Telehop Announces First Quarter Results

TORONTO--(BUSINESS WIRE)-- Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V: HOP) today announced its financial performance during the first quarter ending March 31, 2016.

Revenue for Q1 2016 was down 15% to approximately $4,021,000 with a net loss of ($92,000) or ($0.003) loss per common share compared to revenue of about $4,757,000 with a net loss of ($135,000) or ($0.004) per common share for Q1 2015. The Company’s gross margin for the first quarter was approximately $1,490,000 or 37% compared to approximately $1,879,000 or 39% in the prior year. Gross margins have decreased by 2% in 2016 primarily impacted by changes in international foreign exchange rates. EBITDA for Q1 was approximately $126,000 compared to $137,000 in the prior year.

“The decrease in wireless roaming sales was unfortunate due to the loss of a key supplier relationship. Our team was able to mitigate the decrease in sales through a keen effort to decrease general and administrative expenses. Also, revenue from new business efforts is increasingly offsetting traditional long distance declines. Therefore, despite sales decreasing by 15% our EBITDA only decreased by 8%. In 2016, we will look to build new supplier relationships for wireless roaming services and other enterprise solutions that offer more consistent revenue,” said Rajiv Jagota, CEO of Telehop Communications.

FINANCIAL OVERVIEW

1We define EBITDA as earnings before interest costs, taxes, depreciation and amortization as earnings before interest costs, taxes, depreciation, and amortization. EBITDA is non-GAAP financial measure used in to assist in understanding and comparing operating results. EBITDA is reviewed regularly by management and our Board of Directors in assessing performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. EBITDA is not a measure of financial performance nor does it have a standardized meanings under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts. We have reconciled EBITDA to its most comparable measure calculated in accordance with IFRS, being net income (loss) in the tables below.

Below is a reconciliation of “EBITDA” to Net income (loss) for the periods presented:

A complete financial reporting package, including the 2016 Interim Consolidated Financial Statements and Notes to the Financial Statements and MD&A, is available at our corporate website (www.telehop.com), at SEDAR website (www.sedar.com) or via email to [email protected] or via phone at 416-499-5463.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained herein regarding the Company and its plans constitute “forward-looking statements” within the meaning of Canadian securities laws. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. The forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any performance or achievement expressed or implied by such forward-looking statements. We direct you to our Company’s Management’s Discussion and Analysis filed for the period ended December 31, 2015.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Telehop

Telehop Communications Inc. (TSX-V: HOP) was founded and headquartered in Toronto, Ontario in 1993, and has grown into one of the largest alternative telecommunications providers to both residential and business customers.

Telehop originally began offering residential and business two-way monthly 'flat rate' calling services in the Greater Toronto area between communities where a call would otherwise be a long distance call. In 1994, Telehop became one of Canada's few Equal Access Long Distance Providers, allowing it to offer its customers full service long distance calling globally at significantly lower rates. Telehop has broadened into home phone, business services, and wireless communications. The Canadian Radio-television and Telecommunications Commission ("CRTC") has licensed Telehop as a Class "A" telecommunications carrier.

Telehop's dedication and priority is providing residential and businesses with exceptional phone services at competitive rates without sacrificing quality service.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160527005834/en/

Telehop Communications Inc.
Mr. Rajiv Jagota, 416-499-5463
President and CEO
[email protected]

Source: Telehop Communications Inc.

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