InterMetro Announces Financial Results for Fiscal 2009 First Quarter
Telecomm provider posts 466% increase in Gross Profit
May 21, 2009 11:59:00 PM
Copyright Business Wire 2009
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View Additional ProfilesSIMI VALLEY, Calif.--(BUSINESS WIRE)-- InterMetro Communications, Inc. (OTCBB: IMTO), a facilities-based provider of enhanced voice and data communications services, yesterday announced financial results for its fiscal 2009 first quarter ended March 31, 2009.
Gross Profit improved 466% for the first quarter of fiscal 2009, at $1.44 million for 2009, or 23.6% as a percentage of revenue, as compared to a Gross Profit of $255K for the first quarter of fiscal 2008, or 4.0% as a percentage of revenue. This improvement was attributable to the increased utilization of capacity and decreased fixed network costs. The Company expects to continue to generate improved gross margins as it increases the utilization of its SS-7 network infrastructure in the future through increased sales.
Commenting on the results, Charles Rice, Chairman and Chief Executive Officer of InterMetro, stated, "The major improvement in Gross Profit, quarter-over-quarter, demonstrates the Company's commitment to focusing on the quality of its revenues, with an aggressive eye towards 'profit-oriented' traffic based on deeper customer analysis and routing strategies."
Sales and marketing expenses as a percentage of revenues were 9.6% and 7.5% for the first quarter ended March 31, 2009 and 2008, respectively. The increase is attributable to commission programs for higher margin services.
General and administrative expenses as a percentage of revenues were 20.3% and 22.1% for the first quarter ended March 31, 2009 and 2008, respectively. The decrease in general and administrative expenses for the three months ended March 31, 2009 is primarily attributable to a reduction in professional service fees.
The Company also posted a 92% improvement in Adjusted EBITDA quarter-over-quarter. InterMetro reported negative Adjusted EBITDA of $(99K) for the first quarter of fiscal 2009 compared with negative Adjusted EBITDA of $(1.2) million for the first quarter of fiscal 2008. In this release, Adjusted EBITDA is a non-GAAP measure representing operating income exclusive of depreciation and amortization, non-cash stock based charges, as well as impairment charges. It is one of several key metrics used by management to evaluate the Company's operating performance. The accompanying schedule reconciles Adjusted EBITDA to the corresponding GAAP measure net loss. The adjusted EBITDA improvement comes as a result of the improvements in Gross Profit and operational expense adjustments and efficiencies implemented as part of the Company's cost management initiatives.
Further commenting, Mr. Rice stated, "Despite the recessionary environment, we are fortunate to be in an industry that seems to have experienced only limited revenue declines these past months. As well, we have simultaneously made dramatic improvements in our Gross Profit and EBITDA through traffic management, higher margin products from new customers and new business lines, as well as operating efficiencies."
InterMetro reported revenue of $6.1 million for the first quarter of fiscal 2009, or 4.1% below revenue of $6.4 million in the first quarter of fiscal 2008. This small decline was due in part to management's focus on improving gross margins. The Company reported a net loss of $1.6 million, or $(0.02) per diluted share, in the first quarter of 2009 and a net loss of $1.9 million, or $(0.03) per diluted share, in the first quarter of 2008.
Q1 Q1 2008
Total
Mar-09 Mar-08
Loss (1,607 ) (1,916 ) (9,426 )
Interest 1,246 375 2,600
Depreciation 102 219 636
EBITDA (259 ) (1,322 ) (6,190 )
Stock Based Charges 60 90 247
Goodwill Impairment 1,511
Bad Debt 25 220
2007 New Acct Reaudit 75
Adjusted EBITDA (99 ) (1,232 ) (4,212 )
Change 1,133
Change % 92.0 %
ABOUT INTERMETRO COMMUNICATIONS, INC: InterMetro Communications, Inc. (IMTO.OB) is a facilities-based provider of enhanced voice and data communications services. The company owns and operates a national, private Voice-over Internet Protocol (VoIP) network infrastructure powered by switching equipment. Its network powers providers of communications services, such as wholesale transport carriers, wireless providers, broadband phone companies, VoIP service providers, prepaid calling card providers and voice-enabled application service providers.
The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are predictions by the Company's management and are subject to various risks and uncertainties that may cause results to differ from management's current expectations. Such factors include the Company's limited operating history and fluctuating operating results, the possibility the Company may be unable to manage its growth, extensive competition, loss of members of the Company's senior management, the Company's limited number of customers and suppliers, the Company's dependence on local exchange carriers, the possibility of network failures, the Company's need to effectively integrate businesses it acquires, risks related to acceptance, changes in, and failure and security of, technology, regulatory interpretations and changes, and other risks as detailed from time-to-time in the Company's registration statement and reports and filings with the Securities and Exchange Commission. All forward-looking statements, if any, in this release represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update forward-looking statements.
Source: InterMetro Communications, Inc.
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InterMetro Communications
Inc.
Christopher Folk
805-433-8000
ir@intermetro.net
www.intermetro.net
