Press Releases     Financial Reports	Analysts Coverage Current Stock Price

Xentel		.	Financial Report - August 17, 2001
Q2 Report 2001			Report to Our Shareholders The results for the first half and the second quarter of 2001 are outstanding. Net earnings for the three months ending June 30, 2001 were $1,276,000 and for the six months ending June 30, 2001 were $2,217,000. The Company has now put together four consecutive quarters of profits totaling $4,596,000. The US operations are now contributing significantly to the Company’s success. Management’s focus has been on improved profitability and cost reductions rather than revenue growth. Given the Company’s tight liquidity position any significant revenue growth would have put an additional strain on our cash position but now the balance sheet is much stronger permitting greater flexibility in strategically planning future growth. Over the past two years, continued emphasis was directed towards the maintenance and development of the database. This is our most significant asset and currently includes over 100 million households and businesses in Canada and the United States of which there are approximately 5.5 million known donors. This is the platform for our future organic growth. Presently, test site installations are underway for the introduction of leading edge technological database management systems which will improve our teleservices efficiency greatly. It is expected that full implementation will take eighteen months but operating results should improve consistently during the ramp up period. Additionally, we have completed the installation of new information and accounting systems to allow us to manage and control the financial aspects of the business as it grows. The future is exciting. Your Company continues to be the pre-eminent organization in this industry and as we grow stronger we will be positioned to take advantage of new opportunities. To our shareholders we are confident your support will be rewarded. To our staff we thank you for your efforts—the results are apparent. Michael P. Platz Chairman of the Board Geoffrey J. Pickering President August 17, 2001 Toronto, Ontario

Press Releases  -   Financial Reports  -  Analysts Coverage  -   Current Stock Price

Home  -   About Us  -   Services  -   Live Entertainment  -   Investor Info  -   Contact Us

© Xentel DM Incorporated