Phonetime Reports Q3 Results Margins and Profits Significantly Ahead of Last Year.MISSISSAUGA, Ontario For the First Nation, see . Mississauga (pronounced: [ˌmɪsɪˈsɑgə] listen -- Phonetime Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:PHD), a leading provider of pre-paid and equal access (1+) long distance telecommunication services, today announced consolidated un-audited financial results of operations for the third quarter and the nine month period ending September 30, 2004. HIGHLIGHTS: - Gross margin for Q3 2004 was 33.8%, compared to 21.3% in the same period last year representing an increase of 12.5% - Gross margin for the nine months ended September 30, 2004 was 32.5%, compared to 17.1% in the same period last year, representing an increase of 15.4%. - Net earnings for Q3 2004 was $67,270, compared to a loss of ($641,037) in the same period last year. - Net earnings for the nine months ended September 30, 2004 was $427,053, compared to a loss of ($323,266) in the same period last year. - Revenue for Q3 2004 was $4,302,005 compared to $7,108,882 in the same period last year, representing a decrease of 39.5% - Revenue for the nine months ended September 30, 2004 was $14,446,176 compared to $21,610,021 in the same period last year, representing a decrease of 33% Commenting on the results, Wayne Silver, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "earlier this year we stated that our focus in 2004 was to generate business with improved gross margins, ultimately leading us back to a position of profitability. We have done that and will continue to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. areas that offer solid profitable prospects for success. We will no longer focus solely on revenue growth at the expense of profits. Our focus will remain on earnings growth and improving our earning per share Noun 1. earning per share - the portion of a company's profit allocated to each outstanding share of common stock net income, net profit, profit, profits, earnings, lucre, net - the excess of revenues over outlays in a given period of time (including depreciation for our stakeholders." Phonetime's Balance Sheet continues to improve despite declining revenues. The Company has virtually no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and has sufficient cash and current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. to fund existing operations. For the second consecutive quarter, Phonetime has been able to meet a significant operating milestone whereby current assets exceed current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. , thus creating a positive working capital ratio. Rodney Franklin, Chairman added, "Phonetime's new venture, Call Select, has created a source of new, high margin revenue for the Company by offering competitive 1+ long distance directly to ethnic consumers. Call Select has already generated approximately 7,500 new customers and the Company's goal is to have 10,000 subscribers by the year end. These are significant results, as Call Select only began its sales efforts in July. With the encouragement of this successful service and sales strategy, Phonetime will continue to focus more of its resources towards Call Select. Plans for 2005 include offering our subscriber base home based VoIP service, as well as a suite of products and services to enhance our subscription revenues." In other news, Phonetime also announces the appointment of Rodney Franklin as its new CFO See Chief Financial Officer. , replacing Jeff Chelin, who has left the Company to pursue other opportunities. The management and staff wish Jeff well in his future endeavors. ABOUT PHONETIME Focused on telecommunications, Phonetime has built one of Canada's largest private long-distance networks into 24 major urban areas. Phonetime operates a multilingual call center and sells its own branded pre-paid cards, Nuvo, Bravo, Millennium, Eureka, HOT and Call Value. The Company also provides phone cards to over 3,000 retail outlets, including Business Depot/Staples. Licensed as a Class A, International Carrier by the CRTC CRTC Canadian Radio-Television & Telecommunications Commission CRTC Combat Readiness Training Center CRTC Cathode Ray Tube Controller CRTC China Railway Telecommunications Center CRTC Cold Region Test Center CRTC Continuously Regenerated Trap Column , the company currently has offices in Toronto, Vancouver, and Montreal. Additional information about Phonetime and Call Select and its products and services is available through the Company's web site at www.phonetime.com and www.callselect.ca Note: This news release may contain forward-looking information. Actual future results may differ materially. All figures are in Canadian dollars. The risks, uncertainties, and other factors that could influence actual results are described in the company's annual report to shareholders. 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. has not approved nor disapproved the information contained herein. Phonetime Inc. (TSX VENTURE:PHD) |
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