Tellza Three and Nine Month Revenue Up 73% and 58%

TORONTO, ONTARIO--(Marketwired - Nov. 14, 2013) - Tellza Communications Inc. (TSX:TEL) announced its financial results for the nine months ended September 30^th, 2013.

Revenue for the three months ended September 30^th, 2013 was $38 Million compared to $22 Million in 2012, an increase of 73%. Revenue for the nine months ended was $112 Million compared to $71 Million in 2012, an increase of 58%.

EBITDA* for the three months ended was $950,000 compared to $639,000 for the same period in 2012, an increase of 49%. EBITDA* for the nine months ended was $3.0 Million compared to $1.9 Million for the same period in 2012, an increase of 58%.

Net Income before taxes for the nine months ended September 30^th, 2013 was $2.6 Million compared to $1.2 Million in 2012, an increase of 116%.

CONSOLIDATED STATEMENTS OF OPERATIONS
[amounts in thousands of U.S. dollars, except per share information]
For the three and nine months ended September 30		2013			2012			2013		2012
		$			$			$		$
		Unaudited			Unaudited			Unaudited		Unaudited
Revenue			38,224			22,412			112,066		70,597
Cost of revenue			36,166			20,699			105,999		65,231
Gross margin			2,058			1,713			6,067		5,366
Operating expenses			1,013			1,074			2,926		3,440
Depreciation of property and equipment			32			30			94		90
Amortization of intangible assets			103			107			312		743
Stock-based compensation			13			10			39		33
Interest and debt costs			9			40			25		144
Other investments			95			-			95		-
Gain on retirement of debt			-			-			-		(260	)
Mark to fair value of common share warrants			-			-			-		(1	)
			1,265			1,261			3,491		4,189
Income before income taxes			793			452			2,576		1,177
Provision for (recovery of) income taxes
	Current		280			5			285		15
	Deferred		(60	)		(100	)		510		(300	)
			220			(95	)		795		(285	)
Net and comprehensive income for the period			573			547			1,781		1,462
Earnings per share
	- basic and diluted	$	0.00		$	0.00		$	0.01	$	0.01
Weighted-average number of common shares
	- basic and diluted		151,231,492			158,731,492			151,231,492		158,731,492

Balance sheet metrics:

	September 30,	December 31,
	2013	2012
	($000's)	($000's)
	Unaudited	Unaudited
Cash	1,705	2,288
Debt	0	0
Available borrowings	3,500	2,500
Total Assets	23,528	21,794
Working capital	1,868	-482
Equity	12,976	11,156

"We are pleased with the progress of our Phonetime brand in 2013," said Gary Clifford, Executive Chairman. "In 2014, we expect to increase organic growth as our Route Dynamix's business plan evolves from a development stage company to contributing member of the Tellza family."

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

The Company also announced that, effective at the opening of trading today on The Toronto Stock Exchange, trading in the Company's common shares will continue under the new name, "Tellza Communications Inc.", the new stock symbol "TEL" and the new CUSIP number 87968V 10 8.

About Tellza

Tellza is a global communications company operating under several brands including Route Dynamix, Phonetime, Tel3, GoLifeTel, and Tellza Technologies. Tellza is a public company listed on the Toronto Stock Exchange (TEL).

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. Tellza'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 www.sedar.com which contains all securities files.

*We define EBITDA as earnings before taxes, depreciation and amortization, stock based compensation, interest, gain on retirement of debt, and mark to fair value of common stock warrants. EBITDA, which is a non-GAAP financial measure, it is a standard measure used in the telecommunications industry to assist in understanding and comparing operating results. EBITDA is reviewed regularly by management and our Board of Directors in assessing performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. EBITDA is not a measure of financial performance nor does it have a standardized meaning under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating as such measures may differ among companies and analysts. Below is a reconciliation of "EBITDA" to net income for the periods presented:

For the three and nine months ended September 30	2013	2012	2013	2012
	$	$	$	$
	Unaudited	Unaudited	Unaudited	Unaudited
EBITDA Reconciliation
Net and comprehensive income for the period	573	547	1,781	1,462
Income taxes	220	-95	795	-285
Depreciation of property and equipment	32	30	94	90
Amortization of intangible assets	103	107	312	743
Stock-based compensation	13	10	39	33
Interest and debt costs	9	40	25	144
Gain on retirement of debt	0	0	0	-260
Mark to fair value of common share warrants	0	0	0	-1
EBITDA	950	639	3,046	1,926