TORONTO, ONTARIO--(Marketwired - May 10, 2013) - Phonetime Inc. (TSX:PHD) announced today its 1st quarter results for 2013. Revenue for the quarter ended March 31, 2013 was $34 Million compared to $24 Million in 2012, an increase of 44% year over year. Net income was $403,000 compared to $335,000 in 2012. At March 31, 2013, Phonetime had $1.2 million in cash, available borrowings of an additional $2.5 million and remained debt free. Total assets at the quarter end were $23.6 million and shareholders' equity was $11.6 million.

"In 2012, the Board of Directors promoted Mike Vazquez to the position of President and COO of Phonetime Inc. and made a number of changes within our sales organization. Mike and his team have done a great job accelerating our progress, and inspiring our customers and vendors to trust their procurement of communication services to Phonetime," said Gary Clifford, Executive Chairman and CEO. "In 2013, we anticipate continued revenue growth in our core business. We also expect to organically expand our service footprint whilst continuing to review investment, acquisition and merger opportunities. In order to accomplish these initiatives, we may issue equity and or debt in 2013. Also, in conjunction with opportunities being pursued, we may opt to list our common shares on a US exchange which may involve consolidating the number of shares outstanding in order to qualify under US listing requirements."

The Company's financial statements and other disclosures are available on SEDAR.

About Phonetime Inc.

Established in 1994, Phonetime is a leading provider of international and domestic switched voice services to the worlds telecommunication operators and voice service providers. Phonetime's customers and suppliers include, fixed line operators, mobile operators, retail and VoIP service providers, who buy and sell voice and IP telecommunications services. Phonetime has traders in Europe, Asia and the Americas using its proprietary trading platform with embedded intelligence, which includes profitability benchmarking, call routing, credit management, network quality visibility and loss prevention. As voice technology evolves Phonetime has commoditized its trading philosophy and along with its platform is positioned to emerge as a leading clearing house. Phonetime is a public company listed on the Toronto Stock Exchange (TSX).

Caution Regarding Forward Looking Information:

This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Phonetime's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. See which contains all securities files.

Phonetime Inc.
[amounts in thousands of U.S. dollars, except per share information]
For the three months ended March 31 2013 2012
$ $
Unaudited Unaudited
Revenue 34,050 23,643
Cost of revenue 32,430 21,950
Gross margin 1,620 1,693
Operating expenses 875 1,056
Depreciation of property and equipment 31 187
Amortization of intangible assets 107 401
Stock-based compensation 13 12
Interest and debt costs 12 52
Gain on retirement of debt - (255 )
Mark to fair value of common share warrants - -
1,038 1,453
Income before income taxes 582 240
Provision for (recovery of) income taxes
Current - 5
Deferred 179 (100 )
179 (95 )
Net and comprehensive income for the period 403 335
Earnings per share
- basic and diluted 0.00 0.00
Weighted-average number of common shares
- basic and diluted 151,123,492 158,731,492
Phonetime Inc.
[amounts in thousands of U.S. dollars]
As at March 31, December 31,
2013 2012
$ $
Unaudited Unaudited
Cash and cash equivalents 1,230 2,288
Accounts receivable, net 10,156 7,397
Prepaid expenses and other assets 526 215
Total current assets 11,912 9,900
Deferred tax assets 456 690
Property and equipment, net 583 454
Intangible assets, net 534 621
Goodwill 10,128 10,128
23,613 21,794
Bank indebtedness - -
Accounts payable 4,584 3,774
Accrued liabilities 7,230 6,577
Income taxes payable 32 32
Total current liabilities 11,846 10,383
Deferred tax liabilities 195 255
Total liabilities 12,041 10,638
Shareholders' equity
Common shares 12,444 12,444
Contributed surplus 2,830 2,817
Deficit (3,702 ) (4,105 )
Total shareholders' equity 11,572 11,156
23,613 21,794

Contact Information:

Phonetime Inc.
Gary Clifford
Executive Chairman & CEO

Phonetime Inc.
Michael Vazquez
President and COO