MONTREAL – Prestige Telecom inched closer to the black after cutting its net loss by more than $10 million during its 2010 fiscal year.
The company recorded earnings before income taxes of $0.6 million for the year ended March 31, 2010, compared to a loss of $10.5 million a year ago. However, because some of its subsidiary companies were profitable, it recorded an income tax expense of $1.4 million in fiscal 2010, resulting in a net loss of $0.8 million compared to a net loss of $11.5 million last year.
Sales were $124.2 million, an increase of 87% compared to $66.5 million a year ago. The company, which provides construction and operation services for wireline, wireless and cable television networks, credited the acquisition of Radian Communication Services in December 2008 to the sales increase.
"This has been a milestone year for Prestige”, said chairman and CEO Pierre Yves Méthot, in a statement Tuesday. "Prestige is extremely well positioned to benefit from the steps we have taken to increase our market share and improve our performance. For fiscal 2011, we expect continued sales growth on the basis of a growing shift towards increased demand for outsourcing services from the telcos, as well as new engineering and infrastructure business from the new wireless entrants.”
EBITDA for the year was a record $8.4 million, compared to an EBITDA loss of $2.9 million last year, while gross margin for fiscal 2010 increased by $16.4 million to $29.2 million (23% of sales) from $12.8 million (19% of sales) last year.
In the fourth quarter of fiscal 2010, the company completed a restructuring of all its legal entities following the acquisition activity of the past two years.
Méthot said that Prestige would “continue to target strategic acquisitions that will be immediately accretive to our overall business and growth plans, as well as providing us with much-needed skilled employees."
