TAMPA, Fla., April 6, 2005 (PRIMEZONE) -- FTS Group, Inc. (OTCBB:FLIP), a publicly traded holding company focused on developing, investing in and acquiring cash-flow positive businesses and viable business projects, today announced financial results for the year ended December 31, 2004.
FTS Chairman and Chief Executive Officer Scott Gallagher commented, "We had an exceptional year building and streamlining our wireless distribution channel. We exited 2004 with record revenue growth and significantly lower debt exposure. We then exited the first quarter of 2005 by fully eliminating our convertible debt and achieving a new Company wireless activation record, setting the stage for continued growth. Although we posted a loss for 2004, we believe our company has achieved the critical mass necessary to support our organization going forward. To that end we will be aggressively reducing operating expenses during 2005 as attempt to grow both earnings and top-line revenue, putting our company on the road to profitability."
FTS GROUP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2004 AND 2003
2004 2003
----------- -----------
ASSETS
CURRENT ASSETS
Cash $ 7,949 $ 6,887
Accounts receivable 87,485 3,905
Inventory 44,998 7,759
Prepaid Expenses 35,430 1,512
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Total current assets 175,862 20,063
----------- -----------
PROPERTY AND EQUIPMENT, NET 124,555 50,577
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OTHER ASSETS
Investment in private entity 7,500 15,000
Deposits 19,489 17,650
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Total other assets 26,989 32,650
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$ 327,406 $ 103,290
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LIABILITIES AND STOCKHOLDERS'
DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued
expenses $ 259,723 $ 229,862
Notes payable -- individuals 37,250 --
Notes payable related parties,
net of debt discount
49,931 and $0 at December 31, 2004
and 2003, respectively 111,751 29,416
Note payable-Dutchess Advisors 240,000 --
----------- -----------
Total current liabilities 648,724 259,278
----------- -----------
CONVERTIBLE DEBENTURES 100,493 450,586
----------- -----------
STOCKHOLDERS' DEFICIT
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 -- --
Common stock, $0.001 par value,
150,000,000 shares authorized,
37,882,183 and 18,141,564 shares
issued and outstanding at
December 31, 2004 and 2003 37,882 18,142
Additional paid in capital 7,848,833 5,465,030
Accumulated deficit (8,308,526) (5,943,196)
Deferred compensation -- (146,550)
----------- -----------
Total stockholders' deficit (421,811) (606,574)
----------- -----------
$ 327,406 $ 103,290
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FTS GROUP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003
2004 2003
------------ ------------
REVENUES Sales, Net $ 712,282 $ 108,655
COST OF GOODS SOLD 521,660 90,058
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GROSS PROFIT 190,622 18,597
------------ ------------
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
Selling, general and
administrative expenses 2,191,837 844,117
------------ ------------
2,191,837 844,117
------------ ------------
LOSS FROM OPERATIONS (2,001,215) (825,520)
------------ ------------
OTHER INCOME (EXPENSE)
Impairment of long-lived
assets (107,000) --
Interest Expense (212,638) (48,121)
------------ ------------
(319,638) (48,121)
------------ ------------
NET LOSS FROM OPERATIONS (2,320,853) (873,641)
UNREALIZED LOSS ON
INVESTMENT (7,500) --
------------ ------------
NET LOSS $ (2,328,353) $ (873,641)
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PER SHARE INFORMATION:
WEIGHTED AVERAGE SHARES
OUTSTANDING
(BASIC AND DILUTED) 27,459,250 17,388,519
============ ============
NET LOSS PER COMMON SHARE
(BASIC AND DILUTED) $ (0.08) $ (0.05)
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About FTS Wireless, Inc.
FTS Wireless Inc., a wholly owned subsidiary of FTS Group, Inc. (OTCBB:FLIP) is an emerging regional operator of retail wireless locations that market and sell next generation wireless products and services and operate Wi-Fi HotSpot's. FTS Wireless currently operates a chain of retail wireless locations in the Florida Gulf Coast region and the Philadelphia suburban market. The company markets and sells products worldwide through its e-commerce site's www.CellularDeals.com and www.CellChannel.com . For additional information about FTS Group, Inc. or its subsidiary, please visit our website at www.FTSWireless.com or review our periodic filings with the Securities and Exchange Commission at http://www.sec.gov.
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 undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.