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Multiband Announces 2010 First Quarter Results
First quarter EBITDA of $3.1 million, up 158% year-over-year from $1.2
million in 1Q09; Gross margin percentage improves to 27% in first quarter of
2010 from 24% for the same period last year; First quarter revenue of $60.2
million in-line with previous guidance; Company establishes EBITDA guidance
for 2010 of $12 million vs. $4.25 million in 2009
MINNEAPOLIS--(BUSINESS WIRE)--May 13, 2010--
Multiband Corporation, (NASDAQ:MBND), a leading Home Service Provider (HSP)
for DIRECTV and the nation's largest DIRECTV Master System Operator (MSO)
for Multiple Dwelling Units (MDU's), today announced financial results for
the first quarter ended March 31, 2010.
First Quarter 2010 Highlights
-- First quarter revenues were $60.2 million, a decrease of 3% compared to
$62.2 million for the quarter ended March 31, 2009. Revenues decreased
year-over-year primarily due to a 19% reduction in job volume,
partially
offset by an increase in incentive revenue earned. Revenues were down
11.4% from the fourth quarter 2009 primarily due to seasonality.
-- First quarter 2010 gross margins were 27% compared to 24% for the
year-ago period, favorably impacted by improved operational
efficiencies
and lower training/recruiting costs.
-- Adjusted EBITDA, a non-GAAP measure, was $3.1 million for the first
quarter of 2010, up 158% from $1.2 million for the same period in 2009.
First Quarter 2010 Results
Revenues for the three month period ended March 31, 2010 totaled $60.2
million versus $62.2 million for the same period in 2009. The 3% decrease in
revenues is primarily due to a 19% reduction in job volume which was caused
by the culmination of the 2009 national mandatory digital conversion from
analog to digital television signals. The decrease caused by the reduction
in volume was partially offset by $3.5 Million in incentive revenue earned
due to improvements in operating efficiencies and higher customer
satisfaction scores.
First quarter 2010 gross margin percentage was 27% compared to 24% for the
same period last year. Improved gross margin was primarily generated by the
Company's HSP segment driven by the increase in incentive revenue plus
improved installation procedures, inventory controls, fleet management, and
reduced employee turnover.
Selling, general and administrative expenses for the three month period
ended March 31, 2010, decreased approximately 2% to $13.5 million from $13.7
million in the same period last year.
Operating income was $342K in the quarter just ended compared to an
operating loss of $2.2 million in the same period last year.
Adjusted EBITDA, a non-GAAP measure, was $3.1 million for the first quarter
of 2010, a substantial improvement from $1.2 million in the first quarter of
2009.
In the first quarter of 2010, the Company incurred a net loss of $964K, or
approximately $0.10 per share compared to a net loss of $2.9 million or
$0.30 per share in the first quarter of 2009. GAAP net loss per common share
was $0.14 basic and diluted compared to a GAAP net loss of $0.28 per common
share for basic and diluted in the first quarter of 2009, a 50% improvement.
James L. Mandel, CEO of Multiband, commented, "We spent 2009 repositioning
the Company and focusing our processes to significantly improve our
financial results and the resulting returns to our shareholders. The first
quarter results demonstrate the effectiveness of those efforts. Moving
forward, we have created a platform that will enable the company to leverage
our installation services to include other opportunities outside of the
DIRECTV single family home provisioning and we have already seen progress on
this front. Through the first three months of 2010, we have expanded our
installation services to include enhanced call and support center services,
security, and wireless high speed internet. We have the capacity with our
existing infrastructure to significantly expand these installation services
and we will update the investment community as we continue to obtain
additional customers in the consumer and commercial sectors."
Mr. Mandel continued, "Paramount to our success will be continued gains in
efficiencies in our HSP segment, which now sits atop the network of DIRECTV
operators in terms of mean times to install and various other performance
metrics that are critical to profitability. Further, we intend to launch
additional products into our HSP and MDU channels to improve revenue per
truck roll and aid in employee retention, which may further boost
profitability especially in seasonally slow periods."
Guidance
Mr. Mandel concluded, "For 2010, we are projecting revenues in the range of
$250 million, down from 2009. The 2009 revenues were boosted as a result of
the mandatory digital conversion initiative which primarily occurred during
2009. Though our overall 2010 revenue outlook is relatively flat compared to
2009, we have taken a cautious stance with regard to inputs we are receiving
from our HSP channel partners as we believe that is the most prudent course
of action. In MDU, we continue to negotiate for incremental financing in
order to fund capital expenditures, which would boost our ability to add
subscribers and the associated recurring revenues and cash flows from our
rights of entry across the country. While revenues may be flat, we are
experiencing improving margins as we constantly deploy new procedures and
technologies to aid in the productivity of our workforce. This quarter's
results, which more than doubled positive EBITDA and improved net income by
50% from the same period last year, were all accomplished in spite of a
lower top line revenue. Finally, we have assumed no mergers and acquisitions
activity in our guidance though opportunities abound within the MDU market
which, if executed, could further boost our scope and scale. One acquisition
of a number of MDU rights of entry occurred in April, 2010. Additionally, we
are in discussions with other professional services and distribution firms
that could diversify and compliment our business from our major channel
partner and add scope/scale. Absent these potential events and based upon
current trending we are placing EBITDA guidance for 2010 at approximately
$12 million or $1.22 per share."
Conference Call Information
The Company will hold a conference call today to discuss the results. The
conference call will take place Thursday, May 13, 2010 at 4:30 p.m. eastern
time. Interested parties should dial 866-394-1497 and use passcode 74568307.
There will be a playback available as well.
EBITDA Computation (1Q10 and 1Q09) (in thousands)
1Q10 1Q09
------- ----------
(i) Net Income ($964) ($2,881)
(ii) Non Operating
Gains/Losses 294 (154)
(iii) Adjusted Net Income (670) (3,035)
(Sum of (i)minus (ii))
(iv) Interest Expense 1,123 855
(v) Depreciation & Amortization 2,436 3,285
(vi) Taxes 200 100
------ -------
(vii) EBITDA $3,089 $1,205
====== =======
(sum of (iii) +( iv) + (v) + (vi))
NON-GAAP Financial Measures
To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act,
Multiband Corporation attached to this news release and will post to the
company's investor relations web site (www.multibandusa.com) any
reconciliation of differences between non-GAAP financial information that
may be required in connection with issuing the company's quarterly financial
results.
The Company, as is common in its industry, uses EBITDA as a measure of
performance to demonstrate earnings exclusive of interest and non-cash
events. The Company manages its business based on its cash flows. The
Company, in its daily management of its business affairs and analysis of its
monthly, quarterly and annual performance, makes its decisions based on cash
flows, not on the amortization of assets obtained through historical
activities. The Company, in managing its current and future affairs, cannot
affect the amortization of the intangible assets to any material degree, and
therefore uses EBITDA as its primary management guide. Since an outside
investor may base its evaluation of the Company's performance based on the
Company's net loss not its cash flows there is a limitation to the EBITDA
measurement. EBITDA is not, and should not be considered, an alternative to
net loss, loss from operations, or any other measure for determining
operating performance of liquidity, as determined under accounting
principals generally accepted in the United States (GAAP). The most directly
comparable GAAP reference in the Company's case is the removal of interest,
depreciation amortization, taxes and other non-cash expense.
MULTIBAND CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
-----------------------------------
March 31, 2010 March 31, 2009
(unaudited) (unaudited)
---------------- ----------------
REVENUES $ 60,248 $ 62,158
------------ ------------
COSTS AND EXPENSES
Cost of products and services
(exclusive of depreciation and
amortization shown separately
below) 43,953 47,316
Selling, general and administrative 13,517 13,740
Depreciation and amortization 2,436 3,285
(MORE TO FOLLOW) Dow Jones Newswires
May 13, 2010 16:01 ET (20:01 GMT)
*** end of story ***
(PR Wires) PRW: Multiband Announces 2010 First Quarter Results -2-
PRW: Multiband Announces 2010 First Quarter Results -2-
------------ ------------
Total costs and expenses 59,906 64,341
------------ ------------
INCOME (LOSS) FROM OPERATIONS 342 (2,183)
------------ ------------
OTHER EXPENSE
Interest expense (1,123) (855)
Interest income 5 7
Other income 12 250
---------------- ----------------
Total other expense (1,106) (598)
---------------- ----------------
NET LOSS BEFORE INCOME TAXES AND
NONCONTROLLING INTEREST IN
SUBSIDIARIES (764) (2,781)
PROVISION FOR INCOME TAXES 200 100
------------ ------------
NET LOSS (964) (2,881)
LESS: NET INCOME (LOSS) ATTRIBUTABLE
TO THE NONCONTROLLING INTEREST IN
SUBSIDIARIES - (296)
------------ ------------
NET LOSS ATTRIBUTABLE TO MULTIBAND
CORPORATION AND SUBSIDIARIES (964) (2,585)
Preferred stock dividends 381 73
------------ ------------
LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $ (1,345) $ (2,658)
============ ============
LOSS PER COMMON SHARE -- BASIC AND
DILUTED:
LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $ (0.14) $ (0.28)
============ ============
Weighted average common shares
outstanding -- basic and diluted 9,791 9,650
============ ============
MULTIBAND CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
(in thousands)
March 31, 2010 December 31, 2009
(unaudited) (audited)
---------------- -------------------
CURRENT ASSETS
Cash and cash equivalents $ 3,747 $ 2,240
Securities available for sale 6 7
Accounts receivable, net 13,072 14,336
Other receivable -- related party 518 518
Inventories 7,707 8,561
Prepaid expenses and other 8,629 549
Current portion of notes receivable 6 6
------------ --- --------------
Total Current Assets 33,685 26,217
------------ --- --------------
PROPERTY AND EQUIPMENT, NET 8,326 8,546
------------ --- --------------
OTHER ASSETS
Goodwill 38,067 38,067
Intangible assets, net 20,960 22,677
Other receivable -- related party
-- long term 980 1,011
Notes receivable -- long-term, net
of current portion 25 25
Other assets 2,889 2,988
------------ --- --------------
Total Other Assets 62,921 64,768
------------ --- --------------
TOTAL ASSETS $ 104,932 $ 99,531
============ === ==============
MULTIBAND CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
(in thousands, except share and liquidation preference amounts)
March 31, 2010 December 31, 2009
(unaudited) (audited)
---------------- -------------------
CURRENT LIABILITIES
Line of credit $ 49 $ 49
Short term debt 6,932 66
Related parties debt -- short
term 1,327 1,345
Current portion of long-term
debt 112 228
Current portion of capital
lease obligations 428 489
Accounts payable 25,731 28,008
Accrued liabilities 25,150 22,026
Deferred service obligations
and revenue 2,591 2,602
------------ --- --------------
Total Current Liabilities 62,320 54,813
LONG-TERM LIABILITIES
Accrued liabilities -- long
term 3,404 4,415
Long-term debt, net of current
portion and original issue
discount 4,878 4,853
Related parties debt -
long-term, net of current
portion and original issue
discount 29,778 29,856
Capital lease obligations, net
of current portion 408 491
------------ --- --------------
Total Liabilities 100,788 94,428
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Cumulative convertible
preferred stock, no par
value:
8% Class A (14,171 shares
issued and outstanding,
$148,796 liquidation
preference) 213 213
10% Class B (1,070 and
1,370 shares issued and
outstanding, $11,235 and
$14,385 liquidation
preference) 11 14
10% Class C (112,580 and
112,880 shares issued and
outstanding, $1,125,800
and $1,128,800 liquidation
preference) 1,461 1,465
10% Class F (150,000 shares
issued and outstanding,
$1,500,000 liquidation
preference) 1,500 1,500
8% Class G (11,595 shares
issued and outstanding,
$115,950 liquidation
preference) 48 48
6% Class H (1.25 shares
issued and outstanding,
$125,000 liquidation
preference) - -
8% Class J (100 shares
issued and outstanding,
$10,000,000 liquidation
preference) 10,000 10,000
15% Class E cumulative
preferred stock, no par
value, (220,000 shares issued
and outstanding, $2,200,000
liquidation preference) 2,200 2,200
Common stock, no par value
(9,804,396 and 9,722,924
shares issued and
outstanding) 38,216 38,054
Stock subscriptions receivable (10) (26)
Multiband Announces Strong 2009 Fourth Quarter Results and a Record
2009 Full-Year Performance
MINNEAPOLIS, MN -- (MARKETWIRE) -- 04/01/10 --
Multiband Corporation, (NASDAQ: MBND), the nation's largest DIRECTV Master
System Operator (MSO) for Multiple Dwelling Units (MDU's), announced today
strong financial results for the 2009 fourth quarter and fiscal year ended
December 31, 2009. The Company had strong fourth quarter revenues of $68.0
million, an increase of 382% compared to $14.1 million for the quarter ended
December 31, 2008 but down 5% from the prior quarter primarily due to
seasonality. Revenues increased YoY primarily due to the acquisition of the
former operating entities of DirecTECH Holding Company Inc. (DTHC) as well
as its substantial investments made in the HSP segment in 1H09. The Company
achieved 80% ownership in January 2009 and completed the acquisition in
December 2009.
EBITDA, a non-GAAP measure, was $4.3 million for the 2009 fourth quarter, an
improvement of over $1.0 million sequentially from $3.3 million in 3Q09, and
up $2.2 million from the same period in 2008. Improved margins were driven
by efficiencies at the Company's HSP segment including improved installation
procedures, inventory controls, fleet management, and reduced turnover.
In 4Q09, the Company generated net income of $830K or approximately $0.09
per share, compared to $842K or $0.09 per share, in the fourth quarter of
2008. GAAP net income per common share was $0.04 basic and $0.03 diluted
compared to $0.08 per common share for basic and diluted in the fourth
quarter of 2008. The 2009 fourth quarter represented the Company's return to
positive net income after three quarters of losses which were primarily due
to substantial investments in the HSP business segment during the 1H09.
2009 Recap
Revenues for the twelve month period ended December 31, 2009 increased 526%
to $268.9 million from $42.9 million for the same period in 2008. This
overall increase in revenues is primarily due to the purchase of the former
operating entities of DTHC coupled with significant organic growth, as the
Company hired over 1,000 new technicians in its HSP business segment during
the first two quarters of the year. The larger workforce allowed the HSP
segment to deliver significant installation volumes throughout the balance
of 2009 and positioned the Company for continued success with DIRECTV, which
remains its largest customer and partner and whose contract was extended
into mid-2013 during the course of 2009.
Adjusted EBITDA, a non-GAAP measure, was $3.954 million for the year.
However, this metric still includes the negative impact of the
aforementioned ramp up in staffing expenses. The absorption of those
staffing expenses led to significantly increased revenues and substantially
higher run rates of EBITDA during the second half of fiscal 2009.
Conference Call Today
The Company will hold a conference call today to discuss the results. The
conference call will take place at 11:00 AM Eastern Daylight Time.
Interested parties should dial 866-394-1497 and use pass code 64394723.
There will be a playback available as well.
Litigation Settlement
As of December 31, 2009, Multiband had recorded $8.7 million of accrued
liabilities for claims and potential settlements associated with existing
litigation, the majority of which relate to claims for back overtime wages
alleged to be due between 2006 and 2008 at DirecTECH Holding Company.
Effective December 31, 2009, the Company settled in principal the majority
of these claims. While the Company and its predecessors denied the
allegations underlying the lawsuits, it agreed to a settlement to avoid
significant legal fees, the uncertainty of a jury trial, and other expenses
and management time that would have to be devoted to protracted litigation.
The Company recorded the settlement of $6.7 million, net of imputed interest
of $575K and including administration fees and estimated payroll taxes. The
aforementioned settlement will be paid in equal installments of $291K over a
24 month period beginning January 15, 2010.
In connection with the purchase of the operating subsidiaries of DTHC, the
Company has the right to offset a portion of certain claims against the note
to DTHC, in relation to the settlement noted above, the Company offset $3.9
million during the year ended December 31, 2009. The Company has recorded a
receivable of $1.0 million as of December 31, 2009 which represents an
estimate of the amount that could potentially be recovered from DTHC
including legal fees for the remaining litigation. Offsets to date have been
taken as a purchase price adjustment to the DTHC transaction, which reduced
the debt owed to the ESOT and former owners to approximately $30.0 million.
Commentary
"This quarter's strong results reflect, again in part, the continuing trend
of consumers staying at home due to challenging economic conditions. As a
result, we have seen increases in subscribers. Additionally, our ability to
seamlessly integrate the operations of the former DirecTECH operating
entities and organically grow high margin revenue without a corresponding
increase in operating expenses is now clear", said James L. Mandel, CEO of
Multiband. "Our significantly improved financial results demonstrate the
benefits of the DirecTECH acquisition and validate the synergies between the
companies that have resulted in this strong growth. Our overall performance
is even more noteworthy considering we grew our business over five-fold in a
matter of months."
"Looking ahead, our success will be measured by continued gains in
efficiencies in our HSP division, which now sits atop our peers in terms of
mean times to install and various other performance metrics that are key to
profitability. Moving forward, we intend to launch additional products into
our HSP and MDU channels to improve revenues per truck roll and aid in
employee retention, which should further boost profitability especially in
seasonally slow periods", Mandel continued.
Guidance
For 2010, Multiband is projecting revenues in the $250MM range due to the
lack of the mandatory digital conversion which boosted 2009 activity. Though
the overall revenue outlook is relatively flat compared to 2009, the Company
has taken a cautious stance with regard to inputs it is receiving from its
HSP channel partners as it feels that that is the most prudent course of
action. In MDU, Multiband continues to negotiate incremental financing in
order to fund capital expenditures, which could boost its ability to add
subscribers and associated recurring revenues and cash flow from rights of
entry across the country. While revenues could be flat, expanded margins are
anticipated as the constant deployment of new procedures and technologies to
aid workforce and fleet management are initiated. No new additional M&A
activity has been included in the guidance, though opportunities abound for
consolidation of the market which could further boost scope and scale.
EBITDA Computation (2009, 1Q09 - 4Q09) (in thousands)
2009 4Q09 3Q09 2Q09 1Q09
--------- --------- --------- --------- ---------
(i) Net Income
(Quarter) ($ 11,377) $ 830 ($ 725) ($ 8,601) ($ 2,881)
(ii) Non Operating
Gains/Losses (85) (151) 251 (31) (154)
--------- --------- --------- --------- ---------
(iii) Adjusted Net
Income (11,462) 679 (474) (8,632) (3,035)
(Sum of
(i)minus (ii)
(iv) Interest
Expense 4,104 1,333 1,026 890 855
(v) Depreciation &
Amortization 10,906 2,504 2,414 2,703 3,285
(vi) Taxes 406 (168) 372 102 100
--------- --------- --------- --------- ---------
(vii) EBITDA $ 3,954 $ 4,348 $ 3,338 ($ 4,937) $ 1,205
========= ========= ========= ========= =========
iii + iv + v +vi NON-GAAP Financial Measures
To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act,
Multiband Corporation attached to this news release and will post to the
company's investor relations web site (www.multiband.com) any reconciliation
of differences between non-GAAP financial information that may be required
in connection with issuing the company's quarterly financial results.
The Company, as is common in its industry, uses EBITDA as a measure of
performance to demonstrate earnings exclusive of interest and non-cash
events. The Company manages its business based on its cash flows. The
Company, in its daily management of its business affairs and analysis of its
monthly, quarterly and annual performance, makes its decisions based on cash
flows, not on the amortization of assets obtained through historical
activities. The Company, in managing its current and future affairs, cannot
affect the amortization of the intangible assets to any material degree, and
therefore uses EBITDA as its primary management guide. Since an outside
investor may base its evaluation of the Company's performance based on the
Company's net loss not its cash flows, there is a limitation to the EBITDA
measurement. EBITDA is not, and should not be considered, an alternative to
net loss, loss from operations, or any other measure for determining
operating performance of liquidity, as determined under accounting
principles generally accepted in the United States (GAAP). The most directly
comparable GAAP reference in the Company's case is the removal of interest,
depreciation, amortization, taxes and other non-cash expense.
Contact: James Mandel, CEO for Multiband Corporation at (763)504-300
(END) Dow Jones Newswires
April 01, 2010 10:14 ET (14:14 GMT)
*** end of story ***
Multiband Announces Purchase of Remaining 20% of DirecTECH
-- Shareholders approve purchase of remaining 20% of DirecTECH Operating
Company, Inc.'s operating entities through the issuance of $10 million
of
Series J Preferred Stock,
-- Integration of DTHC operating entities now substantially completed;
Company benefiting from first half 2009 multi-million dollar investment
in technical engineering workforce and in front and back office
operations of acquired entities,
-- Raising guidance for 2009 to $260-270 million revenues from prior
guidance of $240-260 million in revenues, marking the fourth such
guidance raise since initial portion of the acquisition transaction was
negotiated and announced;
-- On track to generate continued positive EBITDA and outperform industry
growth rates.
MINNEAPOLIS--(BUSINESS WIRE)--December 23, 2009--
Multiband Corporation (NASDAQ:MBND) today announced that its shareholders
have approved the buyout of the remaining 20% of DirecTECH Holding Company
Operating Entities (DTHCOE) through the issuance of $10.0 million worth of
Series J Preferred Stock. Under the terms of the purchase agreement, which
was negotiated last year and culminated in Multiband acquiring 80% of the
DTHCOE as of January 1, 2009 through the assumption of $40.4 million in
debt, Multiband was required to consummate this portion of the transaction
during the fourth quarter of 2009.
Commentary
"We believe the positive shareholder vote is a validation of our continued
progress in integrating and improving on the operations throughout the
course of this year. In the first half of 2009, we spent several million
dollars boosting the ranks of our technical engineering workforce in order
to staff up for substantial growth at DIRECTV. Further, we made substantial
investments in the front and back offices to enhance our efficiencies and
strengthen our competitive position in the marketplace. As a result, we
moved well up the learning curve as the much leaner Multiband MDU/MBSS
operations were vaulted into the HSP segment through the acquisition of an
over $200 million run rate operation. Today, most of the challenges of that
outsized transaction are behind us, and we believe we are at scale and on
track to deliver significantly improved results for the balance of 2009 and
throughout 2010," said Jim Mandel, CEO of Multiband.
"We continue to remain comfortable with our demand forecast in our core HSP
segment, as our largest customer continues to take share in the video
segment across the U.S. We see strong demand for satellite video services
across our markets and believe we are taking share from subscale operators
unable to meet installation requirements of our channel partners. Meanwhile,
our MDU (multiple dwelling unit) segment continues to expand strongly, as we
tactically build out triple-play services to high value properties,
negotiate additional rights of entry (ROE) contracts for future expansion,
and pursue strategic acquisitions to bolt subscale businesses onto our
market leading franchise," said Mandel.
"On the strategic front, we continually see strategic opportunities for
growth, including the possibility for niche acquisitions that could tuck
nicely into our HSP or MDU footprint, sales opportunities to push additional
products through our substantial installation fleet, and organic growth
opportunities to deliver video to emerging operators in suburban and rural
markets where there is substantial pent-up demand for triple-play services."
Raising Guidance
Due to improvements across all operating metrics in its HSP and MDU business
lines, Multiband is raising the range of revenue guidance for the balance of
2009. Specifically, management projects 2009 revenues will top the high end
of the range of prior guidance of $240-260 million and now come in at
$260-270 million, which marks the fourth such top line guidance increase
since the announcement of the DTHCOE transaction roughly one year ago.
Additionally, the Company forecasts continued positive cash flow generation.
Looking ahead to 2010, Multiband forecasts revenue growth will top industry
average growth rates due to its heightened focus on the MDU segment, where
its major channel partners believe there is substantial headroom for growth
due to their limited market shares in that segment across the U.S. and given
that 1/3 of the nation currently resides in multiple dwelling unit
environments. The Company expects to report 4Q09 and full-year 2009
financial results sometime in March 2010.
About Multiband
About Multiband Corporation. Multiband Corporation (www.multibandusa.com) is
the largest DIRECTV installation provider and an enabler of video and
triple-play solutions to the MDU segment. The company employs approximately
3,500 professionals, has over 30 Field Offices, and serves customers in all
48 of the lower continental U.S.
CONTACT: Multiband Corporation
Jim Mandel, CEO, 763-504-3000
SOURCE: Multiband Corporation
Copyright Business Wire 2009
Multiband Announces Record Revenues and Returns to Positive
EBITDA
-- Multiband announces record revenues of $71.4 million in 3Q09, up 6%
sequentially and 480% YoY, fueled by a substantial increase in its
installation workforce during the first half of the year and steady
growth in its MDU segment,
-- EBITDA of positive $3.3 million or $0.35 per share(an improvement of
$8.3
million over 2Q09) was driven by strong HSP revenues and improvements in
operating efficiencies; Company returns to positive operating profit of
$588K,
-- Management forecasts 2009 revenues will exceed prior guidance of $240
million-260 million.
-- Pro forma Adjusted Third Quarter EPS was $0.07
MINNEAPOLIS--(BUSINESS WIRE)--November 16, 2009--
Multiband Corporation (NASDAQ:MBND) today reported record results, including
3Q09 revenues of $71.4 million, up 6% over 2Q09. In the third quarter, the
Company generated record HSP (home service provider) revenues of $64.8
million, up 7% sequentially and 777% YoY, aided by higher install volumes in
support of DIRECTV. The company is benefiting from its significantly
expanded installation workforce which is servicing the strong demand for
satellite video services across the bulk of its geographies. During the
period the Company completed a record 457 271 work orders related to this
activity.
Multiband's MDU (multiple dwelling unit) segment posted solid operating
results with revenues up 35% YoY to $6.6 million from $4.9 million in 3Q08.
These gains were driven by increased number of Revenue Generating Units,
increased sale of services to third parties in the Call and Support Center
and greater activity in the Master System Operator division. The Company
believes that activity in the MDU sector will remain steady and anticipates
stronger construction related activity and revenues for the balance of the
year as several of the Company's major customers have announced their intent
to initiate additional projects.
EBITDA for the quarter was positive $3.34 million, a dramatic improvement
from an EBITDA loss of $4.94 million in the prior quarter. The Company
generated an operating profit of $588K, up sharply from a loss of $7.7
million in 2Q09. On an adjusted basis (adding back amortization expense
incurred for the DirecTECH acquisition earlier this year), EPS was $0.07, a
significant reversal from ($0.60) with comparable amortization adjustment in
2Q09. GAAP net loss per common share was ($0.05), substantially better than
($0.75) in the prior three months.
In the first half of 2009, the Company hired net new technicians of 500 and
gross new technicians in excess of 1,150, which significantly boosted
operating expenses while new employees completed their rigorous training
process without generating meaningful revenues. These recruiting and
training expenses totaled several thousand dollars per new hire, which
resulted in negative EBITDA in the second quarter. During 3Q09 the pace of
new hires returned to normal levels. Management believes the Company is now
at scale and capable of meeting greater installation volumes from its major
channel partners without incurring significant incremental one-time expense.
Commentary
"We remain comfortable with our demand forecast in our core HSP segment, as
our largest customer continues to take market share in the video segment
across the U.S. We see strong demand for satellite video services across our
markets and believe we are taking share from subscale operators unable to
meet installation requirements of our channel partners.
"Meanwhile, our MDU segment continues to expand strongly as we tactically
build out triple-play services to high value properties, negotiate
additional rights of entry (ROE) contracts for future expansion and pursue
strategic acquisitions to bolt subscale businesses onto our market-leading
franchise. We believe we now have a strong foundation in place for revenue
gains in the foreseeable future, and anticipate that we will reap the
rewards of our prior period investments by delivering continued growth,"
said Jim Mandel, CEO.
On the strategic front, we continually see opportunities for growth,
including niche acquisitions that could tuck nicely into our HSP or MDU
footprint, sales opportunities to push additional products through our
substantial installation fleet and organic growth opportunities to deliver
video to emerging operators in suburban and rural markets where there is
substantial pent-up demand for triple-play services.
Raising Guidance
Multiband is raising the range of revenue guidance for the balance of 2009
because of stronger than expected performance in its HSP and MDU segments,
driven by strength at DirecTV and robust backlog from the Company's MDU
strategy. Specifically, management projects 2009 revenues will exceed the
range of prior guidance of $240 million-$260 million.
Earnings Conference Call
Multiband Corporation will host its third quarter 2009 earnings conference
call today at 11:00 AM EST. The conference may be listened to by calling
(866) 394-1497 and using Conference ID 40943662. The call will also be
available at www.Multibandusa.com sometime later today.
NON-GAAP Financial Measures
To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act,
Multiband Corporation attached to this news release and will post to the
company's investor relations web site (www.multibandusa.com) any
reconciliation of differences between non-GAAP financial information that
may be required in connection with issuing the company's quarterly financial
results.
The Company, as is common in its industry, uses EBITDA as a measure of
performance to demonstrate earnings exclusive of interest, taxes,
depreciation, amortization and non-cash events The Company manages its
business based on its cash flows. The Company, in its daily management of
its business affairs and analysis of its monthly, quarterly and annual
performance, makes its decisions based on cash flows, not on the
amortization of assets obtained through historical activities. The Company,
in managing its current and future affairs, cannot affect the amortization
of the intangible assets to any material degree, and therefore uses EBITDA
as its primary management guide. Since an outside investor may base its
evaluation of the Company's performance based on the Company's net loss not
its cash flows, there is a limitation to the EBITDA measurement. EBITDA is
not, and should not be considered, an alternative to net loss, loss from
operations, or any other measure for determining operating performance of
liquidity, as determined under accounting principles generally accepted in
the United States (GAAP). The most directly comparable GAAP reference in the
Company's case is the removal of interest, depreciation, amortization, taxes
and other non-cash expense.
About Multiband Corporation. Multiband Corporation (www.multibandusa.com) is
the largest DIRECTV installation provider and an enabler of video and
triple-play solutions to the MDU segment. The company employs approximately
3,900 professionals, has over 30 Field Offices, and serves customers in all
48 of the lower continental U.S. Contact: Jim Mandel, CEO, 763-504-3000.
Multiband Financial Summary for 1Q09, 2Q09 and 3Q09
In 000's
NINE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS
ENDED SEPT. ENDED SEPT ENDED JUNE 30, ENDED MARCH
30, 2009 30, 2009 2009 31, 2009
2009 YTD 9/30/09 6/30/09 3/31/09
------------- ------------- -------------- -------------
Net Income (Loss) ($12,207) ($725) (8,601) ($2881)
Non Operating
Gains/Losses
(including stock
related expense,
provisions for
reserves and
other accrued
non-cash
expense) $67 251 (30) (154)
Adjusted Net
Income ($12,140) ($474) ($8,631) ($3,035)
Interest Expense $2,771 $1,026 $890 $855
Depreciation and
Amortization,
including
Impairment $8,402 $2,414 $2,703 $3,285
Federal, State,
and Local Income
and Excise
Taxes $574 $372 $102 $100
EBITDA ($393) $3,338 ($4,936) $1,205
============= ============= ============== =============
Multiband Announces the Renewal of Its Leasing Program
NEW HOPE, Minn.--(BUSINESS WIRE)--October 01, 2009--
Multiband Corporation (NASDAQ:MBND) has renewed its leasing program for a
substantial fleet of several thousand vehicles used by its technical
engineering workforce. The fleet is critical to operating and supporting
Multiband's HSP (home service provisioning) segment, which employs over
three thousand technicians in 25 states and performs thousands of
installations for residential satellite broadcast customers each day.
"The leasing program is a testament to Multiband's strong competitive
positioning in the HSP segment, as smaller operators increasingly encounter
headwinds as they try to simultaneously staff up for growth while
maintaining their fleets and equipment at high levels of industry
standards," said Jim Mandel, CEO of Multiband. "With this program in place,
we are now in negotiations with both General Motors and Ford for receipt of
2010 vehicles starting in the fourth quarter of this year. We believe
maintenance of a top fleet of vehicles is an essential component to our
mission of providing world class technical services, making our platform a
more desirable workplace for our technicians, and will ultimately lead to
reduced recruiting costs and workforce churn which will further reduce
operating costs. Further, utilizing a new fleet opens doors for Multiband to
negotiate contracts with other suppliers of consumer products and services
which we can deliver and install using our existing footprint, potentially
adding significantly to revenue and EBITDA growth in coming periods with
minimal incremental training expense," Mandel said.
About Multiband Corporation. Multiband Corporation (www.multibandusa.com) is
the largest DIRECTV installation provider and an enabler of video and
triple-play solutions to the MDU segment. The company employs approximately
3,900 professionals, has over 30 Field Offices, and serves customers in all
48 of the lower continental U.S.
About Donlen Corporation. Donlen Corporation, with headquarters in
Northbrook, IL, and offices nationwide, is a global provider of innovative
fleet management programs. Since 1965, Donlen has offered its clients highly
personalized and responsive customer service. Donlen has been recognized as
one of The 101 Best and Brightest Places to Work For in Chicago, and as an
industry leader by the International Association of Outsourcing
Professionals (IAOP) in its Global Outsourcing 100 Award from 2006-2008. For
more information about Donlen Corporation, visit www.donlen.com.
CONTACT: Multiband Corporation
James Mandel, CEO, 763-504-3000
SOURCE: Multiband Corporation
Copyright Business Wire 2009
Multiband Signs National Contracting Agreement
Deal expected to generate substantial revenue in 2009 and have immediate
impact on OIBDA
NEW HOPE, Minn.--(BUSINESS WIRE)--September 16, 2009--
Multiband Corporation (NASDAQ:MBND) has signed a national contracting
Agreement with a major satellite broadcasting entity. The Agreement provides
for the installation and servicing of the video components for network
services for the provider. Significant construction activity is planned for
the current fiscal year, with follow-on business expected for 2010 and
beyond. The contract is expected to have an immediate impact on operating
performance, with the first project already completed in Texas in the third
quarter of 2009.
"The contract win and scope and scale of the projects associated with the
program further illustrate Multiband's advantageous competitive positioning
in its targeted markets of satellite broadcasting and broadband
communications. Further, it is evidence of our close alignment with our
major customers and partners and provides additional growth opportunities
for our Company. It will have an immediate impact on our revenues and
operating income," said Jim Mandel, CEO of Multiband Corporation.
About Multiband Corporation. Multiband Corporation (www.multibandusa.com) is
the largest DIRECTV installation provider and an enabler of video and
triple-play solutions to the MDU segment. The company employs approximately
3,900 professionals, has over 30 Field Offices, and serves customers in all
48 of the lower continental U.S.
CONTACT: Multiband Corporation
Jim Mandel, CEO, 763-504-3000
SOURCE: Multiband Corporation
Copyright Business Wire 2009
nice news and move today.... let's see if there's any continuation...
Congrats on the gain today. Showcase this one of the NCFC, if you dare!
http://www.investorshub.com/boards/board.asp?board_id=7229
~~~> Nano Cap Fight Club (NCFC)
Alright, this thread is about to taking off the kid gloves, and being prepared to defend one's pick.
Young William: I can fight.
Malcolm Wallace: I know. I know you can fight. But it's our wits that make us men.
[Suppressed Sound Link]
Braveheart (1995)
When she finds the bottom...when she finally finds bottom!
It'll be good.
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Multiband Corp.
9449 Science Center Drive
New Hope, MN 55428
United States - Map
Phone: 763-504-3000
Fax: 763-504-3060
Web Site: http://www.multibandusa.com
From its inception until December 31, 1998, the Company operated as a telephone interconnect company only. Effective December 31, 1998, the Company acquired the assets of the Midwest region of Enstar Networking Corporation (ENC), a data cabling and networking company. In late 1999, in the context of a forward triangular merger, the Company, to expand its range of computer products and related services, purchased the stock of Ekman, Inc. d/b/a Corporate Technologies, and merged Ekman, Inc. into the newly formed surviving corporation, Corporate Technologies USA, Inc. (MBS). MBS provided voice, data and video systems and services to business and government. The MBS business segment was sold effective April 1, 2005. The Company's MDU segment (formally known as MCS) began in February 2000. MDU provides voice, data and video services to multiple dwelling units, including apartment buildings, condominiums and time share resorts. During 2004, the Company purchased video subscribers in a number of separate transactions, the largest one being Rainbow Satellite Group, LLC. During 2004, the Company also purchased the stock of Minnesota Digital Universe, Inc. (MNMDU), which made the Company the largest master service operator in MDU's for DirecTV satellite television in the United States. During 2006 and 2007, the Company strategically sold certain assets at multiple dwelling properties where only video services were primarily deployed. The Company continues to operate properties where multiple services were deployed. To remain competitive, the Company in future periods intends to continue to own and operate properties at locations where multiple services can be deployed and manage properties where one or more services are deployed. Consistent with that strategy the Company during 2006, 2007, and 2008, expanded its servicing of third party clients (other system operators) through its call center. At August 3, 2010, the Company had approximately 129,000 owned and managed subscriptions, with an additional 45,000 subscriptions supported by the call center.
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