Tucows Reports Continuing Strong Financial Results For Third Quarter Of 2016

TORONTO, Nov. 07, 2016 (GLOBE NEWSWIRE) -- 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, 2016. 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
2016(Unaudited) 2015(Unaudited) % Change 2016(Unaudited) 2015(Unaudited) % Change
Net revenue 49,064 44,268   11 % 141,014 126,985   11 %
Net income 4,741 3,159   50 % 13,250 8,278   60 %
Net earnings per common share 0.45 0.29   55 % 1.26 0.75   68 %
Adjusted EBITDA 1 8,575 5,800   48 % 22,798 15,439   48 %
Net cash provided by operating activities 5,001 6,783   -26 % 12,727 11,957   6 %

  1. This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table. Tucows has revised its definition of Adjusted EBITDA as detailed in the description below and the table reconciling Adjusted EBITDA to GAAP net income.

Summary of Revenues and Gross Margin (In Thousands of US Dollars)
  Revenue Gross Margin
  3 Months ended September 30 3 Months ended September 30
  2016(Unaudited) 2015(Unaudited) 2016(Unaudited) 2015(Unaudited)
Network Access Services:
Mobile Services 18,375 15,359   9,288     6,583  
Other Services 878 916   376     542  
    Total Network Access Services 19,253 16,275   9,664     7,125  
         
Domain Services:
Wholesale        
  Domain Services 22,956 21,124   4,021     3,642  
  Value Added Services 2,227 2,400   1,764     1,913  
    Total Wholesale 25,183 23,524   5,785     5,555  
         
Retail 3,721 3,220   1,993     1,790  
Portfolio 907 1,248   776     1,079  
    Total Domain Services 29,811 27,992   8,554     8,424  
         
Network Expenses:
Network, other costs - -   (1,288 )   (1,421 )
Network, depreciation and amortization costs - -   (292 )   (336 )
    Total Network expenses - -   (1,580 )   (1,757 )
         
Total revenue/gross margin 49,064 44,268   16,638     13,792  

"Continuing growth in both Ting Mobile and our Domain Services business propelled Tucows to a record quarter for both the top and bottom lines," said Elliot Noss, President and Chief Executive Officer, Tucows Inc. "We continue to reap the benefits of the significant operating leverage in the business.  Overall revenue was up 11% year-over-year, while net income grew 50% to a record $4.7 million, or $0.45 per share, and adjusted EBITDA 1 increased 48% to a record $8.6 million."

"As Ting Mobile and Domain Services continue to drive our near-term financial performance, Ting Internet takes positive steps every day toward future contribution to our business. In Q2, we expanded our fiber network in Charlottesville, Virginia, began construction in Holly Springs, North Carolina and saw Westminster, Maryland launch the next wave of construction on its municipal fiber network. We also announced that Centennial, Colorado would be our next and largest Ting town to date, with a population over 100,000, and began taking pre-orders there immediately."

If you liked this article you might like

7 Breakout Stocks Spiking on Big Volume

Watch This Battle Royale Between the Bulls and the Bears

Insider Trading Alert - NLS, IMPV And TCX Traded By Insiders

Insider Trading Alert - FSIC, THRM And TCX Traded By Insiders

Don't Miss Today's Strong And Under The Radar Stock: Tucows (TCX)