Telehop Communications Reports Third Quarter 2010 Financial Results

TORONTO, Nov. 18 /CNW/ -- 
TORONTO, Nov. 18 /CNW/ - Telehop Communications Inc. (TSXV-HOP) is a
 full-service long distance provider operating within the
 telecommunications industry and is registered with the Canadian
 Radio-television and Telecommunications Commission ("CRTC") as a
 licensed Class "A" Telecom Carrier.






Consolidated          three months ended           nine months ended
highlights

($ Thousands    September 30, September 30, September 30, September 30,
except for per           2010          2009          2010          2009
share data)

Consolidated
Income
Statement

Operating             $ 2,907       $ 3,388       $ 8,889      $ 10,427
revenues

Gross margin            1,282         1,750         3,775         4,516

Gross margin %          44.1%         51.7%         42.5%         43.3%
*

EBITDA                     96           298            42         (254)

Net income                 14           127         (156)         (447)
(loss)

Earnings (loss)
per share -              0.00        (0.01)        (0.01)        (0.03)
basic

Earnings (loss)
per share -              0.00        (0.01)        (0.01)        (0.03)
diluted





* Our gross margin for the third quarter was $1,282,451 or 44.1%
 compared to a $1,749,933 or 51.7% for the same quarter in 2009. The
 2010 decline is due to the positive impact of a CRTC rate adjustment
 which benefited this quarter in 2009 and was retroactive for the entire
 year. Year to date margin has shown a 0.8% decrease to 42.5% over 2009.


The third quarter showed improved results with positive EBITDA for the
 second consecutive quarter, positive net income and an increase in
 working capital over the quarter.


Quarterly financial summary Revenue for third quarter 2010 was $2,907,425 with a net profit of
 $13,569 or $0.00 per common share compared to revenue of $3,388,141
 with a net profit of $126,714 or $0.01 per common share for the same
 quarter 2009. Our revenue was $480,716 or 14.2% less quarter for
 quarter which is attributable to a reduction in our retail
 long-distance business of $462,470 and a reduction in our wholesale
 long-distance business of $18,246. Year to date revenue was $8,889,443
 with a net loss of $156,132 or $(0.01) per common share compared to
 revenue of $10,427,383 with a net loss of $446,893 or $(0.03) per
 common share for the first nine months of 2009.


Operating expenses decreased from $1,541,302 in third quarter 2009 by
 $284,806 or 18.5% to $1,256,496. The majority of the decrease relates
 to focusing of our marketing campaigns. Year to date operating expenses
 decreased by $1,082,606 to $3,959,304, we have reduced our expenses on
 an ongoing basis to reflect existing market circumstances. We completed
 the third quarter with $457,662 of cash and working capital of
 $1,081,135 with no bank debt.


A complete financial reporting package is available on Sedar http://www.sedar.com or by contacting the company.


Certain statements in this press release may constitute "forward looking
 statements" and involve known and unknown risks, uncertainties and
 other factors which may cause the actual results, performance or
 achievements of the Corporation to be materially different from any
 performance or achievement expressed or implied by such "forward
 looking statements".


The TSX Venture Exchange does not accept responsibility for the adequacy
 or accuracy of this release





pCompany Contact:br/ Mr. Fulvio Cianobr/ CEObr/ [phone]br/ a href="mailto:[e-mail]"[e-mail]/a/p

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