Platinum Communications Corporation Reports Financial Results for the Six Months Ending February 28, 2013

Platinum Communications Corporation (TSX-V: PCS) today announced financial results for the six months ending February 28, 2013.

Highlights for the six months, include the following:

• Platinum’s revenues from operations for the six months ending February 28, 2013 increased 21% compared to the same six month period of fiscal 2012. The acquisition of two competitors in the previous year contributed 82% of this increase.
• Gross profit increased by 18%. Earnings before interest, depreciation and amortization increased by 14%. These increases were due to the acquisitions completed in the previous year’s third quarter.
• Platinum recorded Net Income of $121,684 for the first six months of fiscal 2013 a decrease of 23% from the net income of $157,578 recorded for the six months ending February 29, 2012. Legal and other expenses of $135,000 related to acquisitions were entirely expensed during the first half of 2013.
• Cash provided by operating activities was $826,682 for the first six months of fiscal 2013 compared to $391,673 in the same period of fiscal 2012, an increase of 111%. Cash used to acquire property, plant and equipment and intangible assets was $226,266 in the first half of fiscal 2013, compared to $397,174 in the same period of fiscal 2012.
• As of the date of this release Platinum has $1,466,000 of available cash.

SELECTED HIGHLIGHTS1

Six months ended

February 28,2013

February 29, 2012

%Change

Revenue

$3,922,054

        
        
        
        
        
        
        
        
          $3,251,524
        
        
        
        
        
        
        
        
          21
        
        
        
        
        
        
        
      
      
        
          

Gross profit2

2,656,830

        
        
        
        
        
        
        
        
          2,246,802
        
        
        
        
        
        
        
        
          18
        
        
        
        
        
        
        
      
      
        
          

Earnings before interest, depreciation and amortization3

864,570

        
        
        
        
        
        
        
        
          757,403
        
        
        
        
        
        
        
        
          14
        
        
        
        
        
        
        
      
      
        
          Net income
        
        
        
        
        
        
        
        
          

121,684

        
        
        
        
        
        
        
        
          157,578
        
        
        
        
        
        
        
        
          -23
        
        
        
        
        
        
        
      
      
        
          Earnings per share, basic and diluted

          

Cash provided by operating activities

0.0022

826,682

        
        
        
        
        
        
        
        
          0.0029

          

391,673

        
        
        
        
        
        
        
        
          -24

          

111

        
        
        
        
        
        
        
      
      
        
          ARPU (Average revenue per user)
        
        
        
        
        
        
        
        
          

380

        
        
        
        
        
        
        
        
          367
        
        
        
        
        
        
        
        
          3
        
        
        
        
        
        
        
      
      
        
          Customers

          

Common Shares Outstanding

Return on Equity

10,074

55,593,398

4.8%

        
        
        
        
        
        
        
        
          8,636

          

54,243,654

6.4%

        
        
        
        
        
        
        
        
          17

          

2

-25

1 Includes acquisitions of MyCanopy and AlbertaHighSpeed from March 1, 2012 and May 1, 2012 respectively. Does not include the previously announced acquisition of Community Networks Inc. which closed effective March 1, 2013.

2 Gross Profit is a widely accepted measure of financial performance used by some analysts and investors to analyze and compare companies on the basis of operating performance. Gross profit is not defined under IFRS and should not be considered in isolation or as an alternative to, or more meaningful than, net income or cash flow as determined in accordance with IFRS as an indicator of the Corporation’s performance or liquidity. Platinum’s gross profit is unlikely to be comparable to similar measures presented by other companies.

3 Earnings before interest, depreciation and amortization is a widely accepted financial indicator used by some analysts and investors to analyze and compare companies on the basis of liquidity. Earnings before interest, depreciation and amortization is not defined under IFRS and should not be considered in isolation or as an alternative to, or more meaningful than, net income or cash flow as determined in accordance with IFRS as an indicator of the Corporation’s financial performance or liquidity.

Platinum is a leading provider of superior quality fixed wireless Internet and Broadband solutions in Alberta. Based in Calgary, Platinum operates a wireless broadband network that utilizes Next-Generation Wimax technology to bring fast, reliable and affordable Internet and digital phone service to residents and businesses across the province. Serving approximately 13,000 customers in over 180 communities, Platinum caters primarily to rural and near-urban markets that are often beyond the reach of traditional Internet providers. Platinum’s high quality infrastructure, excellent service record and ever-growing network and capabilities, make it the provider of choice for customers within its vast coverage area. For more information please visit our website at www.platinum.ca or call 403-301-4591.

This news release may contain forward-looking statements. These forward-looking statements do not guarantee future events or performance and should not be relied upon. Actual outcomes may differ materially due to any number of factors or uncertainties, many of which are beyond Platinum's control. Some of these risks and uncertainties may be described in Platinum's corporate filings (posted at www.sedar.com). Platinum has no intention or obligation to update or revise any forward-looking statements due to new information or events.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

For further information please contact:

    
      
        
          Bernard Parkinson, CEO
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          Katherine Kirkup, CFO
        
      
      
        
           
        
      
      
        
          Phone [phone]
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          Phone [phone]