MONTREAL – Prestige Telecom recorded a first quarter net loss of $700,000, slightly greater than its $400,000 net loss in the same period last year, as its sales remained flat.
EBITDA for the first quarter of fiscal 2012 ended June 30, 2011 was $1.3 million, compared to $1.7 million last year.
Prestige posted quarterly sales of $33.4 million, compared to $33.5 million a year ago. Revenues for the construction segment were down 36% to $11.9 million, engineering segment revenues were up 58% to $16.5 million, and installation segment revenues were up 10% to $5 million due to an increase in wireline business activity.
Gross margin for the quarter decreased by $1.2 million to $5.6 million (17% of sales) from $6.8 million (20% of sales) last year, mainly due to the construction segment, where gross margin as a percentage of sales decreased from 17% to 11%. Lower construction sales volumes in the first quarter had a negative impact on the recovery of indirect costs.
The Quebec Superior Court granted the company an order extending the time to call its annual general meeting of the shareholders to December 15, 2011. Last month Prestige filed a request for an extension of the deadline on the basis that a meeting at this point in time would not constitute the best use of its management time and financial resources as it works towards furthering its strategic review process.
