FTS Group Reports Second Consecutive Quarter of Profitability as 2006 Revenue Surges Past $3.2 Million Tuesday August 8, 9:01 am ET
Company Generates EBITDA of $256,709 During First Half of 2006: Liabilities Fall by $285,441
TAMPA, FL--(MARKET WIRE)--Aug 8, 2006 -- FTS Group, Inc. (OTC BB:FLIP.OB - News), an acquisition and development Company, today announced record revenue and profits for the six months ended June 30, 2006. Below are some of the highlighted results achieved during the first six months of 2006: -- Revenue for the six months ended June 30, 2006 was a record $3,267,006 -- Net Income for the six months ended June 30, 2006 was a record $62,118 -- EBITDA for the six months of 2006 was a record $256,709 -- Stockholders Equity for the first six months of 2006 was a record $1,844,552 -- Liabilities dropped by $285,441 from Q1, 2006 -- Signed 5-year contract with DISH Networks ADVERTISEMENT
FTS Group Chairman and Chief Executive Officer Scott Gallagher commented, "FTS continues to generate record, profitable results for 2006 on all levels. Our top-line sales surged by more then 500% compared to the first six months of 2005. Year over year, we've turned a bottom-line loss of nearly a million dollars into a $62,118 and growing profit. We reduced our liabilities by $285,441 when compared to the first quarter of 2006. Our wholly owned subsidiary See World Satellites, Inc. inked a new five-year contract with DISH Networks." Gallagher went on to say, "We're very excited by the opportunities in front of us as we head into the second half of the year. July was one of, if not the, strongest month we've had all year and at this we expect to see continued increases in both sales and earnings during the second half of 2006 and beyond."
FTS GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Operation
For the Three and Six Months Ended June 30, 2005 and 2004
Three Months Ended June 30, Six Months ended June 30 2006 2005 2006 2005 ------------- ------------- ------------- -------------
REVENUES Satellite television activation, installation and service $ 1,192,055 $ - $ 2,330,091 $ - Retail wireless activation, installation and service 441,337 346,730 936,915 650,700 ------------- ------------- ------------- ------------- 1,633,392 346,730 3,267,006 650,700 ------------- ------------- ------------- -------------
COST OF GOODS SOLD 472,510 259,868 1,055,992 395,386 ------------- ------------- ------------- -------------
GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administra- tive expenses 1,066,642 272,281 2,074,828 1,027,608 ------------- ------------- ------------- ------------- 1,066,642 272,281 2,074,828 1,027,608 ------------- ------------- ------------- -------------
INCOME (LOSS) FROM OPERATIONS 94,240 (185,419) 136,186 (772,294) ------------- ------------- ------------- -------------
OTHER INCOME (EXPENSE) Interest (37,373) (5,636) (74,068) (189,748) ------------- ------------- ------------- ------------- (37,373) (5,636) (74,068) (189,748) ------------- ------------- ------------- -------------
NET INCOME (LOSS) $ 56,867 $ (191,055) $ 62,118 $ (962,042) ============= ============= ============= =============
PER SHARE INFORMATION: WEIGHTED AVERAGE SHARES OUTSTANDING (BASIC AND DILUTED) 117,504,583 56,311,628 116,132,165 52,020,779 ============= ============= ============= =============
NET LOSS PER COMMON SHARE (BASIC AND DILUTED) $ 0.00 $ (0.00) $ 0.00 $ (0.02) ============= ============= ============= =============
FTS GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, 2006 and December 31, 2005
Assets 2006 2005 ----------- ----------- Current assets: Cash and cash equivalents $ 37,558 $ 243,079 Restricted cash 500,000 560,000 Accounts receivable 128,583 12,201 Inventories 418,917 33,180 Prepaid expenses and current assets 154,319 474,683 ----------- ----------- Total current assets 1,239,377 1,323,143
Property and equipment, net of accumulated depreciation 358,767 208,210 Unamortized discount on convertible debt 315,231 380,690 Unamortized debt issuance costs 88,718 46,313 Excess of cost over the net assets of business acquired 5,177,696 - Deposits 17,182 16,139 ----------- ----------- Total assets $ 7,196,971 $ 1,974,495 =========== ===========
Liabilities and Stockholders' Equity
Current liabilities: Accounts payable and accrued expenses $ 212,946 $ 468,185 Current portion of notes payable to related parties 2,389,586 80,850 Convertible debentures 1,238,321 - Current installments of long-term debt-equipment loans 9,896 - ----------- ----------- Total current liabilities 3,850,749 549,035 Convertible debentures - 1,213,049 Long-term debt to related parties, less current installments 1,500,000 - Long-term debt equipment loans, less current installments 1,670 - ----------- ----------- Total liabilities 5,352,419 1,762,084 ----------- -----------
Stockholders' equity: 10% Convertible preferred stock, Series A, $0.01 par value: 150,000 shares authorized; 0 shares issued and outstanding - - Preferred stock, $0.01 par value, 4,850,000 undesignated shares authorized, none issued - - Convertible preferred stock, Series B, $0.01 par value: 1,000,000 Shares authorized, issued and outstanding at June 30,2006 10,000 - Common stock, $.001 par value. Authorized 150,000,000 shares: 126,137,469 shares issued and outstanding at June 30, 2006, 102,098,756 shares issued and outstanding at December 31, 2005. 126,137 102,099 Additional paid-in capital 11,952,059 10,416,074 Accumulated deficit (10,243,644) (10,305,762) ----------- ----------- Total stockholders' equity 1,844,552 212,411 ----------- -----------
Commitments and contingent liabilities - -
----------- ----------- Total liabilities and stockholders' equity $ 7,196,971 $ 1,974,495 =========== ===========
See accompanying notes to consolidated financial statements.
FTS GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Six Months Ended June 30, 2006 and 2005
2006 2005 ----------- -----------
Cash flows from operating activities: Net income (loss) $ 62,118 $ (962,042) Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization 193,914 18,076 Common shares issued for services 98,400 294,350 Amortization of debt discount - 188,393 (Increase) decrease in operating assets: Accounts receivable (116,382) (118,010) Inventories (385,737) (29,877) Prepaid expenses 320,364 30,655 Other assets (1,043) (1,000) Increase (decrease) in operating liabilities: Accounts payable and accrued expenses (255,234) 98,101 ----------- ----------- Net cash used in operating activities (83,600) (481,354) ----------- -----------
Cash flows from investing activities: Capital expenditures for property and equipment (75,481) (107,537) Proceeds from funding restricted for investment in acquisition (440,000) - Release of restriction on funding proceeds for investment in acquisition 500,000 - Payment to See World Satellites, Inc. acquisition (500,000) - ----------- ----------- Net cash used in investing activities (515,481) (107,537) ----------- -----------
Cash flows from financing activities: Proceeds from issuance of stock 413,964 844,460 Proceeds from convertible debentures 134,947 - Proceeds from stock issued under equity line - 325,078 Proceeds from note payable to Dutchess Advisors - 500,000 Proceeds from notes payable related parties 518,798 - Repayments of notes payable-truck loans (9,087) - Repayments of note payable to Dutchess Advisors - (861,022) Repayments of debenture loan - (26,876) Repayments of notes payable to individuals - (34,000) Repayment of loans from related parties (665,062) (161,682) ----------- ----------- Net cash provided by financing activities 393,560 585,958 ----------- -----------
Net decrease in cash (205,521) (2,933)
Cash at beginning of year 243,079 7,949 ----------- ----------- Cash at end of year $ 37,558 $ 5,016 =========== ===========
Supplemental disclosure of non-cash investing and financing activities: Stock issued in exchange for convertible debentures $ - 51,016 =========== ===========
Acquisition of See World Satellites, Inc. Final negotiated purchase price of 100% of See World Satellites, Inc. stock $ 6,018,798 Amount financed through formal promissory note (3,500,000) Paid in preferred stock of FTS Group, Inc. (1,000,000) Amount representing contract addendums financed through short term advance (518,798) Due upon contact execution completion-restricted cash at 3/31/2006 (500,000) ----------- Cash paid for See World Satellites, Inc. acquisition $ 500,000 ===========
See accompanying notes to consolidated financial statements. FTS Group, Inc. expects to file its form 10Q with the Securities and Exchange Commission on August 15th, 2006.
About FTS Group, Inc.
FTS Group, Inc. (OTC BB:FLIP.OB - News) is a publicly traded holding company operating in the wireless industry through its wholly owned subsidiaries FTS Wireless, Inc. and See World Satellites, Inc. The Company operates through retail locations in Florida and Pennsylvania and globally over the Internet through its web sites www.FTSGroup.TV,www.CellChannel.com,www.SeeWorld.biz and www.FTSWireless.com. For additional information about FTS Group, Inc. or any of its wholly owned subsidiaries please review the Company's quarterly, annual and other filings with the Securities and Exchange Commission at http://www.SEC.gov or contact the Company at the e-mail or phone number below.
Forward-Looking Statements
Included in this release are certain "forward-looking'' statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important factors that should be considered is contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Readers are cautioned not to place reliance on these forward-looking statements, which speak only as of the date hereof.
Contact: Contact: FTS Contacts:
Investors: www.FTSGroup.TV Scott Gallagher, CEO Voice: (215) 688-2355 e-mail: Email Contact
People who own it keep it because the news are great and they expect more of it and buyers are waiting for it to move.
Posts: 819 | Registered: Apr 2006
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posted
in at 0.061.. you guys think this can go to 0.08 today? too many large sells going through around 0.06-0.062 range.. any takers on why?
-------------------- All my posts are based on my own opinions and not to be taken as buy/sell recommendations. Posts: 961 | Registered: May 2006
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posted
decent buys coming in at this point!!! shall we see 0.09 today ??
-------------------- All my posts are based on my own opinions and not to be taken as buy/sell recommendations. Posts: 961 | Registered: May 2006
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posted
The last time there was great revenue news, this stock made really well:
Back in july 19th
You can see the charts... I don't know how to post a chart sorry.
Press Release Source: FTS Group, Inc.
FTS Group Reports Preliminary 6 Month Revenue of $3.079 Million, an Increase of 473 Percent Over 2005 6-Month Revenue of $650K Wednesday July 19, 8:48 am ET
TAMPA, FL--(MARKET WIRE)--Jul 19, 2006 -- FTS Group, Inc. (OTC BB:FLIP.OB - News) today announced preliminary six month revenue of $3,079,686 for the period ending June 30, 2006 versus 2005 six month revenue of $650,700. FTS also expects to report its second consecutive profitable quarter for the period ending June 30, 2006 versus a loss of ($962,042) for the period ending June 30, 2005. FTS expects to report its full financial results after the market close on August 15th, 2006. FTS Group CEO Scott Gallagher stated, "We've completed another strong quarter with record operating results. New product launches by several wireless carriers and the launch of expanded High Definition services from DISH Networks should lead to an even stronger second half of 2006." Gallagher went on to say, "We continue to seek accretive acquisition targets as well as pursue organic growth opportunities."
About FTS Group, Inc.
FTS Group, Inc. (OTC BB:FLIP.OB - News) is a publicly traded holding company operating in the wireless industry through its wholly owned subsidiaries FTS Wireless, Inc. and See World Satellites, Inc. The Company operates through retail locations in Florida and Pennsylvania and globally over the Internet through its web sites www.FTSGroup.TV,www.CellChannel.com,www.SeeWorld.biz and www.FTSWireless.com. For additional information about FTS Group, Inc. or any of its wholly owned subsidiaries, please review the Company's quarterly, annual and other filings with the Securities and Exchange Commission at http://www.SEC.gov or contact the Company at the e-mail or phone number below.
ADVERTISEMENT
Forward-Looking Statements
Included in this release are certain "forward-looking'' statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important factors that should be considered is contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Readers are cautioned not to place reliance on these forward-looking statements, which speak only as of the date hereof.
Contact: Contact: FTS Contacts:
Investors: www.FTSGroup.TV Scott Gallagher CEO Voice: (215) 688-2355 e-mail: Email Contact
posted
I'm trying to figure out what happened there... I can't put my finger on it... is it MM's manipulation? I don't think so with that kind of volume... it should at least have finished in the green... let's see what tomorrow brings but, as I say... very strange behavior today with that stock.
I posted a news release from july 19th and the reaction was very good and these were only predictions, now we have the real number and it ends in the red? Something's wrong!
Posts: 819 | Registered: Apr 2006
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OK.. I think I can see a little bit .. the revenue news released was already expected. stock had increased around 50% already, and there was selling on news... .. hopefully better days ahead..
-------------------- All my posts are based on my own opinions and not to be taken as buy/sell recommendations. Posts: 961 | Registered: May 2006
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posted
Whats up with this pos. They show a NET profit and cant hold a share price worth looking at. Am I missing something or are folks not wanting to hold this. Just curious. TMAN...
-------------------- In the end, trust only yourself when trading stocks. Posts: 2048 | From: Texas | Registered: Feb 2006
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very bad close
