Multiband Expects Record Second Quarter 2010 EBITDA
Second Quarter EBITDA Significantly Exceeds Guidance Company Raises Revenue
and EBITDA Guidance for Balance of Year
MINNEAPOLIS--(BUSINESS WIRE)--August 03, 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 that it expects second
quarter 2010 EBITDA(1) for the period ended June 30, 2010, will materially
exceed previously announced guidance and will represent a record level of
quarterly EBITDA. The Company also anticipates reporting slightly stronger
than expected revenue results driven by increased leverage in its business
model. Multiband expects to report overall financial results for the fiscal
quarter ended June 30, 2010 and hold a conference call to discuss the second
quarter on or about August 12, 2010.
James L. Mandel, CEO of Multiband, commented, "We are executing ahead of
plan and successfully leveraging our infrastructure to generate significant
EBITDA growth. As expected, the operating efficiencies in our expanded
platform, which includes superior performance metrics as well as diversified
installation and ancillary services, are driving additional leverage within
our business model and delivering tangible positive operating results.
Coupled with a slightly stronger top line, we now expect our EBITDA results
to exceed the guidance we have previously given on an annualized basis.
Accordingly, we are raising our 2010 EBITDA Guidance from $12 Million to a
new range of $14-$16 Million. We are slightly raising our Revenue Guidance
from approximately $250 Million to a new range of $250-$255 Million. We look
forward to reporting finalized and audited financial results for the second
quarter and first half of 2010 and discussing operational details in an
upcoming press release and conference call on or about August 12, 2010."
(1) NON-GAAP Financial Measures
To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act,
Multiband Corporation, 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.
About Multiband Corporation:
Multiband is the largest nationwide DIRECTV master system operator in the
Multiple Dwelling Unit (MDU) market and one of the largest full-service home
service providers (HSPs), handling around 20% of all DIRECTV's
installations, maintenance and upgrades for residents of single-family
homes. Multiband is a full-service provider for a number of other partners
within the footprint as well, offering solutions for watch, talk, surf and
security, and is equipped with a retail store and an online store to strive
to be a customer's "one source solution" for all electronic needs.
Additionally, Multiband is a leading provider of software and integrated
billing services to MDUs on a single bill, including video, voice, data and
other value-added local services, both directly and through strategic
partnerships. Multiband is headquartered in Minneapolis, MN, and has offices
strategically placed around the continental United States.
Statements about our future expectations are "forward-looking statements"
within the meaning of applicable Federal Securities Laws, and are not
guarantees of future performance. When used herein, the words "may," "will,"
"should," "anticipate," "believe," "appear," "intend," "plan," "expect,"
"estimate," "approximate," and similar expressions are intended to identify
such forward-looking statements. These statements involve risks and
uncertainties inherent in our business, including those set forth in our
most recent Annual Report on Form 10-K for the year ended December 31, 2009,
and other filings with the SEC, and are subject to change at any time. Our
actual results could differ materially from these forward-looking
statements. We undertake no obligation to update publicly any
forward-looking statement.
CONTACT: Company Contact
Multiband Corporation
James Mandel, CEO,
763-504-3000
or
Investor Contact
Hayden IR
Cameron Donahue,
651-653-1854
cameron@haydenir.com
SOURCE: Multiband Corporation
Copyright Business Wire 2010
