EBITDA Expected to Materially Exceed Guidance of $18-20 Million; Revenue Expected to Exceed Guidance of $255-258 Million
Multiband Corporation, (NASDAQ:MBND), a leading Home Service Provider (HSP) for DIRECTV and the nation's largest DIRECTV Master System Operator (MSO) for Multiple Dwelling Units (MDU's), today announced that it expects fourth quarter and full year 2010 revenues and EBITDA(1) for the period ended December 31, 2010, to exceed previously announced guidance. The Company anticipates reporting these stronger than expected results due to increased leverage in its business model. Multiband expects to report overall financial results for the period ended December 31, 2010 and hold a conference call to discuss the fourth quarter and full-year results no later than March 31, 2011.
Guidance previously provided in the Company's third quarter financial results press release and conference call on November 11, 2010 included:
- 2010 EBITDA guidance of $18 - $20 million
- Revenue guidance of approximately $255 - $258 million
James L. Mandel, CEO of Multiband, commented, "We continue to execute ahead of plan and successfully leverage our infrastructure to generate significant year over year revenue and EBITDA growth. The operating efficiencies in our expanded platform, which includes superior performance metrics as well as the potential for diversified installation and ancillary services, are driving improved efficiencies within our business model and delivering tangible positive operating results. Coupled with stronger than expected top line activity, we now expect our EBITDA results to materially exceed the guidance we have previously given on an annualized basis. In addition, the Company expects revenues to materially exceed previous guidance as well. We look forward to reporting finalized financial results for the three and 12 months ended December 31, 2010 and discussing operational details in an upcoming press release and conference call which will be scheduled shortly."
1. NON-GAAP Financial Measures To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act, Multiband Corporation, as is common in its industry, uses EBITDA as a measure of performance to demonstrate earnings exclusive of interest and non-cash events. The Company manages its business based on its cash flows. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows, not on the amortization of assets obtained through historical activities. The Company, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses EBITDA as its primary management guide. Since an outside investor may base its evaluation of the Company's performance based on the Company's net loss not its cash flows, there is a limitation to the EBITDA measurement. EBITDA is not, and should not be considered an alternative to net loss, loss from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principles generally accepted in the United States (GAAP). The most directly comparable GAAP reference in the Company's case is the removal of interest, depreciation, amortization, taxes and other non-cash expense.
About Multiband Corporation:
Multiband is the largest nationwide DIRECTV master system operator in the Multiple Dwelling Unit (MDU) market and one of the largest full-service home service providers (HSPs), handling around 20% of all DIRECTV's installations, maintenance and upgrades for residents of single-family homes. Multiband is a full-service provider for a number of other partners within the footprint as well, offering solutions for watch, talk, surf and security, and is equipped with a retail store and an online store to strive to be a customer's "one source solution" for all electronic needs. Additionally, Multiband is a leading provider of software and integrated billing services to MDUs on a single bill, including video, voice, data and other value-added local services, both directly and through strategic partnerships. Multiband is headquartered in Minneapolis, MN, and has offices strategically placed around the continental United States.
Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business, including those set forth in our most recent Annual Report on Form 10-K for the year ended December 31, 2009, and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.
Contacts:
Company Contact
Multiband Corporation
James Mandel,
CEO, 763-504-3000
or
Investor Contact
Hayden IR
Cameron
Donahue, 651-653-1854
