Author Archives: tucows

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

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 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

Tucows Second Quarter Investment Community Conference Call is Monday, August 8, 2016 at 8:00 A.M. (ET)

TORONTO, July 25, 2016 – Tucows Inc. (NASDAQ: TCX, TSX: TC) plans to report its second quarter fiscal 2016 financial results via news release on Monday, August 8, 2016 at approximately 7:00 a.m. (ET). Tucows management will host a conference call on the same day at 8:00 a.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 50279294 followed by the pound key. The telephone replay will be available until Thursday, August 11, 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 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

Ting Internet gigabit fiber network build set to begin in Holly Springs, NC

Construction to begin before the end of the summer. Holly Glen area homes to be connected by the end of this year

HOLLY SPRINGS, N.C., June 01, 2016 — The journey of 1,000 miles of fiber infrastructure (and 1000 megabit Internet access) begins with a single subterranean boring operation. Or something like that.

After residents watched the Google Fiber crew pass their city by on their way to wire Raleigh-Durham, NC for gigabit Internet, Holly Glen will be the first neighborhood in Holly Springs, NC to get crazy fast fiber Internet.

“Internet speed and infrastructure is an issue that is on the national agenda,” says 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.”

Ting Internet is pleased to announce that Holly Glen and surrounding neighborhoods including Braxton Village, Holly Pointe and others, will be the first neighborhoods in Holly Springs, NC to get gigabit fiber Internet.

“We go where we’re needed and wanted most,” says Adam Eisner, VP of Networks, Ting Internet. “We use pre-orders to determine where the strongest desire lies. Holly Glen reached that tipping point quickly and we’re eager to get started. By the end of 2016, we plan to have the first homes in Holly Glen connected with Ting crazy fast fiber Internet.”

The Ting Internet team publishes regular network build updates and major updates on the Ting Holly Springs page at ting.com/hollysprings.

“Ting has demonstrated its commitment to Holly Springs, and that’s exactly what we look for when working with the private sector,” says Holly Springs Mayor Dick Sears. “The citizens of Holly Springs deserve the best Internet access to allow them to telecommute, to inspire kids with the possibilities technology brings and to keep Holly Springs growing at the impressive pace we’ve been driving for the past several decades.”

Because Holly Springs’ explosive growth has been a relatively recent phenomenon, the majority of its infrastructure is underground. That’s where Ting fiber Internet infrastructure will live too.

Ting will be holding a public information session for the people of Holly Springs to meet members of the Ting team in person, to ask questions and to see what possibilities the best Internet access opens up.

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.

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).

Media Contact

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

Investor Contact

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

Tucows Reports Continuing Strong Financial Results for First Quarter of 2016


– EPS Increases 68% Year-Over-Year to a Record $0.42 –

TORONTO, May 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 first quarter ended March 31, 2016. All figures are in U.S. dollars.

Summary Financial Results

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

3 Months Ended March 31
2016
(unaudited)
2015
(unaudited)
% Change
Net revenue 45,610 40,468 13%
Adjusted EBITDA1 7,486 6,777 10%
Net income 4,438 2,834 57%
Net earnings per common share $0.42 $0.25 68%
Net cash provided by operating activities 5,553 2,938 89%

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

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

Revenue Gross Margin
3 Months Ended March 31 3 Months Ended March 31
2016
(unaudited)
2015
(unaudited)
2016
(unaudited)
2015
(unaudited)
Network Access Services:
Mobile Services 16,944 12,559 8,396 5,429
Other Services 895 368 454 153
Total Network Access Services 17,839 12,927 8,850 5,582
Domain Services:
Wholesale
Domain Services 21,271 21,175 3,628 3,629
Value Added Services 2,302 2,242 1,823 1,706
Total Wholesale 23,573 23,417 5,451 5,335
Retail 3,415 2,876 1,837 1,655
Portfolio 783 1,248 622 1,075
Total Domain Services 27,771 27,541 7,910 8,065
Network Expenses:
Network, other costs (1,233) (1,222)
Network, depreciation and amortization costs (358) (204)
Total Network Expenses (1,591) (1,426)
45,610 40,468 15,169 12,221

“The first quarter was a solid start to 2016, carrying forward the momentum of last year with strong year-over-year growth in each of our key financial metrics,” said Elliot Noss, President and Chief Executive Officer. “Revenue increased 13% to a record $45.6 million as steady performance from our Domain Services business and continued growth from Ting Mobile contributed to further expansion of our gross margin to 33%. We also achieved records for both adjusted EBITDA¹ at $7.5 million and net income at $4.4 million, or $0.42 per share.”

“We also took advantage of some great opportunities in Q1 to invest in our core strategies. We scaled our Wholesale domain business with the acquisition of the international wholesale domain reseller channel of Melbourne IT, which we closed on April 1. The acquisition expands our domains under management by approximately 1.6 million but adds minimally to our operating costs. In addition, we continued to expand our gigabit fiber footprint. We also announced Ting Internet’s intention to enter a fourth market, the greater Sandpoint, Idaho, area, and began taking pre-orders during the quarter.”

Net revenue for the first quarter of 2016 increased 13% to $45.6 million from $40.5 million for the first quarter of 2015.

Adjusted EBITDA¹ for the first quarter of 2016 increased to $7.5 million from $6.8 million for the first quarter of 2015. Net income for the first quarter of 2016 increased to $4.4 million, or $0.42 per share, compared with $2.8 million, or $0.25 per share, for the first quarter of 2015.

The Company reiterated its previous adjusted EBITDA¹ guidance for 2016 of $30.0 million.

Cash and cash equivalents at the end of the first quarter of 2016 was $10.0 million compared with $7.7 million at the end of the fourth quarter of 2015 and $13.7 million at the end of the first quarter of 2015. The increase relative to the fourth quarter of 2015 is primarily the result of the generation of $5.6 million in cash flow from operations, which was partially offset by the use of $2.2 million to repurchase 98,178 shares of common stock under the Company’s open market share buyback program. The Company also invested $0.9 million in property and equipment, the majority of which was to support the continued expansion of the Ting fiber footprint, and used $0.2 million for loan repayment.

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 its historical performance, the Company typically discloses and discusses 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 its financial performance.

The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of its core business using the same evaluation measures that management uses. Adjusted EBITDA is one of the primary measures the Company uses for planning and budgeting purposes, incentive compensation and to monitor and evaluate its financial and operating results. 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 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 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 results. Tucows strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

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 it believes that it is able to manage realized gains/losses from all foreign currency contracts with proper planning and budgeting. The revised adjusted EBITDA definition excludes depreciation, amortization of intangible assets, 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 the Company collects and pays for domain registrations and other Internet services at the time of activation, 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 to the revision, the adjusted EBITDA definition removed the effect of realized gains/losses from all foreign currency contracts, both hedged and unhedged; 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 revised adjusted EBITDA definition will be used to assess the Company’s performance for 2016 and future periods.

Conference Call

Tucows management will host a conference call today, Monday, May 9, 2016 at 5:00 p.m. (ET) to discuss the Company’s first 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 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).

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 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