LOOKING for 27+ million record revenue, below is last earnings (Aug 15th)plus shareholders letter(Oct 17th) below that. Guidance should include many topics that have been on the burner cooking..New financing, AIM listing, acquisitions, Jay has stated in recent emails, that he feels next week will be very exciting we shall see
BETHESDA, Md., Aug. 15 /PRNewswire-FirstCall/ -- MobilePro Corp. (OTC Bulletin Board: MOBL - News) announced today that it generated record operating profit and net income for its first fiscal quarter ended June 30, 2005. The company generated record earnings before interest, taxes, depreciation and amortization (EBITDA) of $2,173,743 for the three months ended June 30, 2005 compared to $1,483,652 for the previous quarter ended March 31, 2005 and a negative EBITDA of $415,029 for the three months ended June 30, 2004. The company also generated a record $419,191 in net income for the quarter ended June 30, 2005, up from $100,368 in the March 31, 2005 quarter. For the first fiscal quarter ended June 30, 2005, the company reported revenue of $22,505,845 compared to revenue of $1,170,164 in the same quarter a year ago. Net income for the quarter was $419,191 or $0.0012 per basic share versus a loss of $757,439 or ($0.0033) per share for the same quarter a year ago.
Detailed operating results will be provided in the company's Form 10-QSB that will be filed with the Securities and Exchange Commission later today. The form will be viewable at http://www.hawkassociates.com/mobilepro/sec.htm .
Jay Wright, MobilePro chairman and CEO, said, "We are pleased to have again raised the bar with record quarterly EBITDA and net income. We also achieved several key milestones during the quarter, including winning the Tempe wireless bid, the launch of our prepaid cellular offering TommyWireless, refinancing our bridge debt, continued consolidation of our acquisitions, closing on the acquisitions of WAZAlliance, Evergreen Open Broadband and American Fiber Networks, and acquiring a 51% interest in Kite Broadband. While we still face some challenges in growing the top line of our Internet and payphone divisions, we have accomplished much in the way of cost reduction and believe we have a great pipeline of opportunities to execute against for the balance of 2005."
BETHESDA, Md., Oct. 17 /PRNewswire-FirstCall/ -- MobilePro Corp. (OTC Bulletin Board: MOBL - News) Chairman and CEO Jay Wright issued the following letter to shareholders:
Although our stock price has fallen fairly sharply in the last few weeks, I can assure you that we are still very much alive. While we lost a few payphones due to Katrina and Rita (less than 1% of our payphone base was affected by the hurricanes and we have submitted an insurance claim for that) and our Beaumont, Texas ISP facility was down for a short period (but is running smoothly now), the rest of our company has been working without interruption since I last wrote to you in August. And we have made progress on a number of key fronts, which I will summarize for you below.
Overview
We are in an exciting industry with new technologies and products being introduced (such as VO-WiFi phones, which we will launch in Tempe, Ariz. in 2006), new companies entering the industry (or different parts of the industry), significant mergers and acquisitions occurring (Sprint/Nextel; SBC/AT&T; Verizon/MCI; Alltel/Western Wireless), and, after a long drought, new sources of financing emerging. While we still have things we are looking to improve, we are pleased overall with what we have accomplished and the opportunity we have over the next few months to achieve great results, especially in the wireless arena. Let me elaborate.
Financing
Since August, we have continued to strengthen our balance sheet in order to provide capital for acquisitions and our Neoreach Wireless division's capital and operating needs and to improve our liquidity. We now have over $33 million in equity and $6 million of cash on our balance sheet and are looking for opportunities to further improve those positions.
We have had, and continue to have, discussions with several investment banks about establishing a long-term relationship with a view toward a substantial private placement, future secondary offering and/or Nasdaq listing. We are being deliberative as it is better that we choose wisely than quickly. The good news here is that the quality of the firms we are talking with continues to improve and we are, in fact, talking with firms this week and next considered "top-tier" in the media and telecommunications space. I personally expect to strike a relationship in the near term with a firm to assist us in both our capital raising and strategic initiatives.
We are also still looking at a possible AIM listing. I visited London in late September to meet with potential nominated advisors, or "Nomads." We have received interest in doing a flotation in London in January and are evaluating the merits of such an option in lieu of or as a complement to a private or public offering here in the United States. Such a listing could serve as a useful intermediate step between the Bulletin Board and the Nasdaq.
Operating Results
The big news in the past two and a half months was our victory over SBC and Motorola for the city of Sacramento, Calif.'s wireless project. This victory makes MobilePro one of the leaders, if not the leader, in the burgeoning muni-wireless market. To our knowledge, we have won more cities than any other company. Coupled with our leadership in the "fixed" wireless market through our ownership of Kite Broadband and our own wireless deployments, we can legitimately claim that we are one of the leading wireless broadband companies in North America. We are looking to leverage this leadership by pursuing a number of potential acquisitions in this area. We also have several cities to which we have submitted proposals and from which we expect to hear between now and calendar year-end. We believe that we will win one or more new cities.
Another key development is our new relationship with Gannett's flagship newspaper in Arizona, the Arizona Republic. This alliance allows MobilePro to develop a new, ad-driven revenue stream from our Neoreach splash page in Tempe. Is this important? Well, both Google and Yahoo! (combined market cap: $130 billion) built their companies on the foundation of ad-revenue from their search pages and portals. Having a landing page in each city we win could allow us to dip into this golden stream. The Arizona Republic deal is our first step in this direction.
We entered into a commercial agreement with SBC, which ensures our continued ability to serve all our customers with our full range of services. We now have commercial agreements in place with all the major RBOCs as a foundation for our ability to serve customers in all 50 states. We have thus eliminated our regulatory UNE-P risk and are positioned to capitalize on opportunities that may arise from other CLECs not similarly positioned.
On the financial front, our September quarter is now completed and, so far, the news appears to be good. Revenue looks to be coming in at record levels: between $26.3 and $27.0 million is our best estimate at this time. Operating profit (as measured by EBITDA) should be solidly in the black again. Our bottom line will be affected by higher than projected spending on our Neoreach Wireless division caused by the surging interest in municipal wireless projects and the corresponding need to increase staffing, attend tradeshows and increase travel costs at Neoreach (money well spent, in my opinion) and an extra (i.e., above budget) roughly quarter of a million dollar marketing expense that, on Tom Mazerski's recommendation, I approved for our CloseCall America unit in September to exploit market opportunities he identified. Due, however, to the addition of AFN and Kite Broadband to our company on June 30, we still should be either in the black or very close to it for the quarter. The intermediate term payoff, we believe, will be higher growth at CloseCall and more wireless city wins at Neoreach. While some may question our willingness to sacrifice short-term profits, we believe that we should run the company to build long-run sustainable value, especially in our core areas of competitive advantage where the future value of our company will come from.
Acquisitions
On the mergers and acquisitions front, we just closed AllCom USA and are on the cusp of another closing. Our pipeline remains strong with over $100 million of deal opportunities under review. We looked at two companies (including one which we had signed an LOI with) with more than $30 million in revenue each since my last letter to you but for different reasons have not consummated transactions with either. We will continue to aggressively pursue good opportunities as we strive to hit my personal goals of $200-plus million in annualized revenue and 10% EBITDA margin by the end of our fiscal year, recognizing that those numbers are goals and will not be albatrosses, which cause us to do bad deals.
Stock Price
Like most of you, I am disappointed in the recent performance of our stock price. While I do not pay particular attention to day-to-day fluctuations, preferring to focus on growing the intrinsic value of the business, it has been hard to miss the negative sentiment and selling pressure of late. I certainly understand why some CEOs take their companies private to avoid such distractions.
We will, nevertheless, continue to focus on building our business and striving to create long-term shareholder value. I personally am continuing to buy stock on the open market and will, if our stock price stays below 30 cents, be increasing my buying program by more than 50%, effective November 1.
In times of duress, it is good to look to history as a guide, a reminder that other great achievements have occurred after tribulation and that events can quickly change perception. While George Washington was considered a terrible general in October 1776, by January 1777 he was considered a genius. General U.S. Grant was considered a butcher in the fall of 1864; four years later he was elected President as a war hero. Less than five years ago, Google was struggling -- today it has almost a $100 billion market cap. Like any young entity does (be it a country, company or otherwise), we are going through some growing pains right now. The good news is that we have tremendous opportunity with Neoreach, Tommywireless and our other businesses to create a very large, profitable company. We will do everything in our power to make that happen.
Very truly yours,
Jay O. Wright Chairman and Chief Executive Officer MobilePro Corp.
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