------------------------------------------
    Income, before interest,
     taxes and amortization           $ 4,192   $ 3,254   $  6,186   $ 5,063
    -------------------------------------------------------------------------
    Operating income, before
     interest and taxes               $ 2,640   $ 1,822   $  3,037   $ 2,252
    -------------------------------------------------------------------------
    Net income                        $ 1,819   $ 1,128   $  2,076   $ 1,349
    -------------------------------------------------------------------------
    Income per share                  $  0.17   $  0.11   $   0.19   $  0.13
    -------------------------------------------------------------------------
    

    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 boasts more than 250 locations across Canada located in
retail malls, 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 engineering and 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.





For further information:

For further information: Investor Relations Contact: Dale B. Belsher,
Chief Financial Officer, Glentel Inc., (604) 415-6500; Media Contacts: Kristin
Treat, VP, James Hoggan & Associates, (604) 761-9946 mobile,
ktreat@hoggan.com; Alex Chapple, Account Manager, James Hoggan & Associates,
(604) 512-6095, achapple@hoggan.com

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