Look Communications reports first quarter 2009 results



    TORONTO and MONTREAL, Jan. 27 /CNW/ - Look Communications Inc. ("Look" or
the "Corporation") (TSX Venture: LOK and LOK.A) today reported its financial
and operating results for the first quarter of fiscal 2009, ended November 30,
2008.

    
    Financial highlights for the first quarter ended November 30, 2008
    included the following:

    -   Service and sales revenue from continuing operations for the quarter
        ended November 30, 2008 was $3.6 million compared to $4.5 million for
        the quarter ended November 30, 2007;

    -   Operating expenses decreased approximately $0.2 million or 5.0% to
        $4.3 million for the quarter ended November 30, 2008 (quarter ended
        November 30, 2007 - $4.5 million);

    -   EBITDA (earnings from continuing operations before interest expenses,
        income taxes, depreciation and amortization, and gain (loss) on
        disposition of property and equipment) for the quarter ended
        November 30, 2008 was negative $1.4 million compared to negative
        $1.0 million for the quarter ended November 30, 2007;

    -   The loss and comprehensive loss from continuing operations for the
        quarters ended November 30, 2008 and 2007 was $2.7 million, or $0.02
        per share, and $2.4 million, or $0.01 per share respectively;

    -   The income and comprehensive income from the discontinued operation
        of the web hosting and domain name business for the quarters ended
        November 30, 2008 and 2007 was $4.5 million, or $0.03 per share, and
        $0.6 million, or a nominal amount per share, respectively; and

    -   Unrestricted cash and cash equivalents increased by $0.9 million or
        26.7% during the quarter ended November 30, 2008 from $3.6 million at
        August 31, 2008 to $4.5 million at November 30, 2008.

    The following table reconciles loss and comprehensive loss from continuing
operations to EBITDA:

    Three months ended November 30, 2008 and 2007
    (In thousands of dollars)
    -------------------------------------------------------------------------

                                                           2008         2007
    -------------------------------------------------------------------------
    Loss and comprehensive loss for the period
     from continuing operations                     $    (2,732) $    (2,382)
    Interest and finance charges, net                        24          (26)
    Amortization of property and equipment
     and deferred charges                                 1,156        1,275
    Accretion on liability component of
     convertible debentures                                 107           92
    Gain on disposition of property and equipment            (2)           -
    -------------------------------------------------------------------------
    EBITDA                                          $    (1,447) $    (1,041)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Management views EBITDA as an important measure of operating performance
    of the Corporation; however, since EBITDA does not have any standardized
    meaning prescribed by Canadian GAAP, it may not be considered in
    isolation of GAAP measures such as (1) income (loss) and comprehensive
    income (loss), as an indicator of operating performance or (2) cash flows
    from operating, investing, and financing activities, as a measure of
    liquidity. We believe, however, that it is an important measure as it
    allows us to assess our ongoing business without the impact of
    depreciation or amortization expenses as well as non-operating factors.
    It is intended to indicate our ability to incur or service debt and
    invest in property and equipment while allowing us to compare our
    business to our peers and competitors. This measure is not a defined term
    under Canadian GAAP and might not be comparable to similar measures
    presented by other issuers.
    

    About Look Communications Inc.

    Look's mission has been to be an M(3) - Mobile Multi Media -
communications, entertainment and information service provider in Ontario and
Québec. The Corporation currently delivers a full range of communications
services including high-speed and dial-up Internet access, digital television
distribution, and superior customer service to both the business and
residential markets. The Corporation provides its digital television
distribution and wireless Internet services using its approximately 100 MHz of
Multipoint Distribution System spectrum in the 2.5 to 2.7 GHz frequency band
covering approximately 18 million people (1.8 billion MHz/Pops) in the
provinces of Ontario and Quebec. Look's shares are listed on the TSX Venture
Exchange under the symbols "LOK" for Multiple Voting Shares and "LOK.A" for
Subordinate Voting Shares. Look's website may be found at www.look.ca.

    The corporate information contained in this release includes
forward-looking statements regarding future events and the future performance
of Look that involve risks and uncertainties that could cause actual results
to differ materially. Assumptions used in the preparation of such information,
although considered reasonable by Look at the time of preparation, may prove
to be incorrect. The actual results achieved may vary from the information
provided herein and the variations may be material. Consequently, there is no
representation by Look that actual results achieved will be the same in whole
or in part as those forecasts.

    
    Neither the TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.


    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS

    As at
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                                    November 30    August 31
                                                           2008         2008
    -------------------------------------------------------------------------

    ASSETS
    Total current assets                            $     8,775  $     6,764
    Restricted cash                                         625          440
    Property and equipment                                6,365        7,503
    Deferred charges                                         54           63
    -------------------------------------------------------------------------
                                                    $    15,819  $    14,770
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
    Liabilities
    Total current liabilities                       $    16,477  $    17,330
    Liability component of convertible debentures         3,207        3,161
    -------------------------------------------------------------------------
    Total liabilities                                    19,684       20,491
    -------------------------------------------------------------------------

    Shareholders' equity/(deficit)
    Share capital                                        33,247       33,247
    Equity component of convertible debentures            1,488        1,488
    Contributed surplus                                  11,090       11,033
    Deficit                                             (49,690)     (51,489)
    -------------------------------------------------------------------------
    Total shareholders' equity/(deficit)                 (3,865)      (5,721)
    -------------------------------------------------------------------------
                                                    $    15,819  $    14,770
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND
    DEFICIT

    Three months ended November 30, 2008 and 2007
    (In thousands of dollars, except shares and per share amounts)
    -------------------------------------------------------------------------

                                                           2008         2007
    -------------------------------------------------------------------------

    Service and sales revenue                       $     3,588  $     4,527
    Carrier charges and cost of sales                     1,940        2,366
    -------------------------------------------------------------------------
    Gross margin from continuing operations               1,648        2,161
    -------------------------------------------------------------------------
    Operating expenses                                    4,251        4,477
    -------------------------------------------------------------------------
    Loss from continuing operations                      (2,603)      (2,316)
    Interest and finance charges, net                       (24)          26
    Accretion on liability component of
     convertible debentures                                (107)         (92)
    Gain on disposition of property and equipment             2            -
    -------------------------------------------------------------------------
    Loss and comprehensive loss for the period
     from continuing operations                          (2,732)      (2,382)
    Income and comprehensive income for the period
     from discontinued operations                         4,531          567
    -------------------------------------------------------------------------
    Income (loss) and comprehensive (loss)
     for the period                                       1,799       (1,815)
    Income taxes                                              -            -
    Deficit, beginning of period                        (51,489)     (44,170)
    -------------------------------------------------------------------------
    Deficit, end of period                          $   (49,690) $   (45,985)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic and diluted loss per share from
     continuing operations                          $     (0.02) $     (0.01)
    Basic and diluted income per share from
     discontinued operations                               0.03            -
    Basic and diluted income (loss) per share
     from continuing and discontinued operations           0.01        (0.01)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average number of shares outstanding   125,946,328  125,211,607
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

    Three months ended November 30, 2008 and 2007
    (In thousands of dollars)
    -------------------------------------------------------------------------

                                                           2008         2007
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
      Loss for the period from continuing
       operations                                   $    (2,732) $    (2,382)
      Items not affecting cash                            1,322        1,402
      Changes in non-cash operating working capital        (104)      (2,261)
    -------------------------------------------------------------------------
    Cash used in continuing operations                   (1,514)      (3,241)
    Cash provided by discontinued operations                507          548
    -------------------------------------------------------------------------
    Cash used in operating activities                    (1,007)      (2,693)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Cash used in financing activities                         -           (8)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Cash provided by investing activities                 1,958            -
    -------------------------------------------------------------------------

    Increase/(decrease) in cash and cash equivalents        951       (2,701)
      Cash and cash equivalents, beginning of period      3,565        7,828
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of period        $     4,516  $     5,127
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00013414E




For further information:

For further information: Peter Block, Investor and Media Relations,
investorinfo@look.ca, (647) 259-3284

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