|By Marketwired .||
|May 12, 2014 07:09 PM EDT||
PHILADELPHIA, PA -- (Marketwired) -- 05/12/14 -- Alteva, Inc. ("Alteva" or the "Company") (NYSE MKT: ALTV), a premier provider of hosted Unified-Communications-as-a-Service ("UCaaS"), today announced selected financial results for the first quarter ended March 31, 2014.
First Quarter 2014 Financial Results Highlights
- For the first quarter of 2014, the Company achieved Adjusted EBITDA* of $1.2 million, an improvement from $1.0 million from the same period in 2013; Adjusted EBITDA* included $2.0 million and $3.25 million of income from the Company's O-P investment for the first quarters of 2014 and 2013 respectively;
- The Company narrowed its operating loss for the first quarter of 2014 to $(2.2) million, as compared to $(4.3) million for the same period in 2013;
- The Company narrowed its net loss for the first quarter of 2014 to $(0.2) million, as compared to $(0.7) million for the same period in 2013;
- For the first quarter of 2014, UC revenues increased by 7%, which includes the results of the Syracuse, NY operations that were sold in September 2013, to $4.2 million from $4.0 million for the first quarter of 2013; excluding the Syracuse operations, UC revenues increased 23% for the first quarter of 2014 as compared to the same period in 2013;
- At the end of the first quarter 2014, there were over 40,000 users on Alteva's hosted platform, which represents an increase of 23% of the installed base compared to the end of first quarter 2013; excluding the seats associated with the divested Syracuse operations, users on Alteva's hosted platform increased 38%;
- Gross profit margin increased to 59% in the first quarter of 2014 from 51% for the same period in 2013;
- The Company continues to invest in its UCaaS platform technologies while strengthening its financial position; accordingly the Company has made enhancements to its service offerings to add new mobile applications that seamlessly integrate Alteva's HD voice with Microsoft's Lync Communication services, Google Apps for Business and leading cloud-based CRM applications like Salesforce.com;
- The Company intends to continue its focus on profitable growth and we expect Adjusted EBITDA* to improve with rationalization of the business model, focused channel growth and business development.
First Quarter 2014 Results
Revenues were $7.5 million in the first quarter of 2014, a decrease of 3% from $7.7 million for the same period in 2013. Revenues increased 5% year-over-year excluding the revenue from the Syracuse operations that were sold in September 2013.
UC revenues were $4.2 million in the first quarter of 2014, an increase of 5% from $4.0 million for the same period in 2013. UC revenues in the first quarter of 2014 increased 23% on a year-over-year basis excluding the revenue from the Syracuse operations, and improved by 8% from the fourth quarter of 2013 on a similar comparison. As a percentage of consolidated revenue, the UC segment contributed approximately 56% of revenues in the first quarter of 2014 as compared with 51% for the same period in 2013. The increase in UC revenues was attributable to the addition of new clients and the increase in services to existing clients. Approximately 86% of first quarter UC revenues were from licenses and services which are expected to be recurring in nature, with the balance of revenues derived from equipment sales for UC customer implementations.
Telephone revenues were $3.3 million in the first quarter of 2014, as compared with $3.8 million for the same period in 2013. The Telephone segment contributed approximately 44% of revenues in the first quarter 2014 as compared with 49% for the same period of 2013. Telephone revenues were slightly lower year-over-year as a result of continued access line losses and decreases in revenue from pooling arrangements. These decreases were partially offset by an increase in access line rates earlier in the year and modest growth in broadband Internet services revenues.
Gross profit increased by 13% to $4.5 million in the first quarter of 2014 from $4.0 million for the same period in 2013. Gross profit as a percentage of revenues was 59% in the first quarter 2014, as compared with 51% for the same period in 2013. The improvement in gross profit primarily reflects the increase in revenues contributed by the UC segment and the Company's ability to leverage its existing infrastructure, and impact of the cost reduction initiatives, which included the sale of the Syracuse operations, and the previously disclosed workforce reduction in the Telephone segment.
Selling, general and administrative ("SG&A") expenses in the first quarter of 2014 were $5.8 million, as compared with $7.2 million for the same period in 2013. The $1.4 million, or 19%, decrease in SG&A expenses was primarily associated with a reduction in wages, including the impact from the restructuring of the Telephone segment in the second quarter of 2013, the sale of the Syracuse operations, severance charges in the first quarter of 2013, and other expense management initiatives implemented throughout the year.
Total other income for the first quarters of 2014 and 2013 was $1.9 million and $3.1 million, respectively. Other income included the income from the Company's equity investment in the O-P partnership in the first quarters of 2014 and 2013 of $2.0 million and $3.25 million, respectively. In 2013, the Company received guaranteed annual distributions of $13 million. In 2014, in accordance with to the O-P agreement, the guaranteed distribution levels stopped and the Company will receive income from the equity investment only for its ownership share of 8.108% of the O-P's net income.
For the first quarter of 2014, the Company had an income tax benefit of $58,000, or 19% of loss before income taxes, as compared to an income tax benefit of $0.5 million, or 43% of loss before income taxes, for the first quarter of 2013. The estimated effective tax rate for each period includes projections of tax expense on the expected change in our valuation allowance for deferred tax assets. The decrease in the effective tax rate is due to the expected increase in the valuation allowance for deferred tax assets reducing the overall tax benefit recorded for the period ended March 31, 2014.
For the first quarter of 2014, the Company's net loss was $(0.2) million, as compared to a net loss of $(0.7) million for the same period of 2013.
Basic and diluted net loss per share was $(0.04) for the first quarter of 2014, as compared with basic and diluted net loss per share of $(0.12) in the same period of the prior year.
On April 30, 2014, the Company announced that, in accordance with its previously announced plans, the Company has exercised the put option to sell its interest in the Orange County-Poughkeepsie Limited Partnership (the "O-P"). The gross proceeds of $50 million, which the Company received on April 30, 2014, will be used to pay taxes on the related gain, repay outstanding senior debt, fund working capital needs and support growth initiatives, including supporting Alteva's current customers and deploying solutions for new customers. After April 30, 2014, the Company will no longer have any interest in the O-P and will no longer receive any income from the O-P.
The Company will conduct a conference call to discuss first quarter results on Tuesday, May 13, 2014 at 10:00 a.m. eastern. Investors and other interested parties can listen to the call by dialing the participant number of 412-317-6789 or 877-317-6789 (toll free), no access code required, approximately 10 minutes prior to the start of the conference call. A simultaneous webcast of the conference call can be accessed through Alteva's website at www.alteva.com in the Investors section.
A replay of this conference call will also be available by dialing 412-317-0088 or 877-344-7529 (toll free), access code: 10045809, beginning 12:00 p.m. eastern on May 14, 2014 through 9:00 a.m. eastern June 4, 2014, and via the Company's website at www.alteva.com.
Alteva (NYSE MKT: ALTV) is a premier provider of hosted Unified-Communications-as-a-Service ("UCaaS") that significantly enhances business productivity and efficiency. Alteva's UCaaS solution integrates and optimizes best-in-class cloud-based technologies and business applications to deliver a comprehensive voice, video and collaboration service for the office and mobile workforce. Alteva is committed to delivering meaningful value to our customers through a consistent, high quality and unified user experience across multiple devices, platforms and operating systems. These attributes have positioned Alteva as a leading hosted communications provider and the partner of choice for a growing number of business customers nationwide and internationally. To learn more about Alteva, please visit www.alteva.com. You can also follow Alteva on Twitter @AltevaInc or LinkedIn.
*Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization adjusted to exclude non-cash stock-based compensation, severance related expense, and nonrecurring charges associated with the disposal of the Syracuse operations. A reconciliation of adjusted EBITDA to net income (loss) can be found at the end of the following tables. Adjusted EBITDA is commonly used by management and investors as an indicator of operating performance and liquidity. Adjusted EBITDA is not considered a measure of financial performance under GAAP and it should not be considered as an alternative to net income (loss), or other financial statement data presented in accordance with GAAP in our consolidated financial statements.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements, without limitation, regarding expectations, beliefs, intentions, growth, profitability, or strategies regarding the future. Alteva intends that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Alteva's actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: expectations of future profitability; general economic and business conditions, both nationally and in the geographic regions in which Alteva operates; industry capacity; demographic changes; technological changes and changes in consumer demand; the successful integration of Alteva's acquired businesses; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; legislative proposals relating to the businesses in which Alteva operates; competition; or the loss of any significant ability to attract and retain qualified personnel. Given these uncertainties, current and prospective investors should be cautioned in their reliance on such forward-looking statements. Except as required by law, Alteva disclaims any obligation to update any such factors or to publicly announce the results of any revision to any of the forward-looking statements contained herein to reflect future events or developments. A more comprehensive discussion of risks, uncertainties, financial reporting restatements, and forward-looking statements may be seen in Alteva's Annual Report on Form 10-K and other periodic filings with the U.S. Securities and Exchange Commission.
ALTEVA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share amounts) Three Months Ended March 31, ------------------------ 2014 2013 ----------- ----------- Operating revenues Unified Communications $ 4,211 $ 3,956 Telephone 3,313 3,784 ----------- ----------- Total operating revenues 7,524 7,740 Operating expenses Cost of services and products (exclusive of depreciation and amortization expense) 3,052 3,789 Selling, general and administration expenses 5,798 7,248 Depreciation and amortization 903 1,002 ----------- ----------- Total operating expenses 9,753 12,039 ----------- ----------- Operating loss (2,229) (4,299) Other income (expense) Interest expense (139) (236) Income from equity method investment 2,040 3,250 Other income, net 21 108 ----------- ----------- Total other income 1,922 3,122 ----------- ----------- Loss before income taxes (307) (1,177) Income tax benefit (58) (506) ----------- ----------- Net loss (249) (671) Preferred dividends 6 6 ----------- ----------- Loss applicable to common stock $ (255) $ (677) =========== =========== Basic loss per common share $ (0.04) $ (0.12) =========== =========== Diluted loss per common share $ (0.04) $ (0.12) =========== =========== Weighted average shares of common stock used to calculate loss per share: Basic (common) 6,161 5,751 =========== =========== Diluted (common) 6,161 5,751 =========== =========== ALTEVA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) March 31, December 31, 2014 2013 ------------ ------------ (Unaudited) Assets Current assets Cash and cash equivalents $ 259 $ 1,636 Trade accounts receivable - net of allowance for uncollectibles - $406 and $378 at March 31, 2014 and December 31, 2013, respectively 3,126 2,836 Other accounts receivable 557 480 Equity method investment 2,040 - Materials and supplies 225 237 Prepaid expenses 817 774 Prepaid income taxes 204 - Deferred income taxes 108 108 ------------ ------------ Total current assets 7,336 6,071 ------------ ------------ Property, plant and equipment, net 13,563 13,837 Intangibles, net 5,644 5,856 Seat licenses 1,736 1,749 Goodwill 9,006 9,006 Other assets 822 744 ------------ ------------ Total assets $ 38,107 $ 37,263 ============ ============ Liabilities and Shareholders' Equity Current liabilities Short-term debt $ 10,898 $ 10,126 Accounts payable 1,354 944 Advance billing and payments 334 341 Accrued taxes 1,203 1,692 Pension and post retirement benefit obligations 267 267 Other accrued expenses 4,200 3,934 ------------ ------------ Total current liabilities 18,256 17,304 ------------ ------------ Long-term debt 404 297 Deferred income taxes 711 649 Pension and post retirement benefit obligations 5,929 6,007 ------------ ------------ Total liabilities 25,300 24,257 ------------ ------------ Commitments and contingencies Shareholders' equity Preferred shares - $100 par value, authorized and issued shares of 5; $0.01 par value authorized and unissued shares of 10,000; 500 500 Common stock - $0.01 par value, authorized shares of 10,000 6,862 and 6,971 shares issued at March 31, 2014 and December 31, 2013, respectively 69 70 Treasury stock - at cost, 875 and 830 common shares at March 31, 2014 and December 31, 2013, respectively (8,010) (7,612) Additional paid in capital 13,586 13,279 Accumulated other comprehensive loss (1,288) (1,436) Retained earnings 7,950 8,205 ------------ ------------ Total shareholders' equity 12,807 13,006 ------------ ------------ Total liabilities and shareholders' equity $ 38,107 $ 37,263 ============ ============ ALTEVA, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Three Months Ended March 31, ---------------------------- 2014 2013 ------------- ------------- CASH FLOW FROM OPERATING ACTIVITIES Net loss $ (249) $ (671) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 903 1,002 Stock based compensation expense 306 218 Undistributed earnings from equity investment (2,040) - Distribution in excess of income from equity investments included in net loss - (1,424) Other non-cash operating activities 113 193 Changes in assets and liabilities Trade accounts receivable (290) 364 Other assets (473) (597) Accounts payable 410 144 Other accruals and liabilities (274) 1,331 ------------- ------------- Net cash (used in) provided by operating activities (1,594) 560 ------------- ------------- CASH FLOW FROM INVESTING ACTIVITIES Capital expenditures (48) (176) Proceeds from sale of assets 33 - Acquired intangibles - (58) Purchase of seat licenses - (194) Distribution in excess of income from equity investments - 1,424 ------------- ------------- Net cash (used in) provided by investing activities (15) 996 ------------- ------------- CASH FLOW FROM FINANCING ACTIVITIES Proceeds from debt 1,300 16,273 Repayment of debt and capital leases (664) (15,845) Payment of fees for acquisition of debt - (119) Purchase of treasury stock (398) (62) Dividends (Common and Preferred) (6) (1,670) ------------- ------------- Net cash provided by (used in) financing activities 232 (1,423) ------------- ------------- Net change in cash and cash equivalents (1,377) 133 Cash and cash equivalents at beginning of period 1,636 1,799 ------------- ------------- Cash and cash equivalents at end of period $ 259 $ 1,932 ============= ============= Supplemental disclosure of non-cash investing activities: Acquisition of equipment under capital leases $ 242 $ - Seat licenses acquired but not paid $ 114 $ - ALTEVA, INC. RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) AS IT IS PRESENTED ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands) Three Months Ended March 31, ---------------------------- 2014 2013 ------------- ------------- Net loss $ (249) $ (671) Depreciation and amortization 903 1,002 Stock-based compensation 306 218 Severance related charges 170 714 Interest expense, net 139 236 Income tax benefit (58) (506) ------------- ------------- Adjusted EBITDA $ 1,211 $ 993 ============= =============
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
Apr. 26, 2017 09:00 PM EDT Reads: 924
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Apr. 26, 2017 08:45 PM EDT Reads: 463
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Apr. 26, 2017 08:15 PM EDT Reads: 1,158
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Apr. 26, 2017 08:00 PM EDT Reads: 1,186
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Apr. 26, 2017 07:45 PM EDT Reads: 648
Apr. 26, 2017 07:15 PM EDT Reads: 9,085
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Apr. 26, 2017 06:30 PM EDT Reads: 2,254
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
Apr. 26, 2017 06:15 PM EDT Reads: 2,418
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Apr. 26, 2017 06:15 PM EDT Reads: 800
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 26, 2017 05:30 PM EDT Reads: 2,156
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
Apr. 26, 2017 05:15 PM EDT Reads: 2,778
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Apr. 26, 2017 05:00 PM EDT Reads: 927
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Apr. 26, 2017 03:15 PM EDT Reads: 1,435
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
Apr. 26, 2017 02:30 PM EDT Reads: 1,457
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Apr. 26, 2017 01:45 PM EDT Reads: 914
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Apr. 26, 2017 01:30 PM EDT Reads: 1,181
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 26, 2017 12:45 PM EDT Reads: 1,141
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Apr. 26, 2017 12:00 PM EDT Reads: 1,160
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Apr. 26, 2017 10:45 AM EDT Reads: 3,080
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Apr. 26, 2017 10:30 AM EDT Reads: 2,174