Record Revenues and Earnings.
TS Telecom Ltd -
Year end results
TS Telecom Ltd (TOM) Alberta Stock Exchange
Shares issued 20,055,005 1998-08-13 close $0.8
Wednesday Aug 19 1998
Mr. Andrew Wong reports
The 1998 fiscal year was a record year for the company. Sales increased dramatically in the year, the result of the launch of new products and broadened penetration of new markets. Revenues in fiscal 1998 were $25.6-million, up 71 per cent from the $15-million achieved for the year ended March 31, 1997. Net income before income taxes increased 87 per cent from the fiscal 1997 level of $1.33-million to $2.49 million. After-tax earnings rose 72 per cent to $2.28-million, keeping pace with the growth in revenues. The after tax earnings growth is significant in view of the fact that the company was not taxable in the 1997 fiscal year as a result of available loss carryforwards.
FINANCIAL HIGHLIGHTS
Year ended March 31
(thousands of dollars)
1998 1997
Gross revenues $25,653 $14,970
Net income before tax 2,486 1,328
Net income 2,281 1,328
Earnings per share 11.4 cents 6.6 cents
Cash flow from
operations 1,715 581
The $10.68 million increase in revenues is attributable to the company's ability to capture new markets with its line of power monitoring systems and optical fibre network access equipment, as well as continued sales of its more established line of cable monitoring and pressurization systems.
The company's share of earnings from its 30 per cent equity investment, Shanghai Hua Cheng Telecommunication Equipment Co. Ltd. increased from $468,000 in fiscal 1997 to $733,000 in fiscal 1998, a 57 per cent growth rate. The increase is substantial since the $733,000 is net of taxes of $204,000, whereas in fiscal 1997, SHC was not taxable due to negotiated tax concessions.
Cash provided by operations in the year was $1.7-million, as compared to $581,000 for the same period last year. The increase is attributable to the growth in revenues and earnings, and a stronger non-cash working capital position. The increased cash flows allowed the company to fully repay a short-term bank loan of $$718,000 in the year. As a result, the company does not have any short-term or long-term loans outstanding at year end.
At March 31, 1998, the company had unfilled orders of $1.9-million on its order book. It is expected that these orders will be filled in the 1999 fiscal year, at which time revenues and costs associated with these orders will be recorded.
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