Look Communications reports second quarter 2007 results



    TORONTO and MONTREAL, April 24 /CNW/ - Look Communications Inc. (TSX
Venture: LOK and LOK.A) today reported its financial and operating results for
the second quarter of the 2007 fiscal year, ended February 28, 2007.

    Financial highlights of the second quarter ended February 28, 2007
included the following:

    
    -   Gross revenue for the quarter ended February 28, 2007 was
        $6.3 million compared to $7.9 million for the quarter ended
        February 28, 2006;
    -   Operating expenses decreased $1.4 million or 23.2% to $4.6 million
        for the quarter ended February 28, 2007 (quarter ended February 28,
        2006 - $6.0 million);
    -   EBITDA(*) (earnings before interest, financing charges, income taxes,
        depreciation and amortization) for the quarter ended February 28,
        2007 was $0.1 million compared to EBITDA of $0.2 million for the
        quarter ended February 28, 2006;
    -   The net loss for both quarters ended February 28, 2007 and
        February 28, 2006 was $1.4 million, or $0.01 per share;
    -   Unrestricted cash and cash equivalents increased by $2.9 million or
        56.5% during the first half of fiscal 2007 from $5.1 million at
        August 31, 2006 to $8.0 million at February 28, 2007.

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

    (In thousands of dollars)
    -------------------------------------------------------------------------
                                Three months ended         Six months ended
                                    February 28               February 28
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------
    Net loss for the period   $(1,360)     $(1,415)     $(2,740)     $(2,765)
    Interest and finance
     charges, net                 (23)          18          (28)          38
    Amortization of capital
     assets and deferred
     charges                    1,365        1,513        2,748        3,083
    Accretion on liability
     component of convertible
     debentures                    93           96          185          196
    -------------------------------------------------------------------------
    EBITDA                        $75         $212         $165         $552
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Management views EBITDA as an important measure of operating performance
    of the Company; 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 Company is developing
an M(3) network and 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 contains
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.


    
    Look Communications Inc.

               UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS

    As at
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                                    February 28    August 31
                                                           2007         2006
    -------------------------------------------------------------------------

    ASSETS
    Total current assets                                 $9,921       $7,461
    Capital assets, net                                  20,456       23,033
    Deferred charges, net                                   156          196
    -------------------------------------------------------------------------
                                                        $30,533      $30,690
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Liabilities
    Total current liabilities                           $15,647      $13,282
    Long-term debt                                        1,800        1,814
    Liability component of convertible debentures         2,702        2,726
    -------------------------------------------------------------------------
    Total liabilities                                    20,149       17,822
    -------------------------------------------------------------------------

    Shareholders' equity
    Share capital                                        32,759       32,534
    Equity component of convertible debentures            1,490        1,504
    Contributed surplus                                  10,765       10,720
    Deficit                                             (34,630)     (31,890)
    -------------------------------------------------------------------------
    Total shareholders' equity                           10,384       12,868
    -------------------------------------------------------------------------
                                                        $30,533      $30,690
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Look Communications Inc.

    UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND DEFICIT

    (In thousands of dollars, except share and per share amounts)
    -------------------------------------------------------------------------
                                Three months ended         Six months ended
                                    February 28               February 28
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------

    Service and sales
     revenue                   $6,346       $7,850      $12,982      $16,210
    Carrier charges and
     cost of sales              3,019        3,138        6,161        7,172
    -------------------------------------------------------------------------
    Gross margin                3,327        4,712        6,821        9,038
    -------------------------------------------------------------------------
    Operating expenses          4,617        6,013        9,404       11,569
    -------------------------------------------------------------------------
    Loss before the
     following:                (1,290)      (1,301)      (2,583)      (2,531)
    Interest and finance
     charges, net                  23          (18)          28          (38)
    Accretion on liability
     component of convertible
     debentures                   (93)         (96)        (185)        (196)
    -------------------------------------------------------------------------
    Loss for the period        (1,360)      (1,415)      (2,740)      (2,765)
    Deficit, beginning of
     period                   (33,270)     (26,609)     (31,890)     (25,259)
    -------------------------------------------------------------------------
    Deficit, end of period   $(34,630)    $(28,024)    $(34,630)    $(28,024)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted loss
     per share                 $(0.01)      $(0.01)      $(0.02)      $(0.02)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average number
     of shares
     outstanding          124,509,417  119,184,160  124,224,197  117,677,940
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Look Communications Inc.

    UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

    (In thousands of dollars)
    -------------------------------------------------------------------------
                                Three months ended         Six months ended
                                    February 28               February 28
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
    Net loss for the period   $(1,360)     $(1,415)     $(2,740)     $(2,765)
    Add items not affecting
     cash:
      Amortization of capital
       assets and deferred
       charges                  1,365        1,513        2,748        3,084
      Amortization of
       stock-based
       compensation                25           22           45           45
      Accretion on liability
       component of convertible
       debentures                  93           96          185          196
    -------------------------------------------------------------------------
                                  123          216          238          560
    Changes in non-cash
     operating working capital  1,098          362        2,780         (967)
    -------------------------------------------------------------------------
    Cash provided by (used in)
     operating activities       1,221          578        3,018         (407)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Interest on convertible
     debentures                    (1)           -           (1)          (4)
    Repayment of obligations
     under capital leases          (8)          (8)         (23)         (23)
    -------------------------------------------------------------------------
    Cash used in financing
     activities                    (9)          (8)         (24)         (27)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Purchase of capital assets     (6)         (92)        (131)        (201)
    Decrease in restricted cash     5          185           18           59
    -------------------------------------------------------------------------
    Cash provided by (used in)
     investing activities          (1)          93         (113)        (142)
    -------------------------------------------------------------------------

    Net increase/(decrease) in
     cash and cash equivalents
     during the period          1,211          663        2,881         (576)
    Cash and cash equivalents,
     beginning of period        6,772        4,127        5,102        5,366
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period             $7,983       $4,790       $7,983       $4,790
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %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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