Multiband Announces First Quarter 2013 Results

MINNEAPOLIS, May 15, 2013 /PRNewswire/ -- 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 (MDUs), today announced financial results for first quarter ended March 31, 2013.

First Quarter 2013 Highlights

• First quarter 2013 revenues increased by 1.2% to $73.1 million despite a $3.7 million, or 6.2%, reduction in HSP revenue from DIRECTV.  WildBlue fulfillment revenue increased by $2.5 million to $3.4 million in the quarter.  Multi-dwelling Unit (MDU) segment and Energy, Engineering & Construction (EE&C) segment revenues increased in Q1 2013 over the same period in 2012.
• Operating income was $812,000 compared to an operating loss of $737,000 in the same period last year.  Improvement was driven by a 6.5% decrease in SG&A expenses due to a reduction in wages, benefits and other employee related expenses.
• Q1 2013 Adjusted EBITDA was $3.1 million compared to $1.9 million in the same period last year.
• Net loss attributable to common stockholders was $681,000 for the first quarter, or ($0.03) per basic and diluted share. This amount included a $1.0 million pre-tax charge related to the write-off of deferred financing fees.
• In March 2013, Multiband executed a $30.0 million financing agreement with Fifth Third Bank.
• The Company continued due diligence and activities related to its previously announced acquisition of MDU Communications International, Inc. (MDUC).

James L. Mandel, CEO of Multiband, commented, "Our diversification initiatives continued to deliver in first quarter 2013 with our WildBlue internet service fulfillment revenue increasing 273%, as well as a 21.8% increase in MDU system operator related revenue resulting from the addition of several large system operators midway through 2012.  The EE&C segment grew 19.9% and we expect revenues in this segment to increase throughout the remainder of 2013 as we increase our sales activity and footprint.  HSP revenue from DIRECTV in Q1 was down however, we are confident that this will bounce back in future quarters as we get into the busy part of the year."

Mr. Mandel concluded, "A major accomplishment for the quarter was the closing of our new $30 million debt facility with Fifth Third Bank, which includes a $20 million term loan and a $10 million revolving line of credit.  These facilities are provided at significantly lower rates of interest than we have been paying in the past as well as extended terms to April 2016." 

Conference Call Information:

A conference call and live webcast will take place May 15, 2013 at 4:30 p.m. Eastern time.  Anyone interested in participating should call 1-877-941-8416 if calling within the United States, or 1-480-629-9808 if calling internationally.  There will be a playback available until May 22, 2013.  To listen to the playback, please call 1-877-870-5176 if calling within the United States, or 1-858-384-5517 if calling internationally. Please use pin number 4619280 for the replay.

The call will also be accompanied live by webcast over the Internet and accessible at http://public.viavid.com/index.php?id=104729.

About Multiband Corporation

Multiband Corporation (MBND) engages with a vast and growing array of technologies including renewable energy, wireless infrastructure, electrical power systems, digital signage, commercial audio/video solutions, hospitality IPTV and VOD systems.  Multiband completes nearly 20% of all DIRECTV's installations, maintenance and upgrades for residents of single-family homes.  Multiband also supplies broadband cable and satellite internet solutions for homes and businesses across the nation.  As 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), Multiband is a driven leader in a competitive industry.  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 focuses on providing world-class customer service and the highest level of performance for all partners and customers, from multinational corporations to individual families.  Multiband is headquartered in Minneapolis, Minn., 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, 2012, 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.

Company Contact
Contact: James Mandel, CEO for Multiband Corporation at (763) 504-3000

Investor Contact
Cameron Donahue, Hayden IR, (651) 707-3532 or [email protected]

NON-GAAP Financial Measures

To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act, Multiband has attached to this news release, and will post to the company's investor relations website (www.multibandusa.com), a reconciliation of differences between GAAP and non-GAAP financial information that may be required in connection with issuing its quarterly financial results.

Multiband, as is common in its industry, uses Adjusted EBITDA as a measure of performance to demonstrate earnings exclusive of interest and non-cash events.  Multiband manages its business based on its cash flows.  Multiband, 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.  Multiband, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses Adjusted EBITDA as its primary management guide.  Since an outside investor may base its evaluation of Multiband's performance based on the net income of loss and not its cash flows, there is a limitation to the Adjusted EBITDA measurement.  Adjusted EBITDA is not, and should not be considered, an alternative to net income or loss, income or loss from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principals generally accepted in the United States (GAAP).  The most directly comparable GAAP reference in Multiband's case is the removal of interest, depreciation, amortization, taxes and other non-cash expense.

Safe Harbor Statement

Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act.  These forward-looking statements reflect the Company's expectations or beliefs concerning future events.  The Company cautions that these and similar statements involve risk and uncertainties which could cause actual results to differ materially from our expectation, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions and other risks noted in the Company's SEC filings, including its Annual Report on Form 10-K for its 2012 fiscal year.  Forward-looking statements are made in the context of information available as of the date stated.  The company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

SOURCE Multiband Corporation

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