-- Gross margin jumped from 21 to 33%
-- EBITDA Loss versus sales for the quarter decreased by 8.6%
-- Total number of handsets sold increased by 40%
MONTREAL, May 13, 2005 (PRIMEZONE) -- TelePlus Enterprises, Inc. (OTCBB:TLPE) (http://www.teleplus.ca), a vertically integrated provider of wireless and landline communications products and services across North America, is pleased to announce its results for the 1st quarter of, 2005.
GROSS MARGIN JUMPS FROM 21 to 33%
Sales for the 1st quarter increased by $576,474 (or 24%) to $2,958,755 as compared to $2,382,281 for the same period a year ago. Gross profit jumped to 33% for the 1st quarter from 21% for the same period a year ago. The Company had a negative EBITDA (earnings before depreciation, amortization and interest expenses) of $354,238 and net loss (before an increase in depreciation, amortization of intangible assets and interest expenses) of $393,438 for the 1st quarter as compared to a negative EBITDA of $312,745 and a net loss of $351,945 for the same period a year ago. Total number of wireless handset sales for the first quarter reached 8,979 handsets, an increase of 40% compared to 6,393 handsets for the same period a year ago.
2nd QUARTER TO INCLUDE TELEPLUS CONNECT
"First quarter results, which are historically our slowest, are in line with our expectations. Our sales continued to increase while our EBITDA losses decreased 8.6% as a percentage of sales. We've increased our cash position by over 300k in the first quarter while achieving a positive working capital (after eliminating non cash items)," commented, Robert Krebs, CFO "We anticipate strong second quarter results which will include revenues and earnings resulting from the Freedom and Keda acquisitions plus organic growth," added Mr. Krebs.
This press release is available on the TelePlus' Investor Relation's site for investor questions, commentary and feedback. Investors are asked to visit http://www.agoracom.com and select the TelePlus Investor Relations HUB. Alternatively, investors can e-mail their questions or comments directly to TLPE@agoracom.com or asked to be placed on the TelePlus investor e-mail list to receive all future press releases directly.
About TelePlus http://www.teleplus.ca
TelePlus Enterprises, Inc. ("TelePlus") is a vertically integrated provider of wireless and landline products and services across North America. The Company's retail division - TelePlus Retail Services, Inc. -- owns and operates a national chain of TelePlus branded stores in major shopping malls, selling a comprehensive line of wireless and portable communication devices. TelePlus Wireless, Corp. operates a virtual wireless network selling cellular network access to distributors in the United States. TelePlus Connect, Corp. is a reseller of landline and long distance services including Internet services.
The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development and acquisition of new product lines and services, government approval processes, the impact of competitive products or pricing a technological changes, the effect of economic conditions and other uncertainties, and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. TelePlus Enterprises, Inc. takes no obligation to update or correct forward-looking statements.