Look Communications Reports First Quarter 2005 Results.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing & MONTREAL Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. -- First graph, of release should read: Look Communications LOOK TV is a digital cable, internet service and web hosting provider. Based in Montreal, Look was once linked to former crown corporation Teleglobe and Chinese ISP Inter Pacific Online. Founded in 1997, it has offices in Milton, Ontario and Montreal. Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE: LOK) today reported its financial and operating results for the three month period ended November November: see month. 30, 2004. As announced last quarter, Look and its parent company, Unique Broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). Systems, Inc., have changed their respective year-ends to August 31 in order to standardize stan·dard·ize v. 1. To cause to conform to a standard. 2. To evaluate by comparing with a standard. their financial reporting periods. This change has resulted in first quarter 2005 ending on November 30, 2004 with comparative figures for the three month period ended December December: see month. 31, 2003. The corrected release reads: LOOK COMMUNICATIONS REPORTS FIRST QUARTER 2005 RESULTS Look Communications Inc. (TSX VENTURE: LOK) today reported its financial and operating results for the three month period ended November 30, 2004. As announced last quarter, Look and its parent company, Unique Broadband Systems, Inc., have changed their respective year-ends to August 31 in order to standardize their financial reporting periods. This change has resulted in first quarter 2005 ending on November 30, 2004 with comparative figures for the three month period ended December 31, 2003. Revenues for the three months ended November 30, 2004 were $10.1 million. For the three month period ended December 31, 2003, revenue was $12.0 million. The decline in revenue per month was the result of a lower subscriber base in 2004. Gross margin was $4.7 million for the three months ended November 30, 2004 and $6.4 million for the three month period ended December 31, 2003. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, financing charges, income taxes, depreciation and amortization) for the three months ended November 30, 2004 was negative $1.1 million. For the three-month period ended December 31, 2003, EBITDA totaled $0.1 million. The change of $1.2 million is primarily attributable to costs associated with management changes of the company designed to maximize the Company's full potential. The net loss for the three months of 2004 was $2.9 million, or $0.03 per share, compared to a net loss of $1.7 million or $0.06 per share in the three months of 2003. As at November 30, 2004, Look had 104,300 subscribers, compared to 108,200 subscribers at the end of August 31, 2004. The majority of the subscribers reduction in the period, 3,900 subscribers, represented Residential Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Dial-Up Refers to using the regular "dial-up" telephone network to send data from a computer to a remote network or to a remote device. The computer's digital data are converted to analog signals in the same frequency range as human voice by a modem. accounts (4,094), a decline which was anticipated in light of the ongoing industry-wide migration to high-speed Internet See broadband. . Subsequent to the end of the quarter, Look announced a new business focus and is transitioning to become a Mobile Broadband Description Mobile Broadband is a type of wireless internet access that differs from Wi-Fi. Mobile Broadband is the name used to describe the 3G services which are made possible by HSDPA and HSUPA, the latest technologies on the W-CDMA evolutionary path. Multimedia Service Provider. Along with UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System , the companies announced in December their intention to jointly launch hand-held hand-held also hand·held adj. Compact enough to be used or operated while being held in the hand or hands: a hand-held video camera. Adj. 1. mobile video services in Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. and Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. . The Mobile Broadband Video Network (MBVN) will first be launched in Toronto and Montreal and will eventually cover the population-dense corridor from Windsor Windsor, British royal family Windsor (wĭn`zər), family name of the royal house of Great Britain. The name Wettin, family name of Albert of Saxe-Coburg-Gotha, consort of Queen Victoria, was changed to Windsor by George V in 1917. to Quebec City. "We see the transition to mobile broadband as offering great potential for the Company," said Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. McGoey Vice Chairman and Chief Executive Officer. "Look is ideally positioned to offer this exciting new service. We have the necessary licensed spectrum to deliver mobile services and we have a broadcasting license which allows us to provide extensive content. Interest in this area is taking off and Look will be well positioned to meet the ensuing en·sue intr.v. en·sued, en·su·ing, en·sues 1. To follow as a consequence or result. See Synonyms at follow. 2. To take place subsequently. demand for the service. " The MBVN will provide over 80 channels of live video, data carousel A format that interleaves information streams in a repeating pattern for digital video broadcasting. See DVB. broadcasting channels and over 100 channels of digital audio broadcasting Digital radio. It is the digital successor to analog AM and FM radio. See HD Radio and DAB. . New handheld devices, the size of a normal PDA (Personal Digital Assistant) A handheld computer for managing contacts, appointments and tasks. It typically includes a name and address database, calendar, to-do list and note taker, which are the functions in a personal information manager (see PIM). , are being developed and will be in beta tests A test of new or revised hardware or software that is performed by users at their facilities under normal operating conditions. Beta testing follows alpha testing. Vendors of packaged software often offer their customers the opportunity of beta testing new releases or versions, and the in the first quarter of 2005, with the service launch planned for early 2006. About Look Communications Inc. Look Communications delivers a full range of communications services, including high-speed and dial-up Internet access See dial-up. , Web applications, digital television distribution and superior customer service to both the business and residential markets across Canada Across Canada was an afternoon program that formerly aired on The Weather Network. The segment ran from early 1999 until mid 2002. The show ran from 3:00PM ET until 7:00 PM ET. . We deliver high-speed connections and a full range of Web solutions that help SMEs achieve their business objectives. Through our advanced wireless infrastructure, we also offer high quality digital entertainment services to consumers in Ontario and Quebec. Look shares are listed on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. under the symbol "LOK". The corporate information contained in this release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding future events and the future performance of Look that involve risks and uncertainties that could cause actual results to differ materially. Assumptions used in the preparation of such information, although considered reasonable by Look at the time of preparation, may prove to be incorrect. The actual results achieved will vary from the information provided herein and the variations may be material. Consequently, there is no representation by Look that actual results achieved will be the same in whole or in part as those forecast.
LOOK COMMUNICATIONS INC.
Unaudited Consolidated Balance Sheets
(In thousands of dollars)
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November 30, August 31,
2004 2004
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ASSETS
Total current assets 8,812 10,292
Capital assets and deferred charges, net 33,028 33,460
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41,840 43,752
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LIABILITIES AND SHAREHOLDERS' EQUITY
Total current liabilities 13,752 12,704
Long-term debt 1,234 1,242
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Total liabilities 14,986 13,946
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Shareholders' equity
Share capital 30,027 29,796
Convertible debentures 5,972 6,203
Contributed surplus 10,558 10,549
Deficit (19,703) (16,742)
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Total shareholders' equity 26,854 29,806
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41,840 43,752
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LOOK COMMUNICATIONS INC.
Unaudited Consolidated Statements of Operations and Deficit
(In thousands of dollars, except shares and per share amounts)
Three months Three Months
ended ended
November 30, December 31,
2004 2003
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Service and sales revenue 10,066 11,990
Carrier charges and cost of sales 5,330 5,558
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Gross margin 4,736 6,432
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Expenses 7,551 8,089
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Loss from operations (2,815) (1,657)
Interest and financing charges, net (27) 25
Gain (Loss on disposal of assets) - (3)
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Loss before income taxes (2,842) (1,635)
Provision for income taxes (14) (17)
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Loss for the period (2,856) (1,652)
Deficit, beginning of period (16,742) (7,476)
Interest on convertible debentures (105) -
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Deficit, end of period (19,703) (9,128)
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Net loss per share
Basic $(0.03) $(0.06)
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Weighted average number of shares outstanding
Basic 92,009,456 29,331,236
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LOOK COMMUNICATIONS INC.
Unaudited Consolidated Statements of Cash Flows
(In thousands of dollars)
Three months Three Months
ended ended
November 30, December 31,
2004 2003
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OPERATING ACTIVITIES
Net loss for the period (2,856) (1,652)
Add (deduct) items not affecting cash
Amortization of capital assets 1,668 1,784
Amortization of deferred charges 27 8
Amortization of stock-based compensation 8 -
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(1,153) 140
Changes in non-cash working capital balances
related to operations 839 1,532
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Cash provided by (used in) operating activities (314) 1,672
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FINANCING ACTIVITIES:
Interest on convertible debentures (105) -
Deferred financing charges - (200)
Proceeds from refinancing of long-term debt - 200
Proceeds from obligations under capital leases - 93
Repayment of long-term debt - (131)
Repayment of obligations under capital leases (7) -
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Cash used in financing activities (112) (38)
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INVESTING ACTIVITIES
Purchase of capital assets (224) (1,748)
Purchase of short-term investment (490) -
Deferred charges - (141)
Restricted cash (18) (3)
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Cash used in investing activities (732) (1,892)
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Net decrease in cash and cash equivalents
during the period (1,158) (258)
Cash and cash equivalents, beginning of period 2,992 1,896
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Cash and cash equivalents, end of period 1,834 1,638
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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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