 Q1 2007 Financials Press ReleaseGlentel Inc. today reported its results for the 1st quarter ended March 31, 2007. Sales for the three months ended March 31, 2007 increased 15%, to $42,768,000 compared to $37,162,000 in the same period of 2006. Operating income before interest and taxes increased to $430,000 for the 1st quarter of 2007 compared to $1,000 in 2006. Net income for the quarter was $221,000, $0.02 per share, compared to $17,000, $0.00 per share, for the quarter in 2006. Retail Division sales of retail cellular products and services grew 6%, to $31,762,000 for the 1st quarter compared to $30,090,000 for the 1st quarter of 2006. During the quarter, the Retail Division continued its expansion plans of the Tbooth / La Cabine T brand and opened three new stores, bringing the total to 52 mall-based stores operating under the Tbooth / La Cabine T brand. Same-store cellular phones and other wireless devices sold in the division were relatively unchanged in the 1st quarter over the corresponding period in 2006. Growth in sales and earnings for the Retail Division was reflective of a commitment to align ourselves to a similar focus as our network partners in developing higher ARPU (“average revenue per unit”) customers, resulting in significant increases in vendor contributions and recurring revenue. As a result, operating income before interest and taxes for the division grew 72% to $2,190,000 for the 1st quarter of 2007 compared to $1,274,000 the same period the previous year. Business Division sales of terrestrial radio systems, satellite network services, advanced mobile solutions, and service/engineering support grew 56%, to $11,006,000 for the 1st quarter compared to $7,072,000 in the quarter in 2006. During the quarter, the Business Division had significant successes in booked revenues in all regions of the country, and anticipated orders in the next two quarters are expected to remain strong. In addition, the growth in sales was enhanced by the three acquisitions completed in 2006 that specifically provided strength in depth and breadth of operations to the division in eastern Canada. However, accretive earnings have not been realized from these acquisitions, as the integration into Glentel is in progress and redundant costs and processes have not been fully eliminated. As a result, operating income before interest and taxes for the division was $412,000 in the 1st quarter compared to $516,000 in the 1st quarter of 2006. “I am pleased we were able to grow our sales and earnings in a quarter that is historically the weakest time of the year,” said Thomas Skidmore, Glentel’s president and chief executive officer. “We strive to achieve maximum performances from each area of the company and we are currently focused on the integration and assimilation of the recent acquisitions in the Business Division. We will look forward to reporting this success in future quarters.” Financial highlights, in thousands of Canadian dollars (except per share data), are as follows:
About GLENTEL GLENTEL (TSX: GLN) is a leading provider of innovative and reliable telecommunications services and solutions across North America. Founded in 1963 and headquartered in Burnaby, BC, Glentel comprises two operating divisions – Retail and Business – that service thousands of consumers and commercial telecommunications customers. Together with its divisions, the company boasts more than 250 locations across Canada located in retail malls, Costco Wholesale stores, and business centers. As the largest multi-carrier mobile phone retailer in Canada, it offers a choice of network carrier and wireless device or phone. To its business and government customers, Glentel offers wireless engineering and service, rental equipment, satellite and terrestrial network systems, and wireless asset monitoring. GLENTEL operates its business under the trading names WirelessWave, WIRELESS etc., The Telephone Booth (Tbooth and la cabine T) and GLENTEL Wireless. NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN. FOR MORE INFORMATION Investor Relations Contact:
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