This just out on a $0.65 Canadian Small Cap.
TS Telecom Ltd -
Second quarter results
TS Telecom Ltd TOM
Shares issued 20,055,005 1998-11-26 close $0.65
Monday Nov 30 1998
Mr. Andrew Wong reports
The company's results for the second quarter of the 1999 fiscal year show increases in revenues and after tax earnings of $1.1-million and $1-million, respectively, over the second quarter of the previous fiscal year, reversing the decline experienced in the first quarter of the current fiscal year.
FINANCIAL HIGHLIGHTS
Three months ended Sept. 30
(thousands of dollars)
1998 1997
Gross revenues $9,268 $8,194
Net income before tax 2,146 983
Net income 2,021 964
Earnings per share 10 cents 5 cents
Cash flow
from operations 1,236 537
FINANCIAL HIGHLIGHTS
Six months ended Sept. 30
(thousands of dollars)
1998 1997
Gross revenues $13,835 $16,549
Net income before tax 2,368 2,472
Net income 2,196 2,431
Earnings per share 11 cents 12 cents
Cash flow
from operations 1,478 2,300
Gross revenue from operations for the three months ended Sept. 30, 1998 was $9.3-million, as compared to $8.2-million for the same period in fiscal year 1998. Net income before tax for the second quarter was $2.1-million, as compared to $1-million in the second quarter of fiscal 1998. After tax income for the three months was $2-million, double the $1-million realized for the same period last year.
Operational cash flow for the second quarter was $1.2-million, increased from $0.5-million realized for the corresponding period last year.
Year to date gross revenue was $13.8-million, a 16 per cent reduction from the $16.5-million realized a year earlier. However, income before tax for the six months was $2.4-million, a marginal 4 per cent decline from the $2.5-million realized for the six months ended Sept. 30, 1997. On an after tax basis, net income for the first six months was $2.2-million or 11 cents per share, as compared to $2.4-million or 12 cents per share for the same period last year.
Cash flow from operations for the six months was $1.5-million, as compared to $2.3-million in the previous year. The continued cash flow from operations allowed the company to reduce its reliance on its credit facilities. At the end of the second quarter the company does not have any short-term or long-term loans outstanding.
The company's share of the six months earnings of its 30 per cent equity joint venture, Shanghai Hua Cheng Telecommunications Equipment & Co. Ltd., was $324,000, as compared to $498,000 for the same period last year. The decrease is largely attributable to increased taxation of SHC. The company continues to be pleased with this investment, which has provided returns well in excess of the initial investment.
At Sept. 30, 1998, the company had approximately $4-million of undelivered contracts on its order book, which is comparable to the $4.3-million of back orders at the end of the second quarter of the prior fiscal year. During the quarter, the company finalized a significant portion of the $10-million backlog of orders that existed at the end of the first quarter. The company will record the revenues and costs associated with undelivered contracts upon shipment to customers.
During this quarter the company moved forward with the introduction of a fibre optics monitoring system to the marketplace. The company is presently conducting field trials of its Fibersmart system in Shanghai, and plans to extend testing of the system to Beijing. It is anticipated that this system will be a significant contributor to future revenues and earnings as China increases its reliance and use of fibre optics in its telecommunication networks.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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