Lightyear Network Solutions Announces Year End 2012 Financial Results
Lightyear Network Solutions Announces Year End 2012 Financial Results
LOUISVILLE, Ky.--(BUSINESS WIRE)-- Lightyear Network Solutions, Inc. (the "Company") (OTCQB: LYNS), an established provider of data, voice and wireless telecommunication services to business and residential customers throughout North America, announced today its financial results for the year ended December 31, 2012.
Financial highlights for 2012 include:
Overall revenue decreased approximately 6% from fiscal year 2011. Wireless services revenue grew by approximately $1.2 million (or 30%) in 2012 compared with 2011, while local services revenue decreased by approximately $2.7 million (or 9%) for the same period
Operating expenses decreased by approximately $2.2 million (or 8.6%) in 2012 compared with the previous year
Loss from operations, when adjusted for a one-time impairment charge related to the sale of our Pikeville real estate, was essentially unchanged at $870,310 in 2012 and $871,899 in 2011
Cash generated from operations increased to approximately $1.4 million in 2012 compared with approximately $47,000 in 2011
Net loss per common share for the year was $.10
"Our team continues to stay focused, manage expenses and work diligently to create opportunities for growth during this tough economy. We are encouraged with several new commercial clients and the increase in the cash generated from operations," said Stephen M. Lochmueller, Lightyear's Chief Executive Officer.
About Lightyear Network Solutions, Inc.
Through its wholly owned subsidiaries, Lightyear Network Solutions, Inc. provides telecommunication services to large, medium and small businesses and to residential consumers throughout North America. Lightyear's product offerings include local PRI and digital T1, enhanced Internet services, MPLS, Ethernet, Voice over Internet Protocol (VoIP), local and long distance service, and conferencing. Lightyear also offers wireless services to customers in the U.S. through wholesale contracts with multiple wireless providers. Lightyear built its own VoIP network in 2004 to enhance its product offerings and has partnered with some of the most prominent names in telecom including: Sprint, Verizon, AT&T, Level 3, Windstream, CenturyLink, tw telecom, XO Communication and Cisco. Lightyear Network Solutions, Inc. is headquartered in Louisville, Ky. Additional information can be found at: www.lightyear.net.
Forward-Looking Statements
This press release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Lightyear's actual results to differ materially from those currently anticipated. These forward-looking statements may include, without limitation, statements about our marketing and acquisition opportunities, business strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward-looking statements are reasonable, the risks and uncertainties which could cause our actual results to differ materially from those currently anticipated includes changes in market conditions, our ability to integrate acquired operations, the ability to obtain additional financing on satisfactory terms, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and risk factors described in our Form 10-K for the year ended December 31, 2012 and other filings with the Securities and Exchange Commission. Lightyear undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.
Lightyear Network Solutions, Inc. and Subsidiaries | ||||||||||
Consolidated Balance Sheets | ||||||||||
December 31, | ||||||||||
2012 | 2011 | |||||||||
Assets | ||||||||||
Current Assets: | ||||||||||
Cash | $ | 48,424 | $ | 108,133 | ||||||
Accounts receivable, net | 4,694,100 | 5,237,404 | ||||||||
Vendor deposits | 1,894,522 | 1,771,028 | ||||||||
Inventories, net | 267,427 | 335,964 | ||||||||
Prepaid expenses and other current assets | 1,137,654 | 2,523,039 | ||||||||
Total Current Assets | 8,042,127 | 9,975,568 | ||||||||
Property and equipment, net | 5,511,426 | 7,161,057 | ||||||||
Intangible assets, net | 1,492,083 | 1,928,749 | ||||||||
Total Assets | $ | 15,045,636 | $ | 19,065,374 | ||||||
Liabilities and Stockholders' Deficiency | ||||||||||
Current Liabilities: | ||||||||||
Accounts payable | $ | 6,212,388 | $ | 7,216,117 | ||||||
Interest payable - related parties | 114,972 | 47,282 | ||||||||
Accrued agent commissions | 459,712 | 530,268 | ||||||||
Accrued agent commissions - related parties | 847 | 1,069 | ||||||||
Deferred revenue | 473,957 | 427,715 | ||||||||
Other liabilities | 1,667,724 | 1,876,163 | ||||||||
Other liabilities - related parties | 142,330 | 81,718 | ||||||||
Current portion of notes payable | 934,529 | 895,918 | ||||||||
Current portion of capital lease obligations | 164,662 | 239,203 | ||||||||
Total Current Liabilities | 10,171,121 | 11,315,453 | ||||||||
Notes payable, non-current portion | 2,400,441 | 3,334,992 | ||||||||
Note payable - related party, non-current portion | 6,250,000 | 6,250,000 | ||||||||
Capital lease obligations, non-current portion | 711,255 | 758,750 | ||||||||
Deferred tax liability, non-current portion, net | 37,830 | 326,683 | ||||||||
Total Liabilities | 19,570,647 | 21,985,878 | ||||||||
Commitments and contingencies | ||||||||||
Stockholders' Deficiency: | ||||||||||
Common stock, $0.001 par value; 70,000,000 shares authorized; 22,086,641 shares issued and outstanding at December 31, 2012 and December 31, 2011 | 22,087 | 22,087 | ||||||||
Note receivable from affiliate | (1,223,203 | ) | (1,223,203 | ) | ||||||
Additional paid-in capital | 10,148,545 | 9,490,226 | ||||||||
Accumulated deficit | (13,472,440 | ) | (11,209,614 | ) | ||||||
Total Stockholders' Deficiency | (4,525,011 | ) | (2,920,504 | ) | ||||||
Total Liabilities and Stockholders' Deficiency | $ | 15,045,636 | $ | 19,065,374 | ||||||
Lightyear Network Solutions, Inc. and Subsidiaries | ||||||||||
Consolidated Statements of Operations | ||||||||||
For The Years Ended | ||||||||||
December 31, | ||||||||||
2012 | 2011 | |||||||||
Revenues | $ | 66,440,789 | $ | 70,495,597 | ||||||
Cost of revenues | 44,281,234 | 45,158,389 | ||||||||
Gross Profit | 22,159,555 | 25,337,208 | ||||||||
Operating Expenses | ||||||||||
Commission expense | 5,416,415 | 5,979,886 | ||||||||
Commission expense - related parties | 72,747 | 55,647 | ||||||||
Depreciation and amortization | 1,303,709 | 1,691,845 | ||||||||
Bad debt expense | 1,039,270 | 940,277 | ||||||||
Selling, general and administrative expenses | 15,100,955 | 17,104,471 | ||||||||
Selling, general and administrative expenses - related party | 96,769 | 199,231 | ||||||||
Impairment of intangible assets | - | 237,750 | ||||||||
Impairment of property and equipment | 938,270 | - | ||||||||
Total Operating Expenses | 23,968,135 | 26,209,107 | ||||||||
Loss From Operations | (1,808,580 | ) | (871,899 | ) | ||||||
Other (Expense) Income | ||||||||||
Interest income | 25,533 | 45,731 | ||||||||
Interest income - related parties | - | 570,967 | ||||||||
Interest expense | (236,471 | ) | (310,581 | ) | ||||||
Interest expense - related parties | (278,587 | ) | (376,734 | ) | ||||||
Gain on sale of fixed assets | - | 192,284 | ||||||||
Loss on abandonment of property | - | (107,540 | ) | |||||||
Other income | 35,279 | 140,495 | ||||||||
Total Other (Expense) Income | (454,246 | ) | 154,622 | |||||||
Loss before income taxes | (2,262,826 | ) | (717,277 | ) | ||||||
Income tax benefit | - | 123,800 | ||||||||
Net Loss | (2,262,826 | ) | (593,477 | ) | ||||||
Deemed dividends to convertible preferred stockholders | - | (11,835,530 | ) | |||||||
Loss Attributable to Common Stockholders | $ | (2,262,826 | ) | $ | (12,429,007 | ) | ||||
Net Loss Per Common Share - Basic and Diluted | $ | (0.10 | ) | $ | (0.57 | ) | ||||
Weighted Average Number of Common Shares Outstanding - Basic and Diluted | 22,328,205 | 21,796,111 | ||||||||
Lightyear Network Solutions, Inc. and Subsidiaries | ||||||||||
Consolidated Statements of Cash Flows | ||||||||||
For The Years Ended | ||||||||||
December 31, | ||||||||||
2012 | 2011 | |||||||||
Cash Flows From Operating Activities | ||||||||||
Net loss | $ | (2,262,826 | ) | $ | (593,477 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 1,303,709 | 1,691,845 | ||||||||
Provision for bad debt expense | 1,039,270 | 940,277 | ||||||||
Provision for inventory reserve | - | 17,205 | ||||||||
Stock-based compensation | 658,319 | 593,938 | ||||||||
Interest income from affiliate | - | (570,967 | ) | |||||||
Deferred taxes | - | (123,800 | ) | |||||||
Gain on sale of fixed assets | - | (192,284 | ) | |||||||
Loss on abandonment of property | - | 107,540 | ||||||||
Impairment of intangible assets | - | 237,750 | ||||||||
Impairment of property and equipment, net | 938,270 | - | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable | (495,966 | ) | (27,257 | ) | ||||||
Other assets | - | (5,254 | ) | |||||||
Vendor deposits | (123,494 | ) | (84,117 | ) | ||||||
Inventories | 68,537 | (19,614 | ) | |||||||
Prepaid expenses and other current assets | 1,385,385 | (235,164 | ) | |||||||
Accounts payable | (1,003,729 | ) | 56,001 | |||||||
Interest payable - related parties | 67,690 | (66,536 | ) | |||||||
Accrued agent commissions | (70,556 | ) | (39,565 | ) | ||||||
Accrued agent commissions - related parties | (222 | ) | (23,967 | ) | ||||||
Deferred revenue | 46,242 | (1,589,473 | ) | |||||||
Other liabilities | (208,439 | ) | (10,061 | ) | ||||||
Other liabilities - related parties | 60,612 | (15,665 | ) | |||||||
Total Adjustments | 3,665,628 | 640,832 | ||||||||
Net Cash Provided by Operating Activities | 1,402,802 | 47,355 | ||||||||
Cash Flows From Investing Activities | ||||||||||
Purchases of property and equipment | (318,305 | ) | (1,145,994 | ) | ||||||
Proceeds from sale of fixed assets | - | 321,277 | ||||||||
Net Cash Used in Investing Activities | (318,305 | |||||||||
