KeyTech: Comprehensive Loss Of $1.9 Million

July 29, 2015

Lloyd FrayThe KeyTech Group of Companies today [July 29] announces a total comprehensive loss from continuing operations of $1.9 million for the year ending March 31, 2015, compared with $1.7 million in the previous year.

Net loss for the year from continuing operations was $15.9 million versus $2.1 million in the prior year. A loss of $18.6 million was attributed to the difference between proceeds from the sale and recorded net assets of BTC.

“The last year was one of strategic positioning and growth for the company,” said KeyTech CEO Lloyd Fray [pictured].

“KeyTech has positioned itself to offer robust triple-play services and corporate data solutions over expansive and reliable network infrastructures as consumers substitute internet-based entertainment for subscription digital cable TV and businesses exponentially increase their bandwidth requirements.

“Through our subsidiaries, KeyTech is positioned as the leading full-service telecommunications provider for corporate and residential customers in both Bermuda and Cayman.

“Operational growth, benefits and synergies from the acquisitions have been a focus for the Group since September 2014 and the full impact of these initiatives will be seen over the next fiscal year. Additionally, the recent merger of Bermuda CableVision and Logic presents the company with the opportunity to enhance product offerings and achieve economies of scale.”

The company said, “Operating revenues for the year were $66.9 million compared to $39.1 million for the prior year, an increase of $27.8 million. These results include the seven-month period since the BOTCAT purchase for the consolidation of Bermuda CableVision and WestStar TV.

“Data revenues increased $3.5 million over the prior year as a result of the acquisition of Bermuda CableVision. Furthermore, TV revenues were new streams of income from both Bermuda CableVision and WestStar TV. Voice revenues declined $0.5 million as consumers continue to substitute traditional land lines for cellular and internet-based telephone services.

“Total operating expenses increased by $31.6 million related to consolidating Bermuda CableVision and WestStar TV from September 3, 2014. Salaries and employee benefit expenses increased $6.4 million due to the additional headcount as a result of the acquisitions.

“One-time redundancy costs across both jurisdictions as a result of the transactions were $0.4 million, a decrease of $0.3 million over the prior year.

“Depreciation and amortization expenses increased $7.8 million. A portion of this increase is attributed to the accounting for the acquisition of BOTCAT which resulted in the recognition of goodwill and intangible assets in the form of customer lists for Bermuda and Cayman. Finance costs related to debt were $3.2 million compared with $0.9 million over the prior year.

“Total capital expenditure on property, plant and equipment, not including business combinations, in the current year was $12.0 million compared to $13.5 million in the prior year.

“Share of income of associates for the year were $7.1 million as compared to $7.9 million for the prior year. Loss attributable to shareholders was $13.7 million as compared to a profit of $5.7 million for the prior year.

“The dividends paid for the first quarter of the fiscal year were $1.3 million [$0.09 per share]. In 2014 dividends declared for the year were $7.0 million [$0.48 per share].

“KeyTech’s basic and fully diluted earnings/ [loss] per common share for the year were [$0.88] compared to $0.39 in the prior year.

“The record date for attendance at the 2015 Annual General Meeting is August 7, 2015. The Annual General Meeting will be held at 4pm on August 21, 2015. Notice of the AGM as well as proxy forms will be mailed to shareholders in two weeks.

“In accordance with IFRS, BTC results were removed from the Statement of Operations for 2014/15 and the comparative financials. The Earnings and Expenses for BTC in the first five months of the year are reported in Other Comprehensive Income under Discontinued Operations.

“Results for Bermuda CableVision are fully consolidated into the financial statements from September 3, 2014 when the company acquired BOTCAT, and are no longer reported as an investment in associates.”

Read More About

Category: All, Business