TORONTO, May 5, 2022
/CNW/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet
services leader, today reported its financial results for the first
quarter ended March 31, 2022. All
figures are in U.S. dollars.
"The first quarter was a very solid start to 2022, with revenue
and gross profit up 14% and 22% year-over-year, respectively,
driven by strong growth in each of our Ting Internet Services
("Ting") and Wavelo Platform Services ("Wavelo") businesses, as our
Tucows Domain Services ("Tucows Domains") business delivered
another quarter of consistent performance," said Elliot Noss, President and Chief Executive
Officer, Tucows Inc. "Adjusted EBITDA decreased 11% from the first
quarter last year as we continued to accelerate the build of our
Fiber network and ramp up of operations. We achieved a new
record for trailing 12-month capital expenditure for the Ting
opportunity."
Financial Results
Net revenue for the first quarter of 2022 increased 14% to
$81.1 million from $70.9 million for the first quarter of 2021. The
increase was the result of growth in revenue from each of Ting
Internet Services and Wavelo Platform Services businesses.
Gross profit for the first quarter of 2022 increased 22% to
$21.2 million from $17.5 million for the first quarter of 2021. The
increase was the result of the same factors as net revenue.
Net loss for the first quarter of 2021 was $3.0 million, or a loss of $0.28 per share, compared with net income of
$2.1 million, or $0.20 per share, for the first quarter of 2021
with the loss being the result of accelerated build of our Ting
Internet Services fiber network and ramp up of operations, higher
depreciation and interest expenses.
Adjusted EBITDA1 for the first quarter of 2022
decreased 11% to $11.3 million from
$12.7 million for the first quarter
of 2021. The modest decline in adjusted EBITDA1 reflects
the accelerated build of our Ting Internet Services fiber network
and ramp up of operations.
Cash and cash equivalents at the end of the first quarter of
2022 were $6.2 million compared with
$9.1 million at the end of the fourth
quarter of 2021 and $8.3 million at
the end of the first quarter of 2021.
Summary Financial Results
(In Thousands of US
Dollars, Except Per Share Data)
|
3 Months ended March
31
|
|
2022
(Unaudited)
|
2021
(Unaudited)
|
% Change
|
|
Net
Revenues
|
81,099
|
70,875
|
14.4%
|
|
Gross
Profit
|
21,198
|
17,453
|
21.5%
|
|
Gain on Sale of Ting
Customer Assets, net1
|
4,752
|
5,395
|
(11.9%)
|
|
Net
income
|
(3,020)
|
2,149
|
(240.5%)
|
|
Basic earnings per
common share
|
(0.28)
|
0.20
|
(239.1%)
|
|
Adjusted
EBITDA1
|
11,311
|
12,724
|
(11.1%)
|
|
Net cash provided by
operating activities
|
5,407
|
14,086
|
(61.6%)
|
|
1. This Non-GAAP
financial measure is described below and reconciled to GAAP net
income in the accompanying table.
|
Summary of Revenues, Gross Profit and Adjusted
EBITDA
(In Thousands of US Dollars)
|
Revenue
|
Gross
Profit
|
Adj.
EBITDA1
|
|
3 Months
ended
March
31
|
3 Months
ended
March
31
|
3 Months
ended
March
31
|
|
2022
(Unaudited)
|
2021
(Unaudited)
|
2022
(Unaudited)
|
2021
(Unaudited)
|
2022
(Unaudited)
|
2021
(Unaudited)
|
|
Ting Internet
Services:
|
|
|
|
Fiber Internet
Services
|
9,788
|
5,082
|
5,750
|
2,473
|
(4,321)
|
(3,927)
|
|
|
|
|
|
|
|
|
Wavelo Platform
Services:
|
|
Platform
Services
|
6,097
|
638
|
5,912
|
553
|
|
|
|
Other Professional
Services
|
750
|
-
|
(26)
|
-
|
|
|
|
Total Wavelo Platform
Services
|
6,847
|
638
|
5,886
|
553
|
2,047
|
(1,080)
|
|
|
|
|
|
|
|
|
Tucows Domain
Services:
|
|
|
|
Wholesale
|
|
|
|
|
|
|
|
Domain
Services
|
46,836
|
46,991
|
10,439
|
11,218
|
|
|
|
Value Added
Services
|
5,649
|
5,080
|
4,993
|
4,481
|
|
|
|
Total
Wholesale
|
52,485
|
52,071
|
15,432
|
15,699
|
|
|
|
|
|
|
|
|
|
|
Retail
|
9,061
|
9,154
|
4,302
|
4,753
|
|
|
|
Total Tucows Domain
Services
|
61,546
|
61,225
|
19,734
|
20,452
|
11,774
|
13,196
|
|
Corporate:
|
|
|
|
Mobile Services and
Eliminations
|
2,918
|
3,930
|
308
|
1,210
|
1,811
|
4,535
|
|
Network
Expenses:
|
|
|
|
Network, other
costs
|
n/a
|
n/a
|
(4,180)
|
(3,238)
|
n/a
|
n/a
|
|
Network, depreciation
of property and equipment
|
n/a
|
n/a
|
(5,895)
|
(3,638)
|
n/a
|
n/a
|
|
Network, amortization
of intangible assets
|
n/a
|
n/a
|
(378)
|
(299)
|
n/a
|
n/a
|
|
Network, impairment of
property and equipment
|
n/a
|
n/a
|
(27)
|
(60)
|
n/a
|
n/a
|
|
Total Network
expenses
|
n/a
|
n/a
|
(10,480)
|
(7,235)
|
n/a
|
n/a
|
|
|
|
|
|
|
|
|
Total
|
81,099
|
70,875
|
21,198
|
17,453
|
n/a
|
n/a
|
Change in Reporting Segments
During the first quarter of 2022, Tucows completed a
reorganization into three businesses: Fiber Internet Services
("Ting"), Platform Services ("Wavelo") and Domain Services ("Tucows
Domains"). Previously, we disclosed the three operating and
reportable segments: Fiber Internet Services, Mobile Services and
Domain Services. The previously named Mobile Services segment was
renamed the Platform Services segment, and no longer includes the
10-year payment stream on transferred legacy subscribers earned as
part of the DISH Purchase Agreement as well as the retail sale of
mobile phones, retail telephony services and transition services,
which are now part of the financial results reported under the
Corporate category. The renamed Platform Services segment includes
Platform and Professional Services offerings (now branded as
Wavelo), as well as the billing solutions to Internet services
providers ("ISPs") that was previously reported under the Fiber
Internet Services segment. The Fiber Internet Services segment now
includes only the retail high speed Internet access operations,
excluding the billing solutions moved to the new Platform Services
segment. The offerings included in the Domain Services segment are
unchanged. The Corporate category includes the aforementioned
mobile services, as well as eliminations of intercompany
transactions, portions of Finance and Human Resources that are
centrally managed, Legal and Corporate IT. Prior period comparable
results have been restated to reflect the changes in reporting
segments. A quarterly summary of the Company's restated segment
revenue, gross margin and EBITDA for 2021 and annual 2020 can be
found in the "KPI Summary Q1 2022" supplementary disclosure, posted
on https://tucows.com/investors/financials/.
Notes:
1. Adjusted EBITDA
Tucows reports all financial information required in accordance
with United States generally
accepted accounting principles (GAAP). Along with this information,
to assist financial statement users in an assessment of our
historical performance, the Company typically discloses and
discusses a non-GAAP financial measure, adjusted EBITDA, in press
releases and on investor conference calls and related events that
exclude certain non-cash and other charges as the Company believes
that the non-GAAP information enhances investors' overall
understanding of our financial performance.
The Company believes that the provision of this supplemental
non-GAAP measure allows investors to evaluate the operational and
financial performance of the Company's core business using similar
evaluation measures to those used by management. The Company uses
adjusted EBITDA to measure its performance and prepare its budgets.
Since adjusted EBITDA is a non-GAAP financial performance measure,
the Company's calculation of adjusted EBITDA may not be comparable
to other similarly titled measures of other companies; and should
not be considered in isolation, as a substitute for, or superior to
measures of financial performance prepared in accordance with GAAP.
Because adjusted EBITDA is calculated before certain recurring cash
charges, including interest expense and taxes, and is not adjusted
for capital expenditures or other recurring cash requirements of
the business, it should not be considered as a liquidity measure.
Non-GAAP financial measures do not reflect a comprehensive system
of accounting and may differ from non-GAAP financial measures with
the same or similar captions that are used by other companies
and/or analysts and may differ from period to period. The Company
endeavors to compensate for these limitations by providing the
relevant disclosure of the items excluded in the calculation of
adjusted EBITDA to net income based on U.S. GAAP, which should be
considered when evaluating the Company's results. Tucows strongly
encourages investors to review its financial information in its
entirety and not to rely on a single financial measure.
The Company's adjusted EBITDA definition excludes depreciation,
impairment and loss on disposition of property and equipment,
amortization of intangible assets, income tax provision, interest
expense (net), accretion of contingent consideration, stock-based
compensation, asset impairment, gains and losses from unrealized
foreign currency transactions and costs that are one-time in nature
and not indicative of on-going performance (profitability),
including acquisition and transition costs. Gains and losses from
unrealized foreign currency transactions removes the unrealized
effect of the change in the mark-to-market values on outstanding
unhedged foreign currency contracts, as well as the unrealized
effect from the translation of monetary accounts denominated in
non-U.S. dollars to U.S. dollars.
The following table reconciles adjusted EBITDA to income before
provision for income taxes (dollars in thousands):
|
3 months ended March
31
|
|
2022
(Unaudited)
|
2021
(Unaudited)
|
|
Adjusted
EBITDA
|
11,311
|
12,724
|
|
Depreciation of
property and equipment
|
6,043
|
3,759
|
|
Impairment and loss on
disposition of property and equipment
|
412
|
60
|
|
Amortization of
intangible assets
|
2,843
|
2,619
|
|
Interest expense,
net
|
1,796
|
936
|
|
Accretion of contingent
consideration
|
98
|
96
|
|
Stock-based
compensation
|
1,391
|
1,022
|
|
Unrealized loss (gain)
on change in fair value of forward contracts
|
-
|
166
|
|
Unrealized loss (gain)
on foreign exchange revaluation of foreign denominated monetary
assets and liabilities
|
53
|
67
|
|
Acquisition and
transition costs*
|
617
|
767
|
|
|
|
|
Income before
provision for income taxes
|
(1,942)
|
3,232
|
|
*Acquisition and other
costs represent transaction-related expenses, transitional
expenses, such as redundant post-acquisition expenses, primarily
related to our acquisitions, including Simply Bits in November
2021. Expenses include severance or transitional costs associated
with department, operational or overall company restructuring
efforts, including geographic alignments.
|
Management Commentary
Concurrent with the dissemination of this news release,
management's pre-recorded audio commentary (and transcript)
discussing the quarter and outlook for the Company, has been posted
to the Tucows website at
http://www.tucows.com/investors/financials.
In lieu of a live question and answer period, for the subsequent
eight days (until Friday, May
13), shareholders, analysts and prospective investors can
submit questions to Tucows' management at ir@tucows.com. Management
will post responses to questions of general interest (audio
recording and transcript) to the Company's website at
http://www.tucows.com/investors/financials/ on Thursday, May 25, at approximately 4 pm ET. All questions will receive a response,
however, questions of a more specific nature may be responded to
directly.
About Tucows
Tucows helps connect more people to the benefit of internet
access through communications service technology, domain services,
and fiber-optic internet infrastructure. Ting
(https://ting.com) delivers fixed fiber Internet access with
outstanding customer support. Wavelo (http://wavelo.com) is a
telecommunications software suite for service providers that
simplifies the management of mobile and internet network access,
provisioning, billing and subscription, developer tools, and more.
OpenSRS (https://opensrs.com), Enom (https://www.enom.com) and
Ascio (https://ascio.com) combined manage approximately 25 million
domain names and millions of value-added services through a global
reseller network of over 35,000 web hosts and ISPs. Hover
(https://hover.com) makes it easy for individuals and small
businesses to manage their domain names and email addresses. More
information can be found on Tucows' corporate website
(https://tucows.com).
|
|
Tuscows Inc.
Consolidated Balance Sheets
|
|
(Dollar amounts in
thousands of U.S. dollars)
|
|
|
|
|
|
|
|
March
31,
|
|
December
31
|
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
6,201
|
|
$
9,105
|
|
Accounts
receivable
|
|
16,391
|
|
14,579
|
|
Contract
asset
|
|
3,283
|
|
778
|
|
Inventory
|
|
3,558
|
|
3,277
|
|
Prepaid expenses and
deposits
|
|
23,221
|
|
20,986
|
|
Derivative instrument
asset, current portion
|
|
1,358
|
|
299
|
|
Deferred costs of
fulfillment, current portion
|
|
96,986
|
|
94,506
|
|
Income taxes
recoverable
|
|
3,249
|
|
3,474
|
|
Total current
assets
|
|
154,247
|
|
147,004
|
|
|
|
|
|
|
Deferred costs of
fulfillment, long-term portion
|
|
17,674
|
|
18,205
|
|
Derivative instrument
asset, long-term portion
|
|
459
|
|
278
|
|
Property and
equipment
|
|
191,456
|
|
172,662
|
|
Right of use operating
lease asset
|
|
18,136
|
|
17,515
|
|
Contract
costs
|
|
1,306
|
|
1,079
|
|
Deferred tax
asset
|
|
20
|
|
22
|
|
Intangible
assets
|
|
47,659
|
|
50,409
|
|
Goodwill
|
|
130,410
|
|
130,410
|
|
Investment
|
|
2,012
|
|
2,012
|
|
Total assets
|
|
$
563,379
|
|
$
539,596
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
14,103
|
|
$
10,016
|
|
Accrued
liabilities
|
|
16,351
|
|
15,240
|
|
Customer
deposits
|
|
16,351
|
|
16,974
|
|
Derivative instrument
liability, current portion
|
|
-
|
|
125
|
|
Operating lease
liability, current portion
|
|
3,463
|
|
3,150
|
|
Deferred revenue,
current portion
|
|
128,413
|
|
124,116
|
|
Accreditation fees
payable, current portion
|
|
882
|
|
882
|
|
Income taxes
payable
|
|
307
|
|
102
|
|
Other current
liabilities
|
|
2,974
|
|
3,078
|
|
Total current
liabilities
|
|
182,844
|
|
173,683
|
|
|
|
|
|
|
Derivative instrument
liability, long-term portion
|
|
-
|
|
-
|
|
Deferred revenue,
long-term portion
|
|
23,753
|
|
23,677
|
|
Accreditation fees
payable, long-term portion
|
|
156
|
|
170
|
|
Operating lease
liability, long-term portion
|
|
12,220
|
|
11,853
|
|
Loan payable, long-term
portion
|
|
207,183
|
|
190,748
|
|
Other long-term
liability
|
|
-
|
|
1,804
|
|
Deferred tax
liability
|
|
22,211
|
|
22,569
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred stock - no
par value, 1,250,000 shares authorized; none issued and
outstanding
|
|
-
|
|
-
|
|
Common stock - no par
value, 250,000,000 shares authorized; 10,762,581 shares issued and
outstanding as of March 31, 2022 and
10,747,417 shares issued and outstanding as of December 31,
2021
|
|
29,655
|
|
28,515
|
|
Additional paid-in
capital
|
|
3,530
|
|
2,764
|
|
Retained
earnings
|
|
80,450
|
|
83,470
|
|
Accumulated other
comprehensive income (loss)
|
|
1,377
|
|
343
|
|
Total stockholders'
equity
|
|
115,012
|
|
115,092
|
|
Total liabilities and
stockholders' equity
|
|
$
563,379
|
|
$
539,596
|
|
|
Tucows
Inc.
|
|
|
Consolidated
Statements of Operations
and Comprehensive Income
|
|
|
(Dollar amounts in
thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
|
|
|
|
|
Net revenues
|
$
|
81,099
|
$
|
70,875
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
Direct cost of
revenues
|
|
49,421
|
|
46,187
|
|
Network, other
costs
|
|
4,180
|
|
3,238
|
|
Network, depreciation
of property and equipment
|
|
5,895
|
|
3,638
|
|
Network, amortization
of intagible assets (note 6)
|
|
378
|
|
299
|
|
Network, impairment of
property and equipment
|
|
27
|
|
60
|
|
Total cost of
revenues
|
|
59,901
|
|
53,422
|
|
|
|
|
|
|
Gross profit
|
|
21,198
|
|
17,453
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Sales and marketing
(*)
|
$
|
11,987
|
$
|
8,311
|
|
Technical operations
and development (*)
|
|
3,765
|
|
3,132
|
|
General and
administrative (*)
|
|
7,296
|
|
4,953
|
|
Depreciation of
property and equipment
|
|
148
|
|
121
|
|
Loss on disposition of
property and equipment
|
|
385
|
|
-
|
|
Amortization of
intangible assets
|
|
2,465
|
|
2,320
|
|
Loss (gain) on currency
forward contracts
|
|
-
|
|
(253)
|
|
Total
expenses
|
|
26,046
|
|
18,584
|
|
|
|
|
|
|
Income from
operations
|
|
(4,848)
|
|
(1,131)
|
|
|
|
|
|
|
Other income
(expenses):
|
|
|
|
|
|
Interest expense,
net
|
|
(1,796)
|
|
(936)
|
|
Gain on sale of Ting
Customer Assets, net
|
|
4,752
|
|
5,395
|
|
Other expense,
net
|
|
(50)
|
|
(96)
|
|
Total other income
(expenses)
|
|
2,906
|
|
4,363
|
|
|
|
|
|
|
Income before provision
for income taxes
|
|
(1,942)
|
|
3,232
|
|
|
|
|
|
|
Provision for income
taxes
|
|
1,078
|
|
1,083
|
|
Net income for the
period
|
|
(3,020)
|
|
2,149
|
|
|
|
|
|
|
Other comprehensive
income, net of tax
|
|
|
|
|
|
Unrealized income
(loss) on hedging activities
|
|
968
|
|
368
|
|
Net amount reclassified
to earnings
|
|
66
|
|
(834)
|
|
Other comprehensive
income net of tax expense (recovery)
of $(235) and $398 for the three months ended June 30, 2021 and
June 30,
2020, $(375) and $32 for the six months ended June 30, 2021 and
June 30, 2020
|
|
1,034
|
|
(466)
|
|
|
|
|
|
|
Comprehensive income,
net of tax for the period
|
$
|
(1,986)
|
$
|
1,683
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
(0.28)
|
$
|
0.20
|
|
|
|
|
|
|
Shares used in
computing basic earnings per common share
|
|
10,754,758
|
|
10,617,807
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
(0.28)
|
$
|
0.20
|
|
|
|
|
|
|
Shares used in
computing diluted earnings per common share
|
|
10,754,758
|
|
10,796,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Stock-based
compensation has been included in expenses as follows:
|
|
|
|
|
|
Network
expenses
|
$
|
110
|
$
|
125
|
|
Sales and
marketing
|
$
|
375
|
$
|
505
|
|
Technical operations
and development
|
$
|
118
|
$
|
167
|
|
General and
administrative
|
$
|
788
|
$
|
225
|
|
|
Tucows
Inc.
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
(Dollar
amounts in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2022
|
|
2021
|
|
Cash provided
by:
|
|
(unaudited)
|
|
Operating
activities:
|
|
|
|
|
|
Net income for
the period
|
$
|
(3,020)
|
$
|
2,149
|
|
Items not involving
cash:
|
|
|
|
|
|
Depreciation of
property and equipment
|
|
6,043
|
|
3,759
|
|
Impairment of property
and equipment
|
|
27
|
|
60
|
|
Amortization of debt
discount and issuance costs
|
|
120
|
|
67
|
|
Amortization of
intangible assets
|
|
2,843
|
|
2,619
|
|
Net amortization
contract costs
|
|
(227)
|
|
(7)
|
|
Accretion of contingent
consideration
|
|
98
|
|
96
|
|
Deferred income taxes
(recovery)
|
|
(686)
|
|
(220)
|
|
Excess tax benefits on
share-based compensation expense
|
|
(52)
|
|
(172)
|
|
Net Right of use
operating assets/Operating lease liability
|
|
59
|
|
55
|
|
Loss on disposal of
domain names
|
|
2
|
|
1
|
|
Loss (gain) on change
in the fair value of forward contracts
|
|
-
|
|
166
|
|
Disposal of Ting Mobile
customer assets
|
|
-
|
|
-
|
|
Stock-based
compensation
|
|
1,391
|
|
1,022
|
|
Change in non-cash
operating working capital:
|
|
|
|
|
|
Accounts
receivable
|
|
(1,812)
|
|
(328)
|
|
Contract
asset
|
|
(2,505)
|
|
-
|
|
Inventory
|
|
(281)
|
|
(442)
|
|
Prepaid expenses and
deposits
|
|
(2,235)
|
|
2,266
|
|
Deferred costs of
fulfillment
|
|
(1,949)
|
|
(4,111)
|
|
Income taxes
recoverable
|
|
482
|
|
(689)
|
|
Accounts
payable
|
|
2,267
|
|
1,451
|
|
Accrued
liabilities
|
|
1,111
|
|
793
|
|
Customer
deposits
|
|
(623)
|
|
125
|
|
Deferred
revenue
|
|
4,368
|
|
5,349
|
|
Accreditation fees
payable
|
|
(14)
|
|
77
|
|
Net cash provided by
operating activities
|
|
5,407
|
|
14,086
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Proceeds received on
exercise of stock options
|
|
515
|
|
229
|
|
Payment of tax
obligations resulting from net exercise of stock options
|
|
-
|
|
(218)
|
|
Proceeds received on
loan payable
|
|
16,500
|
|
-
|
|
Payment of loan payable
costs
|
|
(177)
|
|
-
|
|
Contingent
consideration for acquisition of Cedar Holdings Group
|
|
(2,000)
|
|
-
|
|
Net cash (used in)
provided by financing activities
|
|
14,838
|
|
11
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Additions to property
and equipment
|
|
(23,054)
|
|
(13,944)
|
|
Investment in
securities
|
|
(95)
|
|
(154)
|
|
Net cash used in
investing activities
|
|
(23,149)
|
|
(14,098)
|
|
|
|
|
|
|
(Decrease) increase in
cash and cash equivalents
|
|
(2,904)
|
|
(1)
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
9,105
|
|
8,311
|
|
Cash and cash
equivalents, end of period
|
$
|
6,201
|
$
|
8,310
|
|
|
|
|
|
|
Supplemental cash flow
information:
|
|
|
|
|
|
Interest
paid
|
$
|
1,683
|
$
|
949
|
|
Income taxes paid,
net
|
$
|
896
|
$
|
2,381
|
|
|
|
|
|
|
Supplementary
disclosure of non-cash investing and financing
activities:
|
|
|
|
|
|
Property and equipment
acquired during the period not yet paid for
|
$
|
1,909
|
$
|
3,320
|
|
Reconciliation of
Adjusted EBITDA to Income before Provision for Income
Taxes
|
|
|
|
|
|
(In Thousands of
U.S. Dollars)
|
|
Three months ended
March 31,
|
|
(unaudited)
|
|
2022
(unaudited)
|
|
2021
(unaudited)
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
11,311
|
$
|
12,724
|
|
Depreciation of
property and equipment
|
|
6,043
|
|
3,759
|
|
Impairment and loss on
disposition of property and equipment
|
|
412
|
|
60
|
|
Amortization of
intangible assets
|
|
2,843
|
|
2,619
|
|
Impairment of
indefinite life intangible assets
|
|
-
|
|
-
|
|
Interest expense,
net
|
|
1,796
|
|
936
|
|
Accretion of contingent
consideration
|
|
98
|
|
96
|
|
Stock-based
compensation
|
|
1,391
|
|
1,022
|
|
Unrealized loss (gain)
on change in fair value of forward contracts
|
|
-
|
|
166
|
|
Unrealized loss (gain)
on foreign exchange revaluation of foreign denominated monetary
assets and liabilities
|
|
53
|
|
67
|
|
Acquisition and other
costs1
|
|
617
|
|
767
|
|
|
|
|
|
|
Income before provision
for income taxes
|
$
|
(1,942)
|
$
|
3,233
|
|
|
1Acquisition and other costs represent
transaction-related expenses, transitional expenses, such as
redundant post-acquisition expenses, primarily related to our
acquisitions, including Simply Bits in November 2021. Expenses
include severance or transitional costs associated with department,
operational or overall company restructuring efforts, including
geographic alignments.
|
This release includes forward-looking statements as that term
is defined in the U.S. Private Securities Litigation Reform Act of
1995, including statements regarding our expectations regarding our
future financial results and, including, without limitation, our
expectations regarding our ability to realize synergies from the
Enom acquisition and our expectation for growth of Ting Internet.
These statements are based on management's current expectations and
are subject to a number of uncertainties and risks that could cause
actual results to differ materially from those described in the
forward-looking statements. Information about other potential
factors that could affect Tucows' business, results of operations
and financial condition is included in the Risk Factors sections of
Tucows' filings with the Securities and Exchange Commission. All
forward-looking statements should be evaluated with the
understanding of their inherent uncertainty. All forward-looking
statements are based on information available to Tucows as of the
date they are made. Tucows assumes no obligation to update any
forward-looking statements, except as may be required by
law.
Tucows, Ting, Wavelo, OpenSRS, Enom, Ascio and Hover are
registered trademarks of Tucows Inc. or its subsidiaries.
View original
content:https://www.prnewswire.com/news-releases/tucows-reports-financial-results-for-first-quarter-2022-301541284.html
SOURCE Tucows