Welcome!

Microsoft Cloud Authors: Elizabeth White, Mihai Corbuleac, Pat Romanski, David Bermingham, Steven Mandel

News Feed Item

Multiband Announces 2012 Third Quarter Results

2012 Year-to-Date Revenues of $227.7 million up 2.3% from $222.6 million in comparable period in 2011

MINNEAPOLIS, Nov. 14, 2012 /PRNewswire/ -- 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 (MDUs), today announced financial results for the third quarter ended September 30, 2012.

Third Quarter Highlights

  • MDU segment revenue increases by 31.2% and 25.0% for the three and nine month periods in 2012 over the comparable periods in 2011 due to a 60.0% increase in the number of subscribers covered under its Master System Operator agreement with DIRECTV reflecting the consolidation occurring in the market. Total subscribers supported under this agreement now total 139,000
  • Q3 EBITDA grows by 71.4% to $6.0 million over $3.5 million reported for Q2. Company does not capitalize its vehicle leases. If these leases were capitalized, 2012 Adjusted EBITDA would total $10.1 million for the current quarter and $22.4 million year-to-date
  • Subsequent to the end of the quarter, the Company announced that DIRECTV had extended both the HSP and MDU contracts now expiring in 2016

James L. Mandel, CEO of Multiband, commented, "In 2012, our core HSP revenues with DIRECTV were lower than the previous year periods by $8 million and $15 million for the three and the nine months ended September 30. Although we have replaced that revenue via our diversification initiatives, the replacement revenue is not as profitable as what we experience from our HSP business. As we have shown in the past, we are able to improve our operations but it does take significant effort and time. We are confident that these new sources of revenue will produce materially better results in 2013."

Other Highlights

  • Operating income was $3.5 million for both the three and nine months ended September 30, 2012
  • Net income attributable to common stockholders was $1.6 million for the quarter ($0.07 per basic and fully diluted share)
  • Cash grew to $10.1 million from $8.7 million at the end of the second quarter, an increase of 16%

Conference Call Information
A conference call and live webcast will take place Wednesday, November 14, 2012 at 4:30 p.m. Eastern Time.

Anyone interested in participating should call 1-877-941-2069 if calling within the United States or 1-480-629-9713 if calling internationally. There will be a playback available until November 21, 2012. To listen to the playback, please call 1-877-870-5176 if calling within the United States or 1-858-384-5517 if calling internationally. Please use pin number 4575294 for the replay.

The call will also be accompanied live by webcast over the Internet and accessible at:  http://public.viavid.com/index.php?id=102511

About Multiband Corporation
Multiband Corporation (Nasdaq: MBND) engages with a vast and growing array of technologies including renewable energy, wireless infrastructure, electrical power systems, digital signage, commercial audio/video solutions, hospitality IPTV and VOD systems. Multiband completes nearly 20% of all DIRECTV's installations, maintenance and upgrades for residents of single-family homes. Multiband also supplies broadband cable and satellite internet solutions for homes and businesses across the nation. As 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), Multiband is a driven leader in a competitive industry. 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 focuses on providing world-class customer service and the highest level of performance for all partners and customers, from multinational corporations to individual families. Multiband is headquartered in Minneapolis, Minn., 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, 2011, 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.

Company Contact
Contact: James Mandel, CEO for Multiband Corporation at (763)504-3000

Investor Contact
Cameron Donahue, Hayden IR, (651) 653-1854 or [email protected]

NON-GAAP Financial Measures
To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act, Multiband has attached to this news release, and will post to the company's investor relations website (www.multibandusa.com), a reconciliation of differences between GAAP and non-GAAP financial information that may be required in connection with issuing the it's quarterly financial results.

Multiband, as is common in its industry, uses Adjusted EBITDA as a measure of performance to demonstrate earnings exclusive of interest and non-cash events. Multiband manages its business based on its cash flows. Multiband, 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. Multiband, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses Adjusted EBITDA as its primary management guide.  Since an outside investor may base its evaluation of Multiband's performance based on the net income of loss and not its cash flows, there is a limitation to the Adjusted EBITDA measurement. Adjusted EBITDA is not, and should not be considered, an alternative to net income or loss, income or loss from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principals generally accepted in the United States (GAAP).  The most directly comparable GAAP reference in Multiband's case is the removal of interest, depreciation, amortization, taxes and other non-cash expense.


 

Multiband Corporation and Subsidiaries

Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)

(in thousands)

(Unaudited)

 



Three Months Ended September 30, 2012

Nine Months Ended September 30, 2012






Net Income (GAAP)

$

1,627

$

121

Add (deduct):





Stock-based compensation expense


75


984

Non-cash reserves


183


330

Other than temporary impairment loss on available-for-sale securities


71


652

Gain on bargain purchase


(177)


(177)

Non-recurring acquisition and start-up expenses





Other


38


100

Total Non-GAAP adjustments


190


1,889






Interest expense


935


2,774

Depreciation and amortization


1,789


5,277

Provision for income taxes


1,015


185

Non-recurring acquisition expenses


467


1,221






EBITDA (Non-GAAP)


6,023


11,467






Adjustment for non-capitalized vehicles leases


4,072


10,902






Adjusted EBITDA (Non-GAAP)

$

10,095

$

22,369


 

 

 

 

MULTIBAND CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 




Three Months Ended



Nine Months Ended



September 30, 2012 (unaudited)



September 30, 2011 (unaudited)



September 30, 2012 (unaudited)



September 30, 2011 (unaudited)













REVENUES


$

85,695



$

86,366


$

227,727


$

222,623















COSTS AND EXPENSES














Cost of products and services (exclusive of depreciation and amortization shown separately below)



62,893




60,332



167,750



160,201

Selling, general and administrative



17,557




17,014



51,218



45,131

Depreciation and amortization



1,789




1,566



5,277



4,986















Total costs and expenses



82,239




78,912



224,245



210,318















INCOME FROM OPERATIONS



3,456




7,454



3,482



12,305















OTHER EXPENSE














Interest expense



(935)




(1,038)



(2,774)



(2,989)

Interest income



6




7



19



19

Proceeds from life insurance



-




-



-



409

Gain on bargain purchase



177




-



177



-

Losses attributable to available for-sale securities



(71)




-



(652)



-

Other income


9



125



54



246















Total other expense


(814)



(906)



(3,176)



(2,315)















INCOME BEFORE INCOME TAXES



2,642




6,548



306



9,990















PROVISION FOR INCOME TAXES



1,015




2,869



185



4,369















NET INCOME



1,627




3,679



121



5,621















Preferred stock dividends



68




70



303



729

INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS


$

1,559



$

3,609


$

(182)


$

4,892















INCOME (LOSS) PER COMMON SHARE – BASIC:














    INCOME ATTRIBUTABLE TO COMMON

    STOCKHOLDERS


$

0.07



$

0.17


$

(0.01)


$

0.32

INCOME (LOSS) PER COMMON SHARE – DILUTED:














    INCOME ATTRIBUTABLE TO COMMON

    STOCKHOLDERS


$

0.07



$

0.16


$

(0.01)


$

0.26

Weighted average common shares outstanding – basic



21,690




21,595



21,744



15,418

Weighted average common shares outstanding - diluted



22,427




23,047



21,744



19,791



 

 

 

MULTIBAND CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

(in thousands)

 






September 30, 2012 (unaudited)



December 31, 2011 (audited)


CURRENT ASSETS







Cash and cash equivalents


$

10,129



$

18,169


Available-for-sale securities



-




1,191


Accounts receivable, net



31,735




28,359


Inventories



11,065




14,276


Costs and estimated earnings in excess of billings on uncompleted contracts



1,633




998


Prepaid expenses and other



2,447




1,361


Income tax receivable



833




42


Deferred tax assets – current



6,814




6,862


Total Current Assets



64,656




71,258


PROPERTY AND EQUIPMENT, NET



11,815




6,304


OTHER ASSETS









Goodwill



37,796




37,796


Intangible assets, net



12,451




14,597


Restricted cash – certificate of deposit



1,682




-


Insurance collateral



10,898




8,061


Other assets



1,470




2,452


Deferred tax assets – long-term



949




1,134


Total Other Assets



65,246




64,040











TOTAL ASSETS


$

141,717



$

141,602



 

 

 

 

MULTIBAND CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS' EQUITY

(in thousands, except share and liquidation preference amounts)

 






September 30, 2012

 (unaudited)



December 31, 2011

 (audited)


CURRENT LIABILITIES







Short-term debt


$

1,498



$

457


Related parties debt – short term



650




-


Current portion of long-term debt, net of original issue discount



34,369




4,936


Current portion of capital lease obligations



538




324


Accounts payable



28,031




32,354


Billings in excess of costs and estimated earnings on uncompleted contracts



24




41


Accrued liabilities - current



21,978




24,113


Deferred service obligations and revenue



503




1,570


Total Current Liabilities



87,591




63,795


LONG-TERM LIABILITIES









Accrued liabilities – long-term



5,889




5,352


Long-term debt, net of current portion and original issue discount



3,521




29,229


Capital lease obligations, net of current portion



884




274


Total Liabilities



97,885




98,650


COMMITMENTS AND CONTINGENCIES









STOCKHOLDERS' EQUITY









Cumulative convertible preferred stock, no par value:









8% Class A (12,696 shares issued and outstanding, $133,308 liquidation preference)



191




191


10% Class C (109,000 shares issued and outstanding, $1,090,000 liquidation preference)



1,411




1,411


10% Class F (150,000 shares issued and outstanding, $1,500,000 liquidation preference)



1,500




1,500


8% Class G (10,000 shares issued and outstanding, $100,000 liquidation preference)



41




41


6% Class H (0.00 and 1.00 shares issued and outstanding, $0 and $100,000 liquidation preference)



-




-


Common stock, no par value (21,640,959 and 21,612,380 shares issued and outstanding)



66,495




66,290


Stock-based compensation



49,857




49,000


Accumulated deficit



(75,663)




(75,481)


Total Stockholders' Equity


43,832



42,952










TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

141,717



$

141,602


 

 

SOURCE Multiband Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.