Tucows Inc.
Consolidated Balance Sheets
(Dollar amounts in U.S. dollars)
|
| |
|
September 30,
2005 |
|
December 31,
2004 |
| |
|
Assets
|
| Current assets: |
| Cash and cash equivalents |
$ |
10,315,332 |
$ |
13,914,988 |
| Short-term investments |
|
7,771,453 |
|
- |
| Restricted cash (note 1) |
|
300,000 |
|
460,398 |
| Interest receivable |
|
115,739 |
|
- |
| Accounts receivable |
|
1,362,887 |
|
1,111,082 |
| Prepaid expenses and deposits |
|
1,687,766 |
|
2,156,702 |
| Prepaid domain name registry and ancillary services fees, current portion |
|
18,001,418 |
|
15,601,786 |
| Deferred tax asset, current portion |
|
1,000,000
|
|
1,000,000
|
| Total current assets |
|
40,554,595 |
|
34,244,956 |
| |
| Prepaid domain name registry and ancillary services fees, long-term portion |
|
7,445,536 |
|
6,471,916 |
| Property and equipment |
|
1,412,753 |
|
1,017,237 |
| Deferred tax asset, long-term portion |
|
2,000,000 |
|
2,000,000 |
| Intangible assets |
|
1,065,120 |
|
1,242,240 |
| Goodwill |
|
1,951,067 |
|
964,467 |
| Investment |
|
353,737 |
|
353,737 |
| Cash held in escrow |
|
619,082 |
|
1,009,650 |
| Total assets |
$ |
55,401,890
|
$ |
47,304,203
|
| |
|
|
| Liabilities and Stockholders' Equity |
| Current liabilities: |
| Accounts payable |
$ |
1,715,409 |
$ |
1,483,543 |
| Accrued liabilities |
|
1,743,843 |
|
2,688,738 |
| Customer deposits |
|
2,169,890 |
|
2,247,262 |
| Deferred revenue, current portion |
|
26,561,381 |
|
23,648,381 |
| Accreditation fees payable, current portion |
|
366,143
|
|
144,483
|
| Total current liabilities |
|
32,556,666 |
|
30,212,407 |
| |
| Deferred revenue, long term portion |
|
10,758,080 |
|
9,602,599 |
| Accreditation fees payable, long term portion |
|
78,212 |
|
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; 71,840,267 shares issued and outstanding at September 30, 2005 and 66,817,250 shares issued and outstanding at December 31, 2004 |
|
12,354,168 |
|
9,541,277 |
| Additional Paid-in Capital |
|
50,061,866 |
|
50,061,866 |
| Deficit |
|
(50,407,102)
|
|
(52,145,762)
|
| Total stockholders' equity |
|
12,008,932
|
|
7,457,381
|
| |
| Total liabilities and stockholders' equity |
$ |
55,401,890
|
$ |
47,304,203
|
Note 1:
The restricted cash of $300,000 represents margin security against a series of forward exchange contracts. |
Tucows Inc.
Consolidated Statements of Operations
(Dollar amounts in U.S. dollars)
(unaudited)
|
| |
Three months ended
September 30, |
Nine months ended
September 30, |
| |
2005
|
2004
|
2005
|
2004
|
| Net revenues |
$ |
12,054,796 |
$ |
12,381,326 |
$ |
35,858,640 |
$ |
33,195,200 |
| Cost of revenues |
| 7,676,713
|
| 7,654,475
|
| 22,484,530
|
| 20,658,200
|
| Gross profit |
| 4,378,083 |
| 4,726,851 |
| 13,374,110 |
| 12,537,000 |
| Operating expenses: |
| Sales and marketing (*) |
| 1,150,674 |
| 1,370,932 |
| 3,669,185 |
| 3,716,192 |
| Technical operations and development |
| 1,468,624 |
| 1,107,590 |
| 4,147,467 |
| 3,259,882 |
| General and administrative(*) |
| 820,860 |
| 1,388,421 |
| 3,358,347 |
| 3,295,996 |
| Depreciation of property and equipment |
| 213,422 |
| 187,158 |
| 732,165 |
| 817,475 |
| Amortization of intangible assets |
| 59,040 |
| 59,040 |
| 177,120 |
| 98,720 |
| Total operating expenses |
|
3,712,620
|
|
4,113,141
|
|
12,084,284
|
|
11,188,265
|
| |
|
| Income from operations |
| 665,463 |
| 613,710 |
| 1,289,826 |
| 1,348,735 |
| |
| Other income |
|
| Interest income, net |
| 122,755 |
| 56,549 |
| 296,859 |
| 136,285 |
| Total other income |
|
122,755
|
|
56,549
|
|
296,859
|
|
136,285
|
| |
|
| Income before provision for income taxes |
| 788,218 |
| 670,259 |
| 1,586,685 |
| 1,485,020 |
| Provision for (recovery of) income taxes |
| -
|
| (150,432)
|
| (151,975)
|
| (150,432)
|
| Net income for the period |
$ |
788,218
|
$ |
820,691
|
$ |
1,738,660
|
$ |
1,635,452
|
| |
|
| Basic earnings per common share |
$ |
0.01
|
$ |
0.01
|
$ |
0.03
|
$ |
0.02
|
| Shares used in computing basic earnings per common share |
| 69,602,723
|
| 66,800,369
|
| 68,126,691
|
| 65,831,258
|
| Diluted earnings per common share |
$ |
0.01
|
$ |
0.01
|
$ |
0.02
|
$ |
0.02
|
| Shares used in computing diluted earnings per common share |
| 73,145,627
|
| 68,458,596
|
| 72,243,523
|
| 68,099,907
|
| |
| |
| (*) Stock-based compensation has been included in operating expenses as follows: |
| Sales and marketing |
$ | - |
$ | - |
$ | - |
$ | 16,834 |
| General and administrative |
$ | - |
$ | - |
$ | - |
$ | 3,759 |
Tucows Inc.
Consolidated Statements of Cash Flows
(Dollar amounts in U.S. dollars)
(unaudited)
|
| |
Three months ended
September 30, |
Nine months ended
September 30, |
| |
2005
|
2004
|
2005
|
2004
|
| Cash provided by (used in): |
|
| Operating activities: |
|
| Net income for the period |
$ |
788,218 |
$ |
820,691 |
$ |
1,738,660 |
$ |
1,635,362 |
| Items not involving cash: |
|
| Depreciation of property and equipment |
| 213,422 |
| 187,158 |
| 732,165 |
| 817,475 |
| Amortization of intangible assets |
| 59,040 |
| 59,040 |
| 177,120 |
| 98,720 |
| Unrealized change in the fair value of forward contracts |
| (290,177) |
| (97,512) |
| (182,549) |
| (188,775) |
| Stock-based compensation |
| - |
| - |
| - |
| 20,593 |
| Change in non-cash operating working capital: |
|
| Interest receivable |
| (115,739) |
| - |
| (115,739) |
| - |
| Accounts receivable |
| (91,828) |
| (382,631) |
| (251,805) |
| (456,915) |
| Prepaid expenses and deposits |
| 240,682 |
| 68,578 |
| 651,485 |
| 179,193 |
| |
| Prepaid domain name registry and ancillary services fees |
| (535,643) |
| 369,522 |
| (3,373,252) |
| (2,926,678) |
| Accounts payable |
| 292,579 |
| 61,324 |
| 231,866 |
| (287,933) |
| Accrued liabilities |
| (269,556) |
| 668,181 |
| (944,895) |
| 445,699 |
| Customer deposits |
| 31,497 |
| (167,189) |
| (77,372) |
| (163,589) |
| Deferred revenue |
| 674,016 |
| (460,375) |
| 4,068,481 |
| 3,916,585 |
| Accreditation fees payable |
| (204,296)
|
| -
|
| 268,056
|
| -
|
| Cash provided by operating activities |
| 792,215
|
| 1,126,787
|
| 2,922,221
|
| 3,089,737
|
| |
| Financing activities: |
|
| Proceeds received on exercise of stock options |
| 65,177 |
| 81,581 |
| 251,616 |
| 726,050 |
| Net proceeds received on issuance of common stock, net of issue costs |
| 2,024,025
|
| -
|
| 1,574,675
|
| -
|
| Cash provided by financing activities |
| 2,089,202
|
| 81,581
|
| 1,826,291
|
| 726,050
|
| |
| Investing activities: |
|
| Additions to property and equipment |
| (301,604) |
| (143,239) |
| (1,127,681) |
| (496,489) |
| Investment in short-term investments |
| - |
| - |
| (7,771,453) |
| - |
| (Decrease) increase in restricted cash - being margin security against forward exchange contracts |
| (300,000) |
| 148,750 |
| 160,398 |
| (80,000) |
| Acquisition of Boardtown Corporation, net of cash acquired |
| - |
| - |
| - |
| (2,019,510) |
| Decrease (increase) in cash held in escrow |
| (2,320)
|
| -
|
| 390,568
|
| (1,000,000)
|
| Cash (used in) provided by investing activities |
| (603,924)
|
| 5,511
|
| (8,348,168)
|
| (3,595,999)
|
| |
| Increase (decrease) in cash and cash equivalents |
| 2,277,493 |
| 1,213,879 |
| (3,599,656) |
| 219,788 |
| Cash and cash equivalents, beginning of period |
| 8,037,839
|
| 11,918,720
|
| 13,914,988
|
| 12,912,811
|
| Cash and cash equivalents, end of period |
$ |
10,315,332
|
$ |
13,132,599
|
$ |
10,315,332
|
$ |
13,132,599
|
| |
| Supplemental cash flow information: |
|
| Interest paid |
$ |
- |
$ |
113 |
$ |
300 |
$ |
166 |
| |
| Supplemental disclosure of non-cash investing and financing activities: |
|
| Common stock issued on the acquisition of Boardtown Corporation |
$ |
285,238 |
$ |
- |
$ |
986,601 |
$ |
274,540 |