ELMWOOD PARK, N.J., Sept. 28 /PRNewswire-FirstCall/ -- Berliner Communications, Inc. (BULLETIN BOARD: BERL) ("Berliner") today announced financial results for the fiscal year ended June 30, 2006.
On February 18, 2005, Berliner (formally known as Novo Networks, Inc.) entered into an asset purchase agreement with the former Berliner Communications, Inc. ("Old Berliner") and BCI Communications, Inc., a Delaware corporation and our wholly-owned subsidiary, whereby BCI acquired the operations and substantially all of the assets and liabilities of Old Berliner. Since the transaction was settled through the issuance of a controlling interest in Berliner common stock, Old Berliner is deemed to be the acquirer for accounting purposes. Therefore, the transaction was accounted for as a reverse acquisition and recapitalization of Old Berliner. The consolidated statement of operations for the six months ended June 30, 2005, include the accounts of Old Berliner through February 18, 2005, BCI, our wholly-owned subsidiary, and us since February 18, 2005 and the consolidated statement of operations for the years ended December 31, 2004, and 2003, include the accounts of Old Berliner.
On September 16, 2005, Berliner completed a recapitalization that included the conversion of its preferred equity into common equity and the recording of a deemed dividend of approximately $19.9 million and a one share for each 300 shares reverse stock split.
Berliner reported a net income of $1.3 million, or $0.09 per share before the effect of the deemed dividend discussed above, for the year ended June 30, 2006, on revenues of $39.3 million, as compared to net loss of $1.2 million, or $2.36 per share, on revenues of $10.2 million for the six months ended June 30, 2005. After recording the deemed dividend of $19.9 million on the conversion of our Series B and Series D Convertible Preferred Stock, the net loss allocable to shareholders was $18.7 million or $1.38 per share for the year ended June 30, 2006. The weighted average number of shares outstanding was 13.6 million for the year ending June 30, 2006, and 504,400 for the six months ended June 30, 2006.
In the quarter ended June 30, 2006, Berliner had a net income allocable to common shareholders of $910,100, or $0.05 per share on revenues of $11.0 million, as compared to a net loss allocable to common shareholders of $243,700, or $0.48 per share on revenues of $6.4 million, for the comparable quarter in 2005.
"Our business is clearly back on track and it took a lot of hard work and a focused approach by our entire team to get us here. The heroes of this turnaround are our employees who made it happen. We have expanded our customer base and we are looking at a strong capital expenditure cycle in the wireless industry. Now we have to continue to focus on how we execute and keep the entire organization running efficiently," said Rich Berliner, CEO. "The recent auction of additional wireless spectrum will add another dimension to our business in the future," he added.
Berliner is headquartered in Elmwood Park, New Jersey, providing 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.
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 future prospects, 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. 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.
BERLINER COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Six months ended
Year ended June 30,
June 30, 2006 2005 2004
(Unaudited)
Revenues $39,325,312 $10,196,270 $7,421,961
Costs of revenues 28,202,105 7,339,171 4,926,639
Gross margin 11,123,207 2,857,099 2,495,322
Selling, general and
administrative expenses 9,447,967 3,830,947 2,939,614
Depreciation 246,503 139,220 180,832
(Gain) loss on sale of fixed
assets (6,627) (22,785) (13,972)
Income (loss) from operations 1,435,364 (1,090,283) (611,152)
Other (income) expense
Interest expense 73,626 22,282 19,114
Interest income (14,046) (5,487) (550)
(Income) loss in equity of
investments (97,995) 93,982 ---
Gain on extinguishment of debt --- --- ---
Other 85,201 (3,895) ---
Income (loss) before income taxes 1,388,578 (1,197,165) (629,716)
Income tax expense (recovery) 133,427 (6,581) (1,840)
Net income (loss) 1,255,151 (1,190,584) (627,876)
Deemed Series B and D preferred
dividends 19,935,779 --- ---
Net loss allocable to common
shareholders $(18,680,628) $(1,190,584) $(627,876)
Net loss per common share -
basic and diluted $(1.38) $(2.36) $(9.31)
Weighted average number of
common shares outstanding -
basic and diluted 13,581,842 504,438 67,414
Year ended
December 31,
2004 2003
Revenues $15,285,904 $17,955,834
Costs of revenues 9,604,839 13,098,669
Gross margin 5,681,065 4,857,165
Selling, general and administrative
expenses 6,123,328 5,898,143
Depreciation 342,934 580,207
(Gain) loss on sale of fixed assets (9,699) 45,445
Income (loss) from operations (775,498) (1,666,630)
Other (income) expense
Interest expense 46,813 34,112
Interest income (1,639) (12,763)
(Income) loss in equity of
investments --- ---
Gain on extinguishment of debt --- (7,171,119)
Other --- ---
Income (loss) before income taxes (820,672) 5,483,140
Income tax expense (recovery) 16,160 44,250
Net income (loss) (836,832) 5,438,890
Deemed Series B and D preferred
dividends --- 378,355
Net loss allocable to common
shareholders $(836,832) $5,060,535
Net loss per common share - basic
and diluted $(12.41) $91.27
Weighted average number of common
shares outstanding - basic and diluted 67,414 55,446
BERLINER COMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEET
June 30,
2006 2005
ASSETS
CURRENT ASSETS
Cash and cash equivalents $534,350 $402,432
Accounts receivable, net of
allowance for doubtful
accounts of $179,535 and
$91,572 at June 30, 2006,
and 2005, respectively 12,333,892 5,261,311
Inventories 322,029 506,615
Prepaid expenses and other
current assets 331,546 516,842
13,521,817 6,687,200
LONG-TERM ASSETS
Property and equipment, net 565,592 469,855
Other assets 168,210 359,139
$14,255,619 $7,516,194
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit $1,110,803 $493,824
Current portion of long-term debt 373,856 425,964
Current portion of capital
lease obligations 33,105 39,596
Accounts payable 5,355,827 2,209,775
Accrued liabilities 3,908,803 2,285,889
Accrued income taxes 127,927 ---
10,910,321 5,455,048
LONG-TERM LIABILITIES
Long-term debt, net of current
portion 162,769 243,942
Long-term capital lease
obligations, net of current
portion 24,081 10,068
186,850 254,010
COMMITMENTS AND CONTINGENCIES --- ---
STOCKHOLDERS' EQUITY
Preferred stock --- 79
Common stock 341 13
Additional paid-in capital 13,018,241 12,922,329
Accumulated deficit (9,860,134) (11,115,285)
3,158,448 1,807,136
$14,255,619 $7,516,194
