Axia Reports Results for the three and nine months ended September 30, 2014
CALGARY, Nov. 6, 2014 /CNW/ -
- Business unit revenue of $31.3 million grew 18% from $26.5 million for Q3 2013. This increase was driven primarily by increasing market penetration as customer connections grew to 10,846 at September 30, 2014, up 19% from 9,140 a year ago.
- Business unit EBITDA grew 26% to $8.9 million from $7.0 million for the same quarter last year.
- Covage revenue of $16.4 million grew 16% over the same period last year. EBITDA of $5.8 million was up 43% year over year.
- North American revenue of $14.8 million grew 20% and recurring revenue of $12.9 million grew 10% over the same quarter last year. EBITDA was $3.9 million compared to $5.4 million last year due to higher variable costs and continued investment in new business development.
- Axia's planned $20.0 million investment in Alberta to build 1,526 km of fibre between 27 larger communities in the province is on track and on budget. As of September 30, 2014, 68% of the fibre required to complete the community interconnect grid has been deployed with the remainder of the fibre construction anticipated to be completed before the end of the year. The installation of the electronics will be completed in 2015.
- IFRS net income of $0.9 million or $0.01 per share compared to a loss of $2.3 million or $(0.03) per share for the same quarter last year. Covage IFRS net income for Q3 was positive for the first time at $0.4 million.
- The balance sheet remained strong with $32.6 million of cash and $4.6 million of debt which includes $3.2 million drawn on Axia's $20.0 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 and nine months ended September 30, 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 Thursday, November 6, 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 25449424 from 6 p.m. (Eastern) Thursday, November 6, 2014 to midnight (Eastern) Thursday, November 13, 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
For further information: please visit Axia's website at www.axia.com, or contact: Glenn Jamieson, Investor Relations, Axia NetMedia Corporation, (905) 582-6169, [email protected]