Look communications reports fiscal 2007 results



    TORONTO and MONTREAL, Nov. 30 /CNW/ - Look Communications Inc. ("Look" or
the "Corporation") (TSX Venture: LOK and LOK.A) today reported its financial
and operating results for the fiscal year ended August 31, 2007.

    
    Financial highlights for the year ended August 31, 2007 included the
    following:

    -   Gross revenues for the year were $24.6 million compared to
        $29.9 million for the year ended August 31, 2006;
    -   Operating expenses excluding depreciation and non-cash impairment of
        capital assets decreased $3.5 million or 20.4% to $13.6 million for
        the year ended August 31, 2007 (year ended August 31, 2006 -
        $17.1 million);
    -   EBITDA(*) (earnings before interest, financing charges, income taxes,
        depreciation, and amortization) for fiscal 2007 was negative
        $0.9 million compared to EBITDA of negative $0.3 million for fiscal
        2006;
    -   The net loss for the years ended August 31, 2007 and August 31, 2006
        was $11.9 million or $0.10 per share and $6.6 million or $0.05 per
        share respectively;
    -   Unrestricted cash and cash equivalents increased by $2.7 million or
        53.4% during fiscal 2007 from $5.1 million at August 31, 2006 to
        $7.8 million at August 31, 2007.
    

    During the fourth quarter of 2007 the Corporation completed a review of
the carrying amount of its long-lived capital assets. Through this review and
based on, amongst other things, subscriber attrition and technological changes
within the telecommunications sector, the Corporation determined that certain
of these long-lived capital assets were carried at amounts greater than their
net recoverable amounts. As a result of the foregoing, a non-cash write-down
of $5.2 million was recorded to reflect the appropriate carrying values.
    The Corporation also announced that it has completed its reorganization
plan (the "Plan") previously announced on October 10, 2007. The Plan involves
the transfer of certain assets to a 100 per cent controlled entity in order
to, amongst other things, establish and maintain approximately $310 million of
the Corporation's non-capital losses. As a result of this Plan, the sale by
the Corporation of any or all of its major assets would result in any proceeds
to the Corporation of up to approximately $620 million being received on a
tax-free basis.

    (*) The following table reconciles net loss to earnings before interest,
    financing charges, income taxes, depreciation, amortization, and
    impairment:

    
    Years ended August 31
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                                           2007         2006
    -------------------------------------------------------------------------

    Net loss for the year                              $(11,940)     $(6,631)
    Interest and finance charges, net                       (93)          15
    Amortization of capital assets and deferred charges   5,528        5,951
    Non-cash impairment of capital assets                 5,182            -
    Accretion on liability component of convertible
     debentures                                             369          391
    Loss on disposal of capital assets                       14            -
    -------------------------------------------------------------------------
    EBITDA                                                $(940)       $(274)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    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) net 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 capital assets 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 is to be an M(3) - Mobile Multi Media - 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, Web applications, digital television distribution,
and superior customer service to both the business and residential markets.
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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    For additional information, please review the Corporation's annual
audited consolidated financial statements and management's discussion and
analysis of financial condition and results of operations for the years ended
August 31, 2007 and 2006.


    
    Look Communications Inc.
    CONSOLIDATED CONDENSED BALANCE SHEETS

    As at August 31
    (In thousands of dollars)
    -------------------------------------------------------------------------

                                                           2007         2006
    -------------------------------------------------------------------------

    ASSETS
    Total current assets                                 $9,398       $7,461
    Capital assets, net                                  12,508       23,033
    Deferred charges, net                                   129          196
    -------------------------------------------------------------------------
                                                        $22,035      $30,690
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Liabilities
    Total current liabilities                           $16,094      $13,282
    Long-term debt                                        1,800        1,814
    Liability component of convertible
     debentures                                           2,702        2,726
    -------------------------------------------------------------------------
    Total liabilities                                    20,596       17,822
    -------------------------------------------------------------------------

    Shareholders' equity
    Share capital                                        32,946       32,534
    Equity component of convertible debentures            1,490        1,504
    Contributed surplus                                  10,833       10,720
    Deficit                                             (43,830)     (31,890)
    -------------------------------------------------------------------------
    Total shareholders' equity                            1,439       12,868
    -------------------------------------------------------------------------
                                                        $22,035      $30,690
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Look Communications Inc.
    CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND DEFICIT

    Years ended August 31
    (In thousands of dollars, except shares and per share amounts)
    -------------------------------------------------------------------------

                                                           2007         2006
    -------------------------------------------------------------------------

    Service and sales revenue                           $24,620      $29,877
    Carrier charges and cost of sales                    11,996       13,116
    -------------------------------------------------------------------------
    Gross margin                                         12,624       16,761
    -------------------------------------------------------------------------
    Operating expenses                                   24,274       22,986
    -------------------------------------------------------------------------
    Loss from operations                                (11,650)      (6,225)

    Interest and finance charges, net                        93          (15)
    Accretion on liability component of
     convertible debentures                                (369)        (391)
    Loss on disposal of capital assets                      (14)           -
    -------------------------------------------------------------------------
    Loss for the year                                   (11,940)      (6,631)
    Deficit, beginning of year                          (31,890)     (25,259)
    -------------------------------------------------------------------------
    Deficit, end of year                               $(43,830)    $(31,890)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted loss per share                     $(0.10)      $(0.05)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average number of shares
     outstanding                                    124,571,579  119,871,088
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Look Communications Inc.
    CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

    Years ended August 31
    (In thousands of dollars)
    -------------------------------------------------------------------------

                                                           2007         2006
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
    Loss for the year                                  $(11,940)     $(6,631)
    Add items not affecting cash:
      Amortization of capital assets and
       deferred charges                                   5,528        5,951
      Impairment of capital assets                        5,182            -
      Amortization of stock-based compensation              113           52
      Accretion on liability component of
       convertible debentures                               369          391
      Loss on disposal of capital assets                     14            -
    -------------------------------------------------------------------------
                                                           (734)        (237)
    Changes in non-cash operating working capital         3,616         (397)
    -------------------------------------------------------------------------
    Cash provided by/(used in) operating activities       2,882         (634)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Interest payments on convertible debentures              (1)          (9)
    Increase in long-term debt                                -          600
    Repayment of obligations under capital leases           (39)         (67)
    Exercise of stock options                                 5            -
    -------------------------------------------------------------------------
    Cash provided by/(used in) financing activities         (35)         524
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Purchase of capital assets                             (159)        (771)
    Proceeds of disposition of capital assets                27            -
    Increase in deferred charges                              -          (42)
    Decrease in restricted cash                              11          659
    -------------------------------------------------------------------------
    Cash used in investing activities                      (121)        (154)
    -------------------------------------------------------------------------

    Increase/(decrease) in cash and cash equivalents      2,726         (264)
    Cash and cash equivalents, beginning of year          5,102        5,366
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of year               $7,828       $5,102
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00013414E




For further information:

For further information: Peter Block, Investor and Media Relations,
investorinfo@look.ca, (403) 531-0331, (416) 586-0180

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Look Communications Inc.

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