Sales for the 4th quarter ended December 31, 2006 increased to $55,061,000, compared to $50,391,000 in 2005. Growth in sales was due to a 4% increase in sales in the Retail Division and a 45% increase in sales in the Business Division. During this period Glentel completed the acquisition of Time Mobile Communication Inc. ("Time MCI") on November 1st, which had a solid performance in the Business Division over the final two months of the year.
The Retail Division sales of cellular products and services grew to $44,964,000 for the 4th quarter ended December 31, 2006, compared to $43,442,000 for the same period in 2005. Operating income before interest and taxes increased 24% to $5,932,000, compared to $4,789,000 in 2005. WirelessWave continued to have a strong sustainable performance in the 4th quarter, while Tbooth / La Cabine T had an outstanding turnaround performance on a year-over-year basis.
The Business Division sales of terrestrial radio systems, satellite network services, advanced mobile solutions, and service/engineering support grew 45%, to $10,097,000 for the 4th quarter ended December 31, 2006, compared to $6,949,000 for the same period in 2005. Operating income before interest and taxes was $913,000, compared to $350,000 in 2005. This growth includes the performance of the acquisition of Time MCI in the 4th quarter.
Glentel had a very active year in 2006 as the company completed three acquisitions in its Business Division, improved the operating performance of Tbooth / La CabineT, and continued to achieve a strong performance from WirelessWave. Sales increased 27%, to $181,188,000 for the year ended December 31, 2006, compared to $143,102,000 the previous year. Operating income before interest and taxes increased to $9,289,000, compared to $8,900,000 in 2005. Net income for the year was $6,324,000, $0.62 per share, compared to $6,114,000, $0.65 per share, in 2005. Weighted average number of shares outstanding was 10,180,000 in 2006, compared to 9,438,000 in 2005.
Growth in sales and net income was through both organic growth and acquisitions in 2006. The Retail Division sales grew 27% to $146,238,000 as WirelessWave opened two new stores during the year, bringing the total to 97 retail mall-based stores. The number of same-store cellular phones and other wireless devices sold in the year increased 14% over the previous year in stores that were open throughout both 2006 and 2005. Tbooth / La Cabine T, acquired in 2005, operated its 49 mall-based stores for a full twelve months in 2006, compared to seven months in 2005. As a result of the focused efforts on the turnaround in the performance of this brand, the number of same-store cellular phones and other wireless devices sold in the year increased 37% over the previous year. In November 2006, the Company added 15 new store-in-store kiosks in select Costco Canada stores, which combined with four new stores opened in the 1st quarter of 2006 and three that were opened in 2005, brings the total to 22 WIRELESS etc kiosks. Additional kiosks within the remaining Costco Canada stores are being planned for 2007 and beyond.
In the Business Division, sales grew 26% during 2006 to $34,950,000 compared to $27,726,000 in 2005. Growth in sales was complemented by three acquisitions made during the year, which provided strength in breadth and depth of operations to the Business Division in Ontario and northern British Columbia. Organic growth in sales has been broad-based in all product segments of the division, fueled by the strength of the oil and gas sector in Alberta and northern BC.
The three acquisitions of businesses that were made expand the reach of the Business Division, and make it truly a national wireless solutions provider in the business to business market segment. The 2nd quarter acquisition of the radio business of Quasar Communications Ltd. in Fort St. John, B.C. solidified our position in northern British Columbia. The acquisition of Time MCI on November 1st, combined with the acquisition of Digital Mobile systems Inc. on July 1, 2006 help to continue to position Glentel as a strong communications solutions supplier to the public safety and government sector in Ontario. With these acquisitions, Glentel now has a terrestrial radio infrastructure of 240 tower sites and over 470 repeaters in Canada.
"We are pleased with the strong year of operational performance for 2006," said Thomas Skidmore, Glentel's president and chief executive officer. "Both the Retail and Business divisions delivered increased sales and profitability." -- www.cnxmarketlink.com
Posted March 16th, 2007 by ruzik_tuzik
