AJAX, ONTARIO — (Marketwire) — 11/04/11 — Phonetime Inc. (TSX: PHD) announced that it earned $2.2 million of Net income or $0.01 per share for the nine months ended September 30, 2011.
Revenue for the three months ended, September 30, 2011 was $30 million compared to $34 million in 2010. Gross margin was $2.2 million compared to $2.3 million in 2010. Operating expenses were $1.2 million compared to $1.3 million in 2010. Income before undernoted was $1 million compared to $1 million in 2010. Corporate costs were $0.2 million compared to $0.3 million in 2010; the reduction in operating and corporate costs in 2011 compared to 2010 was due to consolidation of facilities and personnel which occurred in conjunction with the 2010 restructuring of the Company. Through September 30, 2011, 68.5 million common stock warrant derivatives expired resulting in a discharge of liability of $2.3 million, which is included in the income statement for 2011. Net Income for the three months ended September 30, 2011 was $0.8 million compared to a net loss of $0.9 million in 2010. Net Income for the nine months ended September 30, 2011 was $2.2 million compared to a net loss of $6.6 million in 2010.
As at September 30th, 2011, the Company Assets were $20.4 million compared to $23.7 million at December 31, 2010. Total liabilities were $11.6 million compared to $17.3 million at December 31, 2010. Shareholders- equity was $8.8 million at September 30, 2011 compared to $6.4 million at December 31, 2010. Debt, including bank indebtedness, was $2.1 million compared to $3.9 million at December 31, 2010. The Company had available unutilized borrowing under its line of credit of $1.5 million as at September 30, 2011.
“Phonetime has returned to sustained profitability, having produced positive EBITDA for four consecutive quarters and net income for three consecutive quarters. In the coming months, we will engage the investment community to create greater awareness of Phonetime-s progress”, said Gary Clifford, Chairman and Interim CEO.
The Company-s annual financial statements together with its Management Discussion and Analysis can be found on . Investors are reminded to read all public filings of any Company before making an investment decision.
About Phonetime Inc.
Phonetime handles the completion of long distance telecommunications around the world. In 2010, Phonetime completed 720 million phone calls with duration of over 4 billion minutes in 2010. Phonetime is a best in class provider of outsourced telecommunication services. Phonetime-s common shares are traded on the Toronto Stock Exchange under the symbol PHD. More information can be found at the Company-s website, .
Caution Regarding Forward Looking Information:
This press release contains forward-looking statements, which may be identified by words like “expects”, “anticipates”, “plans”, “intends”, “indicates” or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Phonetime-s actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. See which contains all securities files.
Contacts:
Phonetime Inc.
Gary Clifford
Chairman of the Board and CEO (Interim)
+416-418-9802
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