Lightyear Network Solutions, Inc. (the “Company”) (OTC Markets:
LYNS), an established provider of data, voice and wireless
telecommunication services to business and residential customers
throughout North America, announced today its financial results for
the third quarter ended September 30, 2012.
Financial highlights for the Third Quarter of 2012 include:
- Wireless services revenue grew by
approximately $293,000 (or 27%) in the third quarter of 2012
compared with the third quarter of 2011, while local services
revenue decreased by approximately $208,000 (or 11%) for the same
period
- Operating expenses declined by
approximately $667,000 (or 10%) in the third quarter of 2012
compared with the year-ago third quarter
- Cash generated from operations
increased to approximately $331,000 for the third quarter of 2012
compared with approximately $177,000 for the second quarter of
2012
- Non-GAAP EBITDA (Earnings Before
Interest, Taxes, Depreciation, Amortization and Non-Cash
Stock-Based Compensation) decreased to approximately ($111,000) in
the third quarter of 2012 compared with approximately $418,000 in
the second quarter of 2012
“We continue to manage through these challenging economic times
and the continued decrease in residential local phone service
throughout the industry,” said Stephen M. Lochmueller, Lightyear’s
Chief Executive Officer. “While we were disappointed with our
EBITDA results, we were pleased with the increase of cash generated
from operations and the growth of our wireless services revenue.
The Company will continue to focus of providing the highest quality
services in the most efficient manner possible. We are implementing
plans that we expect will improve our EBITDA performance in coming
quarters.”
About Lightyear Network Solutions, Inc.
Through its wholly owned subsidiaries, Lightyear Network
Solutions, Inc. provides telecommunication services to large,
medium and small businesses and to residential consumers throughout
North America. Lightyear’s product offerings include local PRI and
digital T1, enhanced Internet services, MPLS, Ethernet, Voice over
Internet Protocol (VoIP), local and long distance service, and
conferencing. Lightyear also offers wireless services to customers
in the U.S. through wholesale contracts with multiple wireless
providers. Lightyear built its own VoIP network in 2004 to enhance
its product offerings and has partnered with some of the most
prominent names in telecom including: Sprint, Verizon, AT&T,
Level 3, Windstream, CenturyLink, tw telecom, XO Communications and
Cisco. Lightyear Network Solutions is headquartered in Louisville,
Ky. Additional information can be found at: www.lightyear.net.
Forward-Looking Statements
This press release contains "forward-looking statements" for
purposes of the Securities and Exchange Commission's "safe harbor"
provisions under the Private Securities Litigation Reform Act of
1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These
forward-looking statements are subject to various risks and
uncertainties that could cause Lightyear’s actual results to differ
materially from those currently anticipated. These forward-looking
statements may include, without limitation, statements about our
marketing and acquisition opportunities, business 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, the risks and
uncertainties which could cause our actual results to differ
materially from those currently anticipated includes changes in
market conditions, our ability to integrate acquired operations,
the ability to obtain additional financing on satisfactory terms,
customer acceptance of products, regulatory issues, competitive
factors, or other business circumstances and risk factors described
in our Form 10-K for the year ended December 31, 2011, filed on
March 30, 2012, and other filings with the Securities and Exchange
Commission. Lightyear 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.
Lightyear Network Solutions, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, December 31, 2012
2011 (unaudited) Assets Current Assets:
Cash $ 27,841 $ 108,133 Accounts receivable, net 4,730,574
5,237,404 Vendor deposits 1,898,788 1,771,028 Inventories, net
244,707 335,964 Prepaid expenses and other current assets
1,525,112 2,523,039 Total Current
Assets 8,427,022 9,975,568 Property and equipment, net
6,862,059 7,161,057 Intangible assets, net 1,601,249
1,928,749 Total Assets $ 16,890,330 $
19,065,374
Liabilities and Stockholders'
Deficiency Current Liabilities: Accounts payable $
6,781,160 $ 7,216,117 Interest payable - related parties 46,370
47,282 Accrued agent commissions 520,717 530,268 Accrued agent
commissions - related parties 986 1,069 Deferred revenue 489,636
427,715 Other liabilities 1,616,476 1,876,163 Other liabilities -
related parties 127,111 81,718 Current portion of notes payable
921,907 895,918 Current portion of capital lease obligations
174,355 239,203 Total Current
Liabilities 10,678,718 11,315,453 Notes payable, non-current
portion 2,638,783 3,334,992 Capital lease obligation, non-current
portion 741,730 758,750 Note payable - related party 6,250,000
6,250,000 Deferred tax liability, non-current portion, net
326,683 326,683 Total Liabilities
20,635,914 21,985,878
Commitments and contingencies Stockholders' Deficiency:
Common stock, $0.001 par value; 70,000,000
shares authorized; 22,086,641 shares issued and outstanding at
September 30, 2012 and December 31, 2011
22,087 22,087 Note receivable from affiliate (1,223,203 )
(1,223,203 ) Additional paid-in capital 10,067,172 9,490,226
Accumulated deficit (12,611,640 ) (11,209,614 )
Total Stockholders' Deficiency (3,745,584 )
(2,920,504 ) Total Liabilities and Stockholders' Deficiency
$ 16,890,330 $ 19,065,374
Lightyear
Network Solutions, Inc. and Subsidiaries Condensed
Consolidated Statements of Operations (unaudited)
For The Three Months
For The Nine Months Ended September 30, Ended
September 30, 2012 2011 2012
2011 Revenues $ 16,690,248 $ 17,409,514 $
50,484,592 $ 53,886,561 Cost of revenues 11,535,727
11,089,139 33,786,834
34,735,187 Gross Profit 5,154,521
6,320,375 16,697,758 19,151,374
Operating Expenses
Commission expense 1,355,499 1,544,955 4,246,221 4,581,358
Commission expense - related parties 18,435 13,734 54,912 (2,834 )
Depreciation and amortization 332,423 437,182 999,335 1,282,970 Bad
debt expense 314,423 195,429 774,301 698,937 Selling, general and
administrative expenses 3,677,626 4,098,751 11,578,934 13,341,507
Selling, general and administrative
expenses - related party
- 75,159 96,769 125,231 Total Operating Expenses
5,698,406 6,365,210 17,750,472
20,027,169 Loss From Operations (543,885 )
(44,835 ) (1,052,714 ) (875,795 )
Other (Expense) Income Interest income 5,704 8,151 8,779
24,183 Interest income - related parties - 192,664 - 570,967
Interest expense (57,424 ) (77,180 ) (182,256 ) (234,878 ) Interest
expense - related parties (70,075 ) (98,459 ) (209,985 ) (296,276 )
Other income 32,723 122,304
34,150 233,372 Total Other (Expense)
Income (89,072 ) 147,480 (349,312 )
297,368 (Loss) income before income taxes
(632,957 ) 102,645 (1,402,026 ) (578,427 ) Income tax benefit
- - - 123,800
Net (Loss) Income (632,957 ) 102,645 (1,402,026 )
(454,627 ) Cumulative Preferred Stock Dividends -
(383,122 ) - (1,136,877 )
Loss Attributable to Common Stockholders $ (632,957 ) $
(280,477 ) $ (1,402,026 ) $ (1,591,504 ) Net Loss Per Common
Share - Basic and Diluted $ (0.03 ) $ (0.01 ) $ (0.06 ) $ (0.07 )
Weighted Average Number of Common Shares
Outstanding - Basic and Diluted
22,344,829 22,242,475 22,312,119
21,641,444
Non-U.S. GAAP Financial Measures
The Company has utilized the non-GAAP information set forth
below as an additional device to aid in understanding and analyzing
its financial results for the three months ended September 30,
2012. Management believes that these non-GAAP measures will allow
for an evaluation of the operating performance of the Company’s
business and facilitate meaningful comparison of the results in the
current period to those in prior and future periods. Reference to
these non-GAAP measures should not be considered a substitute for
results that are presented in a manner consistent with GAAP.
A limitation of utilizing these non-GAAP measures is that GAAP
accounting does in fact reflect the underlying financial results of
the Company’s business. Therefore, management believes that the
GAAP measures as well as the corresponding non-GAAP measures of the
Company’s financial performance should be considered together.
A reconciliation of the Company’s GAAP net (loss) income for the
quarters ended September 30, 2012, and June 30, 2012, to its
non-GAAP EBITDA for the same periods are set forth below:
For The Three Months Ended
September 30, 2012 June 30, 2012 (unaudited)
(unaudited)
GAAP Net (Loss) $ (632,957 ) $ (147,850 )
Depreciation and Amortization 332,423 332,342 Interest
expense, net 121,795 130,797 Non-Cash Stock-Based Compensation
67,992 102,546
Non-GAAP
EBITDA adjusted for non-cash stock-based compensation $
(110,747 ) $ 417,835
Lightyear Network Soluti... (CE) (USOTC:LYNS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Lightyear Network Soluti... (CE) (USOTC:LYNS)
Historical Stock Chart
From Apr 2023 to Apr 2024