 Glentel Inc. reports 1st quarter earnings of $0.02 per shareGlentel Inc. (TSX: GLN) today reported its results for the 1st quarter ended March 31, 2008. Consolidated sales for the three months ended March 31, 2008 increased 19%, to $50,718,000 compared to $42,768,000 in the same period of 2007. Operating income before interest and taxes was $397,000 for the 1st quarter of 2008 compared to $430,000 in 2007. Net income for the quarter was $257,000, $0.02 per share, compared to $221,000, $0.02 per share, for the quarter in 2007. Retail Division sales of mobile phone products and services grew 30%, to $41,365,000 for the 1st quarter compared to $31,762,000 for the 1st quarter of 2007. The growth in sales was primarily due to the division operating 227 stores during the 1st quarter in 2008 compared to 172 stores in the same period of 2007. In addition, same-store mobile phones and other wireless devices sold in the Retail Division grew 14% in the 1st quarter of 2008 over the corresponding period in 2007 for stores that were open throughout both periods. During the quarter, the Retail Division continued its expansion plans and opened three new stores: one in WirelessWave and two in Tbooth/la cabine T. The division currently operates 102 WirelessWave mall-based stores, 62 Tbooth/la cabine T mall-based stores, and 63 WIRELESS etc. stores in Costco Wholesale in Canada. While the 1st quarter is traditionally the weakest quarter for the Retail Division, operating income grew proportionately with the growth in sales. However, operating earnings for the 1st quarter are lower than the annual average due to the increased overhead costs from opening and operating an additional 55 stores in 2008 compared to the same quarter in 2007. As a result, operating income before interest and taxes for the division increased to $2,850,000 for the 1st quarter of 2008 compared to $2,190,000 for the same period the previous year. Business Division sales of terrestrial radio systems, satellite network services and technical and engineering services decreased 15%, to $9,353,000 for the 1st quarter compared to $11,006,000 in the 1st quarter in 2007. The decrease reflects, in part, the short term curtailing of energy contractor activity in northern Alberta as well as a weak economic quarter in Ontario. As a result, operating income before interest and taxes for the division decreased to $221,000 for the 1st quarter of 2008 compared to $412,000 for the same period the previous year. Sales continue to strengthen in wireless broadband and engineered solutions. During the quarter, the Business Division also successfully installed a wireless digital radio system and a local area networking system. Corporate operating expeneses for the 1st quarter of 2008 increaed to $2,531,000 compared to $2,108,000 in the 1st quarter of 2007. The majority of this increase was for marketing expenses related to communications and creative agency fees. "Glentel completed the 1st quarter with stable earnings and profitable growth. Both divisions have made marked achievements in their operations in the 1st quarter, which historically is the weakest time of the year," said Thomas Skidmore, Glentel's president and chief executive officer. "Our Retail Division sustained its growth and performance throughout this quarter, while the Business Division made solid progress in its wireless solution system sales strategy." 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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