News

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

We’ve put together a beautiful office space in downtown St. Catharines at the corner of King and James (Map). It’s a great place to spend the working hours and we’ve got the whole third floor to ourselves.

We’ll be holding a career fair from 3pm to 8pm on Thursday, September 10 and Monday, September 14, 2015. Our management teams will be on site and ready to talk to you about a career at Ting and Tucows so please bring your resume.

If “mobile that makes sense” and “crazy fast fiber Internet” sound like the kind of mission you can get behind, we’d love to meet you. Maybe even hang out for nine hours a day, five days a week for the foreseeable future.

We’re specifically looking for people to join our Customer Experience team in the following positions.

• Customer Experience Manager
• Customer Advisors
• Network Operations Center (NOC) Analyst

Check the Careers section for more details.

We’re always looking for great people to join the team so come out and say hello.

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– 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

 

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