AJAX, ONTARIO — (Marketwire) — 08/10/11 — Phonetime Inc. (TSX: PHD) announced that is earned $1.5 million of Net income or $0.01 per share in the half of 2011.
Revenue for the three months ended, June 30, 2011 was $30 million compared to $34 million in 2010. Gross margin was $2 million compared to $2 million in 2010. Operating expenses were $1.3 million compared to 1.5 million in 2010. Income before undernoted was $0.5 million compared to $0.6 million in 2010. Corporate costs were $0.2 million compared to $0.5 million in 2010; the reduction was due to consolidation of facilities and personnel which commenced in the second quarter of 2010. In 2011, through July 17, 2011, 36.3 million common stock warrant derivatives expired unexercised resulting in the inclusion of 2 million in non-recurring income in 2011. Net Income for the three months ended June 30, 2011 was $0.2 million compared to a net loss of $2.3 million in 2010. Net Income for the six months ended June 30, 2011 was $1.5 million compared to a net loss of $3.6 million in 2010.
As at June 30th, 2011, the Company Assets were $21.4 million compared to $23.7 million at December 31, 2010. Total liabilities were $13.4 million compared to $17.3 million at December 31, 2010. Shareholders- equity was $8 million at June 30, 2011 compared to $6.4 million at December 31, 2010. Debt, including bank indebtedness, was $2.5 million compared to $3.9 million at December 31, 2010.
During 2010, the Company completed a restructuring and during this period liabilities were reduced by $8.4 million, including a reduction in debt of $4.6 million (bank debt of $2.7 million and $1.9 million in other debt and capital lease obligations); while the work force was reduced from 138 to 45 and increased automation was added to the back office of the business to form a new foundation to allow the Company to resume growth in conjunction with access to capital. In 2010, $3 million in equity was added to ensure that the Company was sufficiently capitalized to complete its turn around. In conjunction with these equity issuances, 70.3 million warrants were issued with exercise prices ranging from $0.07 to $0.09; 1.6 million of these warrants were exercised in the first quarter of 2011 while 31.6 million warrants expired. The balances of these warrants expire at various times throughout 2011.
In 2011, the Company expects to extend or replace its existing debt facility; it is the Company-s expectation that the replacement facility will allow the Company to have greater access to debt to allow the Company to resume growth.
“Phonetime continues to make progress toward sustained success, following the 2010 re-organization of the Company”, said Gary Clifford, Chairman and Interim CEO. “The Company expects to extend or replace its existing senior lending facility and to re-engage with the investment community once this is in place.”
The Company-s annual financial statements together with its Management Discussion and Analysis can be found on . Investors are reminded to read all public filings of any Company before making an investment decision.
About Phonetime Inc.
Phonetime handles the completion of long distance telecommunications around the world. In 2010, Phonetime completed 720 million phone calls with duration of over 4 billion minutes in 2010. Phonetime is a best in class provider of outsourced telecommunication services. Phonetime-s common shares are traded on the Toronto Stock Exchange under the symbol PHD. More information can be found at the Company-s website, .
Caution Regarding Forward Looking Information:
This press release contains forward-looking statements, which may be identified by words like “expects”, “anticipates”, “plans”, “intends”, “indicates” or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Phonetime-s actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. See which contains all securities files.
Contacts:
Phonetime Inc.
Gary Clifford
Chairman of the Board and CEO (Interim)
416-418-9802
You must be logged in to post a comment Login