ELMWOOD PARK, N.J., Oct. 2 /PRNewswire-FirstCall/ -- Berliner Communications, Inc. (BULLETIN BOARD: BERL.OB) ("Berliner") today announced financial results for the fourth quarter and the year ended June 30, 2007.
Highlights for the Fiscal Year include: -- Revenues increased from $39.3 million to $55.1 million, or 40%, compared to the prior year; -- Gross Profit increased from $11.1 million to $17.9 million, or 61%, compared to the prior year; -- Gross Margin increased from 28.3% in FY 2006 to 32.4% in FY 2007; -- EBITDA increased from $1.7 million to $3.2 million, or 89%, compared to the prior year; -- Made three strategic acquisitions, providing the company with a growing nationwide footprint and expanded customer base; successful integration continuing.
"This has been a break-through year for our Company," said Rich Berliner, Berliner's Chairman and CEO. "Last year, we turned the corner to profitability, and we created an aggressive business plan designed to continue that success. As our financial results demonstrate, we delivered on that plan, showing strong increases in revenue and EBITDA throughout the year. This has been a year of tremendous growth for our company in other areas as well. We continue to diversify and rapidly grow our customer base, while at the same time winning additional, large- scale projects from our existing customers. We have more than doubled our number of employees this year while increasing profitability, and added offices across the country as we have acquired businesses in many key markets. As we grow internally and through acquisitions, we have added several new executives to our management team to support this growth. We have also diversified our service offerings in an effort to better serve our existing customers and attract new customers that can utilize these capabilities."
"Looking forward," added Berliner, "we expect fiscal 2008 to be another strong year. Our business plan continues to be growth oriented, and we expect to continue to aggressively pursue attractive acquisitions or other strategic partnerships if there are compelling business reasons for us to do so, and if we believe we can add value for our shareholders. Most importantly, our business plan will continue to be driven by customer service, and with our group of talented, dedicated and truly hard-working employees, our customers will remain priority one."
Financial Results
Revenue for the company for the year ended June 30, 2007 was $55.1 million, as compared with $39.3 million for the year ended June 30, 2006. Berliner reported net income allocable to common shareholders of $1.1 million, or $0.07 per basic share and $0.06 per diluted share for the year, as compared to net loss allocable to common shareholders of $18.7 million, or $1.38 per basic and diluted share for the prior year. Fiscal 2006 includes the recording of a deemed dividend of $19.9 million on the conversion of our Series B and Series D Convertible Preferred Stock.
Revenue for the quarter ended June 30, 2007 was $18.2 million, as compared with $11.0 million for the quarter ended June 30, 2006. The increases in revenue during the fourth quarter of Fiscal 2007 included approximately $6.5 million attributable to our acquisitions during this period. Berliner reported net income allocable to common shareholders of $160 thousand or $0.01 per basic and diluted share in the three months ended June 30, 2007, as compared to net income allocable to common shareholders of $910 thousand, or $0.05 per basic and diluted share, for the three month period ended June 30, 2006.
EBITDA, that is, operating income, including gain on sale of fixed assets, plus depreciation expense, increased from $1.7 million to $3.2 million, or 89%, in fiscal 2007 compared to the prior year. A reconciliation of EBITDA to income from operations follows:
Year ended Year ended June 30, 2007 June 20, 2006 Income from Operations $2,767 $1,435 Depreciation Expense 484 247 Gain on Sale of Fixed Assets (5) (7) EBITDA $3,246 $1,675
We currently report our financial results on the basis of two reportable segments: 1) infrastructure construction and technical services and (2) real estate acquisition and zoning. The following represents our revenues and operating income (loss) for each segment for the three and twelve months ended June 30, 2007, and 2006, respectively:
(Amounts in thousands) Three months ended Years ended June 30, June 30, 2007 2006 2007 2006 (Unaudited) Revenues: Infrastructure construction and technical services $ 14,153 $ 9,138 $ 43,501 $ 35,506 Real estate acquisition and zoning 4,095 1,875 11,634 3,819 Total revenues $ 18,248 $ 11,013 $ 55,135 $ 39,325 Operating income (loss) Infrastructure construction and technical services $ 625 $ 788 $ 1,485 $ 1,436 Real estate acquisition and zoning (124) 453 1,282 (1) Total operating income (loss) $ 501 $ 1,241 $ 2,767 $ 1,435 About Berliner Communications, Inc.
Berliner Communications, Inc. and its wholly owned operating subsidiary, BCI Communications, Inc., are headquartered in Elmwood Park, New Jersey. BCI is an end-to-end provider of outsourced services for the wireless communications industry, including planning, deployment and management of network build-outs. BCI provides 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. For more information about Berliner's services, please visit http://www.bcisites.com/.
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 fiscal 2008 results, 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. All forward- looking statements in this document are made as of the date hereof, based on information available to us on the date hereof, and 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.
EBITDA is not a term defined by generally accepted accounting principles (GAAP) and may not be comparable to other similarly titled measurements used by other companies. Such non-GAAP measures should be considered in addition to, and not as a substitute for, performance measures calculated in accordance with GAAP. The company believes that EBITDA provides investors with a measure of the company's operational and financial progress that corresponds with the measurements used by management. Management uses this measurement, in addition to other financial metrics, as a basis for allocating resources and making operating decisions.
BERLINER COMMUNICATIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) Three months ended Year ended June 30, June 30, 2007 2006 2007 2006 (Unaudited) Revenues $18,248 $11,013 $55,135 $39,325 Costs of revenues 11,678 6,913 37,275 28,202 Gross margin 6,570 4,100 17,860 11,123 Selling, general and administrative expenses 5,773 2,801 14,614 9,448 Depreciation and amortization 296 60 484 247 Gain from sale of fixed assets - (2) (5) (7) Income from operations 501 1,241 2,767 1,435 Other (income) expense Interest expense 784 33 1,238 74 Interest income (9) (4) (37) (14) Financing fees 695 - 695 - Income from equity investments (37) - (41) (98) Other 14 175 (14) 85 (Loss) income before income taxes (946) 1,037 926 1,388 Income tax (benefit) expense (1,106) 127 (186) 133 Net income 160 910 1,112 1,255 Deemed Series B and D preferred dividends - - - 19,936 Net income (loss) allocable to common shareholders $160 $910 $1,112 $(18,681) Net income (loss) per share: Basic $0.01 $0.05 $0.07 $(1.38) Diluted $0.01 $0.05 $0.06 $(1.38) Weighted average number of shares outstanding: Basic 17,036 17,265 17,035 13,582 Diluted 19,762 17,265 19,062 13,582 BERLINER COMMUNICATIONS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in thousands) June 30, 2007 2006 ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,483 $ 534 Accounts receivable, net of allowance for doubtful accounts of $261 and $180 at June 30, 2007 and 2006, respectively 22,911 12,334 Inventories 666 322 Deferred tax assets - current 336 - Prepaid expenses and other current assets 771 332 27,167 13,522 Property and equipment, net 2,569 566 Amortizable intangible assets, net 960 - Goodwill 2,270 - Deferred tax assets - long-term 950 - Other assets 387 168 Total Assets $ 34,303 $ 14,256 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 7,399 $ 5,356 Accrued liabilities 6,588 3,909 Accrued income taxes 326 128 Line of credit 5,537 1,111 Current portion of long-term debt 797 374 Current portion of capital lease obligations 52 33 20,699 10,911 Long-term debt, net of current portion 5,765 163 Long-term capital lease obligations, net of current portion 199 24 Other long-term liabilities 694 - Deferred tax liabilities - long-term 39 - Total liabilities 27,396 11,098 COMMITMENTS STOCKHOLDERS' EQUITY Additional paid-in capital 15,655 13,018 Accumulated deficit (8,748) (9,860) Total stockholders' equity 6,907 3,158 Total liabilities and stockholders' equity $ 34,303 $ 14,256
