SYTE - Sitestar Reports First Quarter Earnings
Wednesday May 16, 6:00 am ET
Net Income, Acquisitions & Sustained Share Price Underscore Strong Start to 2007
LYNCHBURG, VA--(MARKET WIRE)--May 16, 2007 -- Sitestar Corporation (OTC BB:SYTE.OB - News), a provider of Internet access and value-added online and computer services, announced today that it continued its trend of consecutive profitable quarters, notching its eleventh quarter with strong increases in net income and EBITDA (earnings before interest, taxes, depreciation and amortization). The Company also significantly reduced its interest expense by retiring its high interest note payables. Additionally, through its first quarter acquisitions of Magnolia Internet Services and OneWest.net, Sitestar considerably increased its customer base across narrowband, broadband and web hosting services. Financial highlights for the quarter include:
-- EBITDA was $649,882, an increase of $162,971 or 33.5% from $486,911
for the same period in 2006.
-- Net Income was $308,568, an increase of $120,886 or 64.4% from
$187,682 for the same period in 2006.
-- Interest Expense was $35,469, a decrease of $25,500 or 41.8% from
$60,969 for the same period in 2006.
"2007 is a pivotal year for Sitestar and we have started aggressively," said Frank R. Erhartic, Jr., CEO for Sitestar. "We successfully consummated two acquisitions which will have a positive impact upon our revenue stream. We also garnered attention from the investor community with interviews featured in widely-read investor publications and have effectively sustained a share price over eleven cents. Given our momentum, acquisition pipeline and pending launch of VoIP, we are optimistic about our potential for growth throughout this year."
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements that are based on management's expectations, estimates, projections and assumptions. The Company assumes no obligation except as required by law to update the forward-looking statements contained in this press release as a result of new information or future events or developments. These forward-looking statements generally can be identified by words such as "believes," "expects," "projects," "anticipates," "foresees," "forecasts," "estimates," "should" or other words or phrases of similar import. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including and without limitation, as found in the Company's reports filed with the Securities and Exchange Commission.
About Sitestar
Sitestar (www.sitestar.com) is an Internet and computer solutions provider that offers narrowband and broadband Internet access services, Web hosting and design, and other value-added services including web acceleration, spam and virus filtering as well as spyware protection. Headquartered in Lynchburg, Virginia, Sitestar maintains multiple sites of operation and provides services to customers throughout the U.S. and Canada, with concentrations in customers in the Mid-Atlantic and Rocky Mountain regions in the U.S. and in Ontario, Canada. With a focus on competitive pricing, reliability, service and speed, Sitestar delivers customer value.
Contact:
Contact:
Frank R. Erhartic, Jr.
434-239-4272
Email Contact
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Source: Sitestar Corporation
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