|
Internet America Reports $1.1 Million Net Income for Fiscal Year End Results
DALLAS, Sept. 28 /PRNewswire-FirstCall/ -- Internet America, Inc. (BULLETIN BOARD: GEEK) today announced results for its fourth quarter and year ended June 30, 2004 highlighted by net income of $444,000 for the fourth quarter and $1.1 million for the fiscal year ended June 30, 2004. EBITDA (A) (earnings before interest, taxes, depreciation and amortization) for the fourth quarter was $429,000 and $1.3 million for the fiscal year ended June 30, 2004.
For the fiscal year, Internet America reported revenue of $12.0 million compared to $17.5 million a year ago. The Company recorded net income of $1.1 million, or $0.11 per share, for the fiscal year ended June 30, 2004 compared to net income of $2.3 million, or $0.22 per share, a year ago. Internet America's subscriber count was approximately 58,000 at June 30, 2004.
Internet America reported revenue of $2.6 million for the fourth quarter compared to $3.7 million for the same period a year ago. The Company recorded net income of $444,000, or $0.04 per share, for the quarter ended June 30, 2004 compared to net income of $491,000, or $0.05 per share, for the same period a year ago.
Billy Ladin, President and Chief Executive Officer of Internet America commented, "It's been a demanding but exciting year. We've been able to maintain profitability and a strong cash position during a period that continued to include dial-up customer attrition, additional investment in research and development activities for new products and service improvements and the piloting and early deployment costs of wireless and powerline broadband. In light of the loss in dial-up customers to broadband, we have begun to execute a new growth strategy to expand Internet America's customer base by acquiring dial-up ISPs in markets surrounding our major market cities.
To help offset the loss in revenues from dial-up customer attrition, we were able to reduce our total operating expenses by $3.6 million in fiscal 2004 versus fiscal 2003, in spite of significant increases in marketing, advertising, and product development costs. Ladin continued, "During the last year, the Company's primary focus was on reduction of customer attrition, simplification and improvement in operating systems, and a renewal of the selling effort that had been absent for the prior few years. Through advertising and marketing and the introduction of new products over the past nine months, we have continued to reduce attrition. At this point the Company has initiated marketing campaigns that introduce and support these products and are designed to grow our subscriber base. We will continue to provide the high quality connectivity and customer service that our customers expect, but believe that we must emphasize new applications and products that make our connectivity more useful to our customers. At the same time we have begun acquiring smaller ISPs in smaller markets that expand our current marketing reach. We look forward to fiscal 2005 returning to growth in subscribers and profits.
Internet America is a leading Internet service provider primarily serving the Texas market. Based in Dallas, Internet America offers businesses and individuals a full range of Internet services, including dedicated high-speed access, dial-up access, DSL and web hosting. 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/ .
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 risk factors include, without limitation, that the Company (1) will not introduce new applications and products or the applications and products introduced by the Company will not be accepted by current and/or new customers, (2) will not be able to consummate additional acquisitions, (3) will not continue to achieve operating efficiencies, and (4) will be adversely affected by dependence on network infrastructure, telecommunications carriers and other suppliers, by regulatory changes and by general competitive, economic and business conditions. These risk factors are not intended to represent a complete list of all risks and uncertainties in the Company's business and should be read in conjunction with the more detailed cautionary statements included in the Company's most recent SEC filings.
Internet America, Inc.
(OTC BB: GEEK)
Unaudited Financial Summary
(in thousands, except per share data and subscriber count)
Three Months Ended Fiscal Year Ended
6/30/04 6/30/03 6/30/04 6/30/03
Subscribers 58,000 78,000 58,000 78,000
Internet services revenue $2,646 $3,708 $12,011 $17,493
Other revenue 1 10 18 30
Total revenue 2,647 3,718 12,029 17,523
Connectivity and operations 1,450 2,074 6,368 8,736
Sales & marketing 240 80 687 487
General & administrative 528 780 3,702 4,715
EBITDA (A) 429 784 1,272 3,585
Depreciation 7 (108) (253) (669)
Interest income (expense) 8 (185) 98 (614)
Net income $444 $491 $1,117 $2,302
Basic income per share $0.04 $0.05 $0.11 $0.22
Weighted average shares
- basic 10,441,487 10,337,017 10,409,116 10,225,671
Fully diluted income per share $0.04 $0.05 $0.11 $0.22
Weighted average shares
- fully diluted 10,441,487 10,460,255 10,409,116 10,268,296
Reconciliation of net income (a GAAP measure) to EBITDA (a Non-GAAP
measure)
(in thousands)
Three Months Ended Fiscal Year Ended
06/30/04 06/30/03 06/30/04 06/30/03
Net income $444 $491 $1,117 $2,302
Add:
Depreciation (7) 108 253 669
Interest (income) expense (8) 185 (98) 614
EBITDA $429 $784 $1,272 $3,585
Fiscal Year Ended
6/30/04 6/30/03
Current assets $2,165 $2,482
Property and equipment, net 298 412
Other assets 4,361 4,381
Total assets $6,824 $7,275
Current liabilities $2,893 $4,351
Total stockholders' equity 3,931 2,924
Total liabilities and stockholders' equity $6,824 $7,275
(A) EBITDA: Earnings before Interest, Taxes and Depreciation and
Amortization. EBITDA is not a measurement of financial performance
under generally accepted accounting principles (GAAP) and should not
be considered an alternative to net income as a measure of
performance. Management has consistently used EBITDA on a historical
basis as a measurement of the Company's current operating cash income.
Internet America, Inc.
CONTACT: Internet America, Inc., +1-214-861-2500, orinvestor.relations@airmail.net
Web site: http://www.internetamerica.com/
[ Back To TMCnet.com's Homepage ]
|
TMCnet LOGIN
Webinars
