Press Release | Source: Berliner Communications, Inc. |
Berliner Reports Fiscal Year 2007 Financial Results
Tuesday October 2, 5:00 pm ET
Revenue Increases 40%; EBITDA Increases 89%
ELMWOOD PARK, N.J., October 2, 2007 (PRIME NEWSWIRE) -- Berliner Communications, Inc. (OTC BB:BERL.OB - News) (“Berliner”) today announced financial results for the fourth quarter and the year ended June 30, 2007.
Highlights for the Fiscal Year include:
| · | Revenues increased from $39.3 million to $55.1 million, or 40%, compared to the prior year; |
| · | Gross Profit increased from $11.1 million to $17.9 million, or 61%, compared to the prior year; |
| · | Gross Margin increased from 28.3% in FY 2006 to 32.4% in FY 2007; |
| · | EBITDA increased from $1.7 million to $3.2 million, or 89%, compared to the prior year; |
| · | Made three strategic acquisitions, providing the company with a growing nationwide footprint and expanded customer base; successful integration continuing. |
“This has been a break-through year for our Company,” said Rich Berliner, Berliner's Chairman and CEO. “Last year, we turned the corner to profitability, and we created an aggressive business plan designed to continue that success. As our financial results demonstrate, we delivered on that plan, showing strong increases in revenue and EBITDA throughout the year. This has been a year of tremendous growth for our company in other areas as well. We continue to diversify and rapidly grow our customer base, while at the same time winning additional, large- scale projects from our existing customers. We have more than doubled our number of employees this year while increasing profitability, and added offices across the country as we have acquired businesses in many key markets. As we grow internally and through acquisitions, we have added several new executives to our management team to support this growth. We have also diversified our service offerings in an effort to better serve our existing customers and attract new customers that can utilize these capabilities.”
“Looking forward,” added Berliner, “we expect fiscal 2008 to be another strong year. Our business plan continues to be growth oriented, and we expect to continue to aggressively pursue attractive acquisitions or other strategic partnerships if there are compelling business reasons for us to do so, and if we believe we can add value for our shareholders. Most importantly, our business plan will continue to be driven by customer service, and with our group of talented, dedicated and truly hard-working employees, our customers will remain priority one.”
Financial Results
Revenue for the company for the year ended June 30, 2007 was $55.1 million, as compared with $39.3 million for the year ended June 30, 2006. Berliner reported net income allocable to common shareholders of $1.1 million, or $0.07 per basic share and $0.06 per diluted share for the year, as compared to net loss allocable to common shareholders of $18.7 million, or $1.38 per basic and diluted share for the prior year. Fiscal 2006 includes the recording of a deemed dividend of $19.9 million on the conversion of our Series B and Series D Convertible Preferred Stock.
Revenue for the quarter ended June 30, 2007 was $18.2 million, as compared with $11.0 million for the quarter ended June 30, 2006. The increases in revenue during the fourth quarter of Fiscal 2007 included approximately $6.5 million attributable to our acquisitions during this period. Berliner reported net income allocable to common shareholders of $160 thousand or $0.01 per basic and diluted share in the three months ended June 30, 2007, as compared to net income allocable to common shareholders of $910 thousand, or $0.05 per basic and diluted share, for the three month period ended June 30, 2006.
EBITDA, that is, operating income, including gain on sale of fixed assets, plus depreciation expense, increased from $1.7 million to $3.2 million, or 89%, in fiscal 2007 compared to the prior year. A reconciliation of EBITDA to income from operations follows:
| | | Year ended June 30, 2007 | | Year ended June 30, 2006 | |
| Income from Operations | | $ | 2,767 | | $ | 1,435 | |
| Depreciation Expense | | | 484 | | | 247 | |
| Gain on Sale of Fixed Assets | | | (5 | ) | | (7 | ) |
| EBITDA | | $ | 3,246 | | $ | 1,675 | |
We currently report our financial results on the basis of two reportable segments: (1) infrastructure construction and technical services and (2) real estate acquisition and zoning. The following represents our revenues and operating income (loss) for each segment for the three and twelve months ended June 30, 2007, and 2006, respectively:
| | | Three months ended | | Years ended | |
| | | June 30, | | June 30, | |
| | | 2007 | | 2006 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | |
| Revenues: | | | | | | | | | |
| Infrastructure construction and technical services | | $ | 14,153 | | $ | 9,138 | | $ | 43,501 | | $ | 35,506 | |
| Real estate acquisition and zoning | | | 4,095 | | | 1,875 | | | 11,634 | | | 3,819 | |
| Total revenues | | $ | 18,248 | | $ | 11,013 | | $ | 55,135 | | $ | 39,325 | |
| | | | | | | | | | | | | | |
| Operating income (loss) | | | | | | | | | | | | | |
| Infrastructure construction and technical services | | $ | 625 | | $ | 788 | | $ | 1,485 | | $ | 1,436 | |
| Real estate acquisition and zoning | | | (124 | ) | | 453 | | | 1,282 | | | (1 | ) |
| Total operating income (loss) | | $ | 501 | | $ | 1,241 | | $ | 2,767 | | $ | 1,435 | |
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. These statements include, without limitation, statements regarding our fiscal 2008 results, the ability to achieve our sales and profitability goals, our perception of future industry trends and the potential positive impact our business prospects, and other such statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from ours 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 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.
EBITDA is not a term defined by generally accepted accounting principles (GAAP) and may not be comparable to other similarly titled measurements used by other companies. Such non-GAAP measures should be considered in addition to, and not as a substitute for, performance measures calculated in accordance with GAAP. The company believes that EBITDA provides investors with a measure of the company’s operational and financial progress that corresponds with the measurements used by management. Management uses this measurement, in addition to other financial metrics, as a basis for allocating resources and making operating decisions.
BERLINER COMMUNICATIONS, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands except per share data) |
| | Three months ended June 30, | | Year ended June 30, | |
| | | 2007 | | 2006 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | |
| Revenues | | $ | 18,248 | | $ | 11,013 | | $ | 55,135 | | $ | 39,325 | |
| Costs of revenues | | | 11,678 | | | 6,913 | | | 37,275 | | | 28,202 | |
| Gross margin | | | 6,570 | | | 4,100 | | | 17,860 | | | 11,123 | |
| Selling, general and administrative expenses | | | 5,773 | | | 2,801 | | | 14,614 | | | 9,448 | |
| Depreciation and amortization | | | 296 | | | 60 | | | 484 | | | 247 | |
| Gain from sale of fixed assets | | | - | | | (2 | ) | | (5 | ) | | (7 | ) |
| Income from operations | | | 501 | | | 1,241 | | | 2,767 | | | 1,435 | |
| | | | | | | | | | | | | | |
| Other (income) expense | | | | | | | | | | | | | |
| Interest expense | | | 784 | | | 33 | | | 1,238 | | | 74 | |
| Interest income | | | (9 | ) | | (4 | ) | | (37 | ) | | (14 | ) |
| Financing fees | | | 695 | | | - | | | 695 | | | - | |
| Income from equity investments | | | (37 | ) | | - | | | (41 | ) | | (98 | ) |
| Other | | | 14 | | | 175 | | | (14 | ) | | 85 | |
| (Loss) income before income taxes | | | (946 | ) | | 1,037 | | | 926 | | | 1,388 | |
| Income tax (benefit) expense | | | (1,106 | ) | | 127 | | | (186 | ) | | 133 | |
| Net income | | | 160 | | | 910 | | | 1,112 | | | 1,255 | |
| Deemed Series B and D preferred dividends | | | - | | | - | | | - | | | 19,936 | |
| Net income (loss) allocable to common shareholders | | $ | 160 | | $ | 910 | | $ | 1,112 | | $ | (18,681 | ) |
| | | | | | | | | | | | | | |
| Net income (loss) per share: | | | | | | | | | | | | | |
| Basic | | $ | 0.01 | | $ | 0.05 | | $ | 0.07 | | $ | (1.38 | ) |
| Diluted | | $ | 0.01 | | $ | 0.05 | | $ | 0.06 | | $ | (1.38 | ) |
| | | | | | | | | | | | | | |
| Weighted average number of shares outstanding: | | | | | | | | | | | | | |
| Basic | | | 17,036 | | | 17,265 | | | 17,035 | | | 13,582 | |
| Diluted | | | 19,762 | | | 17,265 | | | 19,062 | | | 13,582 | |
BERLINER COMMUNICATIONS, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Amounts in thousands) |
| | | June 30, | |
| | 2007 | | 2006 | |
ASSETS | | | | | |
CURRENT ASSETS | | | | | |
| Cash and cash equivalents | | $ | 2,483 | | $ | 534 | |
| Accounts receivable, net of allowance for doubtful accounts | | | | | | | |
| of $261 and $180 at June 30, 2007 and 2006, respectively | | | 22,911 | | | 12,334 | |
| Inventories | | | 666 | | | 322 | |
| Deferred tax assets - current | | | 336 | | | - | |
| Prepaid expenses and other current assets | | | 771 | | | 332 | |
| | | | 27,167 | | | 13,522 | |
| Property and equipment, net | | | 2,569 | | | 566 | |
| Amortizable intangible assets, net | | | 960 | | | - | |
| Goodwill | | | 2,270 | | | - | |
| Deferred tax assets - long-term | | | 950 | | | - | |
| Other assets | | | 387 | | | 168 | |
| Total Assets | | $ | 34,303 | | $ | 14,256 | |
| | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | |
CURRENT LIABILITIES | | | | | | | |
| Accounts payable | | $ | 7,399 | | $ | 5,356 | |
| Accrued liabilities | | | 6,588 | | | 3,909 | |
| Accrued income taxes | | | 326 | | | 128 | |
| Line of credit | | | 5,537 | | | 1,111 | |
| Current portion of long-term debt | | | 797 | | | 374 | |
| Current portion of capital lease obligations | | | 52 | | | 33 | |
| | | | 20,699 | | | 10,911 | |
| Long-term debt, net of current portion | | | 5,765 | | | 163 | |
| Long-term capital lease obligations, net of current portion | | | 199 | | | 24 | |
| Other long-term liabilities | | | 694 | | | - | |
| Deferred tax liabilities - long-term | | | 39 | | | - | |
| Total liabilities | | | 27,396 | | | 11,098 | |
| | | | | | | | |
COMMITMENTS | | | | | | | |
| | | | | | | | |
STOCKHOLDERS' EQUITY | | | | | | | |
| Additional paid-in capital | | | 15,655 | | | 13,018 | |
| Accumulated deficit | | | (8,748 | ) | | (9,860 | ) |
| Total stockholders' equity | | | 6,907 | | | 3,158 | |
| Total liabilities and stockholders' equity | | $ | 34,303 | | $ | 14,256 | |
| Contact: | Berliner Communications, Inc. |
| | Rich Berliner |
| | 201-791-3200 |
| | berlinerr@bcisites.com |
