IDX announces third quarter results:
idirect.com
I.D. INTERNET DIRECT ANNOUNCES PROFITABLE THIRD QUARTER CONSOLIDATED FINANCIALS
Toronto - I.D. Internet Direct Ltd. (IDX) reports a profitable nine month period ended March 31, 1999, with increased revenues and subscriber base growth.
The Company amalgamated its operations with Toronto-based Internet Direct, a division of TUCOWS Interactive Limited effective January 25, 1999. The amalgamation has been accounted for as a pooling of interest and the financial results for the nine months ended March 31, 1999 and all comparative periods, are reported as though the parties to the merger have always operated jointly and all financial results combined. The merger with the Toronto-based Internet Direct marks the Company's presence as Canada's the largest, national, independent Internet Service Provider.
Revenue: Revenue for the nine month period ended March 31, 1999 totals $18.1 million, a 51% increase from the $12 million in the same nine month period ended March 31, 1998. Revenue this third fiscal quarter ended March 31, 1999 is $6.7 million, a 14% increase from the $5.9 million realized in the previous quarter ended December 31,1998. As at March 31, 1999, the Company shows a 40% growth in its subscriber base from March 31, 1998 and a 15% increase from the previous quarter ended December 31, 1998. This increase in subscriber base was achieved through organic growth and acquisitions.
The Earnings before interest, taxes, depreciation and amortization (EBITDA) for the nine months ended March 31, 1999 are $2.2 million, as compared to $127,000 for the same period of the previous fiscal year. EBITDA for the third fiscal quarter ended March 31,1999 are $479,000, as compared with the $318,000 recorded in the previous quarter ended
December 31, 1998.
The Net income for the nine months ended March 31, 1999 is $603,000, or $0.02 per share, as compared to a net loss of $1.2 million or $(0.04) per share, in the same period of the previous fiscal year. For the third fiscal quarter ended March 31, 1999, the Company recorded a net loss of $59,000 or $0.00 per share, as compared to a net loss of $257,000 or $(0.01) per share for the second fiscal quarter ended December 31, 1998.
I.D. Internet Direct has succeeded in several acquisition initiatives in the past nine months ended March 31, 1999. The Company completed the subscriber base acquisitions of OCTonline, iDigital, ARC Online, Evanet, Power Windows, Clubnet Communications Inc. and Cybersurf Corp.
On May 10, 1999, the Company announced the acquisition of certain assets of Powerlink Services Ltd., an Internet service provider with approximately 5,000 subscribers in the central and southern interior of British Columbia for nominal cash consideration and a covenant to cause the release of certain indebtedness of Powerlink Services Ltd.
On May 17, 1999, the Company announced that it has signed a term sheet with Look Communications Inc. to amalgamate their operations. This amalgamation is subject to the execution of a definitive amalgamation agreement and the approval of regulatory authorities. Once the amalgamation is complete, Look's broadband MDS infrastructure will accelerate the Company's plan to market high-speed data transmission services while both entities will be able to offer their customers a new integrated suite of services. Look currently offers wireless digital television services in Ontario and Quebec, and is in the process of introducing high-speed Internet services in Ontario.
The Company entered into an agreement to acquire the outstanding shares of Delphi SuperNet Inc. on April 29,1999. The Montreal based Internet service provider had approximately 8,000 subscribers. This purchase was completed on May 20, 1999 with the issuance from treasury of 1,031,789 common shares and payment of $432,888.
These merger and acquisition activities are a continuing part in the business plan strategy of the Company to establish itself as Canada's leading national Internet service provider.
As the Internet continues to develop at a rapid pace, the Company is focused on securing profitable business opportunities and efficiencies to optimize the value of investment. I.D. Internet Direct's Board of Directors and staff would like to thank its customers and shareholders for their continued support.
For additional information about ID Internet Direct Ltd., please contact Gordie Campbell, Investor Relations by telephone at or 1-888-439-2897or by email to netgains@direct.ca. |
