Look Communications Reports Second Quarter 2004 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. -- 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 second quarter and six-months ended June June: see month. 30, 2004. Revenues for the second quarter of 2004 were $10.3 million compared to $12.4 million for the same period in 2003, the result of a lower subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. base. Gross margin was $5.8 million in the period compared to $6.7 million in the corresponding period of 2003. Gross margin in percentage improved to 56% in the second quarter of 2004 from 53.7% in the second quarter of 2003. This was the direct result of cost cutting and contract renegotiations which took place during late 2003 and early 2004. 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 second quarter of 2004 was negative $1.5 million compared to $25,000 for the same period in 2003. This decrease was mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the new management contract signed in May 2004 between Look Communications Inc. ("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. ("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 net loss for the second quarter of 2004 was $3.2 million, or $0.05 per share, compared to a net loss of $1.5 million or $0.05 per share in the second quarter of 2003. Revenues for the six-months ended June 30, 2004 were $21.7 million compared to $25.0 million for the same period in 2003, the result of a lower subscriber base. Gross margin was $9.1 million for the six-month period ended June 30, 2004 compared to $11.6 million, in the corresponding period of 2003. Gross margin in percentage improved to 58% from 53.8% in 2003. This was the direct result of cost cutting and contract renegotiations mentioned above. EBITDA for the six-month period ended June 30, 2004 was negative $1.4 million compared to $50,000 for the same period in 2003, reflecting the operations referred to above in the second quarter results. The net loss for the second quarter of 2004 was $4.9 million, or $0.10 per share, compared to a net loss of $2.9 million or $0.10 per share in the six-month period ended June 30, 2003. Look experienced a decrease in its subscriber base during the first six months of 2004. As at June 30, 2004, it had 110,000 subscribers, compared to 117,000 subscribers at the end of March 2004. Of the subscriber losses, 65% or 4,600 subscribers were attributable to 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. account losses, which were anticipated in the light of migration to high speed Internet. The Company did, however, report higher 'average revenues per unit' (ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. ) in the quarter. Contributing to the higher ARPU was the number of business Internet high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. subscribers that continued to grow to 1,800 as at June 30, 2004 compared to 1,000 in June 2003, an 80% increase. On May 20, Look and UBS concluded an Agreement under which UBS will provide Look a wide range of services designed to maximize Look's full commercial potential. These services include: - establishing and updating Look's strategic plan; - monitoring and, where appropriate, renegotiating Look's service provider arrangements; - providing wide-ranging wide-rang·ing adj. Covering a wide area; including much: a pianist's wide-ranging repertoire; a wide-ranging interview. technical support; - supplementing Look's back-office services; and - providing a new Chief Executive Officer. In its June 15, 2004, press release the Company announced that it intended to issue and deliver common shares of Look in payment of the interest due on secured convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. outstanding pursuant to a rights offering it completed in February February: see month. 2004. Subsequent to that announcement, Look received regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval in the second quarter to issue 2,024,447 common shares in consideration for $153,858 of interest expenses. Also as previously announced, Look will be changing its year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. to August 31st, in order to standardize stan·dard·ize v. 1. To cause to conform to a standard. 2. To evaluate by comparing with a standard. its financial reporting periods with its parent company. This change will result in Look having an eight-month 2004 fiscal year. "Look remains optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about its future as a result of its new management, its recent 7 year license renewal and its focus on wireless broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 and the direction of both the USA and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of towards the development of 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. services in the 2500 to 2700 MHZ spectrum band" said Mr. 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]. T. McGoey who was elected Vice Chairman and Chief Executive Officer of Look at its recent annual meeting held on June 29, 2004. 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 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. . 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.
BALANCE SHEETS
(In thousands of dollars)
As at
June 30 December 31
2004 2003
(unaudited) (audited)
---------------------------------------------------------------------
ASSETS
Current assets 11,106 6,978
Capital assets, net 34,196 36,712
---------------------------------------------------------------------
45,302 43,690
---------------------------------------------------------------------
---------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
(DEFICIENCY)
Current liabilities 11,785 15,895
Long term debt 1,247 1,133
---------------------------------------------------------------------
Total liabilities 13,032 17,028
---------------------------------------------------------------------
Shareholders' equity (deficiency)
Share capital 29,682 25,274
Convertible debentures 6,317 -
Contributed Surplus 10 516 10 516
Deficit (14,245) (9,128)
---------------------------------------------------------------------
Total shareholders' equity 32,270 26,662
---------------------------------------------------------------------
45,302 43,690
---------------------------------------------------------------------
---------------------------------------------------------------------
Look Communications Inc.
STATEMENTS OF LOSS AND DEFICIT
(In thousands of dollars, except per share amounts)
Six months ended June 30
Three Three Six Six
months months months months
ended ended ended ended
June 30 June 30 June 30 June 30
2004 2003 2004 2003
(unau- (unau- (unau- (unau-
dited) dited) dited) dited)
---------------------------------------------------------------------
Service and sales revenue 10,301 12,411 21,698 25,055
Carrier charges and cost of sales 4,535 5,746 9,102 11,570
---------------------------------------------------------------------
Gross margin 5,766 6,665 12,596 13,485
---------------------------------------------------------------------
---------------------------------------------------------------------
Operating expenses 7,221 6,640 14,014 13,435
---------------------------------------------------------------------
---------------------------------------------------------------------
Income before the following (1,455) 25 (1,418) 50
Interest and finance charges (237) (19) (329) (34)
Amortization of capital assets
and deferred charges (1,657) (1,501) (3,358) (2,893)
---------------------------------------------------------------------
Income (loss) before income
taxes (3,349) (1,495) (5,105) (2,877)
Provision for income taxes 6 (7) (12) (13)
---------------------------------------------------------------------
Net (loss) income for the period (3,343) (1,502) (5,117) (2,890)
Deficit, beginning of period (10,902) (4,142) (9,128) (2,754)
---------------------------------------------------------------------
Deficit, end of period (14,245) (5,644) (14,245) (5,644)
---------------------------------------------------------------------
---------------------------------------------------------------------
Net income (loss) per share
Basic $(0.05) $(0.05) $(0.10) $(0.10)
---------------------------------------------------------------------
---------------------------------------------------------------------
Look Communications Inc.
STATEMENTS OF CASH FLOWS
(In thousands of dollars)
Three Three Six Six
months months months months
ended ended ended ended
June 30 June 30 June 30 June 30
2004 2003 2004 2003
(unau- (unau- (unau- (unau-
dited) dited) dited) dited)
---------------------------------------------------------------------
---------------------------------------------------------------------
OPERATING ACTIVITIES
Net loss for the period (3,343) (1,502) (5,117) (2,890)
Add (deduct) items not affecting
cash
Amortization of capital assets
and deferred charges 1,657 1,501 3,358 2,893
Non-cash interest and finance
charges 153 - 153 -
Non-cash gain on settlement of
liability - - - (680)
---------------------------------------------------------------------
(1,533) (1) (1,606) (677)
Changes in non-cash working
capital balances related to
operations (982) (847) (1,756) (1,944)
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash provided by (used in)
operating activities (2,515) (848) (3,362) (2,621)
---------------------------------------------------------------------
---------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of capital assets (387) (73) (2,842) (456)
Deferred charges 113 (3) (3) (32)
Restricted cash 26 - 11 (2)
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash (used in) investing activities (248) (76) (2,834) (490)
---------------------------------------------------------------------
---------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of share capital (net
of costs) 3,040 (10) 4,255 2,285
Issuance of convertible
debentures, net of costs (3,133) - 6,317 -
Repayment of term loans, long
term debt and obligations
under capital leases 32 (205) (6) (431)
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash provided by (used in)
financing activities (61) (215) 10,566 (1,854)
---------------------------------------------------------------------
---------------------------------------------------------------------
Net Increase (decrease) in cash
and cash equivalents during the
period (2,824) (1,139) 4,370 (1,257)
Cash and cash equivalents,
beginning of period 8,832 3,482 1,638 3,600
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash and cash equivalents, end of
period 6,008 2,343 6,008 2,343
---------------------------------------------------------------------
---------------------------------------------------------------------
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion