Axia Reports Results for the three month period ended March 31, 2014
CALGARY, May 13, 2014 /CNW/ -
- Business unit* revenue of $30.3 million grew 20% from $25.2 million in Q1 2013. Business unit EBITDA of $7.4 million was up 8% over the prior year.
- In Covage, revenue of $17.6 million grew 35% over the same period last year. EBITDA of $5.4 million was up 62% year over year.
- North American revenue of $12.7 million grew 4% and recurring revenue of $11.9 million grew 8% over the prior year. North American EBITDA, net of corporate costs, was $2.0 million, down $1.5 million from $3.5 million a year ago. A number of milestones were accomplished in the quarter including the commissioning of the Massachusetts network, the launch of a new scalable OSS/BSS system and the soft launch of the FTTP Business which in total resulted in additional costs of $1.5 million.
- IFRS net loss of $0.3 million or $(0.01) per share compared to a gain of $6.5 million or $0.10 per share for the prior year.
- The balance sheet remained strong with $36.7 million of cash, $2.0 of debt and an unused $20 million credit facility.
* Axia's business unit summary includes 100% of the financial and operational results of Axia North America and Covage. Please see the condensed consolidated interim financial statements and related Management's Discussion & Analysis (MD&A) for more details.
The condensed consolidated interim financial statements for the three months ended March 31, 2014 and related MD&A have been reviewed and approved by Axia's Audit Committee and Board of Directors. Axia recognizes that the majority of its investors are now accessing Axia's corporate and financial information either through pushed news services, directly from ir.axia.com or SEDAR. Thus, Axia has prepared this truncated news release to alert investors to its results and that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR at www.sedar.com and also posted at www.axia.com.
Notice of Conference Call
Axia will hold a conference call with the investment community on Tuesday, May 13, 2014 at 9 a.m. (Eastern), 7 a.m. (Mountain). To participate in the conference call, please dial +1 (647) 427-7450 in Toronto and internationally. If you are connecting from other parts of Canada, dial 1-888-231-8191. Please call ten minutes prior to the start of the call. In addition, a live webcast (listen only mode) of the conference call will be available at:
A replay of the conference call will be available at (416) 849-0833 or 1-855-859-2056, passcode 25176937 from 6 p.m. (Eastern) Tuesday, May 13, 2014 to midnight (Eastern) Tuesday, May 20, 2014 or through the webcast archives at www.newswire.ca.
Axia owns, operates and sells services over fibre optic communications infrastructure. Axia trades on the Toronto Stock Exchange under the symbol "AXX".
This News Release contains forward-looking statements, including, without limitation, statements containing the words "should", "believe", "anticipate", "may", "plan", "will", "continue", "intend", "expect", "estimate" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. These statements are based on our current expectations, estimates, forecasts and assumptions about the operating environment, economies and markets in which we operate and are subject to important assumptions, risks and uncertainties that are difficult to predict. Examples of these statements would include those where Axia forecasts its success and timing in winning new NGN business, the timing and amount of future dividend payments, the timing of completion and estimated total costs of our networks, the revenues and operating costs associated with these networks over time, and Axia's ability to generate future cash flows and avail itself of other financing alternatives given current market conditions. The assumptions, risks and uncertainties that could cause actual results to differ materially from the forward-looking information, include, but are not limited to, changes in customer markets, changes in demand for our services, our inability to deliver services in a timely and cost efficient manner, technological change, general economic conditions and other risks detailed from time to time in our ongoing filings with the Canadian securities regulatory authorities, including those in our Annual Information Form, which filings can be found at www.sedar.com. Given these assumptions, risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise.
SOURCE: Axia NetMedia Corporation
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