Glentel Q3 2007 Financials Press Release
Glentel Inc. today reported its results for the 3rd quarter ended September 30, 2007. Sales for the 3rd quarter grew 32%, to $61,336,000 compared to $46,386,000 in the same period of 2006. Operating income before interest and taxes increased to $7,038,000 for the 3rd quarter of 2007 compared to $2,944,000 in 2006. Net income for the quarter increased 125% to $4,430,000, $0.42 per share, compared to $1,972,000, $0.19 per share, for the same quarter in 2006.
Sales for the nine months ended September 30, 2007 increased 21%, to $152,675,000 compared to $126,126,000 in the same period of 2006. Operating income before interest and taxes increased to $9,290,000 compared to $4,652,000 in 2006. Net income for the same period was $5,779,000, $0.56 per share, compared to $3,078,000, $0.30 per share, for the first nine months of 2006.
“I am extremely pleased to report such outstanding results for the 3rd quarter,” said Thomas Skidmore, Glentel’s president and chief executive officer. “We experienced strong retail activity throughout our three retail banners and celebrated the 10th anniversary of WirelessWave. The Business Division completed the integration of its 2006 acquisitions. We look forward to and anticipate a strong performance in the 4th quarter as well, which historically is the Company’s strongest quarter of the year.”
Retail Division sales of retail cellular products and services grew 40%, to $51,316,000 for the 3rd quarter compared to $36,772,000 in 2006. The aggressive marketing and new enhanced phone plans for customers, first introduced by the cellular networks in the 2nd quarter, had a positive effect on sales in the 3rd quarter. As a result, same-store cellular phones and other wireless devices sold in the Retail Division grew 22% in the 3rd quarter over the corresponding period in 2006 for stores that were open throughout both periods.
As a result of the strong sales in the quarter, operating income before interest and taxes for the division grew 106% to $8,535,000 compared to $4,143,000 in the same period the previous year.
Business Division sales of terrestrial radio systems, satellite network services, advanced mobile solutions, and service/engineering support grew 4%, to $10,020,000 for the 3rd quarter compared to $9,614,000 in 2006. While the Division experienced a modest growth in sales, in the 3rd quarter it successfully completed the integration of the acquisitions made in 2006 which resulted in a 20% improvement in operating income in the 3rd quarter of 2007 compared to last year.
During the 3rd quarter the Business Division experienced growth in sales in certain product segments of its business. Broadband opportunities have been one segment of growth which saw a number of successful implementations in the quarter. Radio system sales were also strong in the 3rd quarter including the delivery and installation of repeaters and controllers for the University of Saskatchewan in Saskatoon. The Business Division is optimistic it will be able to build on it’s successes from the past quarter and will continue to see increases in sales and earnings in the future.
As a result, operating income before interest and taxes for the quarter in the division was $668,000 compared to $555,000 in 2006.
Financial highlights, in thousands of Canadian dollars (except per share data), are as follows:
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