Tucows Inc. (NASDAQ:TCX, TSX:TC), reported its financial results for the fourth quarter ended December 31, 2013.
Although Tucows revenue increased 11% but missed by $0.98M. off of estimates
Summary Financial Results
All figures are in U.S. dollars.
(In Thousands of US Dollars, Except Per Share Data)
3 Months 3 Months 12 Months 12 Months
Ended Dec. Ended Dec. Ended Dec. Ended Dec.
31, 2013 31, 2012 31, 2013 31, 2012
(unaudited) (unaudited) (unaudited) (unaudited)
Net revenue 33,139 29,791 129,935 114,727
Income before
provision for
income taxes
and change
in fair value
of forward
exchange
contracts 1,532 789 6,476 5,745
Net income 923 429 4,180 4,424
Net earnings
per common
share(1) $0.08 $0.04 $0.40 $0.39
Net cash
provided by
operating
activities 1,651 2,022 8,703 6,343
1. Net earnings per common share reflects the 1-for-4 reverse split of
common shares that became effective December 31, 2013. As a result of
the reverse split, 10,900,842 shares and 11,064,045 shares were used in
computing net earnings per common share for the 3 months ended December
31, 2013 and 2012, respectively, and 10,468,250 shares and 11,458,216
shares were used in computing net earnings per common share for the 12
months ended December 31, 2013 and 2012, respectively.
Summary of Revenues and Cost of Revenues
(In Thousands of US Dollars)
Cost of Cost of
Revenue Revenue Revenue Revenue
3 Months 3 Months
Ended Dec. Ended Dec. 3 Months Ended 3 Months Ended
31, 2013 31, 2012 Dec. 31, 2013 Dec. 31, 2012
(unaudited) (unaudited) (unaudited) (unaudited)
Wholesale
Domain
Services 21,595 22,391 17,949 18,893
Value-Added
Services 2,417 2,705 548 456
Total
Wholesale 24,012 25,096 18,497 19,349
Retail 8,027 3,628 4,966 2,454
Portfolio 1,100 1,067 143 201
Network, other
costs - - 1,120 1,296
Network,
depreciation
and
amortization
costs - - 175 187
Total
revenue/cost
of revenue 33,139 29,791 24,901 23,487
“Our financial results for the fourth quarter once again underscore not only the consistency and reliability in our business but also our continued ability to generate sustainable growth,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “In the domains component of our business, we continue to see solid performance from both our Wholesale and Portfolio services, while our retail channel, Hover, delivered another quarter of 20%-plus year-over-year top-line growth.”
“For the seventh straight quarter, Ting set new records for net adds, adding more than 12,000 accounts and 18,000 devices. We ended the year with over 48,000 accounts and 74,000 devices and, in January, surpassed the 50,000 accounts and 80,000 devices milestone.
Ting continues to be on track to positively contribute to EBITDA for 2014, although our priority will continue to be aggressive investment in customer acquisition and customer satisfaction to ultimately drive even greater long-term value for shareholders.”
Net revenue for the fourth quarter of 2013 increased 11% to $33.1 million from $29.8 million for the fourth quarter of 2012.
Net income for the fourth quarter of 2013 was $0.9 million, or $0.08 per share (based on the number of shares post-reverse split), compared with $0.4 million, or $0.04 per share (based on the number of shares post-reverse split), for the fourth quarter of 2012.
Cash and cash equivalents at the end of the fourth quarter of 2013 were $12.4 million compared with $11.5 million at the end of the third quarter of 2013 and $6.4 million at the end of the fourth quarter of 2012. The increase in cash and cash equivalents of $0.9 million when compared to the third quarter of 2013 resulted from the generation of $1.7 million in cash flow from operations, which was partially offset by the use of $0.6 million for principal repayments under the Company’s credit facility and investment of $0.2 million in equipment purchases.
