Glentel Inc. (TSX: GLN) today reported its results for the 2nd quarter ended June 30, 2008. Consolidated sales for the 2nd quarter increased 25%, to $60,494,000 compared to $48,571,000 for the same period of 2007.
Operating income before interest and taxes was $2,640,000 for the 2nd quarter of 2008 compared to $1,822,000 in 2007. Net income for the quarter was $1,819,000, $0.17 per share, compared to $1,128,000, $0.11 per share, for the same quarter in 2007, representing an increase of 54%.
Consolidated sales for the six months ended June 30, 2008 increased 22%, to $111,212,000 compared to $91,339,000 for the same period of 2007. Operating income before interest and taxes increased to $3,037,000 compared to $2,252,000 in 2007. Net income for the same period was $2,076,000, $0.19 per share, compared to $1,349,000, $0.13 per share, for the first six months of 2007.
"I am pleased to report that Glentel has completed the 2nd quarter of 2008 with increased earnings and growth," said Thomas Skidmore, Glentel's president and chief executive officer. "We are pleased with the operating progress of both divisions. Our Business Division remains on course with a focus on an engineered wireless solution sales strategy that should yield a higher earnings potential, while our Retail Division continues to enjoy stellar results from the brisk activity of its three retail banners."
Retail Division sales of mobile phone products and services grew 29%, to $50,506,000 for the 2nd quarter compared to $39,317,000 for the 2nd quarter of 2007. The growth in sales was due to the division operating 236 stores during the 2nd quarter in 2008 compared to 178 stores in the same period of 2007. In addition, same-store mobile phones and other wireless devices sold in the Retail Division grew 7% for the 2nd quarter of 2008 over the corresponding period in 2007 for stores that were open throughout both periods.
As a result of the strong sales in the quarter, operating income before interest and taxes for the division grew 39% to $5,517,000 for the 2nd quarter of 2008 compared to $3,976,000 for the same period the previous year.
During the quarter, the Retail Division continued its expansion plans and opened nine new stores: three in Tbooth/la cabine T and six WIRELESS etc. stores in Costco Wholesale. The division currently operates 102 WirelessWave and 65 Tbooth/la cabine T mall-based stores, and 69 WIRELESS etc. stores in Costco Wholesale in Canada.
Business Division sales of terrestrial radio systems, satellite network services, and technical and engineering services increased 8%, to $9,988,000 for the 2nd quarter compared to $9,254,000 in the 2nd quarter of 2007. The Business Division's sales and earnings continued to be relatively the same in the 2nd quarter of 2008, as the division focuses on transitioning to a communications solutions provider from a communications products reseller that will provide a greater value proposition to its customers. As a result, operating income before interest and taxes for the division was an operating loss of $1,000 for the 2nd quarter of 2008 compared to an operating loss of $46,000 for the same period the previous year. During the quarter, the Business Division was successful in winning certain public safety bids which will generate revenue in future quarters.
Corporate operating expenses for the 2nd quarter of 2008 increased to $2,747,000 compared to $2,048,000 for the 2nd quarter of 2007. -- www.cnxmarketlink.com
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