•NEWS: Sitestar to Double its Revenues Tuesday August 2, 2:07 pm ET, LYNCHBURG, Va.--(BUSINESS WIRE)--Aug. 2, 2005--Sitestar Corporation (OTCBB: SYTE - News), an Internet Service Provider (ISP) and computer services company, today announced it has entered into a letter of intent to acquire a western United States company's Internet assets and mostly residential customer base. This company has over 11,000 accounts consisting of dial-up access, Digital Subscriber Line (DSL) access, wireless access, web hosting, web acceleration and other services.
•Earnings, NEWS, and release of 2nd quarter 2005 10Q expected mid August.
•Profitable - 3 straight quarters and for the full yr 2004: --Sitestar Post Profits for First Quarter 2005, May 16, 2005, 02:24 PM US Eastern Timezone. -Internet service revenue up $57,456 over last year, up $84,809 over previous Quarter. EBITDA for the first quarter 2005 was $222,258. --Sitestar Post Profitable Year for 2004, Monday, March 28, 2005, 1:20 PM - BusinessWire.
•Reducing Shares: Sitestar Corporation Cancels 20% of Its Issued Shares, Wednesday, December 01, 2004, 3:27 PM - BusinessWire. Reduced more shares since this PR – and more coming. Here’s the proof on reductions: Shares out as of 3/04 = 105 mil, shares out as of 3/05 = 82 mil, therefore, = 23 mil share reduction over last year. CEO states 6 million shares in treasury targeted for cancellation – which will bring outstanding shares to 76 mil.
•Recently rid itself of CD: Sitestar Pays off Ex-Convertible Debenture Holders, Monday, February 28, 2005, 11:21 AM - BusinessWire.
•Top Managers speak out in 5/16/05 PR: Frank R. Erhartic, Jr., CEO of Sitestar Corporation, commented, "We have once again shown that we can be profitable. Our plans have proven to be sound and have kept us on track for profitability. It looks like 2005 will be the best year yet for Sitestar." "The tree we planted has grown and is bearing fruit," says Daniel Judd, CFO for Sitestar. "I am confident in our abilities to grow this business and add net worth. The acquisitions we made in 2004 have generated additional revenues and through consolidation we have been able to transfer that to the bottom line.This is just the beginning; there are even more exciting things down the road."
•History of Acquisitions and more to come in future - from 10K: Strategic Relationships and Acquisitions. The Company has many strategic relationships that allow it to expand its products and services to a wider range of customers. The Company intends to enter into more relationships like these. The company has acquired several companies, assets and customer bases over the last several years and intends to continue to seek out other opportunities that help its business grow. *Recent Acquisition: Sitestar Corporation Partners with Virginia Beach Internet Service Pro, Tuesday, November 23, 2004, 1:36 PM - PrimeZone. (Note no new shares issued to pay for acquisition, used cash and payments from operations.)
•Strong Balance sheet – cash flow positive and positive shareholder equity of $181,885.
•Key CEO Quotes from 5/31/05 online shareholder chat:
* "As you can see we have made good progress and should be on track for good profitability this year."
* "We are currently working on a number of acquisitions for 2005 which, if they go through, should dwarf the amount of new customers we acquired in 2004. Some of these prospects are even much larger than we currently are."
* "Sitestar’s goals for the next 12 months are: 1. To increase our customer base to over 100,000 2. To increase our revenues and our net profits substantially 3. To continue mergers and acquisitions 4. To pay down much of our existing debt 5. To raise additional capital for larger acquisitions 6. To introduce new products for broadband customers 7. To become a nationally recognized Internet Service Provider 8. To greater expand our markets and coverage area 9. To provide better customer support and customer satisfaction 10. To increase stockholder equity 11. To increase the awareness of our company and stock "
* "We will also be introducing products that will work over broadband like VOIP, backup services and a backup dialup connection. "
* ”We will be doing VOIP this year. That is the plan."
* "We may enter an agreement in the future for working with another company on providing broadband. Some broadband will be picked up in acquisitions.”
* "There are about 6 million (shares) in treasury…the plan is to eventually cancel them. "
•CEO = Frank Erhartic, Jr. has founded own company and has degrees in both Management and Finance - arguably the two most important subjects to grow a business. Has shown himself to be knowledgeable, honest and forthcoming – oh so, unfortunately, rare.
•The Big No’s: No convertible debentures, No S-8’s, No preferred stock issued. No need for financing to support existing operations through share dilution or otherwise - cash flow sufficient to support operations. No R/S per CEO. No share dilution used for last few acquisitions. No outrageously high salaries for CEO and counterparts.
•Sitestar Corporation is a mid-Atlantic Internet Service Provider (ISP) and computer services company offering a broad range of services to business and residential customers. Sitestar's main customer base is primarily in the Virginia and North Carolina markets but also sells most of its services nationwide. Sitestar's wholly owned subsidiaries provide narrow and broadband Internet access, Web-hosting and design services, computer sales and repair and other technology-related solutions to its residential and business customers.
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