Tucows Inc.
Consolidated Balance Sheets
(Dollar amounts in U.S. dollars)
|
| |
|
December 31,
2004  |
|
December 31,
2003 |
| |
|
Assets
|
| Current assets: |
| Cash and cash equivalents |
$ |
13,914,988 |
$ |
12,912,811 |
| Restricted cash (note 1) |
|
460,398 |
|
132,500 |
| Accounts receivable |
|
1,111,082 |
|
486,289 |
| Prepaid expenses and deposits |
|
2,156,702 |
|
2,061,948 |
| Prepaid domain name registry fees, current portion |
|
15,601,786 |
|
13,204,566 |
| Deferred tax asset, current portion |
|
1,000,000
|
|
-
|
| Total current assets |
|
34,244,956
|
|
28,798,114
|
| |
| Prepaid domain name registry fees, long-term portion |
|
6,471,916 |
|
5,136,194 |
| Property and equipment |
|
1,017,237 |
|
1,048,400 |
| Deferred tax asset, long-term portion |
|
2,000,000 |
|
- |
| Intangible assets |
|
1,242,240 |
|
- |
| Goodwill |
|
964,467 |
|
- |
| Investments |
|
353,737 |
|
353,737 |
| Cash held in escrow |
|
1,009,650 |
|
- |
| Total assets |
$ |
47,304,203
|
$ |
35,336,445
|
| |
|
|
| Liabilities and Stockholders' Equity |
| Current liabilities: |
| Accounts payable |
$ |
1,483,543 |
$ |
1,632,294 |
| Accrued liabilities |
|
2,688,738 |
|
2,088,235 |
| Customer deposits |
|
2,247,262 |
|
2,160,601 |
| Deferred revenue, current portion |
|
23,648,381 |
|
20,715,191 |
| Accreditation fees payable, current portion |
|
144,483
|
|
-
|
| Total current liabilities |
|
30,212,407 |
|
26,596,321 |
| |
|
|
| Deferred revenue, long-term portion |
|
9,602,599 |
|
7,874,001 |
| Accreditation fees payable, long-term portion |
|
31,816 |
|
- |
| |
| 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; 66,817,250 shares issued and outstanding at December 31, 2004 and 64,626,429 shares issued and outstanding at December 31, 2003 |
|
9,541,277 |
|
8,540,687 |
| Additional Paid-in Capital |
|
50,061,866 |
|
49,992,129 |
| Deferred stock-based compensation |
|
- |
|
(20,593) |
| Deficit |
|
(52,145,762)
|
|
(57,646,100)
|
| Total stockholders' equity |
|
7,457,381
|
|
866,123
|
| Total liabilities and stockholders' equity |
$ |
47,304,203
|
$ |
35,336,445
|
| |
Note 1:
Of the restricted cash, $310,000 represents margin security against a series of forward exchange contracts, and $150,398 represents security against 2 letters of credit. |
Tucows Inc.
Consolidated Statements of Operations
(Dollar amounts in U.S. dollars)
|
| |
Three months ended
December 31, |
Year ended
December 31, |
| |
2004
|
2003
|
2004
|
2003
|
| Net revenues |
$ |
11,521,955 |
$ |
9,714,774 |
$ |
44,717,155 |
$ |
37,194,747 |
| Cost of revenues |
| 6,907,776
|
| 5,923,054
|
| 27,566,066
|
| 22,990,227
|
| Gross profit |
| 4,614,179
|
| 3,791,720
|
| 17,151,089
|
| 14,204,520
|
| Operating expenses: |
| Sales and marketing (*) |
| 1,351,649 |
| 1,058,830 |
| 5,067,841 |
| 3,850,081 |
| Technical operations and development |
| 1,289,486 |
| 1,067,963 |
| 4,549,368 |
| 3,935,061 |
| General and administrative(*) |
| 811,985 |
| 953,166 |
| 4,107,981 |
| 3,998,073 |
| Depreciation of property and equipment |
| 301,259 |
| 323,230 |
| 1,118,734 |
| 1,489,570 |
| Amortization of intangible assets |
| 59,040 |
| - |
| 157,760 |
| - |
| Total operating expenses |
|
3,813,419
|
|
3,403,189
|
|
15,001,684
|
|
13,272,785
|
| Income from operations |
| 800,760 |
| 388,531 |
| 2,149,405 |
| 931,735 |
| Other Income: |
|
| Interest income, net |
| 64,216 |
| 37,319 |
| 200,501 |
| 131,703 |
| Gain on disposal of Liberty Registry Management Services Inc. |
| - |
| - |
| - |
| 1,000,000 |
| Total other income |
|
64,216
|
|
37,319
|
|
200,501
|
|
1,131,703
|
| Income before provision for income taxes |
| 864,976 |
| 425,850 |
| 2,349,906 |
| 2,063,438 |
| Provision for (recovery of) income taxes |
| (3,000,000)
|
| -
|
| (3,150,432)
|
| -
|
| Net income for the year |
$ |
3,864,976
|
$ |
425,850
|
$ |
5,500,338
|
$ |
2,063,438
|
| |
|
| Basic and diluted income per share |
$ |
0.06
|
$ |
0.01
|
$ |
0.08
|
$ |
0.03
|
| |
|
| Shares used in computing basic earnings per common share |
| 66,817,250
|
| 64,626,429
|
| 66,079,104
|
| 64,626,429
|
| |
| Shares used in computing diluted income per common share |
| 68,893,918
|
| 70,858,586
|
| 68,051,579
|
| 64,725,929
|
| |
| |
| (*) Stock-based compensation has been included in operating expenses as follows: |
| Sales and marketing |
$ | - |
$ | 27,708 |
$ | 16,835 |
$ | 109,926 |
| Technical operations and development |
$ | 69,737 |
$ | - |
$ | 69,737 |
$ | - |
| General and administrative |
$ | - |
$ | 13,304 |
$ | 3,759 |
$ | 52,778 |
Tucows Inc.
Consolidated Statements of Cash Flows
(Dollar amounts in U.S. dollars)
|
| |
Three months ended
December 31, |
Year ended
December 31, |
| |
2004
|
2003
|
2004
|
2003
|
| Cash provided by (used in): |
|
| Operating activities: |
|
| Net income for the year |
$ |
3,864,976 |
$ |
425,850 |
$ |
5,500,338 |
$ |
2,063,438 |
| Items not involving cash: |
|
| Depreciation of property and equipment |
| 301,259 |
| 323,230 |
| 1,118,734 |
| 1,489,570 |
| Amortization of intangible assets |
| 59,040 |
| - |
| 157,760 |
| - |
| Unrealized change in the fair value of forward contracts |
| 100,032 |
| 297,296 |
| (88,743) |
| (279,174) |
| Stock-based compensation |
| 69,737 |
| - |
| 69,737 |
| - |
| Amortization of stock-based compensation
|
| - |
| 41,012 |
| 20,593 |
| 162,704 |
| Deferred taxes |
| (3,000,000) |
| - |
| (3,000,000) |
| - |
| Gain on disposal of Liberty Registry Management Services Inc. |
| - |
| - |
| - |
| (1,000,000) |
| Change in non-cash operating working capital: |
|
| Accounts receivable |
| (89,847) |
| (74,114) |
| (546,762) |
| (147,592) |
| Prepaid expenses and deposits |
| (180,526) |
| (503,288) |
| (1,333) |
| (91,977) |
| Prepaid domain name registry fees |
| (806,264) |
| (1,022,621) |
| (3,732,942) |
| (3,495,233) |
| Accounts payable |
| 139,182 |
| 327,472 |
| (148,751) |
| 26,664 |
| Accrued liabilities |
| (42,295) |
| 81,280 |
| 403,404 |
| 60,112 |
| Customer deposits |
| 241,361 |
| 126,291 |
| 77,772 |
| 202,944 |
| Deferred revenue |
| 745,203 |
| 1,111,283 |
| 4,661,788 |
| 4,228,175 |
| Accreditation fees payable |
| 176,299
|
| -
|
| 176,299
|
| -
|
| Cash provided by operating activities |
| 1,578,157
|
| 1,133,691
|
| 4,667,894
|
| 3,219,631
|
| |
| Financing activities: |
|
| Proceeds received on exercise of stock options |
| -
|
| -
|
| 726,050
|
| -
|
| Cash provided by financing activities |
| -
|
| -
|
| 726,050
|
| -
|
| |
| Investing activities: |
|
| Additions to property and equipment |
| (538,220) |
| (175,775) |
| (1,034,709) |
| (956,649) |
| Decrease (increase) in restricted cash - being margin security against forward exchange contracts |
| (247,898) |
| 130,112 |
| (327,898) |
| 805,000 |
| Acquisition of Boardtown Corporation, net of cash acquired |
| - |
| - |
| (2,019,510) |
| - |
| Increase in cash held in escrow |
| (9,650) |
| - |
| (1,009,650) |
| - |
| Proceeds on disposal of Liberty Registry Management Services Inc., net of cash disposed |
| -
|
| -
|
| -
|
| 1,000,000
|
| Cash provided by (used in) investing activities |
| (795,768)
|
| (45,663)
|
| (4,391,767)
|
| 848,351
|
| |
| Increase in cash and cash equivalents |
| 782,389 |
| 1,088,028 |
| 1,002,177 |
| 4,067,982 |
| Cash and cash equivalents, beginning of year |
| 13,132,599
|
| 11,824,783
|
| 12,912,811
|
| 8,844,829
|
| Cash and cash equivalents, end of year |
$ |
13,914,988
|
$ |
12,912,811
|
$ |
13,914,988
|
$ |
12,912,811
|
| |
| Supplemental cash flow information: |
|
| Interest paid |
$ |
- |
$ |
113 |
$ |
166 |
$ |
383 |
| |
| Supplemental disclosure of non-cash investing and financing activities: |
|
| Common stock issued on the acquisition of Boardtown Corporation |
$ |
- |
$ |
- |
$ |
274,540 |
$ |
- |