|[September 28, 2004]
YAK Communications Inc. Reports Record Year End Results
MIAMI & TORONTO --(Business Wire)-- Sept. 28, 2004 -- Revenues Up 100% And EPS Increases By 63%
YAK Communications Inc. (NASDAQ:YAKC), a provider of telecommunication services to residential and business customers, announced today its financial results for the year ending June 30, 2004 and the filing of its annual Form 10K.
For the year ended June 30, 2004, YAK announced sales of $80.8 million, an increase of 100%, compared to sales of $40.4 million, for the year ended June 30, 2003. For the year ended June 30, 2004, earnings per share were $0.49, an increase of 63%, compared to earnings per share of $0.30 for the year ended June 30, 2003. All $ amounts are in US currency.
Significant Operating Highlights and Accomplishments in 2004 are as follows:
- Increased net income by 61% to $5.6 million for the twelve months ended June 30, 2004, a $2.1 million increase from $3.5 million for the twelve months ended June 30, 2003.
- Increased net cash provided by operating activities by $5.0 million to $12.0 million for the twelve months ended June 30, 2004 from $7.0 million for the twelve months ended June 30, 2003.
- Acquired Argos Telecom Inc. and Contour Telecom Inc. from AT&T Canada providing the Company with presence in the small business market and enabling the delivery of telco management services to large enterprises.
- Purchased and installed a state-of-the-art SanteraOne next generation media gateway and softswitch from Tekelec and transitioned from our Harris platform.
- Completed a private placement of 1,470,000 shares in March 2004, which raised net proceeds of $16.8 million.
- Refinanced accounts receivable and our next generation switch on more favorable terms.
- Developed a VoIP initiative to include offerings of local, long distance and value added services over high speed Internet access to residential and SME customers, which was subsequently launched in September 2004.
"We are extremely pleased with our strong annual financial results which exceeded our expectations," said YAK President and CEO Charles Zwebner. "During fiscal 2004, we have positioned the Company for significant growth both in our traditional telephony products of dial around, 1+ billing, local lines services, toll free services, wide area extended flat rate services, high speed internet access, data services, calling cards, teleconferencing services, and VoIP products in Canada, the United States and international territories. We have a healthy balance sheet and strong cash flow, and an experienced team of managers is in place to execute our plans for the next level of growth. We remain extremely optimistic about the future. For the current quarter ending September 30, 2004, we anticipate sales of approximately $21 million and earnings per share to be in the approximate range of $0.12 to $0.13" added Zwebner.
About YAK Communications Inc.: YAK Communications Inc. (the "Company") (NASDAQ:YAKC) is an Integrated Communications Provider (ICP) offering a full array of long distance (1+, toll free and dial-around), local lines, travel cards, cellular long distance, data services, and broadband voice to residential and small businesses in North America. Yak currently serves approximately 800,000 customers. For more information, the public may visit http://www.yak.com.
Forward Looking Statements:
Statements contained in this news release which are not strictly historical are forward looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995. The Company makes these statements based on information available to it as of the date of this news release and assumes no responsibility to update or revise such forward-looking statements. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may cause the Company's actual results to differ materially from such forward-looking statements. Words such as "projects", "believe", "anticipates", "estimate", "plans", "expect", "intends", and similar words and expressions are intended to identify forward-looking statements and are based on our current expectations, assumptions, and estimates about us and our industry. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Although the Company believes that such forward-looking statements are reasonable, we cannot assure you that such expectations will prove to be correct. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of several factors, risks and uncertainties. These factors, risks and uncertainties include, without limitation, the successful deployment and customer acceptance of the Company's broadband/VoIP product offerings, the Company's success in integrating the operations of its newly-acquired businesses, and associated reduction in costs, the successful implementation of its business plans including growth of existing product offerings, strategic acquisitions, the successful integration of new management team members, continued and increased demand for its services, the successful deployment of new equipment and realization of material savings there from, competition from larger and/or more experienced telecommunications providers, its ability to continue to develop its markets, general economic conditions, changes in governmental regulation, and other factors that may be more fully described in the Company's literature and periodic filings with the Securities and Exchange Commission. You are urged to carefully review and consider these disclosures which describe certain factors which affect our business.
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