Glentel Inc. reports 3rd quarter earnings of $0.61 per share ($0.42 per share in 2007)



    BURNABY, BC, Oct. 30 /CNW/ - Glentel Inc. (TSX: GLN) today reported its
results for the 3rd quarter ended September 30, 2008.
    Consolidated sales for the 3rd quarter increased 48%, to $90,614,000
compared to $61,336,000 for the same period of 2007. Operating income before
interest and taxes was $9,685,000 for the 3rd quarter of 2008 compared to
$7,038,000 in 2007. Net income increased 48% to $6,550,000 ($0.61 per share)
compared to $4,430,000 ($0.42 per share) for the same quarter in 2007.
    Consolidated sales for the nine months ended September 30, 2008 increased
32%, to $201,826,000 compared to $152,675,000 for the same period of 2007.
Operating income before interest and taxes increased to $12,722,000 compared
to $9,290,000 in 2007. Net income increased 49% to $8,626,000 ($0.81 per
share) compared to $5,779,000 ($0.56 per share) for the first nine months of
2007.
    "I am extremely pleased to report such strong results for the 3rd
quarter," said Thomas Skidmore, Glentel's president and chief executive
officer. "We experienced strong retail activity throughout our three retail
banners and were part of the introduction of some new and exciting products
for our customers during the quarter. We look forward to and anticipate a
strong performance in the 4th quarter as well. In the Business Division,
organizational and business initiatives being implemented should reward the
investment of patience in the long-term."
    Retail Division sales of mobile phone products and services grew 58%, to
$81,118,000 for the 3rd quarter compared to $51,316,000 in 2007. Growth in
sales was enhanced by the introduction of Smartphone technology which allows
opportunities to secure a customer with a combined voice and data subscription
which significantly enhances the compensation per customer. The launch of the
Apple iPhone (Smartphone technology) by Rogers Communications was very
successful in the 3rd quarter, providing customers with more choice in their
Smartphone buying decision. Additionally the division operated 246 stores
during the 3rd quarter in 2008 compared to 200 stores in the same period of
2007. Same-store activations of mobile phones and other wireless devices sold
in the Retail Division grew 27% for the 3rd 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 55% to $13,197,000 for the 3rd
quarter of 2008 compared to $8,535,000 for the same period the previous year.
    During the quarter, the Retail Division continued its expansion and
opened ten new stores: five in WirelessWave, three in Tbooth/la cabine T, and
two WIRELESS etc. stores in Costco Wholesale. The division currently operates
107 WirelessWave and 68 Tbooth/la cabine T mall-based stores, and 71 WIRELESS
etc. stores in Costco Wholesale in Canada.
    Business Division sales of terrestrial narrowband and broadband radio
systems, satellite network services, and engineering and implementation
services were $9,496,000 for the 3rd quarter compared to $10,020,000 in 2007.
During the quarter, the division continued its focus on transitioning to a
communications solutions provider from a communications products reseller by
announcing and launching a $2.3 million contract to upgrade the SkyTrain
Wayside Radio System for the South Coast British Columbia Transportation
Authority. Revenue from this project will not be recognized until the 4th
quarter when certain deliverable milestones and customer acceptance have been
realized.
    Operating income before interest and taxes for the division was a loss of
$362,000 for the 3rd quarter of 2008 compared to income of $668,000 for the
same period the previous year.
    Corporate operating expenses for the 3rd quarter increased to $2,992,000
(3.3% of sales) compared to $2,065,000 (3.4% of sales) in 2007.
    Financial highlights, in thousands of Canadian dollars (except per share
data), are as follows:

    
    -------------------------------------------------------------------------
                                   Three months ended     Nine months ended
                                     September 30th         September 30th
    -------------------------------------------------------------------------
                                     2008       2007       2008       2007
    -------------------------------------------------------------------------
    Sales                          $ 90,614   $ 61,336   $201,826   $152,675
    -------------------------------------------------------------------------
    Income, before interest,
     taxes and amortization        $ 11,328   $  8,565   $ 17,514   $ 13,628
    -------------------------------------------------------------------------
    Operating income, before
     interest and taxes            $  9,685   $  7,038   $ 12,722   $  9,290
    -------------------------------------------------------------------------
    Net income                     $  6,550   $  4,430   $  8,626   $  5,779
    -------------------------------------------------------------------------
    Income per share               $   0.61   $   0.42   $   0.81   $   0.56
    -------------------------------------------------------------------------
    

    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) 7610-9946 mobile,
ktreat@hoggan.com; Alex Chapple, Account Manager, James Hoggan & Associates,
(604) 512-6095, achapple@hoggan.com

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