Total revenue for the year ended December 31, 2012 increased 9% to a record $49.2 million compared to $44.9 million for the same period in 2011. Fourth quarter 2012 revenue was a record at $12.6 million, up 5% from $12.0 million for the same period in 2011. The full year and quarterly increases largely resulted from the greater number of customer locations in service as well as existing customers upgrading their Internet and data connections. Approximately 98% of total 2012 revenue was recurring service revenue.
Adding 1,118 new customer additions in 2012 (1,691 in 2011), combined with a low churn rate, resulted in 297 net customer locations added, compared with 915 net additions in 2011, which included 585 in the second quarter of 2011 from the MetroBridge acquisition. The year ended with 6,575 customer locations in service, 5% growth over the 6,278 customer locations in service at December 31, 2011.
The average monthly churn rate in 2012 was 1.05% compared to 1.08% in 2011. The fourth quarter 2012 average monthly churn rate was 0.86%, compared to 1.18% for the same period in 2011. Management continues to strive for lower churn rates by focusing on network quality, customer service, and customer creditworthiness.
The gross profit margin for 2012 remained strong at 77.6% compared to 78.4% for 2011. Fourth quarter gross profit margin was 77.9% compared to 78.3% for the same period in 2011. The slight decrease is primarily due to an increase in telecommunication and other support costs as a result of the MetroBridge acquisition and annual increases in property access costs and spectrum costs.
SG&A (Salaries and related costs - Other, and Other operating items) expenses decreased to $23.7 million in 2012 from $25.0 million in 2011. Fourth quarter SG&A expenses decreased to $5.6 million in 2012 from $5.9 million for the same period in 2011. The decreases were largely a result of lower salaries and severance costs, lower stock-based compensation, lower bad debt expense and certain other expenses. TeraGo had 31 direct sales personnel at year end, compared to 33 a year earlier.
In September 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. Direct and incremental costs associated with this review process include investment banking fees, associated legal and other costs which have been separately classified in the Statement of Operations. For the year and three months ended December 31, 2012, special charges were $0.7 million and $0.4 million respectively, compared to $nil for the same periods in 2011.
2012 EBITDA increased to a record $15.3 million compared to $12.2 million in 2011, an improvement of 24.8%. Fourth quarter EBITDA increased to $4.0 million compared to $3.8 million for the same period in 2011. EBITDA includes special charges of $0.7 million and $0.4 million, respectively, for the year and fourth quarter. EBITDA, excluding the special charges, is $16.0 million and $4.4 million, respectively, for 2012 and the fourth quarter of 2012. The increase in EBITDA is in line with management's expectations as TeraGo continues to increase revenue while focusing on cost management.
TeraGo achieved net earnings for the full year and fourth quarter 2012 of $4.9 million and $3.2 million respectively, compared to $0.2 million and $0.8 million for the same periods in 2011. Basic earnings per share were $0.43 and $0.29 for the full year and fourth quarter of 2012 respectively, compared to $0.02 and $0.07 for the comparable periods in 2011. Both full year and fourth quarter net earnings benefited from the recognition of $2.5 million of deferred income taxes resulting from temporary tax differences in the three months and year ended December 31, 2012.
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