BURNABY, BC – While sales climbed 74% and global revenue exceeded $1 billion in 2013, Glentel saw its net income plunge by more than $22 million.
The wireless retailer incurred costs of $27.4 million ($20.4 million net of tax) for the year ended December 31, 2013, compared to $2.9 million ($2.1 million net of tax) in 2012. Glentel said that these costs relate primarily to its $23.1 million ($17.6 million net of tax) impairment of its investment in Australia’s AMT, offset by gains attributable to the sale of tower site assets in its Business Division.
Net income for the year was $4.6 million well below $27.4 million in 2012, while consolidated adjusted net income was $25.0 million versus $30.3 million year-over-year. EBITDA increased 8% to $54.6 million compared to $50.5 million in 2012, but EBIT dropped 25% to $28.2 million from $37.5 million last year.
Sales for 2013 increased 74% to $1.36 billion, up from $784.8 million in 2012, which include sales from Wireless Zone and AMT/Allphones, both of which were acquired in the fourth quarter of 2012.
For the fourth quarter of 2013, Glentel's net income was $8.3 million and consolidated adjusted net income was $9.3 million, down from $10.7 million and $11.5 million, respectively, from the same quarter last year. Sales were up 27% to $401.4 million, EBITDA decreased 10% to $16.0 million, and EBIT dropped 34% to $8.4 million.
President and CEO Thomas Skidmore said 2013 was “challenging, but has presented the company with tremendous growth opportunities.”
“We have viewed this year as one of investing in our future, and believe that the events of 2013 will only make for a stronger and more flexible Glentel”, he said in a statement Wednesday. “We are very optimistic about our global initiatives, and are pleased that our core Canadian business remains strong and is well positioned for the long term. Retail Canada sales and profitability have been resilient, irrespective of the recent disruption in the Canadian market due to the change in wireless contractual terms from three years to two years.”
