Author Archives: Tucows

Tucows Announces Timing for Q2 2019 Financial Results News Release and Management Commentary: Wednesday, August 7, 2019 at 5:05 P.M. ET

TORONTO, July 24, 2019 – Tucows Inc. (NASDAQ: TCX, TSX: TC) today announced that it will report its second quarter 2019 financial results via news release on Wednesday, August 7, 2019 at 5:05 p.m. ET.
Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Wednesday, August 7, management’s pre-recorded commentary (with transcript) discussing the quarter and outlook for the Company will be posted to the Tucows website at http://www.tucows.com/investors/financials.  In lieu of a live question and answer period, for the subsequent six days, until Tuesday, August 13, shareholders, analysts and prospective investors can submit questions to Tucows’ management at ir@tucows.com. Management will post responses to questions of general interest (audio recording and transcript) to the Company’s website at http://www.tucows.com/investors/financials/ on Tuesday, August 20 at approximately 4:00 p.m. ET.  All questions will receive a response, however, questions of a more specific nature may be responded to directly.

Ting Mobile Announces New Network Service Provider Agreement and Provides Updated Financial Guidance

TORONTO, July 9, 2019 – Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services today updated its financial guidance and announced that Ting Mobile, an MVNO phone service provider and a division of Tucows, will be adding service over the Verizon network to its product offering.

Read more | Management remarks: Audio | Transcript

Tucows Announces Timing for Q1 2019 Financial Results News Release and Investment Community Call: Wednesday, May 8, 2019 at 5:05 P.M. ET

TORONTO, April 25, 2019 – Tucows Inc. (NASDAQ: TCX, TSX: TC) today announced that it will report its first quarter 2019 financial results via news release on Wednesday, May 8, 2019 at 5:05 p.m. ET.

Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Wednesday, May 8, management’s pre-recorded remarks discussing the quarter and outlook for the Company will be posted to the Tucows web site at http://www.tucows.com/investors/financials.  In lieu of a live question and answer period, for the subsequent six days, until Tuesday, May 14, shareholders, analysts and prospective investors can submit questions to Tucows’ management at ir@tucows.com. Management will post responses to questions of general interest to the Company’s web site at http://www.tucows.com/investors/financials/ on Tuesday, May 21 at approximately 4:00 p.m. ET.  All questions will receive a response, however, questions of a more specific nature may be responded to directly.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (opensrs.com), Enom (enom.com) and Ascio (ascio.com) manage a combined 25 million domain names and millions of value-added services through a global reseller network of over 37,000 web hosts and ISPs. Hover (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 (tucows.com).

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

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

Ting to offer gigabit fiber Internet in Fullerton, CA

Building on Ting Internet’s success in markets across the US, Ting Internet expands its service footprint to California in partnership with SiFi Networks.

April 8, 2019 – Fullerton, CA – Ting, a division of Tucows (NASDAQ: TCX, TSX: TC) is pleased to announce that Fullerton, CA will be the next town to get crazy fast fiber Internet from Ting. Residents can pre-order now at ting.com/fullerton.

Ting will provide service in Fullerton through a partnership with SiFi networks, an international fiber-optic network developer. This partnership model separates the construction, ownership and operation of fiber infrastructure from the provisioning of Internet service and customer support. With SiFi Networks taking on the former, Ting can scale more quickly and focus on its core business strengths of providing ultra-fast, low latency Internet service with a top-rated customer experience.

Ting will be one of two Internet service partners on SiFi’s network. Once completed, the Fullerton build will add just over 50,000 shared serviceable addresses to Ting’s potential addressable market.

“Fullerton is a solid market for us, with a strong, dense and diverse population of families along with colleges, beautiful public spaces, and businesses big and small,” said Elliot Noss, Tucows’ CEO. “Fullerton will be great for our business. We are pleased to embark on a California footprint, to test the Ting brand and customer experience through direct competition, and to see alternative models emerging in the ongoing fiberization of America.”

Ting is part of Tucows, a quietly, wildly successful Internet company founded in 1993 that built its reputation providing products people really want, and an outstanding customer experience. Ting builds, operates, and provides service on fiber networks in select markets across the US, and has differentiated itself from its competition by offering crazy fast symmetrical gigabit fiber Internet access, a deep local presence, and genuinely human customer support. Fullerton will be Ting’s eighth market, and first in southern California.

Ting expects to light its first customers in Fullerton towards the end of this year.

Pre-orders are open for Fullerton

Fullerton residents can pre-order Ting crazy fast fiber Internet now at ting.com/fullerton. A one-time $9 pre-order is returned as a credit on a customer’s first Ting bill. Pre-ordering secures the best possible break on start-up costs on Ting gigabit service, including the full cost of installation.

Ting Internet offers symmetrical gigabit fiber Internet for residential, small business, and enterprise customers. Home gigabit Internet costs $79 a month. Business gigabit Internet costs $139 a month. Enterprise Internet service levels, installations and pricing vary and can be discussed with the Fullerton Enterprise team.

CEO Elliot Noss, VP Networks Adam Eisner, Director, Market Development and Government Affairs Monica Webb, and other members of the Ting team are always available to speak with local and national media. Well, not literally always but you’ll find they’re pretty available and approachable.

About Ting Internet

Ting Internet (ting.com/internet) provides crazy fast fiber Internet to residents and businesses in select US towns and cities, in 5 states. Ting is committed to providing an outstanding customer experience, and being a part of investing in the communities it serves by supporting and championing local good works and innovation.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (opensrs.com), Enom (enom.com) and Ascio (ascio.com) manage a combined 25 million domain names and millions of value-added services through a global reseller network of over 37,000 web hosts and ISPs. Hover (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 (tucows.com).

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

Tucows investor contact
Lawrence Chamberlain
416-519-4196
lawrence.chamberlain@loderockadvisors.com

Ting press contact
Ray Weiss
410-303-5019
rweiss@weisspr.com

Tucows Inc. Acquires Wholesale Domain Registrar Ascio Technologies

European registrar brings incremental scale, additional domain products and a high-quality reseller base to Tucows’ domains business

TORONTO, March 19, 2019 — Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services, announced that it has signed a definitive agreement to acquire wholesale domain name registrar Ascio Technologies from CSC®. The transaction closed yesterday.

Tucows will pay $29.44 million and the transaction is expected to be immediately accretive to operating cash flow. The purchase price will be funded through Tucows’ existing credit facility.

The acquisition of Ascio adds approximately 1.8 million domains under management and approximately 500 active resellers. The Ascio reseller base fits squarely with Tucows’ core customer profile — ISPs, web hosting companies and website builders serving quality businesses that reward outstanding customer service with long-term loyalty.

Ascio also expands Tucows’ product portfolio with one of the most complete offerings of country code TLDs (ccTLDs) and generic TLDs (gTLDs) in the world.

Jørgen Christensen, Managing Director of Ascio commented, “This deal is all about focus. We wanted to find a buyer who would focus on our resellers so that CSC can focus on managing brands for the biggest and best companies around the world.”

“This acquisition makes perfect sense for Ascio’s resellers, our business and our shareholders,” added David Woroch, Tucows’ Executive Vice President of Domains. “Ascio’s resellers get a customer-focused provider that is investing in its wholesale channel. Tucows gets an excellent business with a deeply experienced team, additional domain products, including more than 50 ccTLDs, and a high-quality customer base that strengthens our European presence.  And our shareholders get the benefit of Tucows’ even greater scale and efficiency as the world’s largest wholesale domain registrar.”

The contribution from this transaction, based on a partial year and transaction costs, was contemplated in the 2019 guidance provided by Tucows on February 13, 2019.  Pre-acquisition, the Ascio business generated approximately $4 million of annual EBITDA.  Tucows is required to apply acquisition accounting to the assets and liabilities acquired, including fair valuation of the acquired deferred revenue balance, which will lower the reported Adjusted EBITDA1 contribution in the first approximately one year period following the acquisition.  The acquisition is expected to provide synergies over the next 12 to 18 months which, along with the inclusion of full year financial results, is expected to generate an internal rate of return and multiple that are in line with Company benchmarks.

About Ascio
Ascio Technologies was founded in 1999, and is an accredited domain registrar under the Internet Corporation for Assigned Names and Numbers with approximately 1.8 million domains under management. Ascio is a part of the family of brands under CSC.

About CSC
CSC is the world’s leading provider of business, legal, tax, and digital brand services to companies around the globe. From keeping businesses in compliance and streamlining operations, to protecting and promoting brands online, CSC uses its expertise and personal approach to help businesses run smoother. CSC is the business behind business. It is the trusted partner for 90% of the Fortune 500®, more than 65% of the Best Global Brands (Interbrand®), nearly 10,000 law firms, and more than 3,000 financial organizations. Headquartered in Wilmington, Delaware, USA, since 1899, CSC has offices throughout the United States, Canada, Europe, and the Asia-Pacific region. CSC is a global company capable of doing business wherever its clients are—and it accomplishes that by employing experts in every business it serves. Learn more at https://www.cscglobal.com.

About Tucows
Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 23 million domain names and millions of value-added services through a global reseller network of over 37,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

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

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 discloses and discusses a non-GAAP financial measure, adjusted EBITDA, in press releases and on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

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

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

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

Tucows Reports Continuing Strong Financial Results for Fourth Quarter and Full Year 2018

– 2018 Highlighted by Record Revenue, Adjusted EBITDA2 and Cash Flow from Operations –

TORONTO, February 13, 2019 – 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, 2018. All figures are in U.S. dollars.

Summary Financial Results

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

3 Months Ended December 31 12 Months Ended December 31
2018
(Unaudited)
2017
(Unaudited)
% Change 2018
(Unaudited)
2017
(Unaudited)
% Change
Net revenue 85,612 90,621 -6% 346,013 329,421 5%
Net income1 4,436 11,199 -60% 17,135 22,327 -23%
Basic Net earnings per common share1 0.42 1.06 -60% 1.62 2.12 -24%
Adjusted EBITDA2,3 16,633 15,276 9% 50,057 41,357 21%
Net cash provided by operating activities 10,668 14,081 -24% 37,209 31,896 17%

Net Income and Earnings Per Share for the fourth quarter and Fiscal 2017 reflected a net positive implementation impact from the Tax Cuts and Jobs Act of 2017 of $5.8 million and $0.55 per share, respectively. This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table. Adjusted EBITDA for the fourth quarter and twelve month period of 2017 reflect the impact of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Enom acquisition which lowered Adjusted EBITDA by $0.8 million and $7.8 million for the fourth quarter and twelve months of 2017, respectively.

Summary of Revenues and Gross profit

(In Thousands of US Dollars)

Revenue Gross profit
3 Months Ended December 31 3 Months Ended December 31
2018
(Unaudited)
2017
(Unaudited)
2018
(Unaudited)
2017
(Unaudited)
Network Access Services:
Mobile Services 22,511 23,795 11,093 11,094
Other Services 2,320 1,590 1,429 651
Total Network Access Services 24,831 25,385 12,522 11,745
Domain Services:
Wholesale
Domain Services 43,396 48,320 7,752 6,514
Value Added Services 4,180 4,305 3,438 3,733
Total Wholesale 47,576 52,625 11,190 10,247
Retail 8,880 8,711 4,475 4,141
Portfolio 4,325 3,900 3,900 3,376
Total Domain Services 60,781 65,236 19,565 17,764
Network Expenses:
Network, other costs (2,256) (2,260)
Network, depreciation and amortization costs (2,100) (1,513)
Total Network expenses (4,356) (3,773)
Total 85,612 90,621 27,731 25,736

“The fourth quarter once again saw solid, consistent performance across the business, highlighted by year-over-year gross profit expansion in both Domains and Network Access and 9% growth in adjusted EBITDA,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc.  “The quarter capped off another record year in terms of revenue, gross profit, adjusted EBITDA and cash flow from operations. As importantly, the cash generation of the Domains and Ting Mobile businesses fueled our build-out of the Ting Internet footprint that will drive our next phase of outsized growth.”

“Ting Internet made strong, steady progress throughout the year, growing our serviceable addresses, customers and recurring monthly revenue, adding a sixth town early in the year and readying for the seventh announced just last week.   At Ting Mobile, we again delivered strong year-over-year growth in revenue, margin and gross profit. In our Domains business, we made significant progress in the integration of Enom, with more than half of the $5 million in expected EBITDA synergies now realized, as well as the development of the new platform, positioning this business for potential new growth opportunities.”

“All of these achievements position Tucows for an exciting 2019 in each of our businesses and improving growth that will drive long-term value for our shareholders.”

Financial Results

Net revenue for the fourth quarter of 2018 was $85.6 million compared with $90.6 million for the fourth quarter of 2017, with the decrease due primarily to acceleration of revenue related to the bulk transfer of 2.8 million very low margin domain names in the first and third quarters of 2018.  Excluding the impact of these of bulk transfers, net revenue for the fourth quarter of 2018 increased 2% compared to the fourth quarter of 2017.

Net income for the fourth quarter of 2018 was $4.4 million, or $0.42 per share compared with $11.2 million, or $1.06 per share, for the fourth quarter of 2017.  Net income for the fourth quarter of 2017 was positively impacted by the tax related implementation impacts from the Tax Cuts and Jobs Act of 2017 for $5.8 million or $0.55 per share.

Adjusted EBITDA1 for the fourth quarter of 2018 increased 9% to $16.6 million from $15.3 million for the fourth quarter of 2017.  

Cash and cash equivalents at the end of the fourth quarter of 2018 were $12.6 million compared with $10.8 million at the end of the third quarter of 2018 and $18.0 million at the end of the fourth quarter of 2017.

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 discloses and discusses a non-GAAP financial measure, adjusted EBITDA, in press releases and on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

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

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

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

3 Months Ended December 31 12 Months Ended December 31
2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited)
Net income for the period 4,436 11,199 17,135 22,327
Depreciation of property and equipment 1,716 1,114 5,722 3,727
Amortization of intangible assets 2,290 2,330 9,243 8,400
Impairment of intangible assets 110 111
Interest expense, net 926 865 3,687 3,567
Provision for income taxes 5,239 (1,032) 9,020 1,748
Stock-based compensation 670 623 2,574 1,457
Unrealized loss (gain) on change in fair value of forward contracts 201 54 207 18
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities 752 (45) 943 (804)
Acquisition and transition costs* 403 58 1,526 806
Adjusted EBITDA 16,633 15,276 50,057 41,357
*Acquisition and other costs represents transaction-related expenses, transitional expenses, such as duplicative post-acquisition expenses, primarily related to our acquisition of Enom in January 2017. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments.

Conference Call

Concurrent with the dissemination of this news release, management’s pre-recorded remarks discussing the quarter and outlook for the Company have been posted to the Tucows web site at http://www.tucows.com/investors/financials.  In lieu of a live question and answer period, for the next five days (until Monday, February 18), shareholders, analysts and prospective investors can submit questions to Tucows’ management at ir@tucows.com. Management will post responses to questions of general interest to the Company’s web site at http://www.tucows.com/investors/financials/ on Tuesday, February 26 at approximately 4:00 p.m. ET.  All questions will receive a response, however, questions of a more specific nature may be responded to directly.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 23 million domain names and millions of value-added services through a global reseller network of over 37,000 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 realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

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

Contact:

Lawrence Chamberlain

Loderock Advisors

(416) 519-4196

lawrence.chamberlain@loderockadvisors.com

Tucows Announces $40 Million Stock Buyback Program 

Tucows Announces $40 Million Stock Buyback Program

TORONTO, February 13, 2019 – 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 14, 2019 and will terminate on or before February 13, 2020. Purchases for the new $40 million buyback program will be made exclusively through the facilities of the Nasdaq Capital Market. The previously announced $40 million buyback program for the period February 14, 2018 to February 13, 2019 has been terminated.

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 13, 2019, Tucows had 10,637,965 common shares outstanding.

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

About Tucows Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 23 million domain names and millions of value-added services through a global reseller network of over 37,000 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 realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

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

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

Ting Internet to bring gigabit fiber Internet to Wake Forest, NC

Building on Ting Internet’s success in Holly Springs and Fuquay-Varina, Ting expands its fiber footprint in North Carolina.

February 5, 2019 – Wake Forest, NC   Ting, a division of Tucows (NASDAQ: TCX, TSX: TC) is pleased to announce that Wake Forest will be the next town to get crazy fast fiber Internet from Ting. Residents can pre-order now.

With established markets and operations in nearby Holly Springs and Fuquay-Varina, Ting’s expansion into Wake Forest will benefit from its local brand strength and operational synergies. Once completed, it will also add approximately 10,000 serviceable addresses to Ting’s North Carolina footprint.

Ting Internet’s mission is to bring true gigabit fiber Internet with an unparalleled customer experience to cities and towns across America. Ting is building the infrastructure of the future: a gigabit fiber network extending to every customer. That means every home or business address connected to the Ting fiber network has its own fiber optic connection into the premises, enabling every user in a home or businesses to experience lightning fast, low latency, highly reliable Internet access.

“Increasingly, we see that cities and municipalities are looking for better Internet options for their residents and businesses because the incumbents aren’t stepping up,” said Tucows CEO Elliot Noss. “Fiber is the technology that will power smart cities for the next hundred years.”

In 2015, Ting announced it would bring fiber Internet to Holly Springs, NC, and in 2018 Ting named Fuquay-Varina as the next “Ting Town” in the greater Raleigh, NC area. The charming town of Wake Forest will be the third Ting Internet town in North Carolina, and the seventh in the country.

“Ting Internet is proud to be expanding into the Town of Wake Forest, which has so many of the qualities we look for in a Ting Town,” added Noss. “It’s a future-focused community with an entrepreneurial spirit and a strong focus on education and progress. It’s a place where community leaders value the importance of fiber infrastructure and all the benefits it will bring to their constituents.”

Indeed, Ting’s build in Wake Forest would not be possible without the leadership and enthusiasm of the Town.

“Wake Forest is a growing community comprised of highly-educated, globally-connected residents that rely on high-speed communication to meet their ever-changing needs,” said Wake Forest Mayor, Vivian Jones. “We are extremely excited to welcome Ting to Wake Forest and look forward to experiencing the crazy fast speed and reliability fiber optic service delivers.”

Ting expects to light its first customers in Wake Forest this summer.

Pre-orders are open for Wake Forest

Wake Forest residents can pre-order Ting crazy fast fiber Internet now at ting.com/wakeforest. A one-time $9 pre-order is returned as a credit on a customer’s first Ting bill. Pre-ordering secures the best possible break on start-up costs on Ting gigabit service, including the full cost of installation.

Construction will begin this winter and will run in neighborhood phases. These construction phases will be announced on the dedicated Wake Forest Ting Town page at ting.com/wakeforest. This page will be updated regularly as milestones are reached.

Ting Internet offers symmetrical gigabit fiber Internet for residential, small business, and enterprise customers. Home gigabit Internet costs $89 a month. Business gigabit Internet costs $139 a month. Enterprise Internet service levels, installations and pricing vary and can be discussed with the local Ting Enterprise team.

CEO Elliot Noss, VP Networks Adam Eisner, Director, Market Development and Government Affairs Monica Webb, and other members of the Ting team are always available to speak with local and national media. Well, not literally always but you’ll find they’re pretty available and approachable.

About Ting Internet

Ting Internet provides crazy fast fiber Internet in select US towns and cities. Ting is committed to net neutrality and the open Internet. More than that, Ting is committed to being a part of improving the communities it serves by supporting and championing local good works. Ting sponsors local programs, events, foundations, festivals, charities, and public services everywhere we go, investing in the future of the towns we serve.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (opensrs.com) and Enom (enom.com) manage over 23 million domain names and millions of value-added services through a global reseller network of over 38,000 web hosts and ISPs. Hover (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 (tucows.com).

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

Tucows investor contact
Lawrence Chamberlain
416-519-4196
lawrence.chamberlain@loderockadvisors.com
Ting press contact
Ray Weiss
410-303-5019
rweiss@weisspr.com

Tucows Announces Timing for Q4 2018 Financial Results News Release and Investment Community Call: Wednesday, February 13, 2019 at 5:05 P.M. ET

TORONTO, January 30, 2019 – Tucows Inc. (NASDAQ: TCX, TSX: TC) today announced that it will report its fourth quarter 2018 financial results via news release on Wednesday, February 13, 2019 at 5:05 p.m. ET.

Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Wednesday, February 13, 2019, management’s pre-recorded remarks discussing the quarter and outlook for the Company will be posted to the Tucows web site at http://www.tucows.com/investors/financials.  In lieu of a live question and answer period, for the subsequent five days, until Monday, February 18, shareholders, analysts and prospective investors can submit questions to Tucows’ management at ir@tucows.com. Management will post responses to questions of general interest to the Company’s web site at http://www.tucows.com/investors/financials/ on Monday, February 25 at approximately 4:00 p.m. ET.  All questions will receive a response, however, questions of a more specific nature may be responded to directly.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 23 million domain names and millions of value-added services through a global reseller network of over 38,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

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

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

Tucows Reports Continuing Strong Financial Results for Third Quarter 2018

– Tucows Reports Continuing Strong Financial Results for Third Quarter 2018 –

TORONTO, November 7, 2018 – 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, 2018. 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
2018
(Unaudited)
2017
(Unaudited)
% Change 2018
(Unaudited)
2017
(Unaudited)
% Change
Net revenue 83,519 85,008 -2% 260,401 238,800 9%
Net income 5,346 3,440 55% 12,698 11,128 14%
Basic Net earnings per common share 0.50 0.33 52% 1.20 1.06 13%
Adjusted EBITDA1 11,858 9,368 27% 33,425 26,082 28%
Net cash provided by operating activities 11,214 7,282 54% 26,541 17,814 49%

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 September 30 3 Months ended September 30
2018
(Unaudited)
2017
(Unaudited)
2018
(Unaudited)
2017
(Unaudited)
Network Access Services:
Mobile Services 22,546 21,749 11,147 9,384
Other Services 2,033 1,442 1,161 847
Total Network Access Services 24,579 23,191 12,308 10,231
Domain Services:
Wholesale
Domain Services 45,070 47,770 7,656 5,477
Value Added Services 4,541 4,203 3,734 3,516
Total Wholesale 49,611 51,973 11,390 8,993
Retail 8,731 8,873 4,266 4,262
Portfolio 598 971 450 791
Total Domain Services 58,940 61,817 16,106 14,046
Network Expenses:
Network, other costs (2,315) (2,461)
Network, depreciation and amortization costs (1,838) (1,322)
Total Network expenses (4,153) (3,783)
Total revenue/gross margin 83,519 85,008 24,261 20,494

 

“Our third quarter results again demonstrate how the consistent performance and cash flow generation of our Domains and Ting Mobile businesses are enabling us to invest in the build out of the Ting Internet footprint for our next phase of outsized growth,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “Gross margin contribution expanded in each of our businesses, with Domains benefiting from normalized margins following the Enom acquisition and Network Access benefiting from Ting Mobile’s lower costs, a larger subscriber base and higher usage per subscriber, as we continue to reposition our offering for renewed growth. Importantly, Ting Internet continues to steadily advance its network builds, grow its number of serviceable addresses, and expand its subscriber base. We now have five fully active towns where we are installing, activating and supporting customers every day.”

Financial Results

Net revenue for the third quarter of 2018 was $83.5 million compared with $85.0 million for the third quarter of 2018, with the decrease due primarily to acceleration of revenue in the first quarter of 2018 related to the bulk transfer of 2.65 million very low margin domain names, which was partially offset by the continued growth of Ting Mobile and a bulk transfer of 0.2 million very low margin domains names in the third quarter of 2018. Excluding the impact of these of bulk transfers, net revenue for the third quarter of 2018 increased 3.5% compared to the third quarter of 2017.
Net income for the third quarter of 2018 increased 55% to $5.3 million, or $0.50 per share from $3.4 million, or $0.33 per share, for the third quarter of 2017.

Adjusted EBITDA1 for the third quarter of 2018 increased 27% to $11.9 million from $9.4 million for the third quarter of 2017.
Cash and cash equivalents at the end of the third quarter of 2018 was $10.8 million compared with $11.2 million at the end of the second quarter of 2018 and $12.5 million at the end of the third quarter of 2017.

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 discloses and discusses a non-GAAP financial measure, adjusted EBITDA, in press releases and on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

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

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

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

3 months ended September 30 9 months ended September 30
2018
(unaudited)
2017
(unaudited)
2018
(unaudited)
2017
(unaudited)
Net income for the period 5,346 3,440 12,698 11,128
Depreciation of property and equipment 1,445 978 4,007 2,614
Amortization of intangible assets 2,296 2,245 6,953 6,070
Impairment of intangible assets 2 2
Interest expense, net 914 864 2,761 2,703
Provision for income taxes 1,370 1,823 3,781 2,781
Stock-based compensation 711 203 1,904 834
Unrealized loss (gain) on change in fair value of forward contracts (35) 1 7 (37)
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities (269) (427) 191 (761)
Acquisition and transition costs* 80 239 1,123 748
Adjusted EBITDA 11,858 9,368 33,425 26,082
*Acquisition and other costs represents transaction-related expenses, transitional expenses, such as duplicative post-acquisition expenses, related to our acquisition of Enom in January 2017. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments.

 

Conference Call
As per its new quarterly conference call format initiated last quarter, concurrent with the dissemination of this news release, management’s pre-recorded remarks discussing the quarter and outlook for the Company have been posted to the Tucows web site at https://www.tucows.com/investors/financials/. In lieu of a live question and answer period, for the next five days (until Monday, November 12), shareholders, analysts and prospective investors can submit questions to Tucows’ management at ir@tucows.com. Management will post responses to questions of general interest to the Company’s web site at https://www.tucows.com/investors/financials/ on Friday, November 16 at approximately 4:00 p.m. ET. All questions will receive a response, however, questions of a more specific may be responded to directly.

About Tucows
Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 23 million domain names and millions of value-added services through a global reseller network of over 38,000 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 realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

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

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

Tucows Announces Timing for Q3 2018 Financial Results News Release and Investment Community Call: Wednesday, November 7, 2018 at 5:05 P.M. (ET)

TORONTO, October 30, 2018 – Tucows Inc. (NASDAQ: TCX, TSX: TC) today announced that it will report its third quarter 2018 financial results via news release on Wednesday, November 7, 2018 at 5:05 p.m. ET.

As per its new format initiated last quarter, concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Wednesday, November 7, 2018, management’s pre-recorded remarks discussing the quarter and outlook for the Company will be posted to the Tucows web site at http://www.tucows.com/investors/financials. In lieu of a live question and answer period, for the subsequent five days, until Monday November 12, shareholders, analysts and prospective investors can submit questions to Tucows’ management at ir@tucows.com. Management will post responses to questions of general interest to the Company’s web site at http://www.tucows.com/investors/financials/ on Friday, November 16 at approximately 4:00 p.m. ET. All questions will receive a response, however, questions of a more specific may be responded to directly.

About Tucows

Tucows, Inc. is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 24.4 million domain names and millions of value-added services through a global reseller network of over 40,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

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

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

Tucows Reports Continuing Strong Financial Results for Second Quarter 2018

– Tucows Reports Continuing Strong Financial Results for Second Quarter 2018 –

TORONTO, August 8, 2018 – 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, 2018. 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
2018
(Unaudited)
2017
(Unaudited)
% Change 2018
(Unaudited)
2017
(Unaudited)
% Change
Net revenue 81,087 84,223 -4% 176,882 153,791 15%
Net income 3,608 5,242 -31% 7,352 7,686 -4%
Basic Net earnings per common share 0.34 0.50 -32% 0.69 0.73 -5%
Adjusted EBITDA1 11,188 10,374 8% 21,567 16,711 29%
Net cash provided by operating activities 5,754 8,131 -29% 15,327 10,534 46%

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 June 30 3 Months ended June 30
2018
(Unaudited)
2017
(Unaudited)
2018
(Unaudited)
2017
(Unaudited)
Network Access Services:
Mobile Services 22,411 20,379 10,433 9,677
Other Services 1,895 1,248 605 302
Total Network Access Services 24,306 21,627 11,038 9,979
Domain Services:
Wholesale
Domain Services 42,540 48,550 6,696 6,101
Value Added Services 4,601 5,415 3,853 4,800
Total Wholesale 47,141 53,965 10,549 10,901
Retail 8,477 7,663 4,031 3,115
Portfolio 1,163 968 968 783
Total Domain Services 56,781 62,596 15,548 14,799
Network Expenses:
Network, other costs (2,701) (2,261)
Network, depreciation and amortization costs (1,727) (1,169)
Total Network expenses (4,428) (3,430)
Total revenue/gross margin 81,087 84,223 22,158 21,348

 

“The second quarter once again saw solid performances from each of our businesses,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “The domains business delivered consistent results outside of the expected in quarter impact of the transfer of 2.65 million very low margin names in the first quarter of this year. Ting Mobile delivered increases in year-over-year revenue and margin as we work towards the next phase of customer growth. Finally, Ting Internet continued its steady progress from network builds and expansions across the footprint to serviceable addresses, to subscriber activations, to dependable recurring monthly revenue.”

Financial Results

Net revenue for the second quarter of 2018 was $81.1 million compared to $84.2 million for the second quarter of 2017, with the decrease due primarily to the bulk transfer of 2.65 million very low margin domain names during the first quarter of 2018, which was partially offset by the continued growth of Ting Mobile.

Net income for the second quarter of 2018 was $3.6 million, or $0.34 per share, down from $5.2 million, or $0.50 per share, for the second quarter of 2017. Net income for the second quarter of 2018 includes acquisition and transaction costs of $0.8 million related to geographic headcount and operational alignments.

Adjusted EBITDA1 for the second quarter of 2018 increased 8% to $11.2 million from $10.4 million for the second quarter of 2017.

Cash and cash equivalents at the end of the second quarter of 2018 was $11.2 million compared with $16.6 million at the end of the first quarter of 2018 and $15.1 million at the end of the second quarter of 2017.

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 discloses and discusses a non-GAAP financial measure, adjusted EBITDA, in press releases and on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

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

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

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

3 months ended June 30 6 months ended June 30
2018
(unaudited)
2017
(unaudited)
2018
(unaudited)
2017
(unaudited)
Net income for the period 3,608 5,242 7,352 7,686
Depreciation of property and equipment 1,330 879 2,562 1,636
Amortization of intangible assets 2,326 2,063 4,657 3,825
Interest expense, net 951 970 1,847 1,838
Provision for income taxes 1,228 1,083 2,411 958
Stock-based compensation 615 313 1,193 631
Unrealized loss (gain) on change in fair value of forward contracts 46 (20) 43 (38)
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities 282 (283) 459 (334)
Acquisition and transition costs** 802 127 1,043 509
Adjusted EBITDA 11,188 10,374 21,567 16,711
*Acquisition and other costs represents transaction-related expenses, transitional expenses, such as duplicative post-acquisition expenses, related to our acquisition of Enom in January 2017. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments.

 

Conference Call

Beginning this quarter, Tucows is evolving the format of its quarterly conference calls. Concurrent with the dissemination of this news release, management’s pre-recorded remarks discussing the quarter and outlook for the Company have been posted to the Company’s web site at https://www.tucows.com/investors/financials/. In lieu of the usual question and answer period on past calls, for the next seven days (until Wednesday, August 15), shareholders and analysts can submit questions to Tucows’ management at ir@tucows.com. Management will post responses to questions of general interest to the Company’s web site at https://www.tucows.com/investors/financials/ on Wednesday, August 22 at 9:00 a.m. ET. Questions that are more specific will be responded to directly. All questions will receive a response.

About Tucows
Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 24 million domain names and millions of value-added services through a global reseller network of over 38,000 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 realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

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

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

Tucows Announces Timing for Q2 2018 Results and Investment Community Call: Wednesday, August 8, 2018 at 5:05 P.M. (ET)

TORONTO, July 26, 2018 – Tucows Inc. (NASDAQ: TCX, TSX: TC) today announced that it will report its second quarter 2018 financial results via news release on Wednesday, August 8, 2018 at 5:05 p.m. ET.

Beginning this quarter, Tucows is evolving the format of its quarterly conference calls. Concurrent with the dissemination of the quarterly results news release at 5:05 p.m. ET on Wednesday, August 8, 2018, management’s pre-recorded remarks discussing the quarter and outlook for the Company will be posted to the Company’s web site at https://www.tucows.com/investors/financials. Following management’s pre-recorded remarks and for the next seven days (until Wednesday, August 15), shareholders and analysts can submit questions to Tucows’ management at ir@tucows.com. Management will post responses to the most salient questions at https://www.tucows.com/investors/financials on Wednesday, August 22 at 9:00 a.m. ET.

Tucows believes this new format will be beneficial to investors, providing more time to digest information provided in management’s remarks and to formulate substantive questions and allowing all investors, at their convenience, to benefit from questions posed by the entire Tucows shareholder community.

About Tucows

Tucows, Inc. is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 24.4 million domain names and millions of value-added services through a global reseller network of over 40,000 web hosts and ISPs. Hover (http://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (http://tucows.com).

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

Contact:

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

Tucows Reports Continuing Strong Financial Results for First Quarter 2018

– Quarter Highlighted by Strong Year-Over-Year Growth Across Key Financial Metrics –

TORONTO, May 9, 2018 – 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, 2018. All figures are in U.S. dollars.

Summary Financial Results

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

3 Months Ended March 31
2018
(unaudited)
2017
(unaudited)
% Change
Net revenue 95,796 69,568 38%
Net income 3,744 2,446 53%
Basic Net earnings per common share $0.35 $0.23 52%
Adjusted EBITDA1 10,378 6,339 64%
Net cash provided by operating activities 9,573 2,402 299%

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
2018
(unaudited)
2017
(unaudited)
2018
(unaudited)
2017
(unaudited)
Network Access Services:
Mobile Services 21,872 17,963 10,606 8,396
Other Services 1,736 1,287 795 462
Total Network Access Services 23,608 19,250 11,401 8,857
Domain Services:
Wholesale
Domain Services 58,428 39,092 7,114 4,629
Value Added Services 4,435 4,057 3,577 3,332
Total Wholesale 62,862 43,000 10,691 7,961
Retail 8,437 6,402 4,027 2,784
Portfolio 889 917 704 655
Total Domain Services 72,187 50,318 15,422 11,400
Network Expenses:
Network, other costs (2,343) (1,233)
Network, depreciation and amortization costs (1,630) (971)
Total Network Expenses (4,204) (3,314)
Total revenue/gross margin 95,796 69,568 22,619 16,944

“The first quarter was a solid start to 2018, with strong year-over-year growth in revenue, net income, adjusted EBITDA and cash flow from operations,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “Our domains business continued its consistent performance as the Enom integration continues to progress on plan. Ting Mobile posted another quarter of solid year-over-year revenue and margin growth. On Ting Internet, we continued to see strong adoption in our three active towns and we prepared to start lighting up customers in our next two. Meanwhile, we announced our next Ting town, Fuquay-Varina, North Carolina.”

Financial Results

Net revenue for the first quarter of 2018 increased 38% to $95.8 million from $69.6 million for the first quarter of 2017 and benefitted from the accelerated revenue recognition of $14.6 million related to a bulk transfer of 2.65 million domain names during the first quarter of 2018.

Net income for the first quarter of 2018 increased to $3.7 million, or $0.35 per share, from $2.4 million, or $0.23 per share, for the first quarter of 2017 driven by the growth in Adjusted EBITDA and lower statutory tax rates as a result of the Tax Cuts and Jobs Act of 2017.

Adjusted EBITDA 1 for the first quarter of 2018 increased 64% to $10.4 million from $6.3 million for the first quarter of 2017 driven by Enom and Ting Mobile.

Cash and cash equivalents at the end of the first quarter of 2018 was $16.6 million compared with $18.0 million at the end of the fourth quarter of 2017 and $15.0 million at the end of the first quarter of 2017.

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 discloses and discusses a non-GAAP financial measure, adjusted EBITDA, in press releases and on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

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

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

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

3 Months Ended March 31
2017
(unaudited)
2016
(unaudited)
Net income for the period 3,744 2,446
Depreciation of property and equipment 1,232 757
Amortization of intangible assets 2,331 1,761
Interest expense, net 896 868
Provision for income taxes 1,183 (125)
Stock-based compensation 578 318
Unrealized loss (gain) on change in fair value of forward contracts (3) (18)
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities 176 (50)
Acquisition and transition costs1 241 382
     
Adjusted EBITDA 10,378 6,339
1 *Acquisition and other costs represents transaction-related expenses, transitional expenses, such as duplicative post-acquisition expenses, related to our acquisition of Enom in January 2017. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments.

Conference Call

Tucows management will host a conference call today, Wednesday, May 9, 2018 at 5:00 p.m. ET to discuss the Company’s first quarter 2018 results and outlook for the Company. Participants can access the conference call by dialing 1-888-231-8191 or 647-427-7450 or via the Internet at https://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 5873817 followed by the pound key. The telephone replay will be available until Wednesday, May 16, 2018 at midnight. To access the archived conference call as an MP3 via the Internet, go to
https://www.tucows.com/investors.

About Tucows

Tucows is a provider of network access, domain names and other Internet services. Ting (https://ting.com) delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS (http://opensrs.com) and Enom (http://www.enom.com) manage a combined 24 million domain names and millions of value-added services through a global reseller network of over 39,000 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 realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

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

Contact:

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