Look Communications reports third quarter 2008 results



    TORONTO and MONTREAL, July 25 /CNW/ - Look Communications Inc. ("Look" or
the "Corporation") (TSX Venture: LOK and LOK.A) today reported its financial
and operating results for the third quarter of fiscal 2008.

    
    Financial highlights for the third quarter ended May 31, 2008 included the
following:

    -   Service and sales revenue for the quarter ended May 31, 2008 was
        $4.9 million compared to $6.0 million for the quarter ended May 31,
        2007;

    -   Operating expenses decreased $0.6 million or 12.9% to $4.2 million
        for the quarter ended May 31, 2008 (quarter ended May 31, 2007 -
        $4.8 million);

    -   EBITDA(*) (earnings before interest expenses, income taxes,
        depreciation and amortization) for the quarter ended May 31, 2008 was
        negative $0.5 million compared to negative $0.4 million for the
        quarter ended May 31, 2007;

    -   The loss and comprehensive loss for the quarters ended May 31, 2008
        and 2007 was $2.0 million, or $0.02 per share, and $1.9 million, or
        $0.02 per share, respectively; and

    -   Unrestricted cash and cash equivalents decreased by $3.7 million, or
        47.4%, during the nine months ended May 31, 2008 from $7.8 million at
        August 31, 2007 to $4.1 million at May 31, 2008 (nine months ended
        May 31, 2007 - cash increased by $3.7 million from $5.1 million to
        $8.8 million).

    The following table reconciles net loss to earnings before interest
expenses, income taxes, depreciation and amortization:

    Three and nine months ended May 31, 2008 and 2007
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                    Three months ended     Nine months ended
                                          May 31                May 31
                                      2008       2007       2008       2007
    -------------------------------------------------------------------------
    Loss and comprehensive loss
     for the period                 $(1,975)   $(1,864)   $(5,688)   $(4,604)
    Interest and finance charges,
     net                                 47        (25)        17        (54)
    Amortization of capital assets
     and deferred charges             1,317      1,390      3,934      4,139
    Accretion on liability component
     of convertible debentures           92         92        275        277
    (Gain)/loss on disposition of
     capital assets                      (2)        14        (10)        14
    -------------------------------------------------------------------------
    EBITDA                          $  (521)   $  (393)   $(1,472)   $  (228)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    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) loss and comprehensive 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 - information,
communication and entertainment service provider in Ontario and Québec. The
Corporation currently delivers a full range of 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 further 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.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS

    As at
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                                         May 31    August 31
                                                           2008         2007
    -------------------------------------------------------------------------

    ASSETS
    Total current assets                              $   7,918    $   9,398
    Capital assets, net                                   8,703       12,508
    Deferred charges, net                                    73          129
    -------------------------------------------------------------------------
                                                      $  16,694    $  22,035
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
    Liabilities
    Total current liabilities                         $  16,106    $  16,094
    Long-term debt                                        1,784        1,800
    Liability component of convertible debentures         2,698        2,702
    -------------------------------------------------------------------------
    Total liabilities                                    20,588       20,596
    -------------------------------------------------------------------------

    Shareholders' equity/(deficit)
    Share capital                                        33,138       32,946
    Equity component of convertible debentures            1,488        1,490
    Contributed surplus                                  10,998       10,833
    Deficit                                             (49,518)     (43,830)
    -------------------------------------------------------------------------
    Total shareholders' equity/(deficit)                 (3,894)       1,439
    -------------------------------------------------------------------------
                                                      $  16,694    $  22,035
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND
    DEFICIT

    Three and nine months ended May 31, 2008 and 2007
    (In thousands of dollars, except shares and per share amounts)
    -------------------------------------------------------------------------
                                Three months ended         Nine months ended
                                      May 31                    May 31
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------

    Service and sales
     revenue                $   4,945    $   6,013    $  15,608    $  18,995
    Carrier charges and
     cost of sales              2,584        2,975        7,936        9,136
    -------------------------------------------------------------------------
    Gross margin                2,361        3,038        7,672        9,859
    -------------------------------------------------------------------------
    Operating expenses          4,199        4,821       13,078       14,226
    -------------------------------------------------------------------------
    Loss from operations       (1,838)      (1,783)      (5,406)      (4,367)
    Interest and finance
     charges, net                 (47)          25          (17)          54
    Accretion on liability
     component of convertible
     debentures                   (92)         (92)        (275)        (277)
    Gain/(loss) on disposition
     of fixed assets                2          (14)          10          (14)
    -------------------------------------------------------------------------
    Loss and
     comprehensive loss        (1,975)      (1,864)      (5,688)      (4,604)
    Deficit, beginning
     of period                (47,543)     (34,630)     (43,830)     (31,890)
    -------------------------------------------------------------------------
    Deficit, end of period  $ (49,518)   $ (36,494)   $ (49,518)   $ (36,494)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted loss
     per share              $   (0.02)   $   (0.02)   $   (0.05)   $   (0.04)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average
     number of shares
     outstanding          125,634,947  124,726,353  125,472,280  124,391,582
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

    Three and nine months ended May 31, 2008 and 2007
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                Three months ended         Nine months ended
                                      May 31                    May 31
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
    Loss and comprehensive
     loss for the period    $  (1,975)   $  (1,864)   $  (5,688)   $  (4,604)
    Add items not
     affecting cash:
      Amortization of
       capital assets and
       deferred charges         1,317        1,390        3,934        4,139
      Amortization of
       stock-based
       compensation                60           34          165           79
      Accretion on
       liability component
       of convertible
       debentures                  92           92          275          277
      (Gain)/loss on
       disposition of capital
       assets                      (2)          14          (10)          14
    -------------------------------------------------------------------------
                                 (508)        (334)      (1,324)         (95)
    Changes in non-cash
     operating working capital    364        1,112       (2,314)       3,892

    -------------------------------------------------------------------------
    Cash provided by/(used in)
     operating activities        (144)         778       (3,638)       3,797
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Interest payments on
     convertible debentures         -            -            -           (1)
    Repayment of obligations
     under capital leases           -           (8)         (14)         (31)
    -------------------------------------------------------------------------
    Cash used in financing
     activities                     -           (8)         (14)         (32)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Purchase of capital
     assets                       (41)          (4)         (89)        (136)
    Proceeds on disposition
     of capital assets              2           24           10           24
    (Increase)/decrease in
     restricted cash                5          (21)          20           (3)
    -------------------------------------------------------------------------
    Cash used in investing
     activities                   (34)          (1)         (59)        (115)
    -------------------------------------------------------------------------

    Increase/(decrease) in
     cash and cash
     equivalents                 (178)         769       (3,711)       3,650
    Cash and cash equivalents,
     beginning of period        4,295        7,983        7,828        5,102
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period          $   4,117    $   8,752    $   4,117    $   8,752
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %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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