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8-K - UniTek Global Services, Inc. | v165341_8k.htm |
Berliner
Communications Announces First Quarter Fiscal 2010
Financial
Results
Significant
Revenue and Backlog Increases Highlight Quarter
FAIR LAWN, N.J., November 16, 2009
— Berliner Communications, Inc. (“BCI” or the “Company”) (OTC BB: BERL),
a leading provider of infrastructure services to the telecommunications
industry, today announced financial results for the fiscal first quarter of
2010.
Business
and Financial Highlights
·
|
Revenue
Increase of 35% over same quarter in prior year
period;
|
·
|
Backlog
of $34 million at October 31, 2009, an increase of 252% from $9.7 million
on December 31, 2008;
|
·
|
Began
construction of multi-million dollar project to provide in-building
cellular communications to major U.S. international
airport;
|
·
|
Continuing
to expand 4G WiMAX site acquisition, zoning and/or construction projects
in markets across the U.S.;
|
·
|
Continuing
to expand LTE, or Long Term Evolution, installation work in markets across
the U.S.;
|
·
|
Completed
move into new 76,000 square foot headquarters in Fair Lawn, New
Jersey.
|
Rich
Berliner, CEO of BCI, stated, “These are exciting times for our
Company. Our strategy of building a national platform for growth is
paying off, as we see sales and backlog increasing as expected as we continue to
win new work across the county. I believe we are strongly positioned
to take advantage of the opportunities we see in the industry in fiscal 2010 and
beyond. Our focus is now on a return to profitability, and, in light
of our current revenue levels and trends, I believe we have now reached the
level of operating efficiency that will enable us to achieve profitability in
the near term.”
“Recently,
I announced our largest single-site project to date, a multi-million dollar
in-building project at a major U.S. international airport. We have
now begun working on that project in earnest, and we have plans to use this
experience to springboard into other in-building work across the country. We
also continue to dramatically expand our work on 4G around the country, as
anticipated, and we expect this work to be a continuing driver of our success in
fiscal 2010. Our backlog of work continues to increase, from over $9
million on December 31, 2008 to over $34 million on October 31,
2009. We believe this backlog number is an important indicator of our
increasing customer demand and revenue growth potential.”
1
“We have
made the strategic decision to diversify and move to become a full service
telecom infrastructure services provider, rather than remain exclusively
wireless-focused. To that end, we have now signed, national
agreements with customers in the cable, wireline and fiber sectors, in addition
to our traditional wireless and enterprise clients. As the needs of
these customers overlap, we see an opportunity to be uniquely positioned to
service these complex needs. We also continue to win work for government
projects, and we have added a new government programs manager to lead this
effort. This quarter we have been awarded new government contracts
from federal, state and local agencies and municipalities, including public
safety and military communications work. We also continue to win work
providing microwave, cable and fiber backhaul capacity services to our
customers, a service area that we believe will continue to grow for
us. Our service offerings are now broader than any time in the
history of our company. Our customer base and revenue mix is well
diversified and we no longer have the same exposure or concentration to one
customer that we have had in the past. Our geographic reach now
allows us to put an experienced team “boots on the ground” anywhere in the
country. We have also been awarded our first international project in
Dubai. We have the financial strength and resources we need to use
this national platform to continue the exciting growth we are just beginning to
see this quarter.”
Fiscal
First Quarter 2010 Financial Results
For the
first fiscal quarter ended September 30, 2009, total revenue increased 35% to
$17.7 million from $13.1 million for the quarter ended September 30,
2008. This increase primarily relates to the expansion of our work
supporting the 4G WiMAX build out across the country, as well as our work on a
major airport in-building technical services project.
Total
operating expenses for the quarter ended September 30, 2009 decreased 1% to $5.1
million from $5.2 million for the quarter ended September 30, 2008.
Our first
fiscal quarter 2009 income from operations of $0.1 million decreased to a loss
from operations of $(0.7) million in the first fiscal quarter 2010. Net income
(loss) allocable to common shareholders decreased to $(0.5) million, or $(0.02)
per basic and fully diluted weighted average shares outstanding (based on 26.5
million basic and fully diluted weighted average shares outstanding) for the
quarter ended September 30, 2009, from $86 thousand, or $0.00 per basic and
fully diluted weighted average shares outstanding (based on 26.3 million and
27.5 million weighted average shares outstanding, respectively) for the quarter
ended September 30, 2008.
EBITDA*,
that is operating income (loss) plus the loss on sale of fixed assets, plus
depreciation and amortization expense, decreased from $0.4 million to $(0.4)
million in the first fiscal quarter of 2010 compared to last year’s same period.
While EBITDA is a non-GAAP measure, it is an important measure of profitability
in the industry, and it is a measure that management uses internally to gauge
ongoing performance. A reconciliation of EBITDA to income from operations is as
follows:
2
(Amounts
in Thousands)
|
||||||||
(Unaudited)
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||||||||
Three
Months Ended
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||||||||
September
30,
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||||||||
2009
|
2008
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|||||||
Income
(loss) from Operations
|
$ | (705 | ) | $ | 115 | |||
Depreciation
and Amortization Expense
|
309 | 303 | ||||||
Loss
on sale of fixed assets
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3 | - | ||||||
EBITDA
|
$ | (393 | ) | $ | 418 |
At
September 30, 2009, the Company had cash and cash equivalents of approximately
$2.2 million and net working capital of approximately $14.0 million.
Shareholders’ equity decreased 2% to $21.5 million from $22.0 million at June
30, 2009.
Mr.
Berliner continued, “This quarter demonstrates the effectiveness of the growth
strategy we put in place in fiscal 2009, and provides clear evidence
that our industry is beginning its capital spending cycle again, as 4G WiMAX,
LTE and fiber backhaul spending are in the early stages of what we believe will
be several years of development. We now have a national network of
offices to support this growth, and a business development team in place in each
region. These are not simply project based offices, but long term
commitments to be a part of the business community in these markets. Our focus
in every market will be, as always, to exceed our customers’ expectations and
deliver for them at every level, and to drive our growth and long-term value for our
stockholders.”
Conference
Call:
Management
will be hosting a conference call to review the quarterly results at 4:30 PM,
today, Monday, November 16, 2009. Interested parties may access the call by
calling 888-549-7704 from within the United States, or 480-629-9857 if calling
internationally, approximately five minutes prior to the start of the call. A
replay will be available through November 30, 2009 and can be accessed by
dialing 800-406-7325 (U.S.), 303-590-3030 (Int'l), passcode
4183073.
This call is being web cast by ViaVid
Broadcasting and can be accessed at www.bcisites.com or at ViaVid's
website at http://www.viavid.net
or by going to the following link http://viavid.net/dce.aspx?sid=00006D1A. The web cast can be accessed until
November 30, 2009. To access the web cast, you will need to have the Windows
Media Player on your desktop. For the free download of the Media Player please
visit: http://www.microsoft.com/windows/windowsmedia/download/alldownloads.aspx.
3
About
Berliner Communications, Inc.
Berliner
Communications, Inc. and its wholly owned operating subsidiary, BCI
Communications, Inc., are headquartered in Elmwood Park, New Jersey. BCI is an
end-to-end provider of outsourced services for the wireless communications
industry, including planning, deployment and management of network build-outs.
BCI provides wireless carriers with comprehensive real estate site acquisition
and zoning services, radio frequency and network design and engineering,
infrastructure equipment construction and installation, radio transmission base
station modification and project management services. For more information about
Berliner's services, please visit http://www.bcisites.com.
The
statements in this press release, which are not historical fact, are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Such statements involve risks and uncertainties that could cause
actual results to differ materially from our expectations. Such risks and
uncertainties include, without limitation, risks detailed in our filings with
the United States Securities and Exchange Commission, the risk that future
trends we have identified, including, but not limited to our stock price,
trading volume, top and bottom-line growth and liquidity, do not materialize or
if they materialize that they do not have the beneficial effect we anticipate,
as well as the risk that we will not be able to achieve our sales and
profitability goals. All forward-looking statements in this document are made as
of the date hereof, based on information available to us on the date hereof, and
we disclaim any intention or obligation to revise any forward-looking
statements, including, without limitation, financial estimates, whether as a
result of new information, future events or otherwise.
*Earnings
Before Interest, Taxes, Depreciation and Amortization (EBITDA) is a key
indicator used by management to evaluate operating performance. While EBITDA is
not intended to replace any presentation included in these consolidated
financial statements under generally accepted accounting principles (GAAP) and
should not be considered an alternative to operating performance or an
alternative to cash flow as a measure of liquidity, BCI believes this measure is
useful to investors in assessing its capital expenditures and working capital
requirements. This calculation may differ in method of calculation from
similarly titled measures used by other companies.
Contact:
|
Berliner
Communications, Inc.
Rich
Berliner
201-791-3200
berlinerr@bcisites.com
|
tables
follow
4
BERLINER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED
BALANCE SHEETS
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||||||||
(Amounts
in thousands)
|
||||||||
September
30.
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June
30,
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|||||||
2009
|
2009
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|||||||
ASSETS
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(Unaudited)
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|||||||
CURRENT
ASSETS
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||||||||
Cash
and cash equivalents
|
$ | 2,208 | $ | 1,390 | ||||
Accounts
receivable, net of allowance for doubtful accounts
|
||||||||
of
$98 and $200 at September 30, 2009 and June 30, 2009,
respectively
|
22,971 | 20,116 | ||||||
Income
tax receivable
|
2,521 | 2,659 | ||||||
Inventories
|
977 | 1,005 | ||||||
Deferred
tax assets - current
|
742 | 429 | ||||||
Prepaid
expenses and other current assets
|
742 | 891 | ||||||
30,161 | 26,490 | |||||||
Property
and equipment, net
|
2,024 | 2,239 | ||||||
Amortizable
intangible assets, net
|
416 | 479 | ||||||
Goodwill
|
2,284 | 2,284 | ||||||
Deferred
tax assets - long-term
|
2,789 | 2,789 | ||||||
Other
assets
|
285 | 276 | ||||||
Total
Assets
|
$ | 37,959 | $ | 34,557 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
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||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
payable
|
$ | 5,809 | $ | 4,644 | ||||
Accrued
liabilities
|
4,459 | 3,685 | ||||||
Line
of credit
|
5,208 | 2,967 | ||||||
Current
portion of long-term debt
|
564 | 777 | ||||||
Current
portion of capital lease obligations
|
112 | 118 | ||||||
16,152 | 12,191 | |||||||
Long-term
debt, net of current portion
|
9 | 18 | ||||||
Long-term
capital lease obligations, net of current portion
|
165 | 194 | ||||||
Other
long-term liabilities
|
99 | 105 | ||||||
Total
liabilities
|
16,425 | 12,508 | ||||||
COMMITMENTS
|
||||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Common
stock
|
1 | 1 | ||||||
Additional
paid-in capital
|
25,733 | 25,766 | ||||||
Accumulated
deficit
|
(4,200 | ) | (3,718 | ) | ||||
Total
stockholders' equity
|
21,534 | 22,049 | ||||||
Total
liabilities and stockholders' equity
|
$ | 37,959 | $ | 34,557 |
5
BERLINER
COMMUNICATIONS, INC. AND SUBSIDIARIES
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||||||||
CONSOLIDATED
STATEMENTS OF OPERATIONS
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||||||||
(Amounts
in thousands, except per share data)
|
||||||||
(Unaudited)
|
||||||||
Three
Months Ended
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||||||||
September
30,
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||||||||
2009
|
2008
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|||||||
Revenue
|
$ | 17,715 | $ | 13,086 | ||||
Costs
of revenue
|
12,980 | 7,475 | ||||||
Gross
profit
|
4,735 | 5,611 | ||||||
Selling,
general and administrative expenses
|
5,128 | 5,193 | ||||||
Depreciation
and amortization
|
309 | 303 | ||||||
Loss
on sale of fixed assets
|
3 | - | ||||||
Income
(loss) from operations
|
(705 | ) | 115 | |||||
Other
(income) expense
|
||||||||
Interest
expense
|
89 | 60 | ||||||
Amortization
of deferred financing fees
|
||||||||
15 | 15 | |||||||
Interest
income
|
(4 | ) | (31 | ) | ||||
Other
income
|
(23 | ) | (340 | ) | ||||
Income
(loss) before income taxes
|
(782 | ) | 411 | |||||
Income
tax (benefit) expense
|
(312 | ) | 325 | |||||
Net
income (loss) allocable to common shareholders
|
$ | (470 | ) | $ | 86 | |||
Net
income (loss) per share:
|
||||||||
Basic
|
$ | (0.02 | ) | $ | 0.00 | |||
Diluted
|
$ | (0.02 | ) | $ | 0.00 | |||
Weighted
average number of shares outstanding:
|
||||||||
Basic
|
26,516 | 26,263 | ||||||
Diluted
|
26,516 | 27,531 |
6