Thursday, February 07, 2008 4:52:19 PM
Company Reports Record Revenue of $74.6 Million For 2007
TORONTO, Feb. 7 /PRNewswire-FirstCall/ - Tucows Inc., (AMEX:TCX, TSX:TC) a leading provider of Internet services to web hosting companies and ISPs worldwide, today announced its financial results for the fourth quarter and year ended December 31, 2007. All figures are in U.S. dollars unless otherwise stated.
'In 2007, we achieved record revenue, record adjusted net income, continued strong cash flow generation from operations, and a record deferred revenue balance,' said Elliot Noss, President and CEO of Tucows. 'We did all of this while lowering our wholesale domain name pricing and rebuilding our email systems.'
Noss continued, 'In 2007, we introduced a number of initiatives, including: the first wholesale premium domain name service, a new hosted email service and a new advertising partner for our domain portfolio. We are starting to see the favorable impact of these changes and expect to continue to experience momentum in our major lines of business.'
'Tucows is entering 2008 energized and focused on divesting non-strategic assets,' said Noss. 'With this focus and the recent changes we have made in our business, we believe we will drive growth and increased profitability.'
Summary Financial Results
(Numbers in Thousands of US Dollars, Except Per Share Data)
-------------------------------------------------------------------------
3 Months 3 Months 12 Months 12 Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
-------------------------------------------------------------------------
Net Revenue $18,240 $17,199 $74,638 $65,029
-------------------------------------------------------------------------
EBITDA 801 1,435 8,722 5,813
-------------------------------------------------------------------------
Adjusted Net Income 660 1,025 8,919 5,809
-------------------------------------------------------------------------
Net Income (loss) (935) 156 2,676 2,160
-------------------------------------------------------------------------
Net Income/Share (0.01) 0.00 0.04 0.03
-------------------------------------------------------------------------
Cash Flow from
Operations $2,680 $3,898 $8,468 $8,818
-------------------------------------------------------------------------
Summary of Revenue and Cost of Revenue
(Numbers in Thousands of US Dollars)
-------------------------------------------------------------------------
Revenue Cost of Revenue
-------------------------------------------------------------------------
Three Months Three Months Three Months Three Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
-------------------------------------------------------------------------
Traditional Domain
Registration $12,574 $11,646 $9,672 $8,373
-------------------------------------------------------------------------
Domain Portfolio 830 565 171 115
-------------------------------------------------------------------------
Email Services 1,675 2,057 259 306
-------------------------------------------------------------------------
Retail 1,528 1,075 513 438
-------------------------------------------------------------------------
Other 1,633 1,856 382 352
-------------------------------------------------------------------------
Total $18,240 $17,199 $10,997 $9,584
-------------------------------------------------------------------------
Note: For a complete comparison of revenue and cost of revenue by quarter
for 2007 and 2006, please see chart preceding the financial statements.
Net revenue for the fourth quarter of fiscal 2007 increased 6% to $18.2 million from $17.2 million for the fourth quarter of fiscal 2006.
Adjusted Net Income for the fourth quarter of 2007 was $0.7 million, compared to $1.0 million for the corresponding quarter of last year. Net loss for the fourth quarter of 2007 was $0.9 million, or $0.01 per share, compared with Net income of $0.2 million, or $0.00 per share, for the fourth quarter of 2006.
Adjusted Net Income for the year ended December 31, 2007 increased by 54% to $8.9 million from $5.8 million for the year ended December 31, 2006. Net income for the year ended December 31, 2007 was $2.7 million, or $0.04 per share, compared to $2.2 million, or $0.03 per share for the year ended December 31, 2006.
Deferred revenue at the end the fourth quarter of fiscal 2007 was $50.6 million, an increase of 12% from $45.1 million at the end of the fourth quarter of fiscal 2006 and an increase of 2% from $49.8 million at the end of the third quarter of fiscal 2007.
Cash, short-term investments and restricted cash at the end of the fourth quarter of fiscal 2007 was $8.1 million compared to $6.2 million at the end of the third quarter of fiscal 2007 and $7.3 million at the end of the fourth quarter of fiscal 2006. The increase compared to the end of the third quarter of fiscal 2007 is primarily the result of the generation of cash flow from operations of $2.7 million during the fourth quarter of fiscal 2007.
EBITDA and Adjusted Net Income
To assist financial statement users in their assessment of the Company's historical performance and to project its future earnings and cash flows, the Company has included earnings before interest, taxes, depreciation and amortization (EBITDA). EBITDA is presented because it is an important supplemental measure of performance frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Other companies may calculate EBITDA differently. EBITDA is not a measurement of financial performance under generally accepted accounting principles (GAAP) and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to Net Income as indicators of operating performance or any other measures of performance derived in accordance with (GAAP). Because EBITDA is calculated before recurring cash charges, including interest expense and taxes, and is not adjusted for capital expenditures or other recurring cash requirements of the business, it should not be considered as a measure of discretionary cash available to invest in the growth of the business. See the Consolidated Statements of Cash Flows included in the attached financial statements. As a non-GAAP performance measure, EBITDA, has certain material limitations as follows:
- It does not include interest expense. Because the Company has
borrowed money to finance some of its operations, interest is a
necessary part of the Company's costs and ability to generate
revenue. Therefore, any measure that excludes interest has material
limitations;
- It does not include depreciation and amortization expense. Because
the Company must utilize capital assets in order to generate
revenues, depreciation and amortization expense is a necessary and
ongoing part of the Company's costs. Therefore, any measure that
excludes depreciation and amortization expense has material
limitations; and,
- It does not include taxes. Because the payment of taxes is a
necessary and ongoing part of the Company's operations, any measure
that excludes taxes has material limitations.
Management compensates for these limitations by considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net earnings.
Adjusted Net Income represents EBITDA plus the additional adjustments described in the table below. The adjustments reflect the material amount of cash collected by the Company for domain registrations and other Internet services paid for the full term at the time of activation, with the revenue deferred, net of prepaid fees. In addition, adjusted Net Income reflects earnings and expenses considered as non-representative of ongoing business for the reasons specified below. Each of the items being adjusted for may create certain material limitations in the use of Adjusted Net Income as a non-GAAP financial measure. Adjusted Net Income is one of the primary measures the Company uses for planning and budgeting purposes, incentive compensation and to monitor and evaluate Tucows' financial and operating results. Adjusted Net Income is not a measurement of financial performance under GAAP and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of operating performance or any other measures of performance derived in accordance with generally accepted accounting principles. See the Consolidated Statements of Cash Flows included in the attached financial statements.
Recent TCX News
- Form ARS - Annual Report to Security Holders • Edgar (US Regulatory) • 05/10/2024 09:17:07 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 05/10/2024 01:21:29 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 09:07:40 PM
- Tucows Reports Financial Results for First Quarter 2024 • PR Newswire (US) • 05/09/2024 09:05:00 PM
- Tucows Reports Financial Results for First Quarter 2024 • PR Newswire (Canada) • 05/09/2024 09:05:00 PM
- Wavelo adds global sales leader as demand for flexible telecom software increases • PR Newswire (US) • 05/02/2024 11:00:00 AM
- Tucows Announces Timing for Q1 2024 Financial Results News Release and Management Commentary • PR Newswire (US) • 04/25/2024 11:30:00 AM
- Tucows Announces Timing for Q1 2024 Financial Results News Release and Management Commentary • PR Newswire (Canada) • 04/25/2024 11:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 09:43:57 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/04/2024 02:00:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/28/2024 09:43:17 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/26/2024 07:02:10 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/26/2024 06:58:35 PM
- Wavelo signs three new customers on the heels of 2023 revenue of $38.7 million • PR Newswire (US) • 02/23/2024 01:06:00 PM
- Wavelo signs three new customers on the heels of 2023 revenue of $38.7 million • PR Newswire (Canada) • 02/23/2024 01:06:00 PM
- Tucows Announces $40 Million Stock Buyback Program • PR Newswire (US) • 02/22/2024 10:06:00 PM
- Tucows Announces $40 Million Stock Buyback Program • PR Newswire (Canada) • 02/22/2024 10:06:00 PM
- Tucows Reports Financial Results for Fourth Quarter 2023 • PR Newswire (US) • 02/22/2024 10:05:00 PM
- Tucows Reports Financial Results for Fourth Quarter 2023 • PR Newswire (Canada) • 02/22/2024 10:05:00 PM
- Ting grows presence in Colorado, bringing 2-gigabit fiber internet to Thornton • PR Newswire (Canada) • 02/20/2024 12:04:00 PM
- Ting grows presence in Colorado, bringing 2-gigabit fiber internet to Thornton • PR Newswire (US) • 02/20/2024 12:04:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/14/2024 09:33:01 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM