GLENTEL Inc. Reports Earnings Per Share of $0.15 for the First Quarter Ended March 31, 2013

GLENTEL Inc. Reports Earnings Per Share of $0.15 for the First Quarter Ended 
March 31, 2013 
BURNABY, BC, May 15, 2013 /CNW/ - GLENTEL Inc. (TSX: GLN) today reported its 
results for the 1st quarter ended March 31, 2013. Financial highlights 
(tabular amounts in thousands of Canadian dollars, except per share data) 
follow. 
 _____________________________________________________________________
|                                                | Three months ended |
|                                                |      March 31      |
|________________________________________________|____________________|
|                                                |   2013 |     2012  |
|________________________________________________|________|___________|
|Sales                                           |$305,664|  $148,347 |
|________________________________________________|________|___________|
|Income before amortization, change in fair value|        |           |
|of redeemable                                   |        |           |
|financial instruments, other, finance income and|        |           |
|expenses, and taxes                             |$13,959 |   $7,227  |
|________________________________________________|________|___________|
|Income before change in fair value of redeemable|        |           |
|financial                                       |        |           |
|instruments, other, finance income and expenses,|        |           |
|and taxes                                       | $7,606 |   $4,628  |
|________________________________________________|________|___________|
|Net income                                      | $3,261 |   $3,322  |
|________________________________________________|________|___________|
|Basic and diluted net income per common share   |  $0.15 |    $0.15  |
|________________________________________________|________|___________| 
"We are pleased to report strong worldwide sales performance in the first 
quarter, with our Canadian, United States, and Australian operations all 
providing robust results," stated Thomas Skidmore, GLENTEL's President and 
Chief Executive Officer. "In the first quarter of 2013, GLENTEL, with 
Target® Canada, successfully launched 24 new Target Mobile® stores in the 
Greater Toronto area. On May 7, GLENTEL opened an additional 22 Target Mobile 
stores across British Columbia, Alberta, and Manitoba, with a planned build 
out of 124 stores across Canada in 2013. With store expansions in Canada, US, 
and Australian, including our recent entry into the Philippines with our first 
four mall stores in Manila, growth opportunities seem abundant for GLENTEL, as 
we now operate in four countries on three continents." 
Consolidated highlights 
1st Quarter 2013 compared to 2012 


    --  Consolidated sales increased 106%, to $305.7 million, compared
        to $148.3 million.
    --  Income before amortization, change in fair value of redeemable
        financial instruments, other, finance income and expenses, and
        taxes was $14.0 million, compared to $7.2 million.
    --  Operating income before change in fair value of redeemable
        financial instruments, other, finance income and expenses, and
        taxes was $7.6 million, compared to $4.6 million.

Net income and basic earnings per common share were $3.3 million and $0.15 per 
share, respectively, compared to $3.3 million and $0.15 per share.

Highlights for each business unit follow.

Retail Canada

1st Quarter 2013 compared to 2012
    --  Sales of retail mobile phone products, tablets and services in
        the Retail Canada Division decreased 1% to $89.4 million
        compared to $90.6 million.
    --  Operating income before change in fair value of redeemable
        financial instruments, other, finance income and expense,
        corporate costs, and taxes was $8.1 million compared to $8.2
        million.
    --  Retail Canada saw gross postpaid activations decline but
        experienced strong growth in hardware upgrades. The division
        continues to train its sales associates on the fundamentals of
        sales and product knowledge to provide the best customer
        service possible and to evolve our training and procedures to
        align with the carriers' focus on quality activations and churn
        management. Retail management and staff have spent a
        considerable amount of energy and time in launching Target
        Mobile, and at March 31, 2013, 24 stores were open in the
        Greater Toronto area. The divisions will continue the phased
        roll out and look to open over 120 stores across Canada in
        2013.

Retail U.S. Division - Diamond Wireless

1st Quarter 2013 compared to 2012
    --  Sales of retail mobile phone products, tablets and services in
        the Retail U.S. Division - Diamond Wireless increased 20% to
        $60.1 million, compared to $50.3 million.
    --  Operating income before change in fair value of redeemable
        financial instruments, other, finance income and expense,
        corporate costs, and taxes increased to $2.6 million, compared
        to $1.7 million.
    --  Sales increased as a result of greater number of stores
        operating in the quarter compared to the same period in 2012,
        and with the increased price points of smartphones. The Samsung
        Galaxy S III and the Apple iPhone 5, in association with new
        price points for Apple iPhone 4 and iPhone 4S helped increase
        sales in the 1st quarter. The Verizon "Share everything plan"
        helped increase consumer interest in smartphones. The division
        continued to roll out employee promotions and training programs
        during the 1st quarter of 2013, with much of the training
        focused on new devices and promotion initiatives. The division
        continues to focus on the "connected device," such as mobile
        broadband and tablets that tie into Verizon Wireless' "Share
        Everything" program, where it saw increased activations by
        customers.

Retail U.S. Division - Wireless Zone®

1st Quarter 2013
    --  Sales of retail mobile phone products, tablets and services
        were $103.2 million.
    --  Operating income before change in fair value of redeemable
        financial instruments, other, finance income and expense,
        corporate costs, and taxes was $5.1 million.
    --  Verizon's "Share Everything Plan" had a positive impact in the
        1st quarter of 2013. The launch of iPhone 5 in October of 2012
        continues to drive customers to Wireless Zone stores
        contributing to strong sales.  Sales of higher priced iPhones
        contributed to strong wholesale sales in 1st quarter of 2013.
        The continued shift to smart phones contributed to higher
        carrier compensation per transaction.  In order to promote
        increased store sales, the division has continued its numerous
        operational efforts in the 1st quarter of 2013, with a focus on
        exceeding carrier transactional minimums and KPI's, remodeling
        stores to enhance customer experience, and increasing the level
        of training directed towards franchisees and sales
        representatives.

Retail Australia Division

1st Quarter 2013
    --  Sales of retail mobile phone products, tablets and services
        were $45.6 million.
    --  Operating income before change in fair value of redeemable
        financial instruments, finance income and expense, corporate
        costs, and taxes was $0.8 million.
    --  The Australia retail landscape remains competitive, driven
        particularly by the largest national wireless carrier. While
        Allphones remained competitive in both the postpaid and
        outright handset market in the 1st quarter of 2013, the poor
        retail environment affected overall performance. The 45 Retail
        Managed Stores were profitable, and the April launch of the
        Samsung Galaxy S4 and HTC One are proving encouraging.
    --  In the quarter start-up cost was incurred in relation to AMT
        licensing its ALLPHONES brand and store design under an IP &
        Technology transfer agreement within the Philippines. AMT has
        agreed to deliver software, technology and consultation to TAO
        Corporation in the Philippines to support the management of a
        new retail network.

Business Division

1st Quarter 2013 compared to 2012
    --  Business Division sales of terrestrial narrowband and broadband
        radio systems, satellite network services, and implementation
        services were $6.3 million compared to $7.5 million.
    --  Operating income before change in fair value of redeemable
        financial instruments, other, finance income and expense,
        corporate costs and taxes was $0.1 million compared to $0.02
        million.

Corporate

1st Quarter 2013 compared to 2012
    --  Corporate operating and administrative expenses increased to
        $9.1 million (3% of sales), compared to $5.3 million (4% of
        sales).
    --  Corporate costs include administrative, finance, information
        technology, and marketing services that are managed centrally
        in Canada, the U.S. and Australia and are not allocated
        directly to the operating divisions. Management strives to
        leverage the divisional cost structure to maximize productivity
        and value from its resources. Corporate operating costs include
        Retail U.S. Division - Diamond Wireless corporate costs of $1.3
        million (2012 - $1.2 million), Retail U.S. Division - Wireless
        Zone corporate divisional costs of $2.0 million and Retail
        Australia Division corporate costs of $1.4 million for the 1st
        quarter ended March 31, 2013.

About GLENTEL

Celebrating its 50(th) anniversary in 2013 and based in Burnaby, BC, Canada, 
GLENTEL (TSX: GLN), is the largest independent multi-carrier mobile phone 
retailer in Canada and Australia. In the United States, GLENTEL operates two 
of the six National Premium Retailers for Verizon Wireless. GLENTEL is a 
leading provider of innovative and reliable wireless communications services 
and solutions, offering a choice of network carrier and wireless or mobile 
products to consumers and commercial customers.

GLENTEL's brands - GLENTEL Wireless, WIRELESSWAVE, WAVE SANS FIL, Tbooth 
wireless, la cabine T sans fil, WIRELESS etc., SANS FIL etc…, Mac Station, 
Diamond Wireless, Wireless Zone, and Allphones - span four countries and three 
continents. The Company employs over 3,800 employees and operates more than 
1,180 locations including more than 360 locations in Canada located in retail 
malls, Costco Wholesale stores, Target Canada stores, and business centres; 
more than 620 retail locations in the United States; and more than 195 retail 
locations in Australia and 4 mall stores in the Phillipines. In addition, 
Target Canada has licensed GLENTEL to open and operate in 2013 more than 120 
mobile communications sales and service kiosks within its stores, under the 
brand Target Mobile®, of which 46 are now open.

Forward-Looking Statements

Certain statements in this release about our current and future plans, 
expectations and intentions, results, levels of activity, performance, goals 
or achievements or any other future events or developments constitute 
forward-looking statements. The words "may", "will", "would", "should", 
"could", "expects", "plans", "intends", "trends", "indicates", "anticipates", 
"believes", "estimates", "predicts", "likely" or "potential" or the negative 
or other variations of these words or other comparable words or phrases, are 
intended to identify forward-looking statements. Forward-looking statements 
are based on estimates and assumptions made by us in light of our experience 
and perception of historical trends, current conditions and expected future 
developments, as well as other factors that we believe are appropriate and 
reasonable in the circumstances, but there can be no assurance that such 
estimates and assumptions will prove to be correct. Certain assumptions have 
been made in respect of the determination of (i)impairment of property and 
equipment, intangible assets and goodwill, (ii)useful lives of property and 
equipment, intangible assets, (iii)fair value of financial instruments, 
(iv)fair values of assets and liabilities acquired in business 
contributions, (v)taxes, (vi)contingencies, and (vii)provisions. Many 
factors could cause our actual results, level of activity, performance, 
achievements, future events or developments to differ materially from those 
expressed or implied by the forward-looking statements.

You should not place undue reliance on any such forward-looking statements. 
Further, any forward-looking statement (and such risks, uncertainties, and 
other factors) speak only as of the date on which it was originally made, and 
GLENTEL expressly disclaims any obligation or undertaking to disseminate any 
updates or revisions to any forward-looking statement contained in this 
document to reflect any change in expectations with regard to those statements 
or any other change in events, conditions or circumstances on which any such 
statement is based, except as required by law. New factors emerge from time to 
time, and it is not possible for GLENTEL to predict what factors will arise or 
when. In addition, GLENTEL cannot assess the impact of each factor on its 
business or the extent to which any factor, or combination of factors, may 
cause actual results to differ materially from those contained in any 
forward-looking statements.

NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY HAS 
APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

Investor Relations Contact Jas Boparai, Chief Financial Officer GLENTEL Inc. 
604.415.6500 investors@glentel.com

Media Contact Lois Grierson GLENTEL Inc. 604.415.6534 lgrierson@glentel.com

For a copy of GLENTEL's annual report or for additional information  
visitwww.glentel.com orwww.sedar.com.

SOURCE: Glentel Inc.

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CO: Glentel Inc.
ST: British Columbia
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-0- May/15/2013 23:25 GMT