Lightyear Network Solutions, Inc. (the “Company”) (OTCQB: 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 year ended December 31, 2012.
Financial highlights for 2012 include:
- Overall revenue decreased approximately
6% from fiscal year 2011. Wireless services revenue grew by
approximately $1.2 million (or 30%) in 2012 compared with 2011,
while local services revenue decreased by approximately $2.7
million (or 9%) for the same period
- Operating expenses decreased by
approximately $2.2 million (or 8.6%) in 2012 compared with the
previous year
- Loss from operations, when adjusted for
a one-time impairment charge related to the sale of our Pikeville
real estate, was essentially unchanged at $870,310 in 2012 and
$871,899 in 2011
- Cash generated from operations
increased to approximately $1.4 million in 2012 compared with
approximately $47,000 in 2011
- Net loss per common share for the year
was $.10
“Our team continues to stay focused, manage expenses and work
diligently to create opportunities for growth during this tough
economy. We are encouraged with several new commercial clients and
the increase in the cash generated from operations,” said Stephen
M. Lochmueller, Lightyear’s Chief Executive Officer.
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 Communication and
Cisco. Lightyear Network Solutions, Inc. 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, 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
Consolidated Balance Sheets
December 31, 2012 2011 Assets
Current Assets: Cash $ 48,424 $ 108,133 Accounts receivable,
net 4,694,100 5,237,404 Vendor deposits 1,894,522 1,771,028
Inventories, net 267,427 335,964 Prepaid expenses and other current
assets 1,137,654 2,523,039 Total
Current Assets 8,042,127 9,975,568 Property and equipment,
net 5,511,426 7,161,057 Intangible assets, net 1,492,083
1,928,749 Total Assets $ 15,045,636
$ 19,065,374
Liabilities and Stockholders'
Deficiency Current Liabilities: Accounts payable $
6,212,388 $ 7,216,117 Interest payable - related parties 114,972
47,282 Accrued agent commissions 459,712 530,268 Accrued agent
commissions - related parties 847 1,069 Deferred revenue 473,957
427,715 Other liabilities 1,667,724 1,876,163 Other liabilities -
related parties 142,330 81,718 Current portion of notes payable
934,529 895,918 Current portion of capital lease obligations
164,662 239,203 Total Current
Liabilities 10,171,121 11,315,453 Notes payable, non-current
portion 2,400,441 3,334,992 Note payable - related party,
non-current portion 6,250,000 6,250,000 Capital lease obligations,
non-current portion 711,255 758,750 Deferred tax liability,
non-current portion, net 37,830 326,683
Total Liabilities 19,570,647 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
December 31, 2012 and December 31, 2011
22,087 22,087 Note receivable from affiliate (1,223,203 )
(1,223,203 ) Additional paid-in capital 10,148,545 9,490,226
Accumulated deficit (13,472,440 ) (11,209,614 )
Total Stockholders' Deficiency (4,525,011 )
(2,920,504 ) Total Liabilities and Stockholders' Deficiency
$ 15,045,636 $ 19,065,374
Lightyear
Network Solutions, Inc. and Subsidiaries Consolidated
Statements of Operations For The
Years Ended December 31, 2012 2011
Revenues $ 66,440,789 $ 70,495,597 Cost of revenues
44,281,234 45,158,389 Gross
Profit 22,159,555 25,337,208
Operating Expenses Commission expense 5,416,415 5,979,886
Commission expense - related parties 72,747 55,647 Depreciation and
amortization 1,303,709 1,691,845 Bad debt expense 1,039,270 940,277
Selling, general and administrative expenses 15,100,955 17,104,471
Selling, general and administrative
expenses - related party
96,769 199,231 Impairment of intangible assets - 237,750 Impairment
of property and equipment 938,270 -
Total Operating Expenses 23,968,135
26,209,107 Loss From Operations (1,808,580 )
(871,899 )
Other (Expense) Income Interest
income 25,533 45,731 Interest income - related parties - 570,967
Interest expense (236,471 ) (310,581 ) Interest expense - related
parties (278,587 ) (376,734 ) Gain on sale of fixed assets -
192,284 Loss on abandonment of property - (107,540 ) Other income
35,279 140,495 Total Other
(Expense) Income (454,246 ) 154,622
Loss before income taxes (2,262,826 ) (717,277 ) Income tax benefit
- 123,800
Net Loss
(2,262,826 ) (593,477 ) Deemed dividends to convertible
preferred stockholders - (11,835,530 )
Loss Attributable to Common Stockholders $ (2,262,826 ) $
(12,429,007 ) Net Loss Per Common Share - Basic and Diluted
$ (0.10 ) $ (0.57 )
Weighted Average Number of Common Shares
Outstanding - Basic and Diluted
22,328,205 21,796,111
Lightyear Network Solutions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For The Years Ended December 31, 2012
2011 Cash Flows From Operating Activities Net loss $
(2,262,826 ) $ (593,477 )
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization 1,303,709 1,691,845 Provision for bad
debt expense 1,039,270 940,277 Provision for inventory reserve -
17,205 Stock-based compensation 658,319 593,938 Interest income
from affiliate - (570,967 ) Deferred taxes - (123,800 ) Gain on
sale of fixed assets - (192,284 ) Loss on abandonment of property -
107,540 Impairment of intangible assets - 237,750 Impairment of
property and equipment, net 938,270 - Changes in operating assets
and liabilities: Accounts receivable (495,966 ) (27,257 ) Other
assets - (5,254 ) Vendor deposits (123,494 ) (84,117 ) Inventories
68,537 (19,614 ) Prepaid expenses and other current assets
1,385,385 (235,164 ) Accounts payable (1,003,729 ) 56,001 Interest
payable - related parties 67,690 (66,536 ) Accrued agent
commissions (70,556 ) (39,565 ) Accrued agent commissions - related
parties (222 ) (23,967 ) Deferred revenue 46,242 (1,589,473 ) Other
liabilities (208,439 ) (10,061 ) Other liabilities - related
parties 60,612 (15,665 )
Total
Adjustments 3,665,628 640,832
Net Cash Provided by Operating Activities
1,402,802 47,355
Cash Flows From
Investing Activities Purchases of property and equipment
(318,305 ) (1,145,994 ) Proceeds from sale of fixed assets -
321,277
Net Cash Used in Investing
Activities (318,305 ) (824,717 )
Cash
Flows From Financing Activities Repayments of obligations
payable - related party - (1,000,000 ) Repayments of capital lease
obligations (248,266 ) (336,096 ) Repayments of notes payable
(895,940 ) (670,346 ) Repayments of short term borrowings -
(320,428 ) Proceeds from notes payable - 2,000,000 Proceeds from
cash surrender value of life insurance - 316,736 Payments of
preferred stock redemption costs - (113,580 )
Net Cash Used In Financing Activities
(1,144,206 ) (123,714 )
Net Decrease In Cash
(59,709 ) (901,076 )
Cash - Beginning 108,133
1,009,209
Cash - Ending $ 48,424
$ 108,133
Lightyear Network Soluti... (CE) (USOTC:LYNS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Lightyear Network Soluti... (CE) (USOTC:LYNS)
Historical Stock Chart
From Sep 2023 to Sep 2024