third q report

LEVEL 2
45 STIRLING HIGHWAY
NEDLANDS
AUSTRALIA 6009
POSTAL ADDRESS
PO BOX 985
NEDLANDS WA 6909
TEL. (08) 9389 8799
FAX. (08) 9389 8327
COMMODITEL LIMITED
ABN 30 000 386 685 - 1 -
30 April 2007 ASX LIMITED Dear Sir / Madam REPORT FOR THE QUARTER ENDED 31 MARCH 2007 The Directors of Commoditel Limited (ASX: CMO) are pleased to report a solid third quarter operating performance on the back of improved customer receipts. The integration of the additional customer base acquired in the December quarter proceeded well, however costs associated with the acquisition resulted in short term negative impact on March quarter cashflow. Highlights Cashflow from operating activity was $152,844 for the quarter ended 31 March 2007, with year to date operating cashflow $933,329. Receipts from customers grew 30% this quarter from $2,221,067 to $2,878,947 reflecting a full quarter’s revenue generated from the November 2006 acquisition of postpaid customers. In contrast to the December quarter, payments for the supply of services to these customers increased from $574,143 to $2,113,630. Whilst the December quarter benefited from timing benefits associated with the recognition of receipts from customers generated from November 1, the cost of supplying services did not impact cashflow until January, being the current quarter. Operating cashflow also included $193,609 of costs for the listed parent entity CMO, which included a full quarter’s interest of $68,750 on its financial instruments. Total cash increased by $104,259 during the quarter, with the business retaining $2,114,389 cash on hand at 31 March 2007. This was in line with Directors expectations.
Operating Activity During the third quarter, the company continued to focus on bedding down the November 2006 post-paid acquisition and reviewing the additional customer base to optimise customer service levels and revenue. Since January, the business has actively sought to re-sign existing post-paid customers onto new 24 month plans with handset inducements. At the same time we are porting low spending customers onto more suitable plans to meet their needs, such as our prepaid offer. This process ensures the business continues to deliver quality mobile services to its high value customers and keeps the management costs to a minimum. Commoditel will continue to seek out synergies and improved efficiencies through acquisitions and partnerships throughout 2007. Corporate Activity Commoditel recently announced a friendly off-market takeover offer for Sonnet Corporation Limited (ASX: SNN). For details of the takeover offer, please refer to the ASX announcement made by CMO on 27 April 2007. Yours faithfully COMMODITEL LIMITED DAVID SWEET Executive Director - 2 -
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
31/12//2005 Appendix 4C Page 1
Rule 4.7B Appendix 4C Quarterly report for entities admitted on the basis of commitments Introduced 31/3/2000. Name of entity COMMODITEL LIMITED ACN or ARBN Quarter ended (“current quarter”) 30 000 386 685 31 March 2007 Consolidated statement of cash flows Cash flows related to operating activities Current quarter $A’000 Year to date (9 Months) $A’000 1.1 Receipts from customers 2,879 6,102 1.2 Payments for (a) staff & consultants costs (b) advertising and marketing (c) leased assets (d) other working capital (300) (218) (32) (2,114) (1,094) (333) (48) (3,539) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 19 25 1.5 Interest and other costs of finance paid (81) (180) 1.6 Income taxes paid - - 1.7 Other - - Net operating cash flows 153 933
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
Appendix 4C Page 2 31/12/2005
Current quarter $A’000 Year to date (9 months) $A’000 1.8 Net operating cash flows (carried forward) 153 933 Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets (f) Research & Development expenditure - - - (44) - - - - - (105) (3,300) - 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets - - - - - - - - - - 1.11 Loans to other entities - - 1.12 Loans repaid by other entities - - 1.13 Other - Research & Development expense - - - - Net investing cash flows (44) (3,405) 1.14 Total operating and investing cash flows 109 (2,472) Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 1 2,187 1.16 Proceeds from sale of forfeited shares - - 1.17 Proceeds from borrowings - 2,500 1.18 Repayment of borrowings - (167) 1.19 Dividends paid - - 1.20 Other (5) (178) Net financing cash flows (4) 4,342 Net increase (decrease) in cash held 105 1,870 1.21 Cash at beginning of quarter/year to date 2,010 245 1.22 Exchange rate adjustments to item 1.20 - - 1.23 Cash at end of quarter 2,115 2,115 Note: Item 1.20 Other relates to share issue costs paid.
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
31/12//2005 Appendix 4C Page 3
Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A'000 1.24 Aggregate amount of payments to the parties included in item 1.2 45 1.25 Aggregate amount of loans to the parties included in item 1.11 - 1.26 Explanation necessary for an understanding of the transactions • Payments in item 1.24 include remuneration and consultancy retainers paid to the managing, executive director and non executive directors $45,055; and • Payments to a related entity for the provision of legal services - $90. Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest Nil Financing facilities available Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2). Amount available $A’000 Amount used $A’000 3.1 Loan facilities - - 3.2 Credit standby arrangements - -
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter $A’000 Previous quarter $A’000 4.1 Cash on hand and at bank 1,242 2,000 4.2 Deposits at call 873 10 4.3 Bank overdraft - - 4.4 Other – Restricted bank deposits - - Total: cash at end of quarter (item 1.22) 2,115 2,010 Acquisitions and disposals of business entities Acquisitions (Item 1.9(a)) Disposals (Item 1.10(a)) 5.1 Name of entity Not Applicable Not Applicable 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature of business Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law (except to the extent that information is not required because of note 2) or other standards acceptable to ASX. 2 This statement does give a true and fair view of the matters disclosed. Appendix 4C Page 4 31/12/2005
Sign here: Date: 30 April 2007 Company Secretary Print name: David McArthur
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
31/12//2005 Appendix 4C Page 5
Notes 1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below. • 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss • 9.2 - itemised disclosure relating to acquisitions • 9.4 - itemised disclosure relating to disposals • 12.1(a) - policy for classification of cash items • 12.3 - disclosure of restrictions on use of cash • 13.1 - comparative information 3. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. 4. Where applicable, the consolidated statement of cashflows, particularly items 1.1 and 1.2, are reported inclusive of GST in accordance with UIG 31.