Thu Feb 10, 2011 4:55pm EST
HOUSTON, TX, Feb 10 (MARKET WIRE) --
Internet America, Inc. (OTCBB: GEEK) today announced results for its
fiscal second quarter ended December 31, 2010. Adjusted EBITDA earnings,
as defined below, for the quarter ended December 31, 2010 increased by
$295,000 to $330,000 as compared to $35,000 for the prior year period.
The Company's net U.S. GAAP income for the quarter ended December 31,
2010 was $61,000, or $0.00 per share, as compared to a net loss under
U.S. GAAP of ($265,000), or ($0.02) per share, for the prior year period.
Wireless broadband Internet revenue for the quarter ended December 31,
2010 increased by $16,000 to $1,181,000 as compared to $1,165,000 for the
prior year period. Billy Ladin, CEO, commented, "We are pleased with the
results of the December quarter, which was our fifth sequential quarter of
profitable adjusted EBITDA earnings and five quarters of improving U.S.
GAAP earnings with the last two quarters producing positive U.S. GAAP net
income."
About Internet America
Internet America is a leading Internet service provider serving the Texas
market. Based in Houston, Internet America offers businesses and
individuals a wide array of Internet services including broadband Internet
delivered wirelessly and over DSL, dedicated high-speed access, web
hosting, and dial-up Internet access. Internet America provides customers
a wide range of related value-added services, including Fax-2-Email,
online backup and storage solutions, parental control software, and
global roaming solutions. Internet America focuses on the speed and
quality of its Internet services and its commitment to providing
excellent customer care. Additional information on Internet America is
available on the Company's web site at http://www.internetamerica.com.
Use of Non-GAAP Financial Measures
In this press release, the Company refers to a non-GAAP financial measure
called adjusted EBITDA because of management's belief that this measure is
a financial indicator of the Company's ability to internally generate
operating cash flow. Adjusted EBITDA is defined as earnings before
interest, taxes, depreciation, amortization, stock-based compensation
expense and loss on the transfer of assets. Management also believes that
this non-GAAP financial measure is useful information to investors because
it is widely used by professional research analysts in the valuation and
investment recommendations of companies in the Company's peer group.
Adjusted EBITDA should not be considered an alternative to net income, as
defined by U.S. GAAP.
Forward Looking Statements
This press release may contain forward-looking statements relating to
future business expectations. These statements, specifically including
management's beliefs, expectations and goals, are subject to many
uncertainties that exist in Internet America's operations and business
environment. Business plans may change, and actual results may differ
materially as a result of a number of risk factors. These risks include,
without limitation, that (1) we will not be able to increase our rural
customer base at the expected rate, (2) we will not improve EBITDA,
profitability or product margins, (3) Internet revenue in high-speed
broadband will continue to increase at a slower pace than the decrease in
other Internet services resulting in greater operating losses in future
periods, (4) financing will not be available to us if and as needed, (5)
we will not be competitive with existing or new competitors, (6) we will
not keep up with industry pricing or technological developments impacting
the Internet, (7) we will be adversely affected by dependence on network
infrastructure, telecommunications providers and other vendors or by
regulatory changes, (8) service interruptions or impediments could harm
our business, (9) we may be accused of infringing upon the intellectual
property rights of third parties, which is costly to defend and could
limit our ability to use certain technologies in the future, (10)
government regulations could force us to change our business practices,
(11) we may be unable to hire and retain qualified personnel, including
our key executive officers, (12) future acquisitions of wireless
broadband Internet customers and infrastructure may not be available on
attractive terms and if available we may not successfully integrate those
acquisitions into our operations, (13) provisions in our certificate of
incorporation, bylaws and shareholder rights plan could limit our share
price and delay a change of management and (14) our stock price has been
volatile historically and may continue to be volatile. This list is
intended to identify certain of the principal factors that could cause
actual results to differ materially from those described in the
forward-looking statements included elsewhere herein. These factors are
not intended to represent a complete list of all risks and uncertainties
inherent in our business and should be read in conjunction with the more
detailed risk factors included in our other publicly filed reports.
Internet America, Inc.
Unaudited Financial Summary
(in thousands, except per share and subscriber count data)
Statement of Operations Data:
Quarters Ended
12/31/2010 12/31/2009
-------------- --------------
Wireless Broadband Internet Subscribers 8,000 8,200
Total Subscribers 25,100 26,400
Revenue:
Internet Services $ 1,722 $ 1,793
Other - 43
-------------- --------------
Total Revenue 1,722 1,836
Operating Costs & Expenses:
Connectivity & Operations 1,050 1,223
Sales & Marketing 45 69
General & Administrative 299 528
Recoveries of Bad Debt 1 1
Depreciation & Amortization 254 257
-------------- --------------
Operating Income (Loss) 73 (242)
Interest Expense, Net (12) (23)
Noncontrolling Interest in Loss of
Consolidated Subsidiary - -
-------------- --------------
Net Income (Loss) $ 61 $ (265)
============== ==============
Basic & Diluted Net Income (Loss) Per Share $ 0.00 $ (0.02)
============== ==============
Weighted Average Basic Shares 16,718 16,559
============== ==============
Weighted Average Diluted Shares 19,448 16,559
============== ==============
Adjusted EBITDA $ 330 $ 35
Reconciliation of Net Income (Loss) (a GAAP
Measure) to Adjusted EBITDA (a Non-GAAP
Measure)
Quarters Ended
12/31/2010 12/31/2009
-------------- --------------
Net Income (Loss) $ 61 $ (265)
Add:
Depreciation & Amortization 254 257
Stock Compensation 3 20
Interest Expense, net 12 23
-------------- --------------
Adjusted EBITDA $ 330 $ 35
============== ==============
Balance Sheet Data:
Periods Ended
12/31/2010 12/31/2009
-------------- --------------
Current Assets $ 2,093 $ 2,324
Property & Equipment, Net 1,600 1,968
Other Assets, Net 2,605 2,955
-------------- --------------
Total Assets $ 6,298 $ 7,247
============== ==============
Current Liabilities $ 1,725 $ 2,346
Long-Term Liabilities 677 916
Total Shareholders' Equity 3,896 3,985
-------------- --------------
Total Liabilities & Shareholders'
Equity $ 6,298 $ 7,247
============== ==============
CONTACT
Internet America, Inc.
713.968.2500
William E. Ladin, Jr.
investor.relations@airmail.net
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