Axia Reports Results for the three months ended March 31, 2016
CALGARY, May 12, 2016 /CNW/ -
- On March 9, 2016, Axia entered into an arrangement agreement (the "Arrangement Agreement") with Digital Connection (Canada) Corp. (the "Purchaser"), an entity which is owned by investment vehicles managed and/or advised by Partners Group AG or its affiliates, pursuant to which the Purchaser has agreed to acquire all the issued and outstanding shares of Axia for $4.25 per common share in cash by way of a plan of arrangement (the "Arrangement"). On May 6, shareholders approved the Arrangement Agreement and on May 9, approval was received from the Court of Queen's Bench of Alberta.
- Completion of the Arrangement is subject to various closing conditions, including the receipt of regulatory approvals in the U.S. Axia and the Purchaser are diligently working together toward the satisfaction of the remaining closing conditions as quickly as possible.
First Quarter Highlights
- Business unit1 revenue of $36.6 million increased 10% from $33.2 million in Q1 2015.
- Business unit EBITDA of $7.5 million remained relatively flat from $7.9 million in the prior quarter of last year.
- Customer connections of 12,896 increased 11% from 11,573 in the prior quarter last year.
- IFRS net loss was $2.1 million compared to $0.1 million last year. Net loss in the quarter was driven by transaction costs, related to the Arrangement, of $1.0 million and personnel related costs of $0.5 million, these costs are unrelated to ongoing operations.
- Continued investment in extending network footprint and connecting new customers. Business unit capital expenditure was $10.7 million compared to $9.2 million in Q1 2015. The cash balance at quarter-end was $9.6 million with total debt of $15.7 million.
The condensed consolidated financial statements for the three months ended March 31, 2016 and 2015 and related Management Discussion and Analysis ('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 ir.axiafibrenet.com.
Business Unit Results
1Axia's business unit summary includes 100% of the financial and operational results of Axia North America and Covage. Please see the audited consolidated financial statements and related Management's Discussion & Analysis (MD&A) for more details.
The term adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is not defined by IFRS and may not have a standardized meaning, therefore it is referred to as a Non-GAAP measure. This measure is used by management to evaluate the performance of Axia and its business and has been presented in this news release in order to provide shareholders and potential investors with additional Information.
EBITDA is commonly used by management, investors and creditors in the calculation of ratios and financial performance and is calculated as the sum of operating income plus depreciation and amortization.
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
For further information: Please visit Axia's website at www.axia.com, or contact: Alan Hartslief, Chief Financial Officer, Axia NetMedia Corporation, (403) 538-4188, [email protected]