Telehop Communications Reports Second Quarter 2009 Financial Results



    TORONTO, Aug. 19 /CNW/ - Telehop Communications Inc. (TSXV-HOP) is a
full-service long distance provider operating within the telecommunications
industry and is registered with the Canadian Radio-television and
Telecommunications Commission ("CRTC") as a licensed Class "A" Telecom
Carrier.

    
    -------------------------------------------------------------------------
    Consolidated Highlights           three months ended    six months ended
    ($Thousands except for per
     share data)                       June 30,  June 30,  June 30,  June 30,
                                          2009      2008      2009      2008
    -------------------------------------------------------------------------
    Consolidated Income Statement
    ------------------------------
    Operating revenues                   3,562     4,251     7,039     8,622

    Gross margin                         1,463     1,462     2,766     3,125
    Gross margin %                        41.1%     34.4%     39.3%     36.2%

    Net income (loss)                     (243)     (454)     (574)     (658)
    Earnings (loss) per share - basic    (0.02)    (0.03)    (0.04)    (0.05)
    Earnings (loss) per share - diluted  (0.02)    (0.03)    (0.04)    (0.05)
    -------------------------------------------------------------------------
    

    The second quarter showed improved results with a continued focus on our
HomePhone introduction.

    Quarterly financial summary -

    Year to date gross margin has shown a 3.1% increase to 39.3% over 2008.
In the second quarter gross margin held firm even as revenues contracted. This
as a result of increased revenue per minute and lower direct costs due to a
strengthening of the Canadian dollar relative to the United States dollar.
    Revenue for second quarter 2009 was $3,562,090 with a net loss of
$242,903 or $(0.02) per common share compared to revenue of $4,250,667 and net
loss of $454,390 or $(0.03) per common share for the second quarter 2008. Our
revenue was $688,577 or 16.2% less quarter for quarter which is attributable
to a reduction in our retail long-distance business of $628,542 and a
reduction in our wholesale long-distance business of $60,035. Year to date
revenue was $7,039,243 with a net loss of $573,607 or $(0.04) per common share
compared to revenue of $8,621,861 and net loss of $658,930 or $(0.05) per
common share for the first six months of 2008.
    Operating expenses decreased from $2,128,802 in second quarter 2008 by
$405,011 or 19.2% to $1,723,791. The majority of the decrease relates to
non-recurring one time charges which occurred in 2008. Year to date operating
expenses decreased by $645,101 to $3,497,611
    We completed the second quarter with $1,029,174 of cash and working
capital of $1,847,950 with no bank debt. We have reduced our expenses on an
ongoing basis and have implemented a strategic initiative which we believe
will help us increase the value of our Company in the long term.

    A complete financial reporting package is available on Sedar
http://www.sedar.com or by contacting the company.

    Certain statements in this press release may constitute "forward looking
statements" and involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the
Corporation to be materially different from any performance or achievement
expressed or implied by such "forward looking statements".

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





For further information:

For further information: Company Contact: Mr. Hersh Spiegelman,
President and CEO, (416) 494-4490, hersh@telehop.com

Organization Profile

Telehop Communications Inc.

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