InterCloud Systems, Inc. (the "Company" or "InterCloud")
(Nasdaq:ICLD), a single source provider of end-to end IT technology
and telecom solutions to the service provider and corporate
enterprise markets through professional services and cloud
platforms, today announced financial results for the third quarter
ended September 30, 2013.
"Our third quarter results reflect the integration of our
completed acquisitions, and the success of InterCloud's cross
selling plan," said Mark Munro, Chief Executive Officer of
InterCloud Systems. "InterCloud now offers a full set of cloud and
managed services as well as professional services focused on
providing end-to-end network solutions for both carriers and
enterprises. We continue to be well positioned for growth into
2014."
Third Quarter 2013 Financial Results
Revenue for the third quarter ended September 30, 2013 increased
by $13.2 million, or 448%, to $16.2 million, as compared to $3.0
million for the third quarter of 2012. The increase in revenue is
attributable to organic growth and the acquisitions closed during
the past year.
Gross profit for the third quarter of 2013 totaled $5.5 million,
compared to $1.2 million for the third quarter of 2012.
Net income for the third quarter of 2013 was $1.3 million, or
$0.26 basic earnings per share, and $0.12 diluted earnings per
share, compared to a net loss of $0.8 million, or $2.16 per share,
in the third quarter of 2012.
Nine Months ended September 30, 2013 Financial
Results
Revenue for the nine months ended September 30, 2013 increased
by $37.0 million, or 631%, to $42.9 million, compared to $5.9
million for the nine months ended September 30, 2012. The increase
in revenue is attributable to organic growth and the revenue
generated by the companies acquired in the past year.
Gross profit for the nine months ended September 30, 2013
totaled $13.4 million, compared to $2.3 million for the third
quarter of 2012.
Net loss for the nine months ended September 30, 2013 was $1.1
million, or $0.49 per share, compared to a net loss of $1.7
million, or $4.76 per share, for the nine months ended September
30, 2012.
About InterCloud Systems, Inc.
InterCloud Systems, Inc. is a global single-source provider of
value-added IT and telecom solutions for both corporate enterprises
and service providers. InterCloud offers cloud and managed services
and professional consulting services to assist its customers in
meeting their changing technology demands. Its engineering, design,
installation and maintenance services support the build-out and
operation of some of the most advanced enterprise, fiber optic,
Ethernet and wireless networks in the world. Additional information
regarding InterCloud may be found on InterCloud's website at
www.intercloudsys.com.
Non-GAAP Financial Measures
Investors are cautioned that adjusted EBITDA, or earnings/(loss)
before interest, taxes, depreciation, amortization, stock-based
compensation, dividends on preferred stock and other non-cash
charges, if any, as used in this press release, is defined as a
"non-GAAP financial measure" by the Securities and Exchange
Commission. Adjusted EBITDA per share is an additional non-GAAP
financial measure presented. Adjusted EBITDA per share is adjusted
EBITDA, as defined above, divided by weighted average basic and
diluted shares outstanding. This measure may be different from
non-GAAP financial measures used by other companies. The
presentation of this financial information, which is not prepared
under any comprehensive set of accounting rules or principles, is
not intended to be considered in isolation. In addition, although
InterCloud's management has provided a reconciliation of this
measure to the nearest comparable GAAP measure, it should not be
construed as an alternative to any other measure of performance
determined in accordance with generally accepted accounting
principles, or as an indicator of InterCloud's operating
performance, liquidity or cash flows generated by operating,
investing and financing activities, as there may be significant
factors or trends that it fails to address. InterCloud's management
presents this financial information because they believe that it is
helpful to some investors as a measure of InterCloud's performance.
InterCloud cautions investors that non-GAAP financial information,
by its nature, departs from traditional accounting conventions;
accordingly, its use can make it difficult to compare InterCloud's
current results with the results from other reporting periods and
with the results of other companies. Definitions and
reconciliations between the non-GAAP measure and relevant GAAP
measure are set forth in the tables at the end of this press
release.
Forward Looking Statements
Statements in this press release regarding InterCloud that are
not historical facts are forward- looking statements and are
subject to risks and uncertainties that could cause actual future
events or results to differ materially from such statements. Any
such forward-looking statements, including, but not limited to,
financial guidance, are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. It is
routine for InterCloud's internal projections and expectations to
change as the quarter and year progresses, and therefore it should
be clearly understood that the internal projections and beliefs
upon which InterCloud bases its expectations may change. Although
these expectations may change, InterCloud is under no obligation to
inform you if they do. Actual events or results may differ
materially from those contained in the projections or
forward-looking statements. Some of the factors that could cause
actual results to differ materially from the forward-looking
statements contained herein include, without limitation:
InterCloud's inability to integrate recent and future acquisitions,
which would adversely affect InterCloud's business, financial
condition, result of operations and prospects; the cancellation of
master service agreements, from which InterCloud derives a
significant portion of its revenue, which may be cancelled by
customers on short notice, or which InterCloud may be unable to
renew on favorable terms or at all; the inability of InterCloud to
attract and retain key personnel and skilled labor, or if labor
difficulties are encountered, InterCloud's ability to bid for and
successfully complete contracts may be negatively impacted; risks
related to InterCloud's failure to compete effectively within its
highly competitive industry, especially with a variety of larger
companies with greater resources, which could reduce the number of
new contracts awarded to InterCloud or adversely affect
InterCloud's market share and harm InterCloud's financial
performance; risks related to InterCloud's history of losses and
deficiencies in working capital and stockholders' equity, which may
continue in the future, raising substantial doubts about
InterCloud's ability to continue as a going concern; risks related
to the identification of material weaknesses in InterCloud's
internal control over financial reporting, and a lack of assurance
that additional material weaknesses or significant deficiencies
will not occur in the future, leading to the possibility that
InterCloud may not be able to accurately report financial results,
prevent fraud, or file periodic reports in a timely manner, which
may cause investors to lose confidence in InterCloud's reported
financial information and may lead to a decline in InterCloud's
stock price; and InterCloud's substantial indebtedness, which could
adversely affect its business, financial condition and results of
operations and its ability to meet payment obligations. This list
is intended to identify only certain of the principal factors that
could cause actual results to differ from those discussed in the
forward-looking statements. Readers are referred to the reports and
documents filed from time to time by us with the Securities and
Exchange Commission for a discussion of these and other important
risk factors that could cause actual results to differ from those
discussed in forward-looking statements.
Selected Balance Sheet
Data |
|
|
|
September 30, 2013 |
December 31, 2012 |
Cash |
$ 3,361,231 |
$ 646,978 |
Accounts Receivable, net |
11,152,355 |
8,481,999 |
Total current assets |
18,652,233 |
10,183,971 |
Goodwill and intangible assets |
37,670,356 |
29,667,823 |
Total assets |
58,483,671 |
41,866,243 |
|
|
|
Total current liabilities |
26,084,976 |
13,410,481 |
Other liabilities, including long term
debt |
15,642,414 |
15,159,644 |
Redeemable common and preferred stock |
9,687,072 |
16,584,704 |
Stockholders' equity (deficit) |
7,059,209 |
(3,288,586) |
|
The following table shows the
statement of operations for the three months ended September 30,
2013 and 2012: |
|
Statement of
Operations |
|
|
|
|
For the three months ended |
|
September 30, |
|
2013 |
2012 |
|
|
|
|
|
|
Revenues |
$ 16,158,045 |
$ 2,950,728 |
Gross Profit |
5,498,857 |
1,221,045 |
Operating Expenses |
3,437,158 |
1,890,177 |
Income (Loss) from Operations |
2,061,699 |
(669,132) |
Other expense, net |
(538,975) |
(141,769) |
Net loss before benefit for income taxes |
1,522,724 |
(810,901) |
Provision for income taxes |
12,936 |
-- |
Dividends on Preferred Stock |
(167,098) |
(52,999) |
Net loss attributable to InterCloud Systems,
Inc. common stockholders |
$ 1,297,880 |
$ (847,737) |
Income (loss) per share, basic |
$ 0.26 |
$ (2.16) |
Income (loss) per share, diluted |
$ 0.12 |
$ (2.16) |
Basic weighted average shares
outstanding |
4,947,737 |
392,860 |
Diluted weighted average shares
outstanding |
6,852,448 |
392,860 |
|
|
|
|
|
|
Adjusted EBITDA for the third
quarter 2013 was $1,726,293, compared to adjusted EBITDA of
$369,994 for the third quarter 2012. |
|
The following table shows
adjusted EBITDA for the three months ended September 30, 2013 and
2012: |
|
|
|
Adjusted EBITDA |
|
|
|
For the three months ended |
|
September 30, |
|
2013 |
2012 |
Net income (loss) attributable to InterCloud
Systems, Inc. common stockholders |
$ 1,297,880 |
$ (847,737) |
|
|
|
Add Back |
|
|
Dividends on Preferred
Stock |
167,098 |
52,999 |
Interest expense |
1,021,945 |
723,675 |
Depreciation and
amortization |
317,632 |
80,748 |
Stock based compensation |
-- |
376,342 |
Net loss attributable to
non-controlling interest |
44,810 |
-- |
Change in fair value of
derivative instruments |
-- |
130 |
Provision for income taxes |
12,936 |
-- |
|
|
|
Total add backs |
1,564,421 |
1,233,894 |
|
|
|
Deduct |
|
|
Net income attributable to
non-controlling interest |
-- |
(16,163) |
Change in fair value of
derivative instruments |
(482,857) |
-- |
Change in fair value of
contingent consideration |
(653,151) |
-- |
|
|
|
Total deductions |
(1,136,008) |
(16,163) |
|
|
|
|
|
|
Adjusted EBITDA |
$ 1,726,293 |
$ 369,994 |
Adjusted EBITDA per share, basic |
$ 0.35 |
$ 0.94 |
Adjusted EBITDA per share, diluted |
$ 0.25 |
$ 0.06 |
Basic weighted average shares
outstanding |
4,947,737 |
392,860 |
Diluted weighted average shares
outstanding |
6,852,448 |
5,732,639 |
|
|
|
The following table shows the
statement of operations for the nine months ended September 30,
2013 and 2012: |
|
|
|
Statement of Operations |
|
|
|
|
|
|
For the nine months ended |
|
September 30, |
|
2013 |
2012 |
|
|
|
|
|
|
Revenues |
$ 42,916,458 |
$ 5,874,314 |
Gross Profit |
13,383,952 |
2,291,490 |
Operating Expenses |
10,179,515 |
3,525,889 |
Income (Loss) from Operations |
3,204,437 |
(1,234,399) |
Other expense, net |
(3,450,385) |
(408,680) |
Net loss before benefit for income taxes |
(245,948) |
(1,634,079) |
Benefit for income taxes |
(256,830) |
-- |
Dividends on Preferred Stock |
(1,020,764) |
(105,957) |
Net loss attributable to InterCloud Systems,
Inc. common stockholders |
$ (1,067,092) |
$ (1,715,925) |
Income (loss) per share, basic |
$ (0.49) |
$ (4.76) |
Income (loss) per share, diluted |
$ (0.49) |
$ (4.76) |
Basic weighted average shares
outstanding |
2,197,700 |
360,626 |
Diluted weighted average shares
outstanding |
2,197,700 |
360,626 |
|
|
|
|
|
|
The following table shows
adjusted EBITDA for the nine months ended September 30, 2013
and 2012: |
|
|
|
Adjusted EBITDA |
|
|
|
For the nine months ended |
|
September 30, |
|
2013 |
2012 |
Net loss attributable to InterCloud Systems,
Inc. common stockholders |
$ (1,067,092) |
$ (1,715,925) |
|
|
|
Add Back |
|
|
Dividends on Preferred
Stock |
1,020,764 |
105,957 |
Interest expense |
3,118,490 |
1,012,697 |
Depreciation and
amortization |
817,690 |
151,002 |
Stock based compensation |
157,100 |
406,342 |
Net loss attributable to
non-controlling interest |
57,210 |
-- |
Change in fair value of
derivative instruments |
412,008 |
-- |
|
|
|
Total add backs |
5,583,262 |
1,675,998 |
|
|
|
Deduct |
|
|
Net loss attributable to
non-controlling interest |
-- |
(33,111) |
Benefit from income taxes |
(256,830) |
-- |
Other income |
(80,113) |
-- |
Change in fair value of contingent
consideration |
(794,758) |
-- |
|
|
|
Total deductions |
(1,131,701) |
(33,111) |
|
|
|
|
|
|
Adjusted EBITDA |
$ 3,384,469 |
$ (73,038) |
Adjusted EBITDA per share, basic |
$ 1.54 |
$ (0.20) |
Adjusted EBITDA per share, diluted |
$ 0.83 |
$ (0.20) |
Basic weighted average shares
outstanding |
2,197,700 |
360,626 |
Diluted weighted average shares
outstanding |
4,102,411 |
360,626 |
CONTACT: Company Contact:
Lawrence M. Sands
Senior Vice President and
Corporate Secretary
Office: (561) 988-1988
InterCloud Systems (CE) (USOTC:ICLD)
Historical Stock Chart
From Sep 2024 to Oct 2024
InterCloud Systems (CE) (USOTC:ICLD)
Historical Stock Chart
From Oct 2023 to Oct 2024