PEER 1 Hosting Reports Fiscal 2012 Fourth Quarter and Year End Results

PEER 1 Hosting Reports Fiscal 2012 Fourth Quarter and Year End Results 
VANCOUVER, Sept. 24, 2012 /CNW/ - PEER 1 Network Enterprises, Inc. (TSX:PIX), 
operating as PEER 1 Hosting (PEER 1 or the "Company"), a leading provider of 
online IT infrastructure, today announced its results for the three and 12 
months ended June 30, 2012. All amounts are stated in US dollars unless 
otherwise noted. 
Selected Financial Highlights for the Fiscal Years Ended June 30, 2012 and 2011 


    --  Revenue increased 18% to $133.6 million from $112.8 million;
    --  Gross profit increased 20% to $51.4 million from $42.9 million;
    --  Operating profit decreased 22% to $1.9 million from $2.5
        million; and
    --  Normalized EBITDA increased 33% to $34.3 million from $25.7
        million.

Selected Highlights for Fiscal 2012
    --  Completion of an acquisition of all the outstanding shares in
        the capital of NetBenefit (UK) Limited ("NetBenefit"), a
        division of London-based Group NBT Limited, and a leading
        UK-based managed hosting company, effective July 1, 2012. The
        fully funded, all cash £25.2 million (US$39.6 million)
        transaction, is the largest acquisition transaction for PEER 1
        to date, and clearly establishes PEER 1 as a leader in the UK
        managed hosting market. The transaction is expected to deliver
        substantial financial and strategic benefits and other
        synergies including the integration and migration of
        NetBenefit's business and servers into PEER1's new flagship
        datacenter in the UK;
    --  Entry into a new credit agreement, replacing its previous
        facility, with a syndicate of lenders led by National Bank of
        Canada ("NBC"), and including HSBC Bank Canada, HSBC Bank PLC,
        GE Canada, Business Development Bank, Bank of America,
        Laurentian Bank of Canada and Canadian Western Bank. The new
        facilities are comprised of a US$100.0 million non-revolving
        term facility and a US$40.0 million and £7.0 million revolving
        credit facility. In addition, an accordion feature allows PEER
        1 to request an increase in the amount available under the
        revolving facility by a further US$25.0 million, bringing the
        total potential credit available under the facilities to
        US$175.0 million;
    --  Completion and opening of a new 57,800 square foot green data
        centre in Portsmouth, UK. The facility offers businesses across
        London and the South East scalable managed hosting, dedicated
        hosting and colocation services in one of the greenest data
        centres in the country. The location is also optimal for
        businesses of all sizes operating in Europe. This state-of-the
        art facility leads the way in reducing the carbon footprint for
        the Company's customers, delivers 24/7 service and provides
        customers with the capacity to grow;
    --  Signature of a lease for additional data centre space in its
        existing Los Angeles facility. The additional space will allow
        the Company to offer up to approximately 3,000 servers of
        additional capacity to its high end managed and dedicated
        hosting customers who demand a West Coast presence;
    --  Successful achievement of the Level 1 Payment Card Industry
        Data Security Standard (PCI DSS) certification for several
        managed hosting and co-location data centres worldwide. PEER 1
        Hosting's clients, who handle and process customer card details
        and transactions, can now be confident that their applications
        can be supported in a PCI compliant environment, enabling them
        to focus on their business rather than securing their hosted
        environments; and
    --  Entry into a partnership with Magento Inc. to offer a new
        optimized Managed Hosting solution to online retailers. The
        offering is a turn-key infrastructure solution designed to
        improve the performance and reliability of Magento-based
        e-commerce websites, delivered over PEER 1 Hosting's 10Gb
        FastFiber™ Network and supported by PEER 1 Hosting's
        unlimited FirstCall™ Support.

"In fiscal 2012 we continued to invest heavily in growth, particularly in the 
EMEA region as we opened our new flagship UK data centre and completed an 
acquisition that established us as a clear leader and will offer numerous 
synergies in this market," said Fabio Banducci, President and CEO of PEER 1 
Hosting. "In parallel with the NetBenefit acquisition we also secured 
syndicated credit facilities that will provide us with considerable 
flexibility in funding growth."

Financial Review for the Three and Twelve Months Ended June 30, 2012 and 2011

Revenue increased to $34.3 million for the three months ended June 30, 2012 
from $29.9 million for the three months ended June 30, 2011. When adjusted for 
the exchange rates in effect in the prior year period, revenue for the three 
months ended June 30, 2012 was $34.6 million. Taking into account the effect 
of the differing exchange rates between the Canadian and US dollars for the 
comparative period, revenue increased by 16% for the three months ended June 
30, 2012. Revenue increased to $133.6 million for the twelve months ended 
June 30, 2012 from $112.8 million for the twelve-month period ended June 30, 
2011. When adjusted for the exchange rates in effect during the period, 
revenue for the twelve months ended June 30, 2012 increased to $133.8 million. 
The increase in revenue for both periods is attributable to organic growth.

Colocation revenues increased to $4.5 million for the three months ended June 
30, 2012 from $4.3 million for the three months ended June 30, 2011, and 
increased to $17.8 million for the twelve months ended June 30, 2012, compared 
with $15.5 million for the twelve months ended June 30, 2011. The increase 
in colocation revenue for both periods is attributable to organic growth, 
offset partly by the decreased value of the Canadian dollar against the US 
dollar for the three month period ended June 30, 2012.

Bandwidth revenues increased to $2.3 million for the three months ended June 
30, 2012 compared with $2.2 million for the three months ended June 30, 2011, 
and increased to $9.4 million for the twelve months ended June 30, 2012, 
compared with $8.9 million for the twelve months ended June 30, 2011. The 
increase in bandwidth revenue for the three months and the twelve months ended 
June 30, 2012 is attributable to organic growth.

Hosting Services revenues increased to $25.6 million for the three months 
ended June 30, 2012 from $21.7 million for the three months ended June 30, 
2011, and increased to $99.5 million for the year ended June 30, 2012 from 
$82.1 million for the year ended June 30, 2011. The increase for both 
periods is attributable to organic growth. Hosting Services revenues were not 
materially impacted by foreign exchange effects as the majority of the Hosting 
Services sales are currently denominated in US dollars.

Consolidated cost of sales increased to $22.2 million for the three months 
ended June 30, 2012 from $18.6 million for the three months ended June 30, 
2011, $2.5 million of which related to UK operations. Cost of sales as a 
percentage of revenue increased to 65% for the three months ended June 30, 
2012 from 62% for the three months ended June 30, 2011. The increase in cost 
of sales compared to the same period in the prior year is primarily due to 
increased depreciation costs of $2.3 million, increased staff cost of $0.6 
million, increased bandwidth costs of $0.3 million, and an increase of $0.7 
million in other expenses. The increase in cost of sales as a percentage of 
revenue relative to the prior year is primarily due to the increase in 
capacity in anticipation of future growth.

Cost of sales increased by $12.3 million for the year ended June 30, 2012 from 
$69.9 million for the year ended June 30, 2011. During the year, the Company 
incurred costs $7.7 million ($4.4 million in prior year) related to its 
operations in the United Kingdom, which are included in cost of sales. Total 
cost of sales included $0.2 million of one-time property tax assessments in 
the UK. Cost of sales as a percentage of revenue remained unchanged at 62% for 
the year ended June 30, 2012 compared with the year ended June 30, 2011. The 
increase in cost of sales for the year ended June 30, 2012 compared with the 
same period in the prior year is primarily due to increases in depreciation 
costs of $6.5 million, staff costs of $1.5 million, software license costs of 
$1.4 million, bandwidth costs of $0.8 million, power costs of $0.7 million, 
and $1.0 million in other cost of sales expenses. The increases in these 
expenses can primarily be attributed to higher revenues.

Total operating expenses increased to $13.6 million for the three months ended 
June 30, 2012 from $10.1 million for the three months ended June 30, 2011. 
Operating expenses as a percentage of revenue were 40% for the three months 
ended June 30, 2012 and 34% for the three months ended June 30, 2011. For the 
year ended June 30, 2012 total operating expenses increased by $9 million to 
$49.5 million. Operating expenses as a percentage of revenue increased to 
37%, from 36% for the year ended June 30, 2011. The increase in total 
operating expenses for the three months ended June 30, 2012, are primarily due 
to an increases in staff and training costs of $1.3 million, professional 
services of $0.7 million, advertising of $0.3 million, amortization expense of 
$0.2 million, and other expenses of $0.6 million. For the year ended June 30, 
2012 the increase in operating expenses is largely attributable to $4.7 
million in staff and training cost, higher commission expenses of $0.8 
million, and an increase of $3.2 million in other operating expenses.

Of the total increase of $3.5 million in operating expenses relative to the 
prior year for the period ended June 30, 2012, $1.5 million was directly 
related to acquisition costs, $0.5 million related to one-time severance 
expenses, and $0.3 million for commission expenses for which revenues will be 
earned in fiscal 2013. Adjusting for these one-time items, operating expenses 
for the quarter ended June 30, 2012, would have been $11.3 million (33% of 
revenue). For the year ended June 30, 2012, operating expenses of $49.5 
million included $1.5 million of NetBenefit acquisition related costs, $0.5 
million of one-time severance expenses, and $0.3 million in commission 
expenses relating to bookings for which revenues will not be generated until 
the next fiscal year. Normalizing for these items, operating expenses for the 
year ended June 30, 2012 would have been $47.2 million (35% of revenues).

In addition, total operating expenses for the quarter ended June 30, 2012, are 
comprised of $5.7 million ($4.5 million in prior year) sales and marketing 
expenses, $6.5 million ($4.4 million in prior year) general and administrative 
expenses, and $1.4 million ($1.2 million in prior year) expenses in technology 
and customer relations. During the three months ended June 30, 2012, the 
company incurred $2.0 million related to its UK operations ($1.0 million in 
prior year), $0.7 million ($0.3 million in prior year) of which are 
categorized as general and administrative expenses, and $1.2 million ($0.8 
million in prior year) of which are categorized as selling and advertising 
expenses. For the year ended June 30, 2012, operating expenses are comprised 
of $21.1 million ($17.2 million in prior year) of sales and marketing 
expenses, $23.2 million ($18.4 million in prior year) of general and 
administrative expenses, and $5.2 million ($4.9 million in prior year) in 
expenses for technology and customer relations. During the year ended June 30, 
2012, the company incurred $6.1 million related to its operations in the 
United Kingdom ($3.6 million in prior year) which are included in operating 
expenses, $1.9 million of which are categorized as general and administrative 
expenses, $4.0 million of which are categorized as selling and marketing 
expenses, and $0.2 million of which are categorized as technology and customer 
relations expenses.

Normalized EBITDA was $8.9 million for the three months ended June 30, 2012 
and $34.3 million for the twelve months ended June 30, 2012, compared with 
$7.1 million and $25.7 million in the respective prior year periods.

Interest expense increased to $2.9 million for the three months ended June 30, 
2012, compared with $1.0 million for the three months ended June 30, 2011, 
primarily due to a $1.4 million loss on interest rate swaps ($0.4 million in 
prior year) and a $0.7 million write-off of loan origination fees (nil in 
prior year) related to the debt refinancing. During the fiscal year ended 
2012, interest expense increased to $5.8 million for the year ended June 30, 
2012, compared with $3.0 million for the year ended June 30, 2011. The 
increase in interest expense for the year ended June 30, 2012 was primarily 
due to $2.0 million loss on the Company's interest rate swap ($0.7 million 
loss in prior year) resulting from market fluctuations in interest rates, a 
$0.7 million write-off of loan origination fees as a result of debt 
refinancing related to the acquisition of NetBenefit, and higher interest 
expenses due to higher debt level.

For the year ended June 30, 2012, PEER 1 Hosting recorded total income tax 
expense of $0.5 million compared with total income tax expenses of $1.4 
million for the year ended June 30, 2011.

The foreign exchange loss was at $1.2 million for the year ended June 30, 
2012, compared to a gain of $3.1 million for the prior fiscal period. The 
Company also recorded an impairment expense in the amount of $0.3 million 
related to the write-off of certain intangible assets (nil in prior year).

Net loss for the three-month period ended June 30, 2012 was $5.2 million and 
for year ended June 30, 2012 was $5.7 million, compared with a net loss of 
$0.3 million and net income of $1.2 million for the respective periods in 2011.

The Company had working capital of $28.4 million at June 30, 2012, compared 
with working capital of $0.4 million as at June 30, 2011. The increase in 
working capital is primarily due to an additional drawdown on the credit 
facilities in relation to the acquisition of NetBenefit, which took place 
subsequent to the balance sheet date on July 1, 2012. The increase is partly 
offset by investments in property, plant and equipment. The Company 
anticipates current liquidity and cash generated from operations to be 
sufficient to fund operations for the foreseeable future. As at June 30, 
2012, the Company had available $45.5 million under its $151.0 million credit 
facilities and an additional $25.0 million available under the accordion 
feature of its credit agreement.

PEER 1 Hosting had 126,021,055 common shares issued and outstanding as at June 
30, 2012

 EBTITDA Reconciliation
                                                                      
                              3 months ended            Years ended
                             30-Jun     30-Jun       30-Jun     30-Jun

(in $ millions)          2012((1) ) 2011((1) )   2012((1) ) 2011((1) )

Net profit (loss)           $ (5.2)    $ (0.3)      $ (5.7)      $ 1.2

Finance expense                 2.9        1.0          5.8        3.0

Depreciation and                8.1        5.5         27.2       19.9
amortization

Income tax expense              0.1        0.6          0.5        1.3

Stock-based compensation        0.4        0.4          3.1        3.3

Foreign exchange loss           0.5      (0.1)          1.3      (3.0)
(gain)

Acquisition costs               1.5          -          1.5          -

Other non-operating
expenses((2))                   0.6          -          0.6          -

Normalized EBITDA             $ 8.9      $ 7.1       $ 34.3     $ 25.7

(1) Amounts have been prepared and restated to IFRS


Other non-operating expenses for the year ended June 30, 2012
(2) consist of one-time severance costs of $0.5 million, the write-off 
of intangible assets of $0.2 million, and an offsetting gain on 


    disposal of assets of $0.1 million.

Conference Call
PEER 1 Hosting will hold a conference call on Monday, September 24, 2012 at 
5:30pm Eastern Time (ET), to discuss the results for the fourth quarter and 
full year fiscal 2012. The Company's full Financial Statements and 
Management's Discussion and Analysis are available on its website at 
http://www.peer1.com/investors.

To access the conference call by telephone, dial (647) 427-7450 or 
1-888-231-8191. The conference call will be archived for replay until Monday 
October 1, 2012, at midnight. To access the archived conference call, dial 
(416) 849-0833 or 1.855.859.2056 and enter the reservation number 31897653 
followed by the number sign.

A live audio webcast of the conference call will be available at:

http://www.newswire.ca/en/webcast/detail/1037423/1126143

Please connect at least 10 minutes prior to the conference call to ensure 
adequate time for any software download that may be required to join the 
webcast. The webcast will be archived at the above website for 90 days.

Non-IFRS Measures
PEER 1 Hosting reports normalized EBITDA because it is a key measure used by 
management to evaluate the Company's performance. PEER 1 Hosting believes that 
normalized EBITDA is useful supplemental information, as it provides an 
indication of the results generated by PEER 1 Hosting's main business 
activities. Normalized EBITDA is not a recognized measure under IFRS, and 
accordingly investors are cautioned that normalized EBITDA should not be 
construed as an alternative to net earnings or loss determined in accordance 
with IFRS as an indicator of financial performance of PEER 1 Hosting, or as a 
measure of the company's liquidity and cash flows. PEER 1 Hosting's method of 
calculating normalized EBITDA may differ from other issuers and, accordingly, 
normalized EBITDA may not be comparable to similar measures presented by other 
issuers. The schedule above sets out PEER 1 Hosting's normalized EBITDA 
calculations.

About PEER 1 Hosting
PEER 1 Hosting is one of the world's leading IT hosting providers. The company 
is built on two obsessions: Ping & People. Ping, represents its commitment to 
best-in-breed technology, founded on a high performance 10Gbps FastFiber 
Network™ connected by 17 state-of-the-art datacenters, 17 points-of-presence 
and 10 colocation facilities throughout North America and Europe. People, 
represents its commitment to delivering outstanding customer service to its 
more than 10,000 customers worldwide, backed by a 100 percent uptime guarantee 
and 24x7x365 FirstCall Support™. Info-Tech Research Group recently named 
PEER 1 Hosting as a "Champion" in its Canadian colocation and managed services 
Vendor Landscape report, recognizing the company's strength in product 
offerings and enterprise strategy in the global IT marketplace. PEER 1 
Hosting's portfolio includes Managed Hosting, Dedicated Servers under the 
ServerBeach brand, Colocation and Cloud Services under theZunicore 
brand.Founded in 1999, the company is headquartered in Vancouver, Canada, with 
European operations headquartered in Southampton, UK.PEER 1 Hosting shares 
are traded on the TSX under the symbol PIX. For more information 
visit:www.peer1.comorwww.peer1hosting.co.uk.

Forward Looking Statements
Statements in this release relating to matters that are not historical fact 
are forward-looking statements based on current expectations, forecasts and 
assumptions that involve risks and uncertainties that could cause actual 
outcomes and results to differ materially. Factors that could cause or 
contribute to such differences include, but are not limited to, general 
economic conditions, changes in technology, reliance on third party 
manufacturing, managing rapid growth, global sales risks, limited intellectual 
property protection and other risks and uncertainties described in PEER 1 
Hosting's public filings with securities regulatory authorities.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In thousands of United States dollars)
                            June 30,          June 30,          July 1,
                                 2012             2011             2010
                                                                       

ASSETS                                                                 

Current assets                                                         

Cash and cash        $         51,111 $          7,803 $          2,321
equivalents

Trade and other                 6,402            6,447            3,249
receivables

Prepaid expenses                2,050            1,448            1,610

Income tax                          -            2,874            1,192
receivable
                               59,563           18,572            8,372

Non-current assets                                                     

Other assets                    2,694            2,353            2,738

Deferred tax assets             4,193            1,818            1,277

Property, plant and           101,321           87,697           53,717
equipment

Equipment under                 1,934              724              986
finance lease 

Intangible assets              10,034            6,636            5,921
                              120,176           99,228           64,639

Total assets                  179,739          117,800           73,011
                                                                       

LIABILITIES AND                                                        
EQUITY

Current liabilities                                                    

Trade and other                17,210            9,944            9,115
payables

Loans and borrowings            7,500            5,008            3,000

Derivatives                     1,117              250              170

Income tax payable              1,502                -              569

Obligations under                 835              237              376
finance lease

Deferred lease                    214              136              131
inducement

Deferred revenue                2,746            2,561            2,210
                               31,124           18,136           15,571

Non-current                                                            
liabilities

Loans and borrowings           97,249           53,062           16,404

Derivatives                     1,950              875              170

Deferred tax                    3,265            1,354              543
liability

Obligations under               1,389               11              232
finance lease

Deferred lease                    861              655              609
inducement
                              104,714           55,957           17,958

Total liabilities             135,838           74,093           33,529
                                                                       

EQUITY                                                                 

Issued capital                 35,129           28,221           27,631

Share-based payments            8,651            9,985            6,804
reserve

Warrants                            -                -               86

Accumulated other               (134)            (492)                -
comprehensive income

Retained earnings                 255            5,993            4,961

Total equity                   43,901           43,707           39,482

Total liabilities             179,739          117,800           73,011
and equity

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED

(In thousands of United States dollars)
                                                June 30,         June 30,
                                                  2012            2011
                                                                      

Revenue                                                               

Colocation services                  $          34,148 $        30,684

Hosting Services                                99,475          82,134
                                               133,623         112,818

Cost of sales                                   82,190          69,872

Gross profit                                    51,433          42,946

Administration expenses                         23,221          18,372

Sales and marketing expenses                    21,066          17,198

Other operating expenses                         5,207           4,887

Operating profit before other items              1,939           2,489
                                                                      

Finance income                                     (7)            (17)

Gain on disposal of property, plant               (74)            (45)
and equipment

Loss on legal settlement                             -              24

Foreign exchange loss (gain)                     1,276         (3,078)

Finance expense                                  5,832           2,988

Other non-operating expense                        155               -

Profit (loss) before income taxes              (5,243)           2,617
                                                                      

Income taxes expense                               495           1,373

Profit (loss)                                  (5,738)           1,244
                                                                      

Other comprehensive income (loss)                                     

Foreign currency translation gain              (2,638)           3,605
(loss)

Unrealized gain (loss) on net                    2,996         (4,097)
investment in subsidiaries

Other comprehensive income, net of                 358           (492)
tax

Total comprehensive income (loss)              (5,380)             751
                                                                      

Profit (loss) attributable to common           (5,738)           1,244
shares

Total comprehensive income (loss)              (5,380)             751
attributable to common shares
                                                                      

Earnings (loss) per share                                             

Basic                                           (0.05)            0.01

Diluted                                         (0.05)            0.01
                                                                      

Weighted average number of common                                     
shares outstanding

Basic                                      122,739,988     120,095,064

Diluted                                    122,739,988     124,956,918

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands of United States dollars)
                       Share capital                                                                       
                                                   Share-based  Accumulated other
                                                      payments      comprehensive       Retained
                      Number    Amount Warrants        reserve             income       earnings      Total
                                                                                                           

Balance at July              $                    $                               $              $         
1, 2010          119,721,834    27,631        $86        6,804                 $-          4,961     39,482

  Stock options
  exercised          210,903       212          -        (106)                  -              -        106

  Warrants
  exercised          833,333       422       (86)            -                  -              -        336

  Stock-based
  compensation             -         -          -        3,287                  -              -      3,287

  Purchase of
  shares for
  cancellation
  pursuant to
  normal
  course issuer
  bid              (189,500)      (44)          -            -                  -          (211)      (255)

Transactions
with owners      120,576,570    28,221          -        9,985                  -          4,750     42,956

  Profit for the
  year                     -         -          -            -                  -          1,244      1,244

  Other
  comprehensive
  income
  (loss):                                                                                                  
    Foreign
    currency
    translation
    gain                   -         -          -            -              3,605              -      3,605
    Unrealized
    loss on net
    investment
    in
    subsidiaries           -         -          -            -            (4,097)              -    (4,097)

Total
comprehensive
income for
the year                   -         -          -            -              (492)          1,244        751

Balance at June
30, 2011         120,576,570    28,221          -        9,985              (492)          5,993     43,707
                                                                                                           

Balance at July
1, 2011          120,576,370    28,221          -        9,985              (492)          5,993     43,707

  Stock options
  exercised        5,444,685     6,908          -      (4,457)                  -              -      2,451

  Stock-based
  compensation             -         -          -        3,123                  -              -      3,123

Transactions
with owners      126,021,055    35,129          -        8,651              (492)          5,993     49,281

  Loss for the
  year                     -         -          -            -                  -        (5,738)    (5,738)

  Other
  comprehensive
  income
  (loss):                                                                                                  
    Foreign
    currency
    translation
    gain (loss)            -         -          -            -            (2,638)              -    (2,638)
    Unrealized
    gain (loss)
    on net
    investment
    in
    subsidiaries           -         -          -            -              2,996              -      2,996

Total
comprehensive
income for
the year                                                                      358        (5,738)    (5,380)

Balance at June
30, 2012         126,021,055    35,129          -        8,651              (134)            255     43,901

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
(In thousands of United States dollars)
                                              June 30,     June 30,
                                                2012        2011
                                                                

Operating Activities                                            

  Net income (loss)                $         (5,738)     $ 1,244       
                                    

Depreciation of property, plant               25,782      19,157
and equipment

Amortization of intangible assets              1,440         727

Bad debt expense                                 806         426

Gain on disposal of property,                   (74)        (45)
plant and equipment

Amortization of deferred loan                    907         474
origination fees

Mark to market loss on derivatives             1,990         863

Future income tax expense                      (474)         631
(recovery)

Stock-based compensation                       3,123       3,287

Interest paid                                (3,200)     (2,122)

Income taxes refunded, net of                  3,386     (2,969)
income tax paid

Increase in deferred lease                       259          35
inducement

Impairment of intangible                         277           -
properties

Net change in non-cash working                 7,840     (1,334)
capital

Cash flows from operating                     36,324      20,374
activities
                                                                

Investment Activities
    

  Investment in other assets                   (482)       (592)

  Acquisition of property, plant            (38,119)    (48,372)
  and equipment

  Acquisition of intangible assets           (5,143)     (1,367)

  Proceeds on disposition of                     184          55
  equipment

Cash flows used in investing                (43,560)    (50,276)
activities
                                                                

Financing Activities
                                                                

  Proceeds from loans and                     53,724      74,171
  borrowings

  Repayments of loans and                    (6,290)    (35,921)
  borrowings

  Payment of finance lease                     (570)       (389)
  obligations

  Payment of derivative                            -       (283)
  liabilities

  Purchase of shares for                           -       (255)
  cancellation pursuant to normal
  course issuer bid

  Issuance of capital stock                    2,436         442

Cash flow from financing                      49,300      37,765
activities
                                                                

Foreign exchange gain (loss) on                1,244     (2,381)
cash and cash equivalents

Increase in cash and cash                     43,308       5,482
equivalents,

Cash and cash equivalents,                     7,803       2,321
beginning ((1))

Cash and cash equivalents, ending
((1))                              $          51,111  $    7,803

Supplemental non-cash financing                                 
and investing disclosure:

Effect of acquisition of property,             2,298       1,302
plant and equipment in trade and
other payables

(1) Cash and cash equivalents consist of highly liquid market
    instruments with original maturity of three months or less, which
    are readily convertible into a known amount of cash 



For investor inquiries please contact: Nick Hurst The Equicom Group +1 (403) 
218-2835 nhurst@equicomgroup.com

SOURCE: Peer 1 Network Enterprises, Inc.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/September2012/24/c9151.html

CO: Peer 1 Network Enterprises, Inc.
ST: British Columbia
NI: CPR ELE ERN CONF 

-0- Sep/24/2012 20:00 GMT


 
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