Author Archives: tucows

Tucows First Quarter Investment Community Conference Call is Monday, May 9, 2016 at 5:00 P.M. (ET)

TORONTO, April 25, 2016 – Tucows Inc. (NASDAQ: TCX, TSX: TC) plans to report its first quarter fiscal 2016 financial results via news release on Monday, May 9, 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 416-849-0833 or 1-855-859-2056 and enter the pass code 90777474 followed by the pound key. The telephone replay will be available until Monday, May 16, 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 over thirteen 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 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 Acquires Melbourne IT’s International Wholesale Domain Reseller Channel

TORONTO, March 15, 2016 – Tucows Inc. (NASDAQ:TCX) (TSX:TC), a global provider of network access, domain names and other Internet services, today announced that it has entered into a definitive agreement to acquire the international wholesale domain reseller channel of Melbourne IT Limited (ASX: MLB). The acquisition will add hundreds of resellers and approximately 1.6 million domains under management to Tucows’ OpenSRS wholesale domain business. Tucows will not acquire any of Melbourne IT’s operations and the transaction will be immediately accretive to earnings.

“This acquisition represents an excellent opportunity to acquire a loyal, profitable base of resellers that have the same core needs as our existing wholesale customers,” said David Woroch, Tucows’ EVP Domains. “Importantly, the scalability of our OpenSRS platform allows us to meaningfully expand our base of domains under management while adding minimally to our operating costs.”

As a Tucows reseller on the OpenSRS platform, the new customers will immediately have access to over 600 top level domains (TLDs), a wide range of SSL certificates, email services and plugins to all the most popular billing and automation solutions.

“Wholesale domain services for web hosting companies and ISPs has been a core component of the Tucows business for more than 16 years,” added Mr. Woroch.  “Today, we are one of the largest wholesale domain name registrars in the world and the step function growth from this transaction will allow us to even better leverage our platform as we continue to invest in the business.”

The financial terms of the transaction were not disclosed and are not considered to be material for Tucows.

Watch the video to learn more.

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 over thirteen 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).

Media Contact:
Gustavo Arruda
416-535-0123, ext. 1211
garruda@tucows.com

Investor Contact:
Lawrence Chamberlain
416-815-0700 ext. 25
lchamberlain@tmxequicom.com

Ting Looks to the Greater Sandpoint, ID Area as Next to Get Ting Fiber Internet

For Ting Internet, Thinking Big Means Bringing the Best Internet to Small Towns

SANDPOINT, Idaho, March 02, 2016 — Further demonstrating its commitment to small but forward-thinking towns, Ting today announced plans to bring crazy fast fiber Internet to the Greater Sandpoint, ID area. The towns of Sandpoint, Dover, Ponderay and Kootenai can pre-order Ting Internet starting today at ting.com/sandpoint.

Pre-orders will impact not just when Ting comes to town but where the network build begins as well. This is the initial “demand assessment” phase and it commences just as soon as Ting finishes writing this press release.

Assuming sufficient demand for crazy fast fiber Internet exists, network construction would begin later in 2016.

“Internet speed and infrastructure is an issue that is on the national agenda,” said Elliot Noss, CEO of Ting and its parent company Tucows (NASDAQ:TCX) (TSX:TC). “While it’s obviously very important to get major metros connected with fast fiber Internet, Ting Internet is proving that the fastest Internet access available isn’t just for city centers. Smaller cities and towns need faster, more reliable Internet too. Maybe even more so.”

While the issue of outmoded, overburdened and unreliable Internet infrastructure is national, Ting is demonstrating that the solution can be local.

“Crazy fast fiber Internet” refers to “symmetrical gigabit” service. That translates to upload and download speeds of up to a gigabit (or 1,000 megabits) per second. To put that in context, everyone in a household that has “the gig” can be streaming video, gaming, video conferencing and browsing the Internet at the same time without getting in each other’s way. Gigabit fiber Internet access also facilitates healthcare, fosters education and stimulates economic development.

“We’re always happy to team up with towns and cities that get it,” said Adam Eisner, Director of Networks for Ting. “Gigabit fiber is the next generation of Internet access and it will power the next generation of ideas.”

Ting disrupted the mobile industry with its launch in 2012 offering shockingly fair pricing, usable interfaces and no-hold, no-transfer, live customer support. Ting Internet started in Charlottesville, VA in early 2015 before expanding to Westminster, MD later that year. In early 2016, Ting Internet began demand generation and assessment in Holly Springs, NC.

“If there’s one industry that needs Ting perhaps even more than mobile, it’s cable and Internet access,” said Noss. “For too long, people and businesses have had no choice, or at best the illusion of choice, as to who provides them with access. They have been held hostage by contracts and forced under bandwidth caps. We’re changing that.”

Ting Internet installation costs vary by location but are not more than $200 for a home or $400 for an individual business. The Ting Internet Box, which doubles as a high speed wireless router, costs $199 up front or $9/mo. Ting symmetrical gigabit Internet costs $89/mo. for a home or $139/mo. for a business. There is also a low cost, non-core offering for $19/mo. for 5/5 Mbps service.

Ting executives are available for interviews.

Media Contact
Jesse Simms
1-844-275-1773
press@ting.com

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

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS manages over fourteen million domain names and millions of value-added services through a global reseller network of over 13,000 web hosts and ISPs. Hover 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 Reports Continuing Strong Financial Results for Fourth Quarter of 2015


– Record Fourth Quarter EPS of $0.29 Contributes to an 82% increase in 2015 EPS to $1.04 –

TORONTO, February 9, 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 fourth quarter ended December 31, 2015. All figures are in U.S. dollars.

Summary Financial Results

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

3 Months Ended December 31, 2015 (unaudited) 3 Months Ended December 31, 2014 (unaudited) 12 Months Ended December 31, 2015 (unaudited) 12 Months Ended December 31, 2014 (unaudited)
Net revenue 45,031 38,803 172,939 147,667
Adjusted EBITDA1 6,313 3,531 25,595 15,040
Net income2 3,095 1,859 11,374 6,374
Net earnings per common share $0.29 $0.16 $1.04 $0.57
Net cash provided by operating activities 1,475 2,767 13,432 8,877

1.This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table.

Summary of Revenues and Cost of Revenues
(In Thousands of US Dollars)

Revenue Cost of Revenue
3 Months Ended December 31, 2015 (unaudited) 3 Months Ended December 31, 2014 (unaudited) 3 Months Ended December 31, 2015 (unaudited) 3 Months Ended December 31, 2014 (unaudited)
Domain Services
Wholesale
OpenSRS Domain Service 21,383 21,609 17,860 18,079
Value-Added Services 2,296 2,305 498 531
Total Wholesale 23,679 23,914 18,358 18,610
Retail 3,302 2,806 1,503 1,216
Portfolio 757 917 189 241
Total Domain Services 27,738 27,637 20,050 20,067
Network Access Services 17,293 11,166 9,188 6,755
Network, other costs 1,326 1,127
Network, depreciation and amortization costs 353 171
Total revenue/cost of revenue 45,031 38,803 30,917 28,120

“The fourth quarter marked a strong finish to a year that saw record performance across all of our key financial metrics,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “Fourth quarter revenue topped $45 million, bringing our total for the year to $173 million – up 17% from 2014. Our growing Network Access business contributed to 79% and 70% year-over-year Adjusted EBITDA growth for the quarter and the year, totalling $6.3 million and $25.6 million, respectively. Earnings per share for fourth quarter and the year grew 81% and 82%, respectively, from the prior year to $0.29 and $1.04.”

“Notably, for the first time, Network Access contributed more gross margin during the quarter than Domain Services, with Network Access gross margin for 2015 nearly doubling from the prior year as the number of Ting Mobile accounts and devices expanded by 36% and 37%, respectively, over the course of the year.”

“Our strong cash flows from operations, alongside the operating leverage in our business model, particularly with the success and growth in Ting Mobile over the past few years, are now enabling us to pursue our ambitions on Ting Internet, while still returning capital to shareholders. During 2015, we invested $23.6 million in the repurchase of 1.1 million of our shares through our Dutch tender and open market buyback program.”

Net revenue for the fourth quarter of 2015 increased 16% to $45.0 million from $38.8 million for the fourth quarter of 2014.

Adjusted EBITDA1 for the fourth quarter of 2015 increased 79% to $6.3 million from $3.5 million for the fourth quarter of 2014. Net income for the fourth quarter of 2015 increased to $3.1 million, or $0.29 per share, compared with $1.9 million, or $0.16 per share, for the fourth quarter of 2014.

Cash and cash equivalents at the end of the fourth quarter of 2015 were $7.7 million compared with $11.9 million at the end of the third quarter of 2015 and $8.3 million at the end of the fourth quarter of 2014. The decrease relative to the third quarter of 2015 is primarily the result of the Company’s use of $5.4 million during the fourth quarter of 2015 to repurchase 231,047 shares of its common stock under its ongoing share buyback program, the use of $1.3 million for withholding taxes paid on the net-exercise of stock options and the use of $0.9 million to acquire additional property and equipment, the majority of which was invested in expanding Ting Internet’s fiber footprint. These were partially offset by a $2 million excess tax benefit on share-based compensation expense and the generation of cash flow from operating activities during the quarter of $1.5 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 and to project our future earnings and cash flows, we typically disclose and discuss a non-GAAP financial measure, Adjusted EBITDA, on investor conference calls and related events that exclude non-cash and other charges as we believe that the non-GAAP information enhances investors’ overall understanding of our financial performance and the comparability of our operating results from period to period.

Adjusted EBITDA is one of the primary measures we use for planning and budgeting purposes, incentive compensation and to monitor and evaluate our financial and operating results. Since adjusted EBITDA is a non-GAAP financial performance measure, our calculation of adjusted EBITDA may be susceptible to varying calculations; 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 measure of discretionary cash available to invest in the growth of the business. See the Consolidated Statements of Cash Flows included in the attached financial statements. Non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions 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. However, the Company’s management compensates 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.

Adjusted EBITDA excludes depreciation expense, amortization of intangibles, income tax provision, interest expense, interest income, stock-based compensation, asset impairment, net deferred revenue, which comprises the change in deferred revenue, net of prepaid domain name registry and other Internet services fees, to reflect the material amount of cash we collect and pay for domain registrations and other Internet services at the time of activation, unrealized foreign exchange gain/loss from the translation of monetary accounts denominated in non U.S. dollars to U.S. dollars as well as the revaluation of foreign exchange contracts and our foreign denominated assets and liabilities and infrequently occurring items listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release.

Conference Call

Tucows management will host a conference call today, Thursday, February 9, 2016 at 5:00 p.m. (ET) to discuss the Company’s fourth quarter 2015 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 26560817 followed by the pound key. The telephone replay will be available until Thursday, February 16, 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 over thirteen 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, in particular, our expectations for Ting and its impact on our financial performance. 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, including the acceptance of Ting in the market. 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 Announces $40 Million Stock Buyback Program

TORONTO, February 9, 2016 – 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 February 10, 2016 and will terminate on or before February 9, 2017. The Company’s previous buyback program, which commenced February 16, 2015 and was scheduled to end on or before February 15, 2016, has been terminated as the Company has repurchased approximately $20 million of its common stock, the maximum dollar amount permitted under that program.

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 February 8, 2016, Tucows had 10,687,912 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) manages over thirteen 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 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 Fourth Quarter Investment Community Conference Call is Tuesday, February 9, 2016 at 5:00 P.M. (ET)

TORONTO, January 20, 2016 – Tucows Inc. (NASDAQ: TCX, TSX: TC) plans to report its fourth quarter fiscal 2015 financial results via news release on Tuesday, February 9, 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 416-849-0833 or 1-855-859-2056 and enter the pass code 26560817 followed by the pound key. The telephone replay will be available until Tuesday, February 16, 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 over thirteen 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 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 the Third Quarter of 2015

– Quarter Highlighted by Record Revenue of $44.6 Million, Record Adjusted EBITDA of $7.0 Million and Net Earnings of $0.29 Per Share –

TORONTO, November 5, 2015 – 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, 2015. All figures are in U.S. dollars.

Summary Financial Results

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

3 Months Ended September 30, 2015 (unaudited) 3 Months Ended September 30, 2014 (unaudited) 9 Months Ended September 30, 2015 (unaudited) 9 Months Ended September 30, 2014 (unaudited)
Net revenue 44,552 38,874 127,909 108,865
Adjusted EBITDA1 7,030 4,920 19,280 11,509
Net income2 3,159 2,691 8,278 4,515
Net earnings per common share $0.29 $0.24 $0.75 $0.40
Net cash provided by operating activities 6,783 5,014 11,957 6,110

1.This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table.
2. As the Company expects to exceed its adjusted EBITDA target set for Fiscal 2015 under its overachievement bonus program, net income for the three and nine months ended September 30, 2015 include a provision of $0.2 million and $1.1 million, respectively, to recognize this higher performance.

Summary of Revenues and Cost of Revenues
(In Thousands of US Dollars)

Revenue Cost of Revenue
3 Months Ended September 30, 2015 (unaudited) 3 Months Ended September 30, 2014 (unaudited) 3 Months Ended September 30, 2015 (unaudited) 3 Months Ended September 30, 2014 (unaudited)
Domain Services
Wholesale
OpenSRS Domain Service 21,137 21,880 17,613 18,230
Value-Added Services 2,405 2,350 357 576
Total Wholesale 23,542 24,230 17,970 18,806
Retail 3,154 2,687 1,427 1,197
Portfolio 1,315 2,2083 172 189
Total Domain Services 28,011 29,125 19,569 20,192
Network Access Services 16,541 9,749 9,211 5,794
Network, other costs 1,421 1,139
Network, depreciation and amortization costs 336 172
Total revenue/cost of revenue 44,552 38,874 30,537 27,297

3. Portfolio revenue for Q3 2014 includes the net amounts received from the previously announced confidential arrangements related to the Company’s withdrawal of its application under the ICANN New gTLD Program for .group.

“Continuing solid performance from our Domains business and increasing contribution from Ting Mobile resulted in a record quarter for both revenue and adjusted EBITDA1,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “The operating leverage in our business model contributed to 43% year-over-year growth in adjusted EBITDA for the quarter to a record $7.0 million, bringing our total for the first nine months of the year to $19.3 million, representing 68% growth from the same period last year and well above our total for all of 2014.”

Mr. Noss added, “We remain committed to returning to capital to our shareholders as we pursue sustainable long-term growth and during the third quarter invested nearly $10.0 million in the repurchase of our shares through our buyback program.”

Net revenue for the third quarter of 2015 increased 15% to $44.6 million from $38.9 million for the third quarter of 2014.

Adjusted EBITDA1 for the third quarter of 2015 increased 43% to $7.0 million from $4.9 million for the third quarter of 2014. Net income for the third quarter of 2015 increased to $3.2 million, or $0.29 per share, compared with $2.7 million, or $0.24 per share, for the third quarter of 2014.

Cash and cash equivalents at the end of the third quarter of 2015 were $11.9 million compared with $15.3 million at the end of the second quarter of 2015 and $13.6 million at the end of the third quarter of 2014. The decrease relative to the second quarter of 2015 is primarily the result of the Company’s use of $10.0 million during the third quarter of this year to repurchase 398,000 shares of its common stock under its ongoing share buyback program, as well as $0.7 million to acquire additional property and equipment, the majority of which was investment in expanding Ting Internet’s fiber footprint. These were partially offset by the generation of cash flow from operating activities during the quarter of $6.8 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 and to project our future earnings and cash flows, we typically disclose and discuss a non-GAAP financial measure, Adjusted EBITDA, on investor conference calls and related events that exclude non-cash and other charges as we believe that the non-GAAP information enhances investors’ overall understanding of our financial performance and the comparability of our operating results from period to period.

Adjusted EBITDA is one of the primary measures we use for planning and budgeting purposes, incentive compensation and to monitor and evaluate our financial and operating results. Since adjusted EBITDA is a non-GAAP financial performance measure, our calculation of adjusted EBITDA may be susceptible to varying calculations; 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 measure of discretionary cash available to invest in the growth of the business. See the Consolidated Statements of Cash Flows included in the attached financial statements. Non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions 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. However, the Company’s management compensates 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.

Adjusted EBITDA excludes depreciation expense, amortization of intangibles, income tax provision, interest expense, interest income, stock-based compensation, asset impairment, net deferred revenue, which comprises the change in deferred revenue, net of prepaid domain name registry and other Internet services fees, to reflect the material amount of cash we collect and pay for domain registrations and other Internet services at the time of activation, unrealized foreign exchange gain/loss from the translation of monetary accounts denominated in non U.S. dollars to U.S. dollars as well as the revaluation of foreign exchange contracts and our foreign denominated assets and liabilities and infrequently occurring items listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release.

Conference Call

Tucows management will host a conference call today, Thursday, November 5, 2015 at 5:00 p.m. (ET) to discuss the Company’s third quarter 2015 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 61908554 followed by the pound key. The telephone replay will be available until Thursday, November 12, 2015 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 over thirteen 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, in particular, our expectations for Ting and its impact on our financial performance. 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, including the acceptance of Ting in the market. 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 Thursday, November 5, 2015 at 5:00 P.M. (ET)

TORONTO, Oct. 22, 2015 — Tucows Inc. (NASDAQ:TCX) (TSX:TC) plans to report its third quarter fiscal 2015 financial results via news release on Thursday, November 5, 2015 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 416-849-0833 or 1-855-859-2056 and enter the pass code 61908554 followed by the pound key. The telephone replay will be available until Thursday, November 12, 2015 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 over fourteen 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 is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

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

Ting Selects Holly Springs, North Carolina as Next to Get Crazy Fast Fiber Internet

HOLLY SPRINGS, N.C., Oct. 21, 2015 — As other fiber Internet providers pass over smaller metros in the race to bring fiber to big cities, Ting, a division of Tucows Inc. (NASDAQ:TCX) (TSX:TC), steps in to ensure cities and towns of all sizes can benefit.

Ting is announcing its intent to make Holly Springs, NC the next town to get symmetrical gigabit (1,000 Mbps download and upload speed) “crazy fast fiber Internet.” Holly Springs will join Charlottesville, VA and Westminster, MD where Ting Internet is already available. Demand assessment will begin in Holly Springs in the last quarter of 2015. That demand will guide construction, which could then begin as soon as the first half of 2016.

tingIn the meantime, Holly Springs residents can express interest in Ting Internet and sign up for updates at ting.com/hollysprings.

Holly Springs is an organized community that planned ahead to get fiber Internet access for its tech-savvy citizens; a partial fiber network already exists in the town. Also, Holly Springs has promised to make it easier for Ting to get to work by easing some of the red tape around construction and other permits that can otherwise slow things down.

“We’re very happy that Ting chose Holly Springs as the next place to bring crazy fast fiber Internet. In the past 25 years, Holly Springs has grown over 2,600%. Young families with school-aged children are driving that growth. World-class Internet access will help us continue our forward progress and inspire the next generation of great ideas,” said Mayor Dick Sears.

“The need for faster, more reliable Internet access across the US has been recognized by the highest levels of government,” said Tucows CEO Elliot Noss. “The problem of slow, expensive and unreliable Internet access is national but agreements like the one reached with Holly Springs further demonstrate that the solution is local.”

“While Google Fiber and other providers race to get started in big cities, we’re finding that there’s also a lot of interest from, and opportunity in, smaller cities and towns that might otherwise get passed over,” Noss said.

Ting disrupted the mobile industry with its launch in 2012 offering shockingly fair pricing, usable interfaces and no-hold, no-transfer customer support. Ting received the top honor in Consumer Reports annual cell phone service ratings survey for 2014.

“If there’s one industry that needs Ting perhaps even more than mobile, it’s cable and Internet access,” said Noss. “For too long, people and businesses have dealt with middling speeds, contracts and caps. We plan to bring world-class Internet to more towns and cities all over the US.”

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS manages over fourteen million domain names and other services through a reseller network of over 13,000 web hosts and ISPs. Hover makes it easy for individuals and small businesses to manage their domain names and email. More information can be found on the Tucows website.

About Holly Springs

Located in southwest Wake County, Holly Springs, NC has grown to become one of the most attractive communities in the Research Triangle region. Home to small businesses and multinational firms alike, the town’s population has seen sharp growth over the past 20 years, approaching 30,000 residents. In 2013, Bloomberg Businessweek ranked Holly Springs as the best place in NC to raise kids.

Media Contact
Jesse Simms
1-844-275-1773

https://ting.com

Investor Contact
Lawrence Chamberlain
416-848-1457

Ting Offers (Another) Free Coffee to 120 Million AT&T Cellphone Users

TORONTO, Oct. 20, 2015 — Irrepressibly cute cellphone and Internet service provider, Ting, a division of Tucows Inc. (NASDAQ:TCX) (TSX:TC), is once again trading coffee for consideration.

In 2013, the upstart handed out thousands of $5 Starbucks gift cards to anyone who calculated how much they would save by switching to Ting. At that time, people generally had to buy a new phone to join Ting and were calculating whether the monthly savings more than covered the upfront cost.

Now Ting, at over 170,000 subscribers and growing fast, has a new offering. They have added service on a GSM network, which means most phones, including the vast majority on AT&T, can be unlocked and brought to Ting simply by popping in a Ting GSM SIM card.

If people can bring their phone to Ting, then Ting believes they will.

So, for the next three days, ending at midnight on Thursday, October 22, AT&T customers are invited to check their active phones, one per customer, at ting.com/byod_coffee to see if they are Ting compatible. For each phone checked, whether they prove to be compatible, Ting will provide a unique promo code worth $5 at any Starbucks location.

“If you can bring your phone to Ting, the calculation gets very simple. You are going to have a better customer experience and you are likely going to spend less,” explained Michael Goldstein, Ting VP of Sales and Marketing. “But sometime people need a more immediate incentive to take that first step. Until a better incentive comes along, we’re going to stick with coffee.”

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 over fourteen 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).

Media Contact:
Jesse Simms
416-535-0123 x1209

Investor Contact:
Lawrence Chamberlain
416-848-1457

Tucows Reports Continuing Strong Financial Results for the Second Quarter of 2015

– Quarter Highlighted by Record Revenue of $42.9 Million, Adjusted EBITDA of $5.4 Million and Net Earnings of $0.21 Per Share as Contribution of Ting Mobile Continues to Grow –

TORONTO, August 6, 2015 – 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, 2015. All figures are in U.S. dollars.

Summary Financial Results

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

3 Months EndedJune 30, 2015 (unaudited) 3 Months EndedJune 30, 2014 (unaudited) 6 Months EndedJune 30, 2015 (unaudited) 6 Months EndedJune 30, 2014 (unaudited)
Net revenue 42,889 35,588 83,357 69,990
Adjusted EBITDA1 5,357 3,275 12,250 6,589
Net income2 2,285 1,347 5,119 1,824
Net earnings per common share $0.21 $0.12 $0.46 $0.16
Net cash provided by operating activities 2,236 1,135 5,173 1,096
  1. This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table.
  2. Net income for the three- and six-month periods ended June 30, 2015 include a provision of $0.9 million under the Company’s overachievement bonus program as the Company expects to exceed its adjusted EBITDA target.

Summary of Revenues and Cost of Revenues

(In Thousands of US Dollars)

Revenue Revenue Cost of Revenue Cost of Revenue
3 Months EndedJune 30, 2015 (unaudited) 3 Months EndedJune 30, 2014 (unaudited) 3 Months EndedJune 30, 2015 (unaudited) 3 Months EndedJune 30, 2014 (unaudited)
Domain Services
Wholesale
OpenSRS Domain Service 21,287 21,503 17,750 17,809
Value-Added Services 2,356 2,396 501 563
Total Wholesale 23,643 23,899 18,251 18,372
Retail 3,009 2,540 1,323 1,111
Portfolio 819 889 178 213
Total Domain Services 27,471 27,328 19,752 19,696
Network Access Services 15,418 8,260 8,499 5,040
Network, other costs 1,495 1,145
Network, depreciation and amortization costs 291 174
Total revenue/cost of revenue 42,889 35,588 30,037 26,055

 

“Continuing growth in Ting Mobile as well as solid performance from our Domains business contributed to another quarter of record revenue as the operating leverage in our business drove further expansion of our gross margin to 29%2 from 26%2 in the second quarter of last year,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “This operating leverage continued to be reflected in our profitability, with Adjusted EBITDA1 for the second quarter increasing 64% year-over-year to $5.4 million, bringing our total for the year-to-date to $12.3 million.”

Net revenue for the second quarter of 2015 increased 21% to $42.9 million from $35.6 million for the second quarter of 2014.

Adjusted EBITDA for the second quarter of 2015 increased 64% to $5.4 million from $3.3 million for the second quarter of 2014. Net income for the second quarter of 2015 increased to $2.3 million, or $0.21 per share, compared with $1.3 million, or $0.12 per share, for the second quarter of 2014.

Cash and cash equivalents at the end of the second quarter of 2015 were $15.3 million, up from $8.3 million at the end of the fourth quarter of 2014 and $14.2 million at the end of the second quarter of 2014. During the second quarter of 2015, Tucows generated cash flow from operating activities of $2.2 million and invested $1.1 million to acquire additional property and equipment, primarily investing $0.8 million in expanding Ting Internet’s fiber footprint. The Company also used $0.5 million in cash to repurchase 25,413 shares of its common stock under its ongoing share buyback program.

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 and to project our future earnings and cash flows, we typically disclose and discuss a non-GAAP financial measure, Adjusted EBITDA, on investor conference calls and related events that exclude non-cash and other charges as we believe that the non-GAAP information enhances investors’ overall understanding of our financial performance and the comparability of our operating results from period to period.

Adjusted EBITDA is one of the primary measures we use for planning and budgeting purposes, incentive compensation and to monitor and evaluate our financial and operating results. Since adjusted EBITDA is a non-GAAP financial performance measure, our calculation of adjusted EBITDA may be susceptible to varying calculations; 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 measure of discretionary cash available to invest in the growth of the business. See the Consolidated Statements of Cash Flows included in the attached financial statements. Non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions 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. However, the Company’s management compensates 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.

Adjusted EBITDA excludes depreciation expense, amortization of intangibles, income tax provision, interest expense, interest income, stock-based compensation, asset impairment, net deferred revenue, which comprises the change in deferred revenue, net of prepaid domain name registry and other Internet services fees, to reflect the material amount of cash we collect and pay for domain registrations and other Internet services at the time of activation, unrealized foreign exchange gain/loss from the translation of monetary accounts denominated in non U.S. dollars to U.S. dollars as well as the revaluation of foreign exchange contracts and our foreign denominated assets and liabilities and infrequently occurring items listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release.

  1. Excludes contribution of the Portfolio group.

Conference Call

Tucows management will host a conference call today, Thursday, August 6, 2015 at 5:00 p.m. (ET) to discuss the Company’s second quarter 2015 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 pass code 85694270 followed by the pound key. The telephone replay will be available until Thursday, August 13, 2015 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 over fourteen 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, in particular, our expectations for Ting and its impact on our financial performance. 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, including the acceptance of Ting in the market. 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) 815-0700 ext. 257
lchamberlain@tmxequicom.com

 

Tucows Second Quarter Investment Community Conference Call is Thursday, August 6, 2015 AT 5:00 P.M. (ET)

TORONTO, July 24, 2015 – Tucows Inc. (NASDAQ: TCX, TSX: TC) plans to report its second quarter fiscal 2015 financial results via news release on Thursday, August 6, 2015 at approximately 4:00 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 416-849-0833 or 1-855-859-2056 and enter the pass code 85694270 followed by the pound key. The telephone replay will be available until Thursday, August 13, 2015 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 over fourteen 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 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) 815-0700 ext. 257
lchamberlain@tmxequicom.com

Westminster, MD. Gets Lit With Ting

WESTMINSTER, Md., June 26, 2015 — The City of Westminster joins the ranks of cities with the fastest Internet access in the world today with a little help from Ting.

As access to the Internet and all the innovation and development that happens online becomes an increasing part of the national agenda, Ting and Westminster are demonstrating that the solution is local.

In this groundbreaking public/private partnership, the City of Westminster owns the main fiber network infrastructure where Ting, as a partner and exclusive service provider for a period of two years, lights it up and gets homes and businesses connected with crazy fast gigabit fiber Internet.

Gigabit Internet service refers to data uploads and downloads of up to a gigabit (or 1,000 megabits) per second. To put that in context, everyone in a gigabit household can be streaming video, gaming, video conferencing and browsing the Internet at the same time without getting in each other’s way. Gigabit fiber Internet access facilitates healthcare, fosters education and brings economic development.

“Our long term plan is to bring fiber to every home and business in the City. This project enables us to deliver a wide range of broadband services beyond simple Internet access, attracting even more businesses and residents to our City,” said Westminster Mayor Kevin Utz.

“We’re happy to team up with towns and cities that get it,” said Elliot Noss, CEO of Ting and its parent company Tucows (NASDAQ:TCX) (TSX:TC). “Gigabit fiber is the next generation of Internet access and it will power the next generation of ideas.”

Ting disrupted the mobile industry with its launch in 2012 offering shockingly fair pricing, usable interfaces and no-hold, no-transfer, live customer support.

“If there’s one industry that needs Ting perhaps even more than mobile, it’s cable and Internet access,” said Noss. “For too long, people and businesses have had no choice, or at best the illusion of choice, as to who provides them with access. They have been held hostage by contracts and forced under bandwidth caps. We are changing that.”

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 over fourteen 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).

Media Contact:
Jesse Simms
416-535-0123 x1209

Investor Contact:
Lawrence Chamberlain
416-815-0700 ext. 257

Tucows Reports Continuing Strong Financial Results for the First Quarter of 2015

– Quarter Highlighted by Adjusted EBITDA of $6.9 Million and Net Earnings of $0.25 Per Share as Ting Mobile Increasingly Contributes to Financial Results –

TORONTO, May 7, 2015 – 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, 2015. All figures are in U.S. dollars.

Download financials (PDF)

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

3 Months Ended Mar. 31, 2015 (unaudited) 3 Months Ended Mar. 31, 2014 (unaudited)
Net revenue 40,468 34,402
     
Adjusted EBITDA¹ 6,893 3,314
Net income 2,834 477
Net earnings per common share $0.25 $0.04
Net cash provided by (used in) operating activities 2,938 (39)

¹ This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table.

Summary of Revenues and Cost of Revenues
(In Thousands of US Dollars)

Revenue Cost of Revenue
3 Months Ended Mar. 31, 2015 (unaudited) 3 Months Ended Mar. 31, 2014 (unaudited) 3 Months Ended Mar. 31, 2015 (unaudited) 3 Months Ended Mar. 31, 2014 (unaudited)
Domain Services
Wholesale
OpenSRS Domain Service 21,175 21,649 17,548 18,235
Value-Added Services 2,242 2,604 536 541
Total Wholesale 23,417 24,253 18,084 18,776
Retail 2,876 2,384 1,220 1,015
Portfolio¹ 1,248 1,053 172 244
Total Domain Services 27,541 27,690 19,476 20,035
Network Access Services (Ting) 12,927 6,712 7,345 4,281
 
Network, other costs 1,222 1,144
Network, depreciation and amortization costs 204 183
Total revenue/cost of revenue 40,468 34,402 28,247 25,643

Note: Portfolio revenue for Q1 2015 includes a gain we recognized on the sale of our minority interest in .store as a result of this contested domain being resolved through a confidential private auction in February 2015.

“Continuing our momentum of last year, the first quarter was an excellent start to 2015,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “With each quarter, the growth in Ting Mobile is having a greater impact on our financial results as we benefit from the operating leverage in our business. That impact is evident in the continued expansion of our gross margin percentage, which grew to 28%² from 24%² for the same quarter last year, while Adjusted EBITDA more than doubled to $6.9 million positioning us to come in comfortably above our previous guidance of $20 million for the full year. We look forward to continued growth in Ting Mobile alongside solid performance from our domains business as we ramp towards the launch of Ting Internet, our fiber-to-the-home initiative, later this year.”

Net revenue for the first quarter of 2015 increased 18% to $40.5 million from $34.4 million for the first quarter of 2014.

Adjusted EBITDA for the first quarter of 2015 increased 108% to $6.9 million from $3.3 million for the first quarter of 2014. Net income for the first quarter of 2015 increased to $2.8 million, or $0.25 per share, compared with $0.5 million, or $0.04 per share, for the first quarter of 2014. Both adjusted EBITDA and net income for the first quarter of 2015 benefitted from the sale of our minority interest in .store.

Cash and cash equivalents at the end of the first quarter of 2015 were $13.7 million, up from $8.3 million at the end of the fourth quarter of 2014 and $13.5 million at the end of the first quarter of 2014. During the first quarter of 2015, Tucows generated cash flow from operating activities of $2.9 million. In addition, the Company generated $6.6 million from its previously announced agreement to amend its .online joint venture relationship to a marketing agreement and received $3.5 million under its Amended Credit Facility to fund the Company’s previously announced acquisition of a controlling interest in Ting Virginia, LLC. The Company also used $7.7 million in cash to repurchase 408,000 shares of its common stock under its ongoing share buyback program and the modified “Dutch auction tender offer” that closed on January 7, 2015.

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 and to project our future earnings and cash flows, we typically disclose and discuss a non-GAAP financial measure, Adjusted EBITDA, on investor conference calls and related events that exclude non-cash and other charges as we believe that the non-GAAP information enhances investors’ overall understanding of our financial performance and the comparability of our operating results from period to period.

Adjusted EBITDA is one of the primary measures we use for planning and budgeting purposes, incentive compensation and to monitor and evaluate our financial and operating results. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of operating performance or any other measures of performance derived in accordance with generally accepted accounting principles. 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 measure of discretionary cash available to invest in the growth of the business. See the Consolidated Statements of Cash Flows included in the attached financial statements. Non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. The use of certain non-GAAP financial measures requires management to make estimates and assumptions regarding amounts of assets and liabilities and the amounts of revenue and expense during the reporting periods. We base our estimates on historical experience and assumptions that we believe are reasonable. Actual results could differ from these estimates.

Adjusted EBITDA excludes depreciation expense, amortization of intangibles, income tax provision, interest expense, interest income, stock-based compensation, asset impairment, net deferred revenue, which comprises the change in deferred revenue, net of prepaid domain name registry and other Internet services fees, to reflect the material amount of cash we collect and pay for domain registrations and other Internet services at the time of activation, unrealized foreign exchange gain/loss from the translation of monetary accounts denominated in non U.S. dollars to U.S. dollars as well as the revaluation of foreign exchange contracts and our foreign denominated assets and liabilities and other infrequently occurring items listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release.

2. Excludes contribution of the Portfolio group.

Conference Call

Tucows management will host a conference call today, Thursday, May 7, 2015 at 5:00 p.m. (ET) to discuss the Company’s first quarter 2015 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 pass code 32328961 followed by the pound key. The telephone replay will be available until Thursday, May 14, 2015 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 over fourteen 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, in particular, our expectations for Ting and its impact on our financial performance. 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, including the acceptance of Ting in the market. 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
TMX Equicom
(416) 815-0700 ext. 257
lchamberlain@tmxequicom.com

Tucows First Quarter Investment Community Conference Call is Thursday, May 7, 2015 at 5:00 P.M. (ET)

TORONTO, April 23, 2015 – Tucows Inc. (NASDAQ: TCX, TSX: TC) plans to report its first quarter fiscal 2015 financial results via news release on Thursday, May 7, 2015 at approximately 4:00 p.m. (ET). Tucows management will host a conference call 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 416-849-0833 or 1-855-859-2056 and enter the pass code 32328961 followed by the pound key. The telephone replay will be available until Thursday, May 14, 2015 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 over fourteen 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 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
TMX Equicom
(416) 815-0700 ext. 257

lchamberlain@tmxequicom.com

Radix Assumes Full Ownership of .online

Tucows and Namecheap to Remain as Marketing Partners

TORONTO, March 2, 2015 – Radix, one of the leading registries in the new gTLD space, has reached an agreement with auction partners Tucows (Nasdaq:TCX) (TSX:TC) and Namecheap to assume full ownership and operation of the .online TLD.

Radix has already launched some of the most recognizable new gTLDs with .website, .host, .press and .space. With .online, they now own the first truly generic, truly global, viable alternative to .com.

“Online” is the most commonly used word to end domain names, with over 550K .com domain names today ending with the word “online.” In addition, the .online extension has been amongst the top most pre-registered names across registrars.

Tucows, the leading wholesale registrar, and Namecheap, one of the most popular retail registration services, will both continue to work closely with Radix as marketing and distribution partners. The three companies represent a formidable supply chain from registry to registrar to retailer, with the potential to deliver .online to tens of millions of small businesses around the world.

But Radix emerged as the party with the greatest focus on operating a registry.

“We began this partnership and this bid process way back in Spring 2013,” explained Tucows CEO Elliot Noss. “Since then, we have discovered a winning strategy that combines great execution on our domains business and investment for growth on our Ting telecom business. Namecheap, likewise, has increased its singular focus on delivering an outstanding retail domain name experience.”

Noss continued, “Meanwhile, Radix has emerged as one of the most ambitious and capable domain name registries in the world. We still believe that .online has huge potential as a fresh alternative to .com. We are confident that Radix is the right company to run it and both Tucows and Namecheap are thrilled to play our rightful part in its success.”

Radix CEO Bhavin Turakhia concluded simply, “The initial response to new gTLDs has been fantastic and .online has far greater potential than anything we or anyone else has launched to date. We are delighted to call it ours.”

The terms of the final agreement between the three parties is not disclosed.

About Radix

Radix (Radix FZC), is an active participant in ICANN’s process to expand the internet naming system and introduce new, meaningful internet addresses. Radix is Asia’s largest new gTLD applicant under this program with applications to operate 20 suffixes including web, .music, .blog, and .shop. The company has invested over $30 Million in securing licenses to operate these new extensions and expects to play a large role in the global diversification of the internet namespace.

About Tucows

Tucows is a provider of network access, domain name and other Internet services. OpenSRS (http://opensrs.com) manages over fourteen 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) is the easiest way for individuals and small businesses to manage their domain names and email addresses. Ting (https://ting.com) is a mobile phone service provider dedicated to bringing clarity and control to US mobile phone users. More information can be found on Tucows’ corporate website (http://tucows.com).

About Namecheap

Namecheap is a Los Angeles-based ICANN-accredited domain registrar, founded in 2000 by CEO Richard Kirkendall. With over four million domains under management and two million direct customers, Namecheap is one of the top domain registrars and web hosting providers in the world. For more information, visit, https://www.namecheap.com.

Tucows Contact:
Lawrence Chamberlain
TMX Equicom
(416) 815-0700 ext. 257