radiantRadiant Communications Announces 2013 Second Quarter Results
TSX.V: RCN

HIGHLIGHTS:

  • Record revenue of $8.2 million for the second quarter ended June 30, 2013 increased by 1.7% compared to revenue of $8.1 million for the second quarter ended June 30, 2012 . Revenue for the first half of 2013 was $16.5 million , an increase of 1.6% compared to revenue of $16.3 million in the first half of 2012.
  • Gross margin was 40.7% for the quarter compared to 41.9% in the second quarter of 2012.
  • EBITDA for the second quarter ended June 30, 2013 , was $523,986 compared to $710,568 in the second quarter of 2012, a decrease of 26.3%. Included in the second quarter 2013 EBITDA calculations are expenses related to the proposed plan of arrangement process of $200,000 . (See EBITDA section for the reconciliation of EBITDA to Net Income).
  • Net income for the second quarter ended June 30, 2013 was $225,466 or $0.01 per share compared with net income of $306,940 or $0.02 per share in the second quarter of 2012. Included in the second quarter 2013 net income amount are expenses related to the proposed plan of arrangement process of $200,000 .
  • The Company ended the quarter with cash and short-term investments of $6.9 million and generated $2 million of cash from operating activities during the second quarter.
  • On March 8, 2013 , the Company entered into an Arrangement Agreement with three controlling shareholders under which the Company would be taken private pursuant to a plan of arrangement under the provisions of the Canada Business Corporations Act.  This agreement was later terminated on April 25, 2013 .
  • On April 26, 2013 , Don Calder resigned as Chairman of the Board of Directors of Radiant.
  • During the quarter ended June 30, 2012 , the Company entered into an agreement with a vendor to provide services at fixed prices over a period of three years.  The minimum purchase commitment over this three-year period was $11.6 million .  In July 2013 this agreement was amended, increasing the term to four years and the minimum purchase commitment to $15.6 million .