At year end 2012, the Company had cash, cash equivalents and short-term investments of $2.6 million and access to the $4.0 million undrawn portion of its $20.0 million credit facilities.
Subsequent to year end, in January 2013, the Company drew down $1.0 million from its term debt facility, which bears interest at the rate of 3.98%.
Management believes the Company's current cash, short-term investments, anticipated cash from operations, access to the undrawn portion of debt facilities and its access to additional financing in the form of debt or equity will be sufficient to meet its working capital and capital expenditure plans for the foreseeable future.
Average monthly revenue per customer location, or ARPU, increased to $622 in 2012, compared with $618 in 2011. Fourth quarter 2012 ARPU increased to $625 compared to $622 for the same period in 2011. The increase was primarily a result of service capacity upgrades by existing customers, a higher proportion of new customers choosing higher capacity services or voice services, early termination fees, and lower credits partially offset by lower usage revenue.
As of December 31, 2012, TeraGo had 11,364,613 Common Shares and two Class B Shares outstanding.
TeraGo's spectrum portfolio
TeraGo owns 76 spectrum licences in the 24 GHz and 38 GHz bands, covering Canadian markets with a population base of nearly 23 million and plans to use this spectrum to provide Ethernet-based broadband links for businesses, government and cellular backhaul, as part of the Company's growth strategy.
Conference Call and Webcast
Management will host a conference call on Tuesday, February 26, 2013, at 9.00 a.m. EST to discuss these results. To access the conference call, please dial 416-340-2216 or 1-866-226-1792. A replay of the conference call will be available until March 19, 2013 at midnight EST. To access the replay, call 905-694-9451 or 1-800-408-3053, followed by passcode 9131735. The call will be accessible via webcast at www.terago.ca or http://www.investorcalendar.com/IC/CEPage.asp?ID=170433. An archived replay of the webcast will be available for one year.
TeraGo's audited financial statements for the year ended December 31, 2012, and the notes thereto, and its Management Discussion and Analysis for the same period, have been filed on SEDAR at www.sedar.com.
The term "EBITDA" refers to earnings before deducting interest, taxes, depreciation and amortization. EBITDA is a term commonly used to evaluate operating results. We believe that EBITDA is useful additional information to management, the Board and Investors as it provides an indication of the operational results generated by our business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and amortization. We also exclude foreign exchange gain or loss, finance costs, finance income, gain or loss on disposal of network assets, property and equipment and stock-based compensation from our calculation of EBITDA. Investors are cautioned that EBITDA should not be construed as an alternative to operating earnings or net earnings determined in accordance with IFRS as an indicator of our financial performance or as a measure of our liquidity and cash flows. EBITDA does not take into account the impact of working capital changes, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the consolidated statements of cash flows. Our method of calculating EBITDA may differ from other issuers and, accordingly, EBITDA may not be comparable to similar measures presented by other issuers.
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