Attached files
| file | filename |
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| 8-K - FTE Networks, Inc. | v211550_8k.htm |
Exhibit
99.1
 |
Contact:
Bruce
Widener, CEO
502-657-3507
investors@askbeacon.com
Porter,
LeVay & Rose, Inc.
Marlon
Nurse, V.P. – Investor Relations
212-564-4700
Geralyn
DeBusk, President or Hala Elsherbini, COO
Halliburton
Investor Relations
972-458-8000
|
Beacon
Enterprise Solutions Reports Fiscal 2011 First Quarter Financial
Results
--
Net Sales Increase 38% to $4 Million --
--
One-Time Gain Results in $0.17 EPS --
--
Conference Call To Be Held Tomorrow at 10:00 A.M. Eastern Time --
LOUISVILLE, KY, February 14, 2011 --
Beacon Enterprise Solutions Group, Inc. (OTC BB: BEAC) (www.askbeacon.com),
an emerging global leader in the design, implementation and management of high
performance Information Technology Systems (ITS), reports fiscal first quarter
financial results for the period ended December 31, 2010. First
quarter results reflect the financial effect of the discontinued operations of
the Company’s Swiss subsidiary, which are discussed below:
Financial
Highlights for the Fiscal 2011 First Quarter:
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o
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Net
sales increased 38% to $4.0 million compared with $2.9 million in the
year-ago first quarter.
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o
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Cost
of materials sold for the first quarter of fiscal year 2011 was $0.3
million compared to $0.5 million in the year-ago first
quarter. Cost of services was $2.5 million compared to $1.3
million in the year-ago first quarter. Gross profit was $1.2 million
compared to $1.1 million in the year-ago first
quarter.
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o
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Net
income for the first quarter was $6.3 million compared to a loss of ($1.0)
million in the year-ago first quarter. Fiscal year 2011’s first quarter
included a $7.9 million one-time gain from discontinued operations
relating to the Company’s Swiss subsidiary (FASB subtopic
810-10).
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o
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This
resulted in positive net income per share of $0.17 compared to a net loss
of ($0.04) per share during the year-ago first
quarter.
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o
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Current
liabilities at the end of the first fiscal quarter improved to $6.2
million compared to $12.9 million at fiscal year end, due to the
elimination of discontinued
operations.
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o
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Total
assets were $11.6 million and total liabilities were $6.4 million
resulting in positive shareholders’ equity of $5.2 million as of December
31, 2010, compared to negative shareholders’ equity of ($2.0) million as
of September 30, 2010.
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Bruce
Widener, Chairman and CEO of Beacon Enterprise Solutions said, “While some of
the financial measures were down during the first fiscal quarter, we made
significant organizational progress and are on track to meeting our stated
objectives for 2011. We have now completed the legal and accounting
requirements related to our discontinued operations in
Switzerland. Our business has changed from primarily project-based
engagements to long-term professional services agreements. Beacon has
organized around technical business units (TBU) and focused sales efforts in
several vertical markets. Over the last few months we have announced
multiple marketing agreements, which we expect to yield significant,
multi-million dollar agreements with several new clients. We have
also announced new engagements with existing global Fortune 100 clients, which
we expect to lead to further work domestically and
internationally. Our sales and marketing staff are investing
significant time in these relationships to bring high-margin ITS agreements to
Beacon. We are working against our Project Backlog, which continues
to exceed $70 million, but expect substantial organic growth in 2011 from new
relationships.”
“Beacon
has aligned the right partners and organizational structure to execute upon our
2011 plan,” said Jerry Bowman, President and Chief Operating Officer of Beacon
Solutions. “In his most recent State of the Union address President
Obama gave an indicator to the validation of Beacon’s business model with the
initiation of a government backed Smart Building program. Smart Building
initiatives fit within Beacon’s established Smart Enterprise vertical and
represent a business opportunity that Beacon is well positioned to capitalize
upon. The American Recovery and Reinvestment Act of 2009, a government backed
stimulus plan with a broadband infrastructure component, is another program that
is driving significant opportunities for Beacon with a number of Outside Plant
initiatives currently in process. 2011 is the right time to be an ITS
infrastructure solutions provider and I expect this to be a break-through year
for Beacon with higher revenues and profitability.”
Aggregate
Future Value of Backlog:
Aggregate
Future Value of Backlog reflects the projected revenue impact of existing
engagements over a one to four year period and is subject to change as work is
completed and/or the scope of various engagements changes over time.
Backlog includes the projected value of recently announced, multi-year ITS
managed services engagements as well as short-term projects for which the
Company has been engaged to provide network design, engineering, implementation
and/or project management services.
Earnings
Conference Call, Tuesday February 15, 2011 @ 10:00 a.m. EST:
Beacon’s
Management will hold a conference call on Tuesday, February 15, 2011 at 10:00
a.m. EST to discuss its fiscal first quarter 2011 financial results for the
period ending December 31, 2010. Participants on the call will include Bruce
Widener, Chairman and CEO; Jerry Bowman, President and COO; and Michael Grendi,
Chief Financial Officer. The teleconference can be accessed by
calling 888-495-3916 and entering conference ID #
40978936. Participants outside of the U.S. and Canada can join by
calling 706-634-7530 and entering the same conference ID. Please dial in 15
minutes prior to the beginning of the call. The conference call will
be simultaneously webcast and available on the company's website, http://www.askbeacon.com/,
under the "Investor Relations" tab. A digital recording of the conference call
will be available for replay two hours after the end of the call's completion
until 11:59 p.m. EST on Thursday, February 17, 2011 by calling 706-645-9291 and
entering conference ID # 40978936.
About
Beacon Enterprise Solutions Group, Inc.
Beacon
Enterprise Solutions Group is an emerging global leader in the design,
implementation and management of high performance Information Technology Systems
(“ITS”) infrastructure solutions. Beacon offers fully integrated,
turnkey IT infrastructure solutions capable of fully servicing the largest
companies in the world as they increasingly outsource to reduce costs while
optimizing critical IT design and infrastructure management. Beacon
is headquartered in Louisville, Kentucky, with a regional headquarters in
Dublin, Ireland, Prague, Czech Republic and personnel located throughout the
United States and Europe.
For
additional information, please visit Beacon’s corporate website: www.askbeacon.com
This
press release may contain “forward-looking statements.” Expressions of future
goals and similar expressions reflecting something other than historical fact
are intended to identify forward-looking statements, but are not the exclusive
means of identifying such statements. These forward-looking
statements may include, without limitation, statements about our market
opportunity, strategies, competition, expected activities and expenditures as we
pursue our business plan. Although we believe that the expectations
reflected in any forward looking statements are reasonable, we cannot predict
the effect that market conditions, customer acceptance of products, regulatory
issues, competitive factors, or other business circumstances and factors
described in our filings with the Securities and Exchange Commission may have on
our results. The company undertakes no obligation to revise or update
any forward-looking statements in order to reflect events or circumstances that
may arise after the date of this press release.
Financial
Tables Follow
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Beacon
Enterprise Solutions Group, Inc. and Subsidiaries
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Condensed
Consolidated Balance Sheets
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||||||||
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(all
amounts in 000's except share data)
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December
31,
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September
30,
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2010
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2010
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ASSETS
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(unaudited)
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Current
assets:
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Cash and cash
equivalents
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$ | 108 | $ | 246 | ||||
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Accounts receivable,
net
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4,241 | 4,535 | ||||||
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Inventory,
net
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526 | 557 | ||||||
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Prepaid expenses and other
current assets
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608 | 357 | ||||||
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Current assets of discontinued
operations
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- | 133 | ||||||
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Total current
assets
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5,483 | 5,828 | ||||||
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Property
and equipment, net
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385 | 420 | ||||||
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Goodwill
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2,792 | 2,792 | ||||||
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Other
intangible assets, net
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2,947 | 3,011 | ||||||
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Other
assets
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27 | 20 | ||||||
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Total
assets
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$ | 11,634 | $ | 12,071 | ||||
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LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIENCY)
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Current
liabilities:
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Bridge note - related
party
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$ | 100 | $ | 100 | ||||
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Current portion of long-term
debt
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261 | 379 | ||||||
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Senior Secured Notes Payable, net
of deferred debt discount of $78
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1,473 | - | ||||||
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Accounts
payable
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2,368 | 2,971 | ||||||
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Accrued expenses and other
current liabilities
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1,952 | 880 | ||||||
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Current liabilities of
discontinued operations
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- | 8,558 | ||||||
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Total current
liabilities
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6,154 | 12,888 | ||||||
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Non-current
Line of Credit - related party
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- | 630 | ||||||
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Long-term
debt, less current portion
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136 | 403 | ||||||
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Deferred
tax liability
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167 | 153 | ||||||
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Total
liabilities
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6,457 | 14,074 | ||||||
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Stockholders'
equity (deficiency)
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Preferred Stock: $0.01 par value,
5,000,000 shares
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authorized, 1,041 shares
outstanding in the
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following
classes:
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Series A convertible preferred
stock, $1,000 stated value,
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4,500 shares authorized, 30
shares issued and outstanding
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at December 31, 2010 and
September 30, 2010, respectively,
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(liquidation preference
$94)
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30 | 30 | ||||||
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Series A-1 convertible preferred
stock, $1,000 stated value,
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1,000 shares authorized, 311
shares issued and outstanding
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at December 31, 2010 and
September 30, 2010, respectively
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(liquidation preference
$442)
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311 | 311 | ||||||
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Series B convertible preferred
stock, $1,000 stated value,
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4,000 shares authorized, 700
shares issued and outstanding
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at December 31, 2010 and
September 30, 2010, respectively,
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700 | 700 | ||||||
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(liquidation preference
$981)
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Common stock, $0.001 par value
70,000,000 shares authorized
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37,376,396 shares issued and
outstanding
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at December 31, 2010 and
September 30, 2010, respectively.
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37 | 37 | ||||||
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Additional paid in
capital
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37,491 | 37,137 | ||||||
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Accumulated
deficit
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(33,473 | ) | (39,711 | ) | ||||
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Accumulated other comprehensive
income (loss)
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81 | (507 | ) | |||||
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Total stockholders' equity
(deficiency)
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5,177 | (2,003 | ) | |||||
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Total liabilities and
stockholders' equity
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$ | 11,634 | $ | 12,071 | ||||
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Beacon
Enterprise Solutions Group, Inc. and Subsidiaries
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Condensed
Consolidated Statements of Operations
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(Unaudited)
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(all
amounts in 000's except share and per share data)
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For
the Three
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For
the Three
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Months
Ended
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Months
Ended
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December
31,
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December
31,
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2010
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2009
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Net
sales
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$ | 3,974 | $ | 2,873 | ||||
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Cost of materials
sold
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276 | 483 | ||||||
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Cost of
services
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2,523 | 1,276 | ||||||
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Gross
profit
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1,175 | 1,114 | ||||||
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Operating
expenses
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Salaries and
benefits
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1,675 | 1,041 | ||||||
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Selling, general and
administrative
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888 | 1,017 | ||||||
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Total operating
expense
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2,563 | 2,058 | ||||||
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Loss
from operations
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(1,388 | ) | (944 | ) | ||||
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Other
expenses
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Other
expenses
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(285 | ) | (185 | ) | ||||
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Change in fair value of
warrants
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- | (24 | ) | |||||
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Total other
expenses
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(285 | ) | (209 | ) | ||||
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Net
loss before income taxes
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(1,673 | ) | (1,153 | ) | ||||
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Income
tax benefit (expense)
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38 | (39 | ) | |||||
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Loss
from continuing operations
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(1,635 | ) | (1,192 | ) | ||||
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Net
income of discontinued operations including gain on
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deconsolidation of $7,892 in the
three months ended
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December 31,
2010)
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7,892 | 161 | ||||||
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Net
income (loss)
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6,257 | (1,031 | ) | |||||
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Series
A, A-1 and B Preferred Stock:
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Contractual
dividends
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(19 | ) | (48 | ) | ||||
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Deemed dividends related to
beneficial conversion feature
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(25 | ) | ||||||
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Net
income (loss) available to common stockholders
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$ | 6,238 | $ | (1,104 | ) | |||
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Net
income (loss) per share to common stockholders - basic and
diluted
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Net loss per share from
continuing operations
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(0.04 | ) | (0.05 | ) | ||||
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Net income per share from
discontinued operations
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0.21 | 0.01 | ||||||
| $ | 0.17 | $ | (0.04 | ) | ||||
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Weighted
average shares outstanding
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||||||||
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basic and
diluted
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37,376,396 | 26,156,058 | ||||||
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Other
comprehensive income, net of tax
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Net income
(loss)
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$ | 6,238 | $ | (1,104 | ) | |||
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Foreign currency translations
adjustment
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(102 | ) | (15 | ) | ||||
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Comprehensive income
(loss)
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$ | 6,136 | $ | (1,119 | ) | |||