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Symbol changed to MBNDD Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 15, 2011 05:52PM
Symbol changed to MBNDD (MBND) filed Quarterly Report for the period ended 2011-06-30. Multiband Corp. has a market cap of $33.88 million; its shares were traded at around $3.18 with a P/E ratio of 8 and P/S ratio of 0.13.
Highlight of Business Operations:
HSP segment revenues for the three months ended June 30, 2011, were $65,408 in comparison to $59,371 for the same period in 2010, an increase of 10.2%. Revenues for the six months ended June 30, 2011, for the HSP segment, were $124,196 as compared to $114,098 for the same period in 2010, a increase of 8.9%. The increase was primarily due to an increase in DirecTV work order volume of approximately 4%, an increase in earned incentive revenue of approximately $4,903 and an increase in fuel subsidy revenue of $969. The Company expects revenues in the HSP segment to improve during the third quarter followed by a normal seasonal decrease in the fourth quarter.
Revenues in the second quarter of 2011 for the MDU segment increased 15.5% to $6,374, as compared to $5,517 in the second quarter of 2010. Revenues for the six month period ended June 30, 2011, for the MDU segment, increased 9.3% to $12,061 from $11,038 for the same period in 2010. The increase for both periods was primarily due to increased build-out revenue of $923. The build-out revenue relates to installation work provided to the Company by DirecTV. The Company believes it can increase revenues by increasing this build-out revenue and by selling its support center services to its network of system operators and other third parties. The Company expects MDU revenues to be slightly increased for the balance of 2011 due to aforementioned increase in build-out revenue.
Cost of products and services increased by 19.5% for the HSP segment for the three months ended June 30, 2011 and were $48,058 for the HSP segment, compared to the $40,221 in the prior year quarter. For the six months ended June 30, 2011, cost of products and services were $91,942 for the HSP segment compared to $80,591 in the prior year, a 14.1% increase. The change for the six months ended June 30, 2011 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 $3,738 as well as more technician training and incentive pay which amounted to $3,013. Fleet expenses also increased $3,022 as a result of increased volume and a rise in fuel costs during the quarter over the prior year period which was partially offset by a net gain of $341 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.
The Company, in the second quarter of 2011, earned income from operations of $4,486, versus $5,428 during the prior year s comparable period. Income from operations was $4,851 during the first six months of 2011 compared to $5,770 during the first half of 2010. For the second quarter of 2011, the HSP segment earned income from operations of $5,349, compared to $6,804 in the same period last year. For the six months ended June 30, 2011, income from operations was $8,034 for the HSP segment, compared to $9,328 in the prior year. This decrease in income was primarily to an increase in cost of products and services. The HSP segment is expected to maintain its profitability through 2011. The MDU segment showed a loss from operations of $282 for the three months ended June 30, 2011, compared to a loss of $719 for the three months ended June 30, 2010. The mitigated loss is a result of increased build-out work. For the six months ended June 30, 2011, loss from operations was $1,067 for the MDU segment, compared to a loss from operations of $1,398 in the same period last year. 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, incurred a loss from operations of $581 for the three months ended June 30, 2011 and $2,116 for the six months ended June 30, 2011 compared to losses of $657 and $2,160 for the same periods 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 six months ended June 30, 2011 and 2010, the Company earned net income of $1,943 and $1,431, respectively. Net cash provided by operations during the six months ended June 30, 2011 was $11,386, compared to the six months ended June 30, 2010 of $10,471. Principal payments on current long-term debt, short-term debt and capital lease obligations over the next 12 months are expected to total $4,527. The Company intends to pay these maturing debt obligations with cash generated by operations.
Cash and cash equivalents totaled $17,078 at June 30, 2011, versus $1,204 at December 31, 2010. The Company s working capital at June 30, 2011 was $6,839, compared to a working capital deficit $12,303 at December 31, 2010, primarily due to the net proceeds of $16,176 received by the Company from the common stock public offering on June 1, 2011. Net cash used by investing activities totaled $3,307 for the six months ended June 30, 2011, compared to $1,112 for the six months ended June 30, 2010.
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