Tucows Inc.
Consolidated Balance Sheets
(Dollar amounts in U.S. dollars)
March 31, December 31,
2009 2008
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(unaudited) (unaudited)
Assets
Current assets:
Cash and cash equivalents $ 4,002,743 $ 5,427,467
Accounts receivable 3,717,355 3,200,362
Prepaid expenses and deposits 2,852,611 2,274,043
Prepaid domain name registry and other
Internet services fees, current portion 31,016,360 29,212,610
Deferred tax asset, current portion 590,000 590,000
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Total current assets 42,179,069 40,704,482
Prepaid domain name registry and other
Internet services fees, long-term portion 12,177,620 11,855,971
Property and equipment 2,571,889 3,072,958
Deferred financing charges 68,100 78,500
Deferred tax asset, long-term portion 2,410,000 2,410,000
Intangible assets 19,822,184 20,206,996
Goodwill 17,990,807 17,990,807
Investment 200,000 200,000
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Total assets $ 97,419,669 $ 96,519,714
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 1,448,814 $ 1,633,830
Accrued liabilities 2,130,796 2,000,146
Customer deposits 3,009,739 3,319,241
Derivative instrument liability 1,889,576 1,974,919
Loan payable, current portion 2,624,242 2,624,242
Deferred revenue, current portion 40,129,171 37,985,821
Accreditation fees payable, current portion 585,514 510,548
Income taxes payable 83,305 -
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Total current liabilities 51,901,157 50,048,747
Deferred revenue, long-term portion 16,521,830 16,201,804
Accreditation fees payable, long-term portion 191,015 187,374
Loan payable, long-term portion 2,756,564 3,235,125
Deferred tax liability, long-term portion 5,396,000 5,396,000
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; 66,888,092 shares
issued and outstanding at March 31, 2009
and 73,073,782 shares issued and
outstanding at December 31, 2008 14,361,220 15,198,358
Additional paid-in capital 47,789,835 48,714,676
Deficit (41,497,952) (42,462,370)
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Total stockholders' equity 20,653,103 21,450,664
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Total liabilities and stockholders' equity $ 97,419,669 $ 96,519,714
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Tucows Inc.
Consolidated Statements of Operations
(Dollar amounts in U.S. dollars)
Three months ended March 31,
2009 2008
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(unaudited)
Net revenues $ 20,091,424 $ 18,711,207
Cost of revenues:
Cost of revenues ((*)) 13,785,398 13,149,932
Depreciation of property and equipment 452,709 825,837
Amortization of intangible assets 29,199 73,457
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Total cost of revenues 14,267,306 14,049,226
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Gross profit 5,824,118 4,661,981
Expenses:
Sales and marketing ((*)) 1,353,176 1,696,132
Technical operations and development ((*)) 1,104,139 1,565,854
General and administrative ((*)) 1,869,896 1,539,432
Depreciation of property and equipment 86,405 61,070
Amortization of intangible assets 360,540 385,161
(Gain) / loss in fair value of forward
exchange contracts (85,343) 255,433
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Total expenses 4,688,813 5,503,082
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Income (loss) from operations 1,135,305 (841,101)
Other income (expenses):
Interest income (expense), net (63,462) (209,984)
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Total other income (expenses) (63,462) (209,984)
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Income (loss) before provision for income
taxes 1,071,843 (1,051,085)
Provision for income taxes 107,425 31,134
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Net income (loss) for the period $ 964,418 $ (1,082,219)
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Basic earnings (loss) per common share $ 0.01 $ (0.01)
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Shares used in computing basic earnings
(loss) per common share 72,655,213 73,888,542
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Diluted earnings (loss) per common share $ 0.01 $ (0.01)
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Shares used in computing diluted earnings
(loss) per common share 72,657,604 73,888,542
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((*)) Stock-based compensation has been included in expenses as follows:
Cost of revenues $ 5,000 $ 4,300
Sales and marketing $ 14,900 $ 18,300
Technical operations and development $ 10,600 $ 20,700
General and administrative $ 18,700 $ 28,900
Consolidated Statements of Cash Flows
(Dollar amounts in U.S. dollars)
Three months ended March 31,
2009 2008
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(unaudited)
Cash provided by (used in):
Operating activities:
Net income (loss) or the period $ 964,418 $ (1,082,219)
Items not involving cash:
Depreciation of property and equipment 539,114 886,907
Amortization of deferred financing charges 10,400 13,500
Amortization of intangible assets 389,739 458,618
Disposal of domain names 973 -
Unrealized (gain)/loss in the fair value
of forward contracts (85,343) 255,433
Stock-based compensation 49,200 72,200
Change in non-cash operating working capital:
Accounts receivable (516,993) (66,120)
Prepaid expenses and deposits (578,568) 139,689
Prepaid fees for domain name registry and
other Internet services fees (2,125,399) (2,530,601)
Accounts payable (180,821) (433,827)
Accrued liabilities 128,773 (529,247)
Customer deposits (309,502) (100,590)
Deferred revenue 2,463,376 2,978,934
Accreditation fees payable 78,607 56,816
Income taxes payable 85,182 (2,591)
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Net cash provided by operating activities 913,156 116,902
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Financing activities:
Repurchase of shares (1,811,179) -
Repayment of loan payable (478,561) (478,560)
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Net cash used in financing activities (2,289,740) (478,560)
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Investing activities:
Cost of domain names acquired (5,900) (6,420)
Additions to property and equipment (42,240) (211,531)
Decrease in cash held in escrow - (7,399)
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Net cash used in investing activities (48,140) (225,350)
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Decrease in cash and cash equivalents (1,424,724) (587,008)
Cash and cash equivalents, beginning of
period 5,427,467 8,093,476
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Cash and cash equivalents, end of period $ 4,002,743 $ 7,506,468
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Supplemental cash flow information:
Interest paid $ 65,521 $ 259,337
Supplementary disclosure of non-cash
investing activity:
Property and equipment acquired during the
period not yet paid for $ 2,784 $ 764,972