TORONTO, ONTARIO -- (Marketwire) -- 02/26/13 -- TeraGo Inc. (TSX: TGO) (www.terago.ca) today announced financial and operating results for the year ended December 31, 2012.
2012 Financial and Operational Highlights
-- Record annual revenue of $49.2 million in 2012, up 9% over 2011;-- Q4 2012 revenue of $12.6 million was also a record, up 5% over Q4 2011;-- EBITDA(1), excluding special charges (see "Special Charges" section below), was $16.0 million for the full year 2012, compared to $12.2 million in 2011, an increase of 31%. EBITDA as reported was a record $15.3 million, an increase of 25% over 2011;-- Q4 2012 EBITDA, excluding special charges, increased 15% over the same period in 2011 to $4.4 million. Q4 2012 EBITDA as reported was $4.0 million, an increase of 3% over 2011.-- Gross profit margin for the full year and Q4 2012 was 77.6% and 77.9% respectively, compared to 78.4% and 78.3% for the same periods in 2011;-- Net earnings for 2012 increased to $4.9 million compared to $0.2 million for the same period in 2011; Q4 2012 net earnings were $3.2 million compared to $0.8 million in Q4 2011; Net earnings benefitted from the recognition of $2.5 million of deferred income taxes resulting from temporary tax differences in the three months ended December 31, 2012;-- Basic earnings per share of $0.43 and $0.29 for the full year and fourth quarter of 2012 respectively, compared to $0.02 and $0.07 for the same periods in 2011;-- Added 297 net customer locations in 2012, compared to 915 in 2011 (including 585 from the MetroBridge acquisition);-- Ended the year with 6,575 customer locations in service, an increase of 5% over 2011;-- Added 243 new customer locations in Q4 2012, compared to 270 for the same period in 2011;-- Average revenue per customer location ("ARPU") for the full year and three months ended 2012 was $622 and $625, respectively, compared to $618 and $622, respectively, in 2011;-- Average monthly unit churn rate for 2012 and Q4 2012 was 1.05% and 0.86% respectively, compared to 1.08% and 1.18% for the same periods in 2011; and-- Ended 2012 with $2.6 million of cash, cash equivalents and short-term investments and access to the $4.0 million undrawn portion of the Company's $20.0 million credit facilities.2012 Key Developments-- The Company completed its 2011 asset purchase with MetroBridge Networks International for $5.716 million and made a final payment of $1.516 million in January 2012.-- TeraGo expanded its wireless network to offer an expanded line-up of services to its Burlington, Ontario area customers and added the main business area of Milton, Ontario, Canada's fastest growing municipality, to its network footprint.-- The July 2012 amendment of the Telecommunications Act (Canada) removed foreign ownership restrictions on telecommunications companies with less than 10% market share, including TeraGo.-- With this change, subsequent to the end of the second quarter TeraGo completed the automatic conversion of approximately 3.6 million issued and outstanding Class A Non-Voting Shares into Common shares on a one- for-one basis, in accordance with the Company's share articles.-- On September 5, 2012, the Company announced a review process to identify, examine and consider a range of strategic options available to the Company with a view to enhancing shareholder value. The Company continues to explore and evaluate a range of strategic options and has not set a definitive schedule to complete its process. There can be no assurance that the strategic review process will result in any change in the operation or ownership of the Company and TeraGo does not intend to make any further announcements with respect to its strategic review until such time as it deems appropriate.-- TeraGo's ranking on the Branham Top 250 Canadian Technology Companies improved for the fifth consecutive year to 94th.-- The Company was also recognized as one of the Achievers 50 most engaged workplaces in Canada for the second year in a row and was named one of Canada's top employers for young people for 2012. (1) EBITDA - See Non-GAAP measures below