Prestige Telecom reports its results for the first quarter of fiscal 2012 and extension of the time of calling the annual general meeting

MONTREAL, Sept. 29, 2011 /CNW Telbec/ - Prestige Telecom Inc. ("Prestige" or "the Company") (TSXV: PR) a leader in providing engineering, materials furnishing, installation and support services (commonly referred to as EF&I services), as well as technical and aerial services to the Canadian communications and broadcast industries reported its unaudited financial results today for the first quarter ended June 30, 2011, and filed its financial statements and MD&A for the period. All figures are in Canadian dollars.

Prestige posted sales of $33.4 million for the first quarter of fiscal 2012, compared to $33.5 million a year ago. Revenues for the construction segment were down 36% to $11.9 million, engineering segment revenues were up 58% to $16.5 million as the Company continues to grow this business segment and installation segment revenues were up 10% to $5 million due to an increase in wireline business activity.

Gross margin for the first quarter decreased by $1.2 million to $5.6 million (17% of sales) from $6.8 million (20% of sales) last year, mainly due to the construction segment, where gross margin as a percentage of sales decreased from 17% to 11%. Lower construction sales volumes in the first quarter had a negative impact on the recovery of indirect costs.

General and administrative expenses decreased by $0.7 million to $4.2 million (13% of sales) for the first quarter from $4.8 million (14% of sales) a year ago. General and administrative expenses as a percentage of sales continued to decrease in the first quarter due to the impact of cost-cutting measures initiated in the last fiscal year.

EBITDA¹ for the quarter was $1.3 million, compared to $1.7 million last year.

For the first quarter ended June 30, 2010, Prestige recorded a net loss of $0.7 million or $0.006 per share, compared to net loss of $0.4 million or $0.004 per share for the same period last year.

Working capital stood at $(14.2) million as at June 30, 2011, compared to $(13.4) million as at March 31, 2011. The Company also has access to a $24 million revolving credit facility, of which $25.1 million was used as at June 30, 2011.

At June 30, 2011, total assets were $54.8 million, shareholders' equity was ($5.9) million and net debt was $40.6 million. A total of 118.2 million shares were outstanding.

(1)  EBITDA is defined herein as earnings before interest, taxes, depreciation and amortization, gain (loss) on disposal of property, plant and equipment, foreign exchange gain (loss), stock-based compensation, litigation settlement, and reorganization costs.

Extension of the time for calling the annual general meeting

The Company also announces today that the Quebec Superior Court has granted the Company an order extending the time to call the annual general meeting of the shareholders to December 15, 2011.  As previously reported, the Company filed on September 23, 2011 a request for an extension of the deadline for calling its annual general meeting of the shareholders, on the basis that a meeting at this point in time would not constitute the best use of the Company's management time and financial resources as it works towards furthering its strategic review process.

A copy of the court order will be filed on SEDAR and will therefore be available to the public by accessing the Company's profile at www.sedar.com.

About Prestige Telecom

Prestige Telecom is a leading provider of network engineering, materials furnishing, installation and support services (commonly referred to as EF&I services) required to construct, operate and maintain wireline, wireless and cable television networks. Prestige assists telecommunications original equipment manufacturers and service providers to engineer, install and upgrade their infrastructures to support enhanced voice, high-speed data and video services. Prestige Telecom also provides technical and aerial services to the Canadian communications and broadcast industries, including tower supply, engineering, site construction, and infrastructure and equipment maintenance.

In Canada, Prestige has over 1,000 professional and technical personnel operating from nineteen (19) service locations in nine (9) provinces. Prestige's head office is located in Baie-D'Urfé (Montréal), Québec.

www.prestigetel.com

Forward-Looking Statements

This press release contains certain forward-looking statements with respect to the Company. Such forward-looking statements are dependent upon a certain number of factors and are subject to risks and uncertainties. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except when required by the regulatory authorities.

The TSX Venture Exchange has not reviewed the contents of this press release and accepts no responsibility for the adequacy or the accuracy thereof.

 

 

SOURCE PRESTIGE TELECOM INC.

For further information:

Prestige Telecom Inc.
Maryanne Golden
Director - Corporate Affairs
Tel: (514) 457-4488 ext: 273
mgolden@prestigetel.com

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PRESTIGE TELECOM INC.

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