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Mar. 1, 2010 (Filing Services Canada) -- GINSMS Inc. (GOK - TSX Venture), is pleased to announce its results for the third quarter ended December 31, 2009.
Financial highlights
* Net earnings are up 40.7% to $96,284, compared to the same quarter the
previous year.
* Increase of 12.4% in SMS traffic during the quarter ended December 31,
2009 compared to the previous quarter this year.
* EBITDA up 66.4% to $118,745, compared to the same quarter the previous
year.
* Gross margin up to 68.4%, compared to 56.5% during the same quarter the
previous year.
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THREE-MONTH PERIOD ENDED NINE-MONTH PERIOD ENDED
DECEMBER 31, 2009 DECEMBER 31, 2009
(UNAUDITED) (UNAUDITED)
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GINSMS GET GINSMS GET
(restated) (restated)
2009 2008 2009 2008
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REVENUES 215,587 224,347 628,383 650,964
Gross margin $ 147,424 126,747 393,338 376,292
Gross margin 68.4% 56.5% 62.6% 57.8%
EBITDA $ 118,745 71,376 285,442 215,199
EBITDA margin 55.1% 31.8% 45.4 33.1%
NET EARNINGS $ 96,284 68,435 225,243 205,931
Net earnings 44.7% 30.5% 35.8% 31.6%
Earning per share $0.00 $0.00 $0.01 $0.00
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING
Basic and diluted 41,616,896 31,766,666 42,497,286 31,766,666
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CONSOLIDATED AS AT RESTATED CONSOLIDATED
DECEMBER 31, 2009 AS AT
(UNAUDITED)
MARCH 31, 2009
(AUDITED)
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Total assets $ 1,772,515 1,032,660
Capital Asset $ 274,142 399,620
Shareholders' Equity $ 1,465,573 435,090
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GINSMS began trading as a public company on December 18, 2009. Results depicted herein are as at December 31, 2009 and therefore do not reflect any of the actions the Corporation intends to take as a public company.
For the quarter ended December 31, 2009, GINSMS recorded revenues of $215,587, compared to $224,347, representing a decline of 3.9% compared to the revenues of the same period the previous year, but an increase of 3.4% over the revenues of the previous quarter. In the first nine months of this fiscal year, revenues increased gradually from $204,255 in the first quarter to $628,383 at the end of the third quarter. This was achieved despite very low traffic during the first quarter when a new operating system was put in place and a time when considerable time and effort was devoted by management to this task.
As mentioned in the highlights, EBITDA jumped by 66.4% compared to the same quarter of the previous fiscal year. EBITDA is a good measure to pinpoint the true performance of the Corporation when relatively major investment in capital assets are made affecting the amount of depreciation substantially. Investments in new hardware and software are expected to continue in the quarters to come and in light of this; this metric is an excellent measurement to measure performance. For the nine-month period ended December 31, 2009, EBITDA increased by 32.6 % to $285,442.
For the three months ended December 31, 2009, net earnings are up substantially by 40.7% to $96,284 compared with the same quarter in the previous year, reflecting higher profit margins and lower operating expenses. Higher margins manifested as the costs of operating the new system declined relative to the costs of operating the old system. These results were achieved while GINSMS' predecessor company was still a private company and in the mist of a major transition period. Management believes that to be a significant achievement. Going forward, management is confident that it will be able to increase its market of SMS traffic in Hong Kong and penetrate the market for inbound traffic into China which would impact directly and favourably on profit margins.
Caution Regarding Forward-Looking Information
Certain information included in this press release may constitute forward-looking statements. Forward-looking statements generally can be identified by the use of terms such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Forward-looking statements, by their very nature, involve significant risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, without limitation, the risks factors discussed in the section entitled "Risk Factors" in GINSMS's long form prospectus dated November 12, 2009 which is available under GINSMS's profile on SEDAR at www.sedar.com. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, GINSMS cannot assure the reader that actual results will be consistent with these forward-looking statements. These assumptions are further described in GINSMS's management discussion & analysis for the three and nine month periods ended December 31, 2009, which is also available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and GINSMS assumes no obligation to update or revise them to reflect new events or circumstances except as may be required by law. Accordingly, readers should not place undue reliance on the forward-looking statements.
About GINSMS
GINSMS owns 100% of GIN International Ltd., a technology company focused on providing inter-operator short messaging services to mobile telecom operators in Hong Kong. GINSMS's stated business objective to become a leading short messaging service ("SMS") and data hubbing service provider to mobile network operators in Hong Kong and China and to establish an international SMS and value added services business.
For further information, please contact:
GINSMS Inc.
Raymond Richard, Corporate Secretary
tel: 450-466-2921
Source: GINSMS Inc. (TSX-V GOK) www.ginsms.com
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