| Press Release Source:
Titan Global Holdings, Inc.
Titan Global Reports
Record Quarterly Performance in Fiscal Q1 2007 with $29.9 Million in Revenues
and EBITDA of $1.2 Million
Tuesday January 16, 7:04
pm ET
Robust Financial Performance
Led by $24.6 Million in Revenues by Communications Division
RICHARDSON, Texas--(BUSINESS
WIRE)--Titan Global Holdings, Inc. (OTCBB:TTGL - News), a high-growth diversified
holding company, reported record financial results for the fiscal quarter
ended November 30, 2006, with the Company's divisions generating a total
of $29.9 million in revenues for the period, representing a $2.3 million
gain over the same period the previous year.
The Company also reported
$1.2 million in earnings before interest, taxes, depreciation and amortization
(EBITDA), an increase of 50% from the first quarter of 2006.
Titan's Communication
Division, which includes Oblio Telecom Inc., Titan Wireless Inc., Pinless
Inc., Startalk Inc. and others, reported strong financial performance,
with revenues reaching $24.6 million in the first quarter of 2007 with
a significant gain in EBITDA to $2.3 million, an 82% increase from the
first quarter of 2006.
Titan's Electronics and
Homeland Security division, which includes Titan PCB West and Titan PCB
East, reported revenues reaching $5.4 million in the first quarter of 2007,
a solid 23% increase from the first quarter of 2006.
"We are energized by
the dramatic gains that Titan made during this period through our continued
growth and the overall success," said Bryan Chance, Chief Executive Officer
of Titan Global Holdings. "The Company entered fiscal 2007 with specific
goals to increase revenue and earnings both organically and through acquisitions.
During the first quarter of 2007 we leveraged our market position in each
division to increase revenues and dramatically improve earnings in our
Communications division."
Titan Global Holdings
Q1 2007 Q1 2006 Change
(in ,000's)
--------------------------------------------
-------- -------- -------
Revenue
$29,986 $27,680 $2,306
Net Operating Loss
($6,839) ($6,336) ($503)
Interest Expense
$806 $1,563 ($757)
Non-cash Items(a)
$7,259 $5,591 $1,668
Earnings Before Interest,
Taxes,
Depreciation and
Amortization
$1,226 $818 $408
(a)Includes Depreciation,
Amortization and Derivative Losses
----------------------------------------------------------------------
The following are revenue
and EBITDA results by division.
Titan Communications
Division
Titan's Communications
reported the following results for Q1 2007:
*
Revenue of $24.6 million, up 6% for the same period the previous year.
*
EBITDA of $2.3 million, an 82% increase from the same period the previous
year.
"Our revenues in the
first quarter of 2006 were a result of an increased market share from international
calling cards terminated through our strategic tier one partners and from
added volume generated through our Startalk subsidiary," said Kurt Jensen,
President of Titan's Communications Division. "By investing in our core
international calling cards and growing our new subsidiaries in wireless,
call termination and e-commerce, we intend to deliver communications services
to more people, more often, in more places and thereby deliver more value
to our shareholders."
Communications Division
Q1 2007 Q1 2006 Change
(in ,000's)
--------------------------------------------
-------- -------- -------
Revenue
$24,574 $23,267 $1,307
Net Operating Loss
($1,037) ($833) ($204)
Interest Expense
$654 $930 ($276)
Non-cash Items(a)
$2,698 $1,175 $593
Earnings Before Interest,
Taxes,
Depreciation and
Amortization
$2,315 $1,272 $1,043
(a)Includes Depreciation,
Amortization and Derivative Losses
----------------------------------------------------------------------
Electronics and Homeland
Security Division
Titan's Electronics and
Homeland Security Division reported the following results for 2006:
*
Revenue of $5.4 million, a substantial 23% increase from the first quarter
of 2006
*
EBITDA loss of $461,000
"Our legacy print circuit
board operations continued to increase revenues and expand market share
in the first quarter of 2007," said Curtis Okumura, President and Chief
Executive Officer of Titan's Electronics and Homeland Security Division.
"Earnings were negatively impacted by a softening in the print circuit
board market and rising costs of essential raw materials such as copper
and laminate. We will counter this trend by continuing to compete for higher
margin quick-turn and prototype work and efficiently structuring product
offerings such as our Fastrac program to meet the needs of new customers."
Electronics & Homeland
Security Division Q1 2007 Q1 2006
Change
(in ,000's)
---------------------------------------------
-------- -------- ------
Revenue
$5,412 $4,413 $999
Net Operating Loss
($5,174) ($4,651) ($523)
Interest Expense
$152 $633 ($481)
Non-cash Items(a)
$4,561 $4,416 $145
Earnings Before Interest,
Taxes, Depreciation
and Amortization
($461) $398 ($859)
(a)Includes Depreciation,
Amortization and Derivative Losses
----------------------------------------------------------------------
Overview
Titan also recently entered
into new financing agreements with Greystone Business Credit II LLC to
replace existing agreements with Laurus Master Funds and CapitalSource
Finance. The Company repurchased 1.25M shares from Laurus upon the closing
of our new financing agreements. The balance sheet impact and the related
cash flow savings will be reflected in the Company's Q2 2007 financial
statements.
"Management remains confident
that the company will meet its stated earnings and revenue target of $145
million for fiscal 2007 as we continue to grow our Communications division
and work to complete our outstanding recoveries with regards to USF and
FET settlements," said Mr. Chance.
About Titan Global Holdings
Titan Global Holdings,
Inc. ("Titan") (OTCBB:TTGL - News) is a high-growth diversified holding
company with a dynamic portfolio of companies engaged in emerging telecommunications
markets and advanced technologies. In its last fiscal year Titan generated
in excess of $109 million in revenues on a consolidated basis.
Titan's Oblio Telecom
Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas,
is a market leader in prepaid telecommunications products and the second
largest publicly-owned international telecommunications company focused
on the prepaid space. Oblio leverages strategic agreements with Tier 1
telecommunications leaders Sprint and Level3 to supply its brand-name prepaid
calling cards. Annually Oblio sells an estimated 35 million of its brand-name
prepaid calling cards through its established distribution channels estimated
at more than 60,000 retail outlets.
Titan Wireless, Inc.
("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network
operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products
and wireless services through Oblio's established distribution channels.
Titan's Electronics and Homeland Security division specializes in advanced
manufacturing processes to provide commercial production runs and quick-turn
delivery of printed circuit board prototypes for high-margin markets including
Homeland Security and high-tech clients.
For more information,
please visit: www.titanglobalholdings.com. For investor-specific information
and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0.
To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html.
To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.
Forward-Looking Statements
Safe Harbor Statement
Under the Private Securities Litigation Act of 1995 -- With the exception
of historical information, the matters discussed in this press release
are forward-looking statements that involve a number of risks and uncertainties.
The actual future results of TTGL could differ significantly from those
statements. Factors that could cause actual results to differ materially
include risks and uncertainties such as the inability to finance the company's
operations or expansion, inability to hire and retain qualified personnel,
changes in the general economic climate, including rising interest rate
and unanticipated events such as terrorist activities. In some cases, you
can identify forward-looking statements by terminology such as "may," "will,"
"should," "expect," "plan," "anticipate," "believe," "estimate," "predict,"
"potential" or "continue," the negative of such terms, or other comparable
terminology. These statements are only predictions. Although we believe
that the expectations reflected in the forward-looking statements are reasonable,
such statements should not be regarded as a representation by the Company,
or any other person, that such forward-looking statements will be achieved.
We undertake no duty to update any of the forward-looking statements, whether
as a result of new information, future events or otherwise. In light of
the foregoing, readers are cautioned not to place undue reliance on such
forward-looking statements. For further risk factors see the risk factors
associated with our Company, review our SEC filings.
Contact:
Trilogy Capital Partners
Financial Communications:
Paul Karon, Toll-free:
800-592-6067
paul@trilogy-capital.com
Source: Titan Global
Holdings, Inc. |
