Radiant Communications Announces Record Operating Income and Positive Cash Flow for First Quarter 2006 |
May 4, 2006
Restructured operations generate 12% revenue growth with 6% positive EBITDA
May 4, 2006 (Vancouver, BC) – Radiant Communications Corp. (“Radiant”) (TSX Venture Exchange: RCN), Canada’s leading supplier of Internet-based data communications and Internet services to the business market, today announced its financial results for the first quarter ended March 31, 2006.
- Income before discontinued operations was $25,066 compared to a loss of $1,275,298 for the first quarter of 2005.
- Operating Income for the first quarter was $62,875 compared to a loss of $721,856 for the first quarter of 2005.
- Cash Flow for the quarter was positive $180,550.
- Revenue for the quarter was $4.7 million, an increase of 12.4% over the first quarter of 2005.
- EBITDA, (see the note below and attached reconciliation to GAAP net income), for the quarter was $311,994 compared to negative $469,700 for the same period in 2005.
- Net Loss for the quarter was $200,756 compared to a net loss of $1,275,298 in the first quarter of 2005. The loss for the quarter includes a one-time loss from discontinued operations of $225,822.
“Radiant’s turn around is clear in the first quarter results. They clearly demonstrate that we can successfully grow the recurring revenue base with excellent margins, positive cash flow and a positive bottom line from ongoing operations”, said Chris Worthy, Chairman of Radiant. “By focusing the organization on high value services and support to the underserved SME market we’ve created a profitable and scalable business model. With David Buffett on board as President and CEO our goal is to maximize the leverage on our profitable recurring revenue base by using new bundled products and services to generate superior growth from new and existing partners and channels”.
Significant highlights in the First Quarter included:
- Added many new key multi-location customers including Club Monaco, Midas Muffler, Payless Shoes, Swiss Capital, Cornell Trading and Tirecraft.
- Continued the roll out of existing high value customers including Wal-Mart, Lululemon Athletica, Forzani, Glentel and The Running Room.
- Continued to generate gross margins above 50% by selling best in class products and services to the SME market.
- Grew EBITDA by 77% over Q4 2005 and established two consecutive quarters of positive EBITDA.
- Grew cash and cash equivalents to $2.5 million.
- Sold the Professional Services Business to Devlin eBusiness architects.
- Subsequent to the end of the quarter announced the appointment of David Buffett as President and CEO.
Additional details on both the financial year and first quarter results, including the Audited Financial Statements and Management Discussion and Analysis, will be made available at www.sedar.com under Radiant Communications Corp.
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