Author Archives: Tucows

Tucows Acquires Roam Mobility from Otono Networks

TORONTO, September 27, 2017 — Tucows (NASDAQ: TCX, TSX: TC) today announced that it has acquired Roam Mobility from Otono Networks. Roam is a Mobile Virtual Network Operator (MVNO) operating on the same nationwide GSM network as Ting Mobile.

“When we look at other services in this space, we tend to admire the ones that have solved a specific problem for a specific target. Roam has done a beautiful job for Canadians who travel to the United States,” explained Elliot Noss, President and Chief Executive Officer of Tucows. “With their rate plans, user experience, messaging and even SIM card distribution, they have established themselves as the obvious choice there.”

The acquisition includes three Roam brands that will each continue to operate independently alongside Ting within Tucows’ mobile network access group. There will be no changes for either Roam or Ting customers. The three brands and their specific focus areas are:

  • Roam Mobility, offering prepaid roaming replacement plans to travellers visiting the United States for a few days or a few weeks, as well as Snowbird plans for Canadians spending the winter in the United States.
  • ZIP SIM, backed by a quick, automatic activation process and straightforward rates, helping international business travelers get quickly connected when visiting the United States.
  • AlwaysOnline Wireless, powering short-term, on-demand LTE data plans for hotspots, tablets, and iPad with Apple SIM. As one of the first consumer eSIM-enabled providers on the planet, AOW has had innovation at its core from the beginning and its global roaming footprint has helped it connect customers in over 90 countries including the United States, Canada and the U.K.

Noss added, “We get well-positioned brands, smart product features and a lot of knowledge and skill. Meanwhile, these brands join a business that is investing every day in growth.”

Tucows also adds two new international wireless carrier partners to its existing relationships in the United States, enabling support for global data on iPad with Apple SIM.

Revenue from the Roam businesses will start contributing to Tucows financials toward the end of September. However, it is not expected to have a material impact on overall company performance.

“We are thrilled to have found a home for our consumer brands that shares our commitment to customer experience and our passion for building great products,” said Emir Aboulhosn, Chief Executive Officer of Otono. “As we now accelerate our shift and increase our focus towards innovation for eSIM enablement and orchestration, we are also excited to begin building new capabilities for Tucows and Ting.”

Tucows will also be partnering with Otono for eSIM enablement and will utilize the Otono Platform in the near future to bring greater device support to Ting. eSIM allows mobile users to more easily choose mobile networks and switch between networks on their tablets and wearables. Otono is at the leading edge of this shift from traditional SIM cards to eSIM. Ting expects to announce more details on eSIM support in the coming months.

About Tucows
Tucows, Inc. is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 29 million domain names and millions of value-added services through a global reseller network of over 40,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

About Otono
Otono Networks, Inc. is a leader in eSIM enablement and orchestration solutions for any device or mobile operator worldwide. The comprehensive cloud-based Otono Platform is the leading platform for anyone deploying eSIM-based devices to their network. It is able to seamlessly integrate with any existing mobile architecture to remove the complexities of eSIM implementation. Otono can provide the necessary middleware to complete integration and launch eSIM-enabled devices with significantly reduced risk, time to market and without major changes to existing networks. For more information about Otono, visit otono.com.

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 including statements regarding our expectations regarding our future financial results. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

Contact:
Lawrence Chamberlain
(416) 519-4196
lawrence.chamberlain@loderockadvisors.com

Clarifying the Daily Stormer issue

Tucows (which owns the Enom, OpenSRS, and Hover brands) finds racism and its proponents detestable. We are proud to be a diverse company based in the most diverse city in the world. As well, Charlottesville, Virginia is home to a Tucows office and many of our employees there. We have all been shaken and deeply saddened by recent events.

In regards to the current issue around the Daily Stormer website, Tucows was never the webhost nor the registrar for the domain. Tucows provides a domain privacy service for millions of domains belonging to our wholesale domain resellers and to other registrars. The domain in question was transferred to one of our registrar partners and the privacy service was automatically applied.

Like Google, and GoDaddy before them, we felt this domain clearly violated our privacy service terms of service by inciting violence, and removed the privacy protection from the domain.

We are also monitoring our systems for incoming transfer requests for the Daily Stormer domain so that we can give our resellers the opportunity to deny those requests.

Domain names are gateways to speech and we take our responsibilities towards free speech and expression extremely seriously. Incitement to violence is not protected speech and the Daily Stormer regularly conducts such incitement, which is why we no longer provide it with any service.

The process of balancing free speech and the ugly opinions that people share is neither easy nor pleasant. Every day we receive many, many complaints about the content on any number of the 24 million domains on our platform. Let us be exceptionally clear: we find the content of many of these pages patently abhorrent and evidence of the worst that humanity can stoop to. Nevertheless, there are legal mechanisms and processes in place for dealing with issues of free speech and we consider it our responsibility to follow them.

We have and will act in what we call “exigent circumstances” where there is an imminent threat of violence or crime. GoDaddy responded to the Daily Stormer appropriately under these circumstances. However, these circumstances aside, we have found that the clearest path forward, to protect freedom of speech and expression, is to act where we have evidence that due-process has been observed. When such is provided to us, we act on it.

Tucows Reports Continuing Strong Financial Results for Second Quarter of 2017

– Quarter Highlighted by Solid Year-Over-Year Growth Across All Key Financial Metrics and Record EPS –

TORONTO, August 8, 2017 – Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services, today reported its financial results for the second quarter ended June 30, 2017. All figures are in U.S. dollars.

Summary Financial Results
(In Thousands of US Dollars, Except Per Share Data)

3 Months Ended June 30 6 Months Ended June 30
2017
(unaudited)
2016
(unaudited)
% Change 2017
(unaudited)
2016
(unaudited)
% Change
Net revenue 84,223 47,204 78% 153,791 91,950 67%
Net income 5,241 4,071 29% 7,688 8,509 (10%)
Basic Net earnings per common share 0.50 0.39 28% 0.73 0.80 (9%)
Adjusted EBITDA1 10,340 6,905 50% 16,536 14,222 16%
Net cash provided by operating activities 8,132 2,558 218% 10,534 8,173 29%

1. This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table. In the second quarter of 2016, Tucows revised its definition of Adjusted EBITDA as detailed in the description below and the table reconciling Adjusted EBITDA to GAAP net income.
2. Adjusted EBITDA for the second quarter and first six months of 2017 reflect the impact effect of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Enom acquisition which lowered Adjusted EBITDA by $1.6 million and $5.5 million for the second quarter and first six months of 2017, respectively.

 

Summary of Revenues and Gross Margin
(In Thousands of US Dollars)

Revenue Gross Margin
3 Months Ended June 30 3 Months Ended June 30
2017
(unaudited)
2016
(unaudited)
2017
(unaudited)
2016
(unaudited)
Network Access Services:
Mobile Services 20,379 17,805 9,677 8,425
Other Services 1,087 964 121 493
Total Network Access Services 21,466 18,769 9,798 8,918
Domain Services:
Wholesale
Domain Services 48,550 21,666 6,101 4,028
Value Added Services 5,576 2,308 4,981 1,849
Total Wholesale 54,126 23,974 11,082 5,877
Retail 7,663 3,576 3,115 1,913
Portfolio 968 885 783 704
Total Domain Services 62,757 28,435 14,980 8,494
Network Expenses:
Network, other costs (2,261) (1,405)
Network, depreciation and amortization costs (1,170) (362)
Total Network Expenses (3,431) (1,767)
Total revenue/gross margin 84,223 47,204 21,347 15,645

“The second quarter of 2017 saw continued strong performance across all areas of the business our first full quarter following the Enom acquisition in January, which combined to drive year-over-year growth in revenue of 78% to a record $84 million, record earnings per share of $0.50 and cash flow from operations of more than $8.1 million,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc.

“We continue to execute well on each of our strategic initiatives. Our domains team made great progress on the integration of Enom toward significant future synergies and, in fact, exceeded our expectations year to date on organic growth. Our Ting Mobile business continued to add customers on the core base and saw the lowest monthly churn from our core base in two years. Ting Internet continued its steady climb in Charlottesville, ramped significantly in both Westminster, Maryland and Holly Springs, North Carolina  and, most importantly, took meaningful operational steps toward scalability far beyond our existing Ting Towns.”

Financial Results

Net revenue for the second quarter of 2017 increased 78% to $84.2 million from $47.2 million for the second quarter of 2016.

Net income for the second quarter of 2017 increased 29% to 5.2 million, or $0.50 per share, from $4.1 million, or $0.39 per share, for the second quarter of 2016. Adjusted EBITDA1 for the second quarter of 2017 increased 50% to $10.3 million from $6.9 million for the second quarter of 2016.  The increase in EBITDA was largely driven by the acquisition of Enom and to a lesser extent growth in the Company’s Ting Mobile and incumbent Domains business.

Cash and cash equivalents at the end of the second quarter of 2017  were $15.1 million compared with $15.0 million at the end of the first quarter of 2017 and $5.9 million at the end of the second quarter of 2016.

Notes:

1. Adjusted EBITDA

Tucows reports all financial information required in accordance with United States generally accepted accounting principles (GAAP). Along with this information, to assist financial statement users in an assessment of our historical performance, the Company typically disclose and discuss a non-GAAP financial measure, adjusted EBITDA, on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of the Company’s core business using similar evaluation measures to those used by management. The Company uses adjusted EBITDA to measure its performance and prepare its budgets.  Since adjusted EBITDA is a non-GAAP financial performance measure, the Company’s calculation of adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Because adjusted 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 liquidity measure. Non-GAAP financial measures do not reflect a comprehensive system of accounting and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies and/or analysts and may differ from period to period. The Company endeavors to compensate for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA to net income based on U.S. GAAP, which should be considered when evaluating the Company’s results.  Tucows strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

The Company’s adjusted EBITDA definition excludes depreciation, amortization of intangible assets, income tax provision, interest expense, interest income, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions and infrequently occurring items, including acquisition and transitions costs. Gains and losses from unrealized foreign currency transactions removes the unrealized effect of the change in the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars.

The following table reconciles net income to adjusted EBITDA (dollars in thousands):

3 Months Ended June 30 3 Months Ended June 30*
2017
(unaudited)
2016
(unaudited)
2017
(unaudited)
2016
(unaudited)
Net income for the period 5,241 4,071 7,688 8,509
Depreciation of property and equipment 879 428 1,636 848
Amortization of intangible assets 2,064 288 3,825 357
Impairment of intangible assets 4 25
Interest expense, net 970 121 1,838 167
Provision for income taxes 1,083 2,078 958 3,983
Stock-based compensation 313 190 631 390
Unrealized loss (gain) on change in fair value of forward contracts (20) (29) (38) (272)
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities (317) (246) (511) 215
Acquisition and transition costs** 127 509
Adjusted EBITDA 10,340 6,905 16,536 14,222
*Adjusted EBITDA amounts presented herein for the six months ended June 30, 2016 have been recast to reflect adjusted EBITDA definitional changes described in the Company’s Form 10-Q Quarterly Report for the three months ended September 30, 2016.

**Acquisition and other costs represents transaction-related expenses, transitional expenses, such as duplicative post-acquisition expenses, related to our acquisition of Enom in January 2017.   Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments.

During 2016, the Company identified an immaterial error that affects the classification of certain marketing program costs. Prior to the third quarter of fiscal 2016, the Company recorded the cost for certain marketing credits as Sales and marketing expense which should have been recorded as a reduction in Net revenue. The discussion presented here correctly reflect these marketing credits as a reduction in Net Revenues for all current and comparative periods. This resulted in a decrease in Net Revenues, and a corresponding decrease in Sales and marketing expenses of $0.3 million for the three months ended June 30, 2016 and $1.1 million for the six months ended June 30, 2016.

Conference Call

Tucows management will host a conference call today, Tuesday, August 8, 2017 at 5:00 p.m. (ET) to discuss the Company’s second quarter 2017 results. Participants can access the conference call by dialing 1-888-231-8191 or 647-427-7450 or via the Internet at http://www.tucows.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 416-849-0833 or 1-855-859-2056 and enter the passcode 59387346 followed by the pound key. The telephone replay will be available until Tuesday, August 15, 2017 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://www.tucows.com/investors.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 29 million domain names and millions of value-added services through a global reseller network of over 40,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectation regarding our ability to manage realized gains/losses from foreign currency contracts. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

Tucows, Ting, OpenSRS, Enom and Hover are registered trademarks of Tucows Inc. or its subsidiaries.

Contact:

Lawrence Chamberlain
(416) 519-4196
lawrence.chamberlain@loderockadvisors.com

Tucows Second Quarter Investment Community Conference Call is Tuesday, August 8, 2017 at 5:00 P.M. (ET)

TORONTO, July 26, 2017 – Tucows Inc. (NASDAQ: TCX, TSX: TC) plans to report its second quarter fiscal 2017 financial results via news release on Tuesday, August 8, 2017 at approximately 4:05 p.m. (ET). Tucows management will host a conference call on the same day at 5:00 p.m. (ET) to discuss the results and the outlook for the company.

Participants can join the call by dialing 1-888-231-8191 or 647-427-7450. Participants can also access the conference call via the Internet at http://www.tucows.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 1-855-859-2056 or 416-849-0833 and enter the pass code 59387346 followed by the pound key. The telephone replay will be available until Tuesday, August 15, 2017 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://www.tucows.com/investors.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 29 million domain names and millions of value-added services through a global reseller network of over 40,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

Tucows, Ting, OpenSRS, Enom and Hover are registered trademarks of Tucows Inc. or its subsidiaries.

Contact:

Lawrence Chamberlain
(416) 519-4196
lawrence.chamberlain@loderockadvisors.com

Tucows Reports Continuing Strong Financial Results for First Quarter of 2017

– Quarter Features Outsized Customer and Revenue Growth On Domains and Ting Mobile Alongside Solid Financial Performance –

TORONTO, May 9, 2017 – Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services, today reported its financial results for the first quarter ended March 31, 2017. All figures are in U.S. dollars.

Summary Financial Results

(In Thousands of US Dollars, Except Per Share Data)

3 Months Ended March 31
2017
(unaudited)
2016
(unaudited)
% Change
Net revenue 69,568 44,746 55%
Net income 2,446 4,438 -45%
Basic Net earnings per common share $0.23 $0.42 -45%
Adjusted EBITDA1 6,196 7,318 -15%
Net cash provided by operating activities 2,402 5,615 -57%

This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table. Tucows has revised its definition of Adjusted EBITDA as detailed in the description below and the table reconciling Adjusted EBITDA to GAAP net income.

Summary of Revenues and Gross Margin
(In Thousands of US Dollars)

Revenue Gross Margin
3 Months Ended March 31 3 Months Ended March 31
2017
(unaudited)
2016
(unaudited)
2017
(unaudited)
2016
(unaudited)
Network Access Services:
Mobile Services 17,963 16,107 8,396 7,549
Other Services 1,138 891 295 504
Total Network Access Services 19,101 16,998 8,691 8,053
Domain Services:
Wholesale
Domain Services 39,092 21,258 4,629 3,615
Value Added Services 4,057 2,299 3,499 1,820
Total Wholesale 43,149 23,557 8,128 5,435
Retail 6,402 3,451 2,784 1,872
Portfolio 916 740 655 580
Total Domain Services 50,467 27,748 11,567 7,887
Network Expenses:
Network, other costs (2,343) (1,233)
Network, depreciation and amortization costs (971) (358)
Total Network Expenses (3,314) (1,591)
Total revenue/gross margin 69,568 44,746 16,944 14,349

“During the first quarter of 2017 we successfully began integrating Enom into our domain business and we successfully migrated over 20,000 mobile customers to Ting from RingPlus. We also continued to deploy significant resources to develop our Ting Internet operations and to invest in building out our Ting Fiber network. With a solid quarter behind us, I am pleased to report that we remain on track to meet our adjusted EBITDA goal of $50 million less $8 million of acquisition related non-cash impacts for fiscal 2017,”2 said Elliot Noss, President and Chief Executive Officer, Tucows Inc.

“Revenue for first quarter grew 55% year-over year to $69.6 million. Net deferred revenues increased in the first quarter of 2017 by $4.8 million primarily due to the Enom acquisition. Prior to the second quarter of 2016, this amount would have been included in our then adjusted EBITDA definition. Overall, we are delighted with how each of our businesses executed against core strategies. Domains took steps toward scale and efficiency, Ting Mobile grew and Ting Internet improved and invested in fiber network expansion, systems and people,” added Mr. Noss. “With our sound financial position and our significant cash flows, we remain well positioned for sustainable growth and continued investment in our strategic priority, building fiber.”

The adjusted EBITDA goal information discussed above is a non-GAAP financial measure. See footnote 2 below for more information on this non-GAAP measure.

Financial Results

Net revenue for the first quarter of 2017 increased 55% to $69.6 million from $44.7 million for the first quarter of 2016. The first quarter’s results only include the contribution from Enom’s operations since January 20, 2017, the date the acquisition was completed.

Net income for the first quarter of 2017 decreased to $2.4 million, or $0.23 per share, from $4.4 million, or $0.42 per share, for the first quarter of 2016. Adjusted EBITDA1 for the first quarter of 2017 decreased to $6.2 million from $7.3 million for the first quarter of 2016. The first quarter of 2017 was impacted by the effect of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Enom acquisition which lowered adjusted EBITDA by $1.4 million and is a portion of the $4.8 million net deferred revenue change noted above. The first quarter of 2016 benefited from $0.4 million reversal of an overachievement bonus accrual for 2015 that was no longer required and a foreign exchange gain of $0.4 million that was not repeated.

Cash and cash equivalents at the end of the first quarter of 2017 decreased slightly to $15.0 million compared with $15.1 million at the end of the fourth quarter of 2016 and $10.0 million at the end of the first quarter of 2016.

Notes:

1. Adjusted EBITDA

Tucows reports all financial information required in accordance with United States generally accepted accounting principles (GAAP). Along with this information, to assist financial statement users in an assessment of our historical performance, the Company typically disclose and discuss a non-GAAP financial measure, adjusted EBITDA, on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of the Company’s core business using similar evaluation measures to those used by management. The Company uses adjusted EBITDA to measure its performance and prepare its budgets. Since adjusted EBITDA is a non-GAAP financial performance measure, the Company’s calculation of adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Because adjusted 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 liquidity measure. Non-GAAP financial measures do not reflect a comprehensive system of accounting and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies and/or analysts and may differ from period to period. The Company endeavors to compensate for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA to net income based on U.S. GAAP, which should be considered when evaluating the Company’s results. Tucows strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

The Company’s adjusted EBITDA definition excludes depreciation, amortization of intangible assets, income tax provision, interest expense, interest income, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions and infrequently occurring items, including acquisition and transitions costs. Gains and losses from unrealized foreign currency transactions removes the unrealized effect of the change in the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars.

Prior year Adjusted EBITDA amounts presented herein have been recast to reflect adjusted EBITDA definitional changes described in the Company’s Form 10-Q Quarterly Report for the three months ended September 30, 2016.

The following table reconciles net income to adjusted EBITDA (dollars in thousands):

3 Months Ended March 31
2017
(unaudited)
2016
(unaudited)
Net income for the period 2,446 4,438
Depreciation of property and equipment 757 420
Amortization of intangible assets 1,761 69
Impairment of intangible assets 21
Interest expense, net 868 46
Provision for income taxes (125) 1,906
Stock-based compensation 318 200
Unrealized loss (gain) on change in fair value of forward contracts (18) (243)
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities (193) 461
Acquisition and transition costs1 382
     
Adjusted EBITDA 6,196 7,318
1 Acquisition and transition costs represent non-recurring costs incurred in connection with the acquisition of eNom, Incorporated in January 2017. These costs are primarily comprised of professional fees for legal, accounting and other services.

During 2016, the Company identified an immaterial error that affects the classification of certain marketing program costs. Prior to the third quarter of fiscal 2016, the Company recorded the cost for certain marketing credits as Sales and marketing expense which should have been recorded as a reduction in Net revenue. The discussion presented here correctly reflect these marketing credits as a reduction in Net Revenues for all current and comparative periods. This resulted in a decrease in Net Revenues, and a corresponding decrease in Sales and marketing expenses of $0.9 million for the three months ended March 31, 2016.

2. 2017 adjusted EBITDA goal

The adjusted EBITDA goal information discussed above is a non-GAAP financial measure. Because we are unable to predict certain potentially material items affecting net income on a GAAP basis at this time, principally the amount deferred revenue will be reduced by the impact of purchasing accounting on historical deferred revenue, we cannot reconcile the estimated adjusted EBITDA for future years, a non-GAAP measure, to net income, the most directly comparable GAAP measure, in reliance on the “unreasonable efforts” exception set forth in SEC rules.

Conference Call

Tucows management will host a conference call today, Tuesday, May 9, 2017 at 5:00 p.m. (ET) to discuss the Company’s first quarter 2017 results. Participants can access the conference call by dialing 1-888-231-8191 or 647-427-7450 or via the Internet at http://www.tucows.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 416-849-0833 or 1-855-859-2056 and enter the passcode 16809774 followed by the pound key. The telephone replay will be available until Tuesday, May 16, 2017 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://www.tucows.com/investors.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 29 million domain names and millions of value-added services through a global reseller network of over 40,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectation regarding our ability to manage realized gains/losses from foreign currency contracts. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

TUCOWS® is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Contact:

Michael Goldstein
(416) 538-5451
mgoldstein@tucows.com

Tucows First Quarter Investment Community Conference Call is Tuesday, May 9, 2017 at 5:00 P.M. (ET)

TORONTO, May 01, 2017 — Tucows Inc. (NASDAQ:TCX) (TSX:TC) plans to report its first quarter fiscal 2017 financial results via news release on Tuesday, May 9, 2017 at approximately 4:05 p.m. (ET). Tucows management will host a conference call on the same day at 5:00 p.m. (ET) to discuss the results and the outlook for the company.

Participants can join the call by dialing 1-888-231-8191 or 647-427-7450. Participants can also access the conference call via the Internet at http://www.tucows.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 1-855-859-2056 or 416-849-0833 and enter the pass code 16809774 followed by the pound key. The telephone replay will be available until Tuesday, May 16, 2017 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://www.tucows.com/investors.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 29 million domain names and millions of value-added services through a global reseller network of over 40,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

Tucows, Ting, OpenSRS, Enom and Hover are registered trademarks of Tucows Inc. or its subsidiaries.

Contact:

Michael Goldstein
(416) 538-5451
mgoldstein@tucows.com

Tucows Chief Financial Officer Michael Cooperman to Retire

TORONTO, March 17, 2017 — Tucows Inc. (NASDAQ:TCX) (TSX:TC), a provider of network access, domain names and other Internet services, announced today that Michael Cooperman, 65, will retire as Chief Financial Officer effective April 1, 2017 following 18-years of service with the Company. Cooperman will remain with the Company in a senior advisory role to ensure a seamless transition.

Tucows’ Board of Directors today appointed Dave Singh to succeed Mr. Cooperman as Executive Vice President and Chief Financial Officer. Mr. Singh has served as Vice President Finance at Tucows since February 2016.

“Mike and I have had a strong and fruitful working relationship for a number of years,” said Tucows President and CEO, Elliot Noss. “When Mike started in 1999, the goal was to see if we could monetize shareware distribution. Last month, we purchased an $80 million company and laid miles of optical fiber. We simply could not have had the success we have had without him. I am forever grateful for his partnership, wisdom and grit and for helping and supporting me when I most needed it.”

Noss added, “I am also very grateful that Mike has made it his responsibility to hand-pick, train and oversee his successor. As a result, we enter the Dave Singh era with the same confidence we have enjoyed for the past 18 years.”

“My career at Tucows has been a rewarding and enriching experience,” said Mike Cooperman, Tucows outgoing CFO. “The Company is in a strong position to continue growing and driving value for investors, and I am confident that Dave will continue to build on this momentum as CFO.”

Mr. Singh, 42, will report to Mr. Noss as Tucows CFO. Prior to joining Tucows, Mr. Singh spent eight years at KPMG in Vancouver, primarily focused on public company audits in the technology field. After KPMG, Mr. Singh joined TELUS and held a number of progressive roles, including Director of TELUS Financial Reporting and Analysis, Director of Retail and most recently CFO of TELUS International, TELUS’ outsourcing division.

Mr. Singh is a Chartered Professional Accountant with the Institute of Chartered Professional Accountants of BC. He is a graduate of the Transportation and Logistics Management program from the Sauder School of Business at the University of British Columbia and holds a joint Executive MBA from Schulich School of Business and Northwestern University.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 29 million domain names and millions of value-added services through a global reseller network of over 40,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

TUCOWS® is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Contact:
Conrad Seguin
NATIONAL Equicom
(416) 586-1951
cseguin@national.ca

Tucows Announces $40 Million Stock Buyback Program

TORONTO, March 01, 2017 — Tucows Inc. (NASDAQ:TCX) (TSX:TC) today announced that its Board of Directors has approved a stock buyback program to repurchase from time to time up to $40 million of its common stock in the open market.

The new $40 million buyback program will commence March 1, 2017 and will terminate on or before February 28, 2018.

Purchases for the new $40 million buyback program will be made exclusively through the facilities of the NASDAQ Capital Market.

All shares purchased by Tucows under the stock buyback program will be retired and returned to treasury.

The timing and exact number of common shares purchased will be at Tucows’ discretion and will depend on available cash and market conditions. Tucows may suspend or discontinue the repurchases at any time, including in the event Tucows would be deemed to be making an acquisition of its own shares under Rule 13e-3 of the Securities Exchange Act of 1934, as amended. Subject to applicable securities laws and stock exchange rules, all purchases will occur through the open market and may be in large block purchases. Tucows does not intend to purchase its shares from its management team or other insiders.

The purchase will be funded from available working capital and existing credit facilities. As of March 1, 2017, Tucows had 10,469,406 common shares outstanding.

NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 29 million domain names and millions of value-added services through a global reseller network of over 40,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

This news release contains, in addition to historical information, forward-looking statements related to the proposed stock buyback program, including the timing, manner and total number of shares to be purchased under the proposed stock buyback program. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks, which could cause actual results to differ materially from those described in the forward-looking statements. Information about potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements included in this document are based on information available to Tucows as of the date of this document, and except to the extent Tucows may be required to update such information under any applicable securities laws, Tucows assumes no obligation to update such forward-looking statements.

TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Contact:

Lawrence Chamberlain
NATIONAL Equicom
(416) 848-1457
lchamberlain@national.ca

Tucows Reports Continuing Strong Financial Results for Fourth Quarter of 2016

– Solid Financial Performance in Fourth Quarter Contributes to Record EPS for 2016 of $1.53 –

TORONTO, February 7, 2017 – Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services, today reported its financial results for the fourth quarter ended December 31, 2016. All figures are in U.S. dollars.

Summary Financial Results

(In Thousands of US Dollars, Except Per Share Data)

3 Months Ended December 31 12 Months Ended December 31
2016
(unaudited)
2015
(unaudited)
% Change 2016
(unaudited)
2015
(unaudited)
% Change
Net revenue 48,805 44,707 9% 189,819 171,687 11%
Net income 2,817 3,095 (9%) 16,067 11,374 41%
Basic Net earnings per common share $0.27 $0.29 (7%) $1.53 $1.04 47%
Adjusted EBITDA1 7,333 5,508 33% 30,130 20,948 44%
Net cash provided by operating activities 8,923 1,389 542% 21,650 13,346 62%

1. This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table. Tucows has revised its definition of Adjusted EBITDA as detailed in the description below and the table reconciling Adjusted EBITDA to GAAP net income.

Summary of Revenues and Gross Margin
(In Thousands of US Dollars)

Revenue Gross Margin
3 Months Ended December 31 3 Months Ended December 31
2016
(unaudited)
2015
(unaudited)
2016
(unaudited)
2015
(unaudited)
Network Access Services:
Mobile Services 17,839 16,054 8,951 7,342
Other Services 919 939 254 488
Total Network Access Services 18,758 16,993 9,205 7,830
Domain Services:
Wholesale
Domain Services 23,130 21,352 4,398 3,492
Value Added Services 2,336 2,304 1,819 1,805
Total Wholesale 25,466 23,656 6,217 5,297
Retail 3,882 3,359 2,086 1,849
Portfolio 698 699 555 517
Total Domain Services 30,046 27,714 8,858 7,664
Network Expenses:
Network, other costs (1,285) (1,327)
Network, depreciation and amortization costs (355) (353)
Total Network Expenses (1,640) (1,680)
48,805 44,707 16,423 13,814

“A strong fourth quarter contributed to a record financial performance for 2016, driven by continued top line and gross margin growth in both our Ting Mobile and Domain Services businesses as we continue to benefit from the significant operating leverage in our business,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “Revenue for fourth quarter grew 9% year-over year to just under $49 million, and for the year grew 11% to just under $190 million. Earnings per share for the quarter decreased 7% year-over-year to $0.27 while growing 47% for the full year to $1.53.”

“As importantly, each of our businesses contributed just what we would have hoped to the overall business strategy,” added Mr. Noss. “Domain Services achieved greater scale and efficiency with the acquisition and successful integration of Melbourne IT’s international wholesale domain reseller channel. With the very recent acquisition of Enom and its expected operating synergies to come over the next 24 months, we anticipate further efficiencies in the future. Ting Mobile delivered outstanding growth, finishing the year with a run rate of over $35 million in annual gross margin. And Ting Internet took significant strides toward future contribution as we added new towns, expanded our networks, drove demand and optimized our operations and processes.”

Mr. Noss added, “We begin 2017 in a tremendous position to continue to grow our bottom line and invest in our priorities.”

Financial Results

Net revenue for the fourth quarter of 2016 increased 9% to 48.8 million from $44.7 million for the fourth quarter of 2015.

Net income for the fourth quarter of 2016 decreased to $2.8 million, or $0.27 per share, from $3.1 million, or $0.29 per share, for the fourth quarter of 2015. Net income for the fourth quarter of 2016 was negatively impacted during the quarter by one-time items totaling $1.0 million related to the Enom acquisition and the Ting Mobile business. Adjusted EBITDA1 for the fourth quarter of 2016 increased to $7.3 million from $5.5 million for the fourth quarter of 2015.

Cash and cash equivalents at the end of the fourth quarter of 2016 were $15.1 million compared with $10.5 million at the end of the third quarter of 2016 and $7.7 million at the end of the fourth quarter of 2015. The increase relative to the third quarter of 2016 was primarily the result of cash provided by operating activities of $8.9 million, which was partially offset by a further investment of $4.0 million in property and equipment, primarily for the continued build out of the Ting Internet footprint and scheduled loan repayments of $0.3 million.

Notes:

1. Adjusted EBITDA

Tucows reports all financial information required in accordance with United States generally accepted accounting principles (GAAP). Along with this information, to assist financial statement users in an assessment of our historical performance, the Company typically disclose and discuss a non-GAAP financial measure, adjusted EBITDA, on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of the Company’s core business using similar evaluation measures to those used by management. The Company uses adjusted EBITDA to measure its performance and prepare its budgets. Since adjusted EBITDA is a non-GAAP financial performance measure, the Company’s calculation of adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Because adjusted 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 liquidity measure. Non-GAAP financial measures do not reflect a comprehensive system of accounting and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies and/or analysts and may differ from period to period. The Company endeavors to compensate for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA to net income based on U.S. GAAP, which should be considered when evaluating the Company’s results. Tucows strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

The Company’s adjusted EBITDA definition excludes depreciation, amortization of intangible assets, income tax provision, interest expense, interest income, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions and infrequently occurring items, including acquisition and integration costs. Gains and losses from unrealized foreign currency transactions removes the unrealized effect of the change in the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars.

Prior year Adjusted EBITDA amounts presented herein have been recast to reflect adjusted EBITDA definitional changes described in the Company’s Form 10-Q Quarterly Report for the three months ended September 30, 2016.

During 2016, the Company identified an immaterial error that affects the classification of certain marketing program costs. Prior to the third quarter of fiscal 2016, the Company recorded the cost for certain marketing credits as Sales and marketing expense which should have been recorded as a reduction in Net revenue. The discussion presented here correctly reflect these marketing credits as a reduction in Net Revenues for all current and comparative periods. This resulted in a decrease in Net Revenues, and a corresponding decrease in Sales and marketing expenses of $0.3 million and $1.3 million for the three months and year ended December 31, 2015.

Conference Call

Tucows management will host a conference call today, Tuesday, February 7, 2017 at 5:00 p.m. (ET) to discuss the Company’s fourth quarter 2016 results. Participants can access the conference call by dialing 1-888-231-8191 or 647-427-7450 or via the Internet at http://www.tucows.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 416-849-0833 or 1-855-859-2056 and enter the passcode 58593654 followed by the pound key. The telephone replay will be available until Tuesday, February 14, 2017 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://www.tucows.com/investors.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 29 million domain names and millions of value-added services through a global reseller network of over 40,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectation regarding our ability to manage realized gains/losses from foreign currency contracts. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

TUCOWS® is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Contact:

Lawrence Chamberlain
NATIONAL Equicom
(416) 848-1457
lchamberlain@national.ca

Tucows Inc. To Acquire eNom from Rightside

— Combined Entity Will Be The Second Largest Domain Registrar In The World —

TORONTO, January 20, 2017 – Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services, announced that it has signed a definitive agreement to acquire wholesale domain name registrar eNom from Rightside Group, Ltd. (NASDAQ: NAME). The transaction is expected to close later today.

Tucows will pay $83.5 million and the transaction is expected to be immediately accretive to earnings. The acquisition will be funded through an amendment increasing Tucows’ existing credit facility to a total of $140 million.

The acquisition of eNom will add 14.5 million domains under management and 28,000 active resellers. That will give Tucows a total network of over 40,000 resellers globally and 29 million domains under management, making it the second largest domain registrar in the world.

“For years, eNom and OpenSRS have been the two leading registrars primarily focused on the needs of resellers. This focus means these businesses fit very well together,” said David Woroch, Tucows’ Executive Vice President of Domains. “The acquisition keeps eNom resellers where they will be well understood, well valued and well served and creates tremendous value for Tucows and resellers on both sides through efficiency and scale.”

Elliot Noss, Tucows’ CEO added, “This industry has changed so much since Tucows and eNom each launched wholesale registrar services over fifteen years ago and .com, .net and .org essentially represented the namespace. It is a lot more challenging and complex now. At the same time, it is more mature and much more competitive. Scale is absolutely critical. This is a rare deal that gives Tucows and its investors exactly that while offering an immediate cash on cash return.”

NOTE TO INVESTORS: We know that releasing this transaction on a Friday morning, especially this particular Friday morning, is not ideal. We apologize for that. These things sometimes cannot be helped.

Conference Call

Tucows management will host a conference call today, Friday, January 20, 2017 at 11 am (ET) to discuss this announcement. Participants can access the conference call by dialing (888) 231-8191 or (647) 427-7450 or via the Internet at http://www.tucows.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 1-855-859-2056 or 416-849-0833 and enter the passcode 56195754 followed by the pound key. The telephone replay will be available until January 27, 2017 at midnight ET. To access the archived conference call as an MP3 via the Internet, go to http://www.tucows.com/investors.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) manages nearly 15 million domain names and millions of value-added services through a global reseller network of over 13,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

About Rightside

Rightside® inspires and delivers new possibilities for consumers and businesses to define and present themselves online. The company, with its affiliates, is a leading provider of domain name services, offering one of the industry’s most comprehensive platforms for the discovery, registration, usage, and monetization of domain names. Headquartered in Kirkland, WA, Rightside has offices in North America, Europe, and Australia. For more information please visit www.rightside.co.

This news release contains forward-looking statements related to the acquisition, including, without limitation, the expected closing of the acquisition, the expectation that the transaction will be immediately accretive to earnings, the funding through an increase under Tucows’ existing credit facility, and the effect of the acquisition. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks, which could cause actual results to differ materially from those described in the forward-looking statements. Information about potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements included in this document are based on information available to Tucows as of the date of this document, and except to the extent Tucows may be required to update such information under any applicable securities laws, Tucows assumes no obligation to update such forward-looking statements.

TUCOWS® is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Media Contact:
Gustavo Arruda
garruda@tucows.com

Investor Contact:
Lawrence Chamberlain
416-848-1457
lchamberlain@national.ca

Union Square Ventures Co-Founder Brad Burnham Joins Tucows Board of Directors

Brings a wealth of relevant experience and a lot of cool friends

TORONTO, Jan. 12, 2017 — Tucows Inc. (NASDAQ:TCX) (TSX:TC), a provider of network access, domain name and other Internet services, today announced that Brad Burnham has joined its Board of Directors.

Mr. Burnham began his career in information technology with AT&T in 1979. He held a variety of sales, marketing and business development positions there until 1990 when he spun Echo Logic out of Bell Laboratories. He joined AT&T Ventures in 1993, co-founded digital advertising pioneer TACODA in 2001 and then co-founded Union Square Ventures with Fred Wilson in 2003.

Union Square Ventures was the first institutional investor in an exceptionally large number of companies that went on to become important players on the Internet – companies like Twitter, Etsy, Zynga and Kickstarter. Mr. Burnham personally led their investments in Tumblr, Indeed, Meetup, and, more recently Stack Overflow and Duolingo.

“Tucows, with Ting in particular, has huge ambitions right now,” explained Tucows CEO Elliot Noss. “We are providing core services in mobile and fixed Internet and competing with some of the largest, most successful companies in the world, like AT&T and Comcast. But we want to challenge pricing conventions, offer far better experiences, contribute more to local communities and create greater returns for investors. In that regard, we are holding ourselves up against the kinds of companies in Brad’s portfolio. We want to be that usable, delightful, bold and innovative. Brad might be singularly qualified to help us with that challenge.”

Mr. Burnham added, “I am a huge fan of decentralized, bottom up, start-up innovation. I feel fortunate to have been able to work with companies that fundamentally transformed markets. I think Tucows has an exceptional opportunity to change the way we think about access to the Internet.”

The addition of Mr. Burnham expands Tucows’ Board to seven Directors.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) manages nearly 15 million domain names and millions of value-added services through a global reseller network of over 13,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

Contact:
Lawrence Chamberlain
NATIONAL Equicom
(416) 848-1457
lchamberlain@national.ca

Tucows Reports Continuing Strong Financial Results for Third Quarter of 2016

– EPS Increases 55% Year-Over-Year to a Record $0.45 –

TORONTO, November 7, 2016 – Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services, today reported its financial results for the third quarter ended September 30, 2016. All figures are in U.S. dollars.

Summary Financial Results

(In Thousands of US Dollars, Except Per Share Data)

3 Months Ended September 30 9 Months Ended September 30
2016
(unaudited)
2015
(unaudited)
% Change 2016
(unaudited)
2015
(unaudited)
% Change
Net revenue 49,064 44,268 11% 141,014 126,985 11%
Net income 4,741 3,159 50% 13,250 8,278 60%
Net earnings per common share $0.45 $0.29 55% $1.26 $0.75 68%
Adjusted EBITDA1 8,575 5,800 48% 22,798 15,439 48%
Net cash provided by operating activities 5,001 6,783 -26% 12,727 11,957 6%

1. This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table. Tucows has revised its definition of Adjusted EBITDA as detailed in the description below and the table reconciling Adjusted EBITDA to GAAP net income.

Summary of Revenues and Gross Margin
(In Thousands of US Dollars)

Revenue Gross Margin
3 Months Ended September 30 3 Months Ended September 30
2016
(unaudited)
2015
(unaudited)
2016
(unaudited)
2015
(unaudited)
Network Access Services:
Mobile Services 18,375 15,359 9,288 6,583
Other Services 878 916 376 542
Total Network Access Services 19,253 16,275 9,664 7,125
Domain Services:
Wholesale
Domain Services 22,956 21,124 4,021 3,642
Value Added Services 2,227 2,400 1,764 1,913
Total Wholesale 25,183 23,524 5,785 5,555
Retail 3,721 3,220 1,993 1,790
Portfolio 907 1,248 776 1,079
Total Domain Services 29,811 27,992 8,554 8,424
Network Expenses:
Network, other costs (1,228) (1,421)
Network, depreciation and amortization costs (292) (336)
Total Network Expenses (1,580) (1,757)
49,064 44,268 16,638 13,792

“Continuing growth in both Ting Mobile and our Domain Services business propelled Tucows to a record quarter for both the top and bottom lines,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “We continue to reap the benefits of the significant operating leverage in the business. Overall revenue was up 11% year-over-year, while net income grew 50% to a record $4.7 million, or $0.45 per share, and adjusted EBITDA1 increased 48% to a record $8.6 million.”

“As Ting Mobile and Domain Services continue to drive our near-term financial performance, Ting Internet takes positive steps every day toward future contribution to our business. In Q2, we expanded our fiber network in Charlottesville, Virginia, began construction in Holly Springs, North Carolina and saw Westminster, Maryland launch the next wave of construction on its municipal fiber network. We also announced that Centennial, Colorado would be our next and largest Ting town to date, with a population over 100,000, and began taking pre-orders there immediately.”

Net revenue for the third quarter of 2016 increased 11% to a record $49.1 million from $44.3 million for the third quarter of 2015.
Net income for the third quarter of 2016 increased to a record $4.7 million, or $0.45 per share, from $3.2 million, or $0.29 per share, for the third quarter of 2015. Adjusted EBITDA1 for the third quarter of 2016 increased to $8.6 million from $5.8 million for the third quarter of 2015.

Cash and cash equivalents at the end of the third quarter of 2016 were $10.5 million compared with $5.9 million at the end of the second quarter of 2016 and $11.9 million at the end of the third quarter of 2015. The increase relative to the second quarter of 2016 was primarily the result of cash provided by operating activities of $5.0 million, as well as an increase in the amount outstanding on the bank loan of $1.9 million, which partially offset by a further investment of $2.1 million in property and equipment, primarily for the continued build out of the Ting Internet footprint.

NOTES:

¹ Adjusted EBITDA

Tucows reports all financial information required in accordance with United States generally accepted accounting principles (GAAP). Along with this information, to assist financial statement users in an assessment of our historical performance, the Company typically disclose and discuss a non-GAAP financial measure, adjusted EBITDA, on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of the Company’s core business using similar evaluation measures to those used by management. The Company uses adjusted EBITDA to measure its performance and prepare its budgets. Since adjusted EBITDA is a non-GAAP financial performance measure, the Company’s calculation of adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Because adjusted 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 liquidity measure. Non-GAAP financial measures do not reflect a comprehensive system of accounting and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies and/or analysts and may differ from period to period. The Company endeavors to compensate for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA to net income based on U.S. GAAP, which should be considered when evaluating the Company’s results. Tucows strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

The Company’s adjusted EBITDA definition excludes depreciation, amortization of intangible assets, income tax provision, interest expense, interest income, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions and infrequently occurring items. Gains and losses from unrealized foreign currency transactions removes the unrealized effect of the change in the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars.

Prior year Adjusted EBITDA amounts presented herein have been recast to reflect adjusted EBITDA definitional changes described in the Company’s Form 10-Q Quarterly Report for the three months ended September 30, 2016.

During the financial statement close for the three months ended September 30, 2016, the Company identified an immaterial error that affects the classification of certain marketing program costs. Prior to the third quarter of fiscal 2016, the Company recorded the cost for certain marketing credits as Sales and marketing expense which should have been recorded as a reduction in Net revenue. The discussion presented here correctly reflect these marketing credits as a reduction in Net Revenues for all current and comparative periods. This resulted in a decrease in Net Revenues, and a corresponding decrease in Sales and marketing expenses of $0.3 million and $0.9 million for the three months and nine months ended September 30, 2015. For the nine months ended September 30, 2016, Net revenues and Sales and marketing expenses reflect a reduction of $1.1 million for the reclassification of credits for the first six months of fiscal 2016.

Conference Call

Tucows management will host a conference call today, Monday, November 7, 2016 at 5:00 p.m. (ET) to discuss the Company’s third quarter 2016 results. Participants can access the conference call by dialing 1-888-231-8191 or 647-427-7450 or via the Internet at http://www.tucows.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 416-849-0833 or 1-855-859-2056 and enter the passcode 3037132 followed by the pound key. The telephone replay will be available until Monday, November 14, 2016 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://www.tucows.com/investors.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) manages nearly 15 million domain names and millions of value-added services through a global reseller network of over 13,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectation regarding our ability to manage realized gains/losses from foreign currency contracts. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

TUCOWS® is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Contact:

Lawrence Chamberlain
NATIONAL Equicom
(416) 848-1457
lchamberlain@national.ca

Tucows Third Quarter Investment Community Conference Call is Monday, November 7, 2016 at 5:00 P.M. (ET)

TORONTO, October 24, 2016 – Tucows Inc. (NASDAQ: TCX, TSX: TC) plans to report its third quarter fiscal 2016 financial results via news release on Monday, November 7, 2016 at approximately 4:05 p.m. (ET). Tucows management will host a conference call on the same day at 5:00 p.m. (ET) to discuss the results and the outlook for the company.

Participants can join the call by dialing 1-888-231-8191 or 647-427-7450. Participants can also access the conference call via the Internet at http://www.tucows.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 1-855-859-2056 or 416-849-0833 and enter the pass code 3037132 followed by the pound key. The telephone replay will be available until Monday, November 14, 2016 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://www.tucows.com/investors.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) manages nearly 15 million domain names and millions of value-added services through a global reseller network of over 13,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

Tucows, Ting, OpenSRS and Hover are registered trademarks of Tucows Inc. or its subsidiaries.

Contact:

Lawrence Chamberlain
NATIONAL Equicom
(416) 848-1457
lchamberlain@national.ca

Ting names Centennial, CO as the next gigabit Internet Ting town

Demand generation and assessment phase commences immediately. Construction to begin as soon as early 2017.

TORONTO, ON – SEPTEMBER 21, 2016 – Ting, a division of Tucows (NASDAQ: TCX, TSX: TC) is pleased to announce that Centennial, CO will be the next town to get crazy fast fiber Internet from Ting.

Ting Internet continues its commitment to bringing dedicated symmetrical gigabit fiber optic Internet infrastructure and the fastest Internet access to smaller towns and cities in the US. Centennial, CO, population 107,201 (2014 Census) will be the largest Ting town by population to date.

With the launch of the ting.com/centennial local page, demand assessment begins immediately. Pre-orders are being accepted in Centennial starting today.

“Centennial has been refreshing to work with”, said Elliot Noss, CEO of Tucows. “Centennial’s approach to partnering with Ting has been excellent. They have found a great balance between being business-friendly while deeply serving the needs of their citizens. They understand how these need not be in conflict.”

“Having Centennial as Ting Internet’s first Colorado market is an honor and one that we are very excited about. The critical infrastructure has been in place throughout the City, we just needed the opportunity to partner with an organization such as Ting to provide service to our residents and businesses,” says Centennial Mayor Cathy Noon. “I would like to recognize and thank Council Members Whelan, Piko and Lucas for serving on the fiber steering committee. Their leadership and guidance has led us to see the City’s dark fiber network become a reality.”

“Ting Internet in Centennial will enable faster and more affordable Internet services for both residents and businesses, just as the City’s Fiber Master Plan intended. Technology, and in particular connectivity to the Internet, has become essential to everyday life, so much so that we experience withdrawals when it is not there. Data connectivity needs to be efficient and readily available, and it is at its best when it, ‘just works’ and you don’t have to think even about it. Bringing such a high level of service to Centennial is what makes this collaboration with Ting so exciting,” says Mayor Pro Tem and District 4 Council Member Charles “C.J.” Whelan.

Pending demonstrated demand, network construction will begin in Centennial as soon as early 2017.

To get to the pre-order stage, a town passes a series of checks and balances: availability of a fiber backbone, population, density, local permitting and many other factors are considered before Ting Internet formally expresses its intent to bring crazy fast fiber Internet service to a town. With these boxes checked, Ting takes a gauge of demand on the ground by raising awareness of gigabit fiber Internet and then opening up to accept pre-orders.

“Pre-orders determine not just whether Ting Internet comes to a town, but they also impact where network construction begins,” said Adam Eisner, VP of Networks for Ting Internet.

Ting Internet pursues arrangements with MDUs (multiple dwelling units, buildings that normal people usually call apartments or condos) in Ting towns, including arrangements where Ting crazy fast fiber Internet is an included amenity for residents.

Elliot Noss and other members of the Ting executive team are always available for interviews and for commentary on fiber and Internet industry happenings.

Elliot Noss on why Ting chose Centennial, CO as the next Ting town: https://youtu.be/M3VI-0qymBU

Ting Media Contact
Andrew Moore-Crispin
1-844-275-1773
press@ting.com

Tucows Investor Contact
Lawrence Chamberlain
416-848-1457
lchamberlain@national.ca

Communications Director, City of Centennial
Sheri Chadwick
720-585-5555
schadwick@centennialco.gov

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) manages nearly 15 million domain names and millions of value-added services through a global reseller network of over 13,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com). Tucows, Ting, OpenSRS and Hover are registered trademarks of Tucows Inc. or its subsidiaries.

Tucows Announces New Credit Facility for up to US$75 Million

TORONTO, August 18, 2016 – Tucows Inc. (NASDAQ:TCX, TSX:TC) today announced that it has entered into a new, syndicated five-year secured credit agreement for up to US$75 million, inclusive of a $15 million accordion facility (the “2016 Credit Facility”), with Bank of Montreal (“BMO”) and Royal Bank of Canada (collectively, the “Lenders”). The 2016 Credit Facility will be used to support share repurchases, acquisitions and capital expenditures associated with the Company’s Fiber-to-the-Home program, as well as general working capital and general corporate requirements.

“As planned, this new expanded credit facility provides us with additional financial resources and flexibility to support the ongoing build out of fiber infrastructure for Ting Internet,” said Elliot Noss, President and Chief Executive Officer.

This new facility refinanced and replaced the Company’s current US$14 million credit facility with BMO.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) manages nearly 15 million domain names and millions of value-added services through a global reseller network of over 13,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding our expected use of proceeds from borrowings under the 2016 Credit Facility. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

TUCOWS® is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Contact:
Lawrence Chamberlain
NATIONAL Equicom
(416) 848-1457
lchamberlain@national.ca

Tucows Reports Continuing Strong Financial Results for Second Quarter of 2016

– EPS Increases 86% Year-Over-Year to $0.39 –

TORONTO, August 8, 2016 – Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services, today reported its financial results for the second quarter ended June 30, 2016. All figures are in U.S. dollars.

Summary Financial Results

(In Thousands of US Dollars, Except Per Share Data)

3 Months Ended June 30 6 Months Ended June 30
2016
(unaudited)
2015
(unaudited)
% Change 2016
(unaudited)
2015
(unaudited)
% Change
Net revenue 47,466 42,889 11% 93,077 83,357 12%
Net income 4,071 2,285 78% 8,509 5,119 66%
Net earnings per common share $0.39 $0.21 86% $0.80 $0.46 74%
Adjusted EBITDA1 7,112 4,349 64% 13,925 9,641 44%
Net cash provided by operating activities 2,173 2,236 -3% 7,727 5,173 49%

1. This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table. Tucows has revised its definition of Adjusted EBITDA as detailed in the description below and the table reconciling Adjusted EBITDA to GAAP net income.

Summary of Revenues and Gross Margin
(In Thousands of US Dollars)

Revenue Gross Margin
3 Months Ended June 30 3 Months Ended June 30
2016
(unaudited)
2015
(unaudited)
2016
(unaudited)
2015
(unaudited)
Network Access Services:
Mobile Services 18,026 14,352 8,646 6,356
Other Services 972 1,066 443 564
Total Network Access Services 18,999 15,418 9,089 6,919
Domain Services:
Wholesale
Domain Services 21,699 21,287 4,053 3,542
Value Added Services 2,310 2,356 1,858 1,854
Total Wholesale 24,008 23,643 5,911 5,396
Retail 3,556 3,009 1,916 1,687
Portfolio 903 819 700 636
Total Domain Services 28,468 27,471 8,528 7,719
Network Expenses:
Network, other costs (1,405) (1,495)
Network, depreciation and amortization costs (362) (291)
Total Network Expenses (1,767) (1,786)
47,466 42,889 15,850 12,852

“Tucows delivered another solid quarter of financial performance, driven by growth in both Network Access and Domain Services as we continue to benefit from the significant operating leverage in our business,” said Elliot Noss, President and Chief Executive Officer.  “Overall revenue grew 11% year-over-year, while net income was 78% higher at $4.1 million, or $0.39 per share and adjusted EBITDA1 was up 64% to $7.1 million.”
“Ting Mobile powered another great financial quarter and the acquisition and successful integration of Melbourne IT’s international wholesale domain reseller channel punctuated another quarter of steady contribution from our Domain Services business. While these core services continue to drive earnings, in our Ting Internet service we are steadily gaining experience, serviceable addresses, brand awareness and glowing reviews in Charlottesville, Virginia and Westminster, Maryland and we are getting ready to begin construction in Holly Springs, North Carolina.”

“All in, it was a good quarter for both the present and the future.”

Net revenue for the second quarter of 2016 increased 11% to $47.5 million from $42.9 million for the second quarter of 2015.

Net income for the second quarter of 2016 increased to $4.1 million, or $0.39 per share, compared with $2.3 million, or $0.21 per share, for the second quarter of 2015. Adjusted EBITDA1 for the second quarter of 2016 increased to $7.1 million from $4.3 million for the second quarter of 2015.

Cash and cash equivalents at the end of the second quarter of 2016 was $5.9 million compared with $10.0 million at the end of the first quarter of 2016 and $15.3 million at the end of the second quarter of 2015. The decrease relative to the first quarter of 2016 was primarily the result of the purchase of 209,698 shares of common stock for $5.0 million under the Company’s open market share buyback program, further investment of $1.0 million in property and equipment, primarily for the continued build out of the Ting Internet footprint, and repayment of $0.2 million of its bank loan. These decreases were offset by cash provided by operating activities of $2.2 million.

NOTES:

1. Adjusted EBITDA

Tucows reports all financial information required in accordance with United States generally accepted accounting principles (GAAP). Along with this information, to assist financial statement users in an assessment of our historical performance, the Company typically disclose and discuss a non-GAAP financial measure, adjusted EBITDA, on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of the Company’s core business using similar evaluation measures to those used by management. The Company uses adjusted EBITDA to measure its performance and prepare its budgets. Since adjusted EBITDA is a non-GAAP financial performance measure, the Company’s calculation of adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Because adjusted 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 liquidity measure. Non-GAAP financial measures do not reflect a comprehensive system of accounting and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies and/or analysts and may differ from period to period. The Company endeavors to compensate for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA to net income based on U.S. GAAP, which should be considered when evaluating the Company’s results. Tucows strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

The Company’s current adjusted EBITDA definition excludes depreciation, amortization of intangible assets, income tax provision, interest expense, interest income, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions and infrequently occurring items. Gains and losses from unrealized foreign currency transactions removes the unrealized effect of the change in the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars.

The Company’s current adjusted EBITDA definition is the result of two revisions:

  • In response to the clarification guidance provided by the SEC Compliance & Disclosure Interpretations regarding Non-GAAP Measures, updated on May 17, 2016, the Company revised its definition of adjusted EBITDA to eliminate the adjustment for the effect of net deferred revenue. Prior to this quarter of 2016, the Company’s adjusted EBITDA definition included an adjustment which removed the effect of net deferred revenue, which comprised the change in deferred revenue, net of prepaid domain name registry and other Internet services fees.
  • As previously disclosed, in April 2016, as part of the Company’s assessment of its compensation program for 2016, the Company revised the definition of adjusted EBITDA to eliminate the adjustment for the effect of realized gains/losses from all foreign currency contracts, both hedged and unhedged as the Company believes it is able to manage realized gains/losses from all foreign currency contracts with proper planning and budgeting. The Company used this version of adjusted EBITDA definition in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016.

The current adjusted EBITDA definition will be used to assess Company performance for 2016 and future periods.

In accordance with the clarification guidance provided by the SEC Compliance & Disclosure Interpretations, Non-GAAP Measures updated on May 17, 2016, prior period Adjusted EBITDA amounts presented herein have been recast to reflect the above described revisions.

Conference Call

Tucows management will host a conference call today, Monday, August 8, 2016 at 8:00 a.m. (ET) to discuss the Company’s second quarter 2016 results. Participants can access the conference call by dialing 1-888-231-8191 or 647-427-7450 or via the Internet at http://www.tucows.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 416-849-0833 or 1-855-859-2056 and enter the passcode 50279294 followed by the pound key. The telephone replay will be available until Monday, August 15, 2016 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://www.tucows.com/investors.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) manages nearly 15 million domain names and millions of value-added services through a global reseller network of over 13,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectation regarding our ability to manage realized gains/losses from foreign currency contracts. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

TUCOWS® is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Contact:

Lawrence Chamberlain
NATIONAL Equicom
(416) 848-1457
lchamberlain@national.ca