-- Total Revenue was $2,544,545, an increase of $1,104,564 or 76.7
percent from $1,439,981 for the same period in 2006.
-- EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) was $1,098,096, an increase of $448,214 or 69 percent from
$649,882 for the same period in 2006.
-- Net Income was $304,000 a slight decrease of $4,568 or 1.5 percent
from $308,568 for the same period in 2006.
"The USA Telephone/Nationwide acquisition in late 2007 has put Sitestar on
a steeper revenue and growth trajectory," said Frank R. Erhartic, Jr., CEO
for Sitestar. "The strong increases reflected in our first quarter revenue
and EBITDA foreshadow a similar trend for our near-term net income.
Unfortunately, due to both the size and complexity of integrating the USA
Telephone/Nationwide acquisition, we were unable to fully optimize our
operating expenses related to this customer base in time to attain the
profit margins commensurate with other metrics this quarter. Going
forward, we believe that our team's diligent efforts to reduce costs and
maximize performance will kindle a significant lift in profitability that
will be reflected in future quarters."
Commenting on Sitestar's acquisition activities, Mr. Erhartic added, "Our
purchase of Comcation in the first quarter further increased our access and
hosting customer base. More importantly, our early success has already
carried over into the second quarter in which we have already completed the
acquisition of Internet access customers from N2 The Net and DSL
subscribers from USA Telephone/Nationwide as well as Dial Assurance, which
enables us to offer managed modem dial-up service to other ISPs and realize
additional economies of scale. Given these initiatives, we expect our
second quarter financial results to shine."
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements that are based on
management's expectations, estimates, projections and assumptions. The
Company assumes no obligation except as required by law to update the
forward-looking statements contained in this press release as a result of
new information or future events or developments. These forward-looking
statements generally can be identified by words such as "believes,"
"expects," "projects," "anticipates," "foresees," "forecasts," "estimates,"
"should" or other words or phrases of similar import. Forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, as amended. These statements are
not guarantees of future performance and involve certain risks and
uncertainties, which are difficult to predict. Therefore, actual future
results and trends may differ materially from what is forecast in
forward-looking statements due to a variety of factors, including and
without limitation, as found in the Company's reports filed with the
Securities and Exchange Commission.
About Sitestar
Sitestar is an Internet solutions provider that offers consumer and
business-grade Internet access, wholesale managed modem services for
downstream ISPs and Web hosting. Headquartered in Lynchburg, Virginia,
Sitestar maintains multiple sites of operation and provides services to
customers throughout the U.S. and Canada. With a focus on competitive
pricing, reliability, service and speed, Sitestar delivers customer value.
For more information, visit www.sitestar.com.
Contact Information: Contact: Frank R. Erhartic, Jr. 434-239-4272