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Symbol changed to MBNDD Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 16, 2011 04:29PM
Symbol changed to MBNDD (MBND) filed Quarterly Report for the period ended 2011-03-31. Multiband Corp. has a market cap of $39.11 million; its shares were traded at around $3.8 with a P/E ratio of 9.27 and P/S ratio of 0.15.
Highlight of Business Operations:
HSP segment revenues for the three months ended March 31, 2011, were $58,788 in comparison to $54,727 for the same period in 2010, an increase of 7.4%. The increase was due to an increase in DirecTV work order volume of approximately 12.0% and an increase in earned incentive revenue of approximately $2,000. Historically, first quarter revenues are lower than all subsequent quarters as we perform a significant amount of our services outdoors and winter weather can restrict our activity. The Company expects revenues in the HSP segment to improve during the second and third quarters followed by a normal seasonal decrease in the fourth quarter.
Cost of products and services increased by 8.7% for the HSP segment for the three months ended March 31, 2011 and were $43,884 for the HSP segment, compared to the $40,370 in the prior year quarter. This change is the result of higher costs due to the increase in work order volume and changes in job mix plus a decision by management to increase the number of technician supervisors. This resulted in increased payroll and payroll taxes of $1,365 as well as more technician training and incentive pay which amounted to $1,439. Fleet expenses also increased $117 as a result of a rise in fuel costs of $433 during the quarter over the prior year period which was partially offset by a net gain of $316 from the sale of fleet vehicles During the remainder of 2011, the Company expects HSP cost of products and services to remain steady relative to revenue.
Cost of products and services for the MDU segment increased 8.1% for the current quarter and were $3,875, compared to $3,583 in the same quarter last year. This increase comes from the increased costs associated with the increase in build-out revenue. In 2011, the Company expects MDU cost of products and services to remain relatively constant in relation to revenue.
The Company, in the first quarter of 2011, earned income from operations of $364, versus $342 during the prior year s comparable period. For the first quarter of 2011, the HSP segment earned income from operations of $2,684, compared to $2,524 in the same period last year. This slight improvement in income was primarily due to materially increased incentive revenue of $2,000. However, the Company s overall job mix, as previously referenced, combined with certain payroll increases largely offset the gains in incentive revenue. The Company expects a more favorable job mix in subsequent quarters in part due to milder weather. The HSP segment is expected to maintain its profitability through 2011. The MDU segment showed a loss from operations of $785 for the three months ended March 31, 2011, compared to a loss of $679 for the three months ended March 31, 2010, primarily due to reduced DirecTV MDU subscriber activations and increased support costs. The Company plans to mitigate its loss in the MDU segment in future periods by increasing its installation build-out work and by seeking growth and concentrating subscribers in targeted geographic markets in order to service them more efficiently. The MBCorp segment, which has no revenues, showed a loss from operations of $1,535 for the three months ended March 31, 2011 compared to a loss of $1,503 for the same period last year. The MBCorp segment loss is expected to continue in future periods as corporate overhead is expected to remain consistent with current levels.
During the three months ended March 31, 2011 and 2010, the Company incurred net losses of $92 and $964, respectively. Net cash provided by operations during the three months ended March 31, 2011 was $5,787, compared to the three months ended March 31, 2010 of $4,290. Principal payments on current long-term debt, short-term debt to a related party and capital lease obligations over the next 12 months are expected to total $7,973. The Company intends to pay these maturing debt obligations with cash generated by operations.
Cash and cash equivalents totaled $3,342 at March 31, 2011, versus $1,204 at December 31, 2010. The Company s working capital deficit at March 31, 2011 was $10,711, compared to $12,303 at December 31, 2010. Net cash used by investing activities totaled $495 for the three months ended March 31, 2011, compared to $499 for the three months ended March 31, 2010.
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