NEWS OUT = double revenu
Sitestar Announces Preliminary Results for Fiscal Year 2001; Company Offers Revenue and Earnings Guidance for FY 2002
SHERMAN OAKS, Calif., Feb 26, 2002 (BUSINESS WIRE) -- Sitestar Corporation
(OTCBB: SYTE), an investment holding company, today announced that it achieved
another record year of revenue and operating cash flow growth.
FY2001 Results
The Company recorded estimated net revenues of $4.1 million for FY 2001 up 116%
from FY 2000's net revenues of $1.9 million. The Company also recorded an
estimated adjusted EBITDA of $1 million, significantly higher from FY 2000's
adjusted negative EBITDA of ($12,367). Adjusted EBITDA represents
earnings/(loss) before depreciation and amortization, interest income and
expense, income tax expense (benefit), equity in profit/(loss) of unconsolidated
affiliates, inventory write-down, impairment in value of goodwill, stock based
compensation, gain/(loss) on assets and extraordinary items and other non-cash
charges.
On an annualized basis, Sitestar was on track to do $4.6 million of net revenues
and $1.12 million of adjusted EBITDA. The variance between the estimated actual
financial results and the run rate was primarily due to the acquisition of
Advanced Internet Services, which was consummated in the 2nd half of FY2001. The
Advanced Internet acquisition will be fully accretive for the full year of FY
2002.
"2001 marked an important year in our evolution. We have achieved a level of
critical mass which enables us to capitalize on a number of operating
efficiencies. Our existing markets offer continued growth potential, our
infrastructure is secure and our team and strategy are proven," remarked Clinton
J. Sallee, President and CEO of Sitestar Corporation.
Projected Growth Rate
The Company expects to further grow revenue and cash flow in FY 2002. Absent any
further acquisitions, management estimates that the Company will grow its
revenues between 20% to 25% for this fiscal year. Sitestar projects to do net
revenues of $5 million to $5.20 million for this current fiscal year generating
a projected adjusted EBITDA of $1.3 million to $1.6 million. These estimates are
based primarily on organic growth and do not take into consideration any
potential growth created by additional acquisitions.
"Our goal for 2002 is to continue to capitalize on the infrastructure we have
built over the past two years. In addition to leading internal growth strategies
at each of our operating divisions, we will continue to aggressively explore and
capitalize on strategic acquisitions," noted Sallee.
About Sitestar
Sitestar is a publicly held investment company that acquires and invests in
emerging technology-based enterprises. Its primary focus is the acquisition of
small independent Internet Service Providers in the rural and secondary markets
of the mid-Atlantic region of the United States. Sitestar's wholly owned
subsidiaries provide narrow and broadband Internet access, electronic
infrastructure development, Web-hosting and design services and other
technology-related solutions to residential and business users.
Sitestar's wholly owned subsidiaries include Sitestar.net, Lynchburg.net,
Computers By Design, Advanced Internet Services and Sitestar Applied
Technologies.
Statements regarding financial matters in this news release other than
historical facts are "forward-looking statements," within the meaning of Section
27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of
1934, and as that term is defined in the Private Securities Litigation Reform
Act of 1995. The company intends that such statements about the company's future
expectations, including future revenues and earnings, the anticipated stock
dividends and all other forward-looking statements, be subject to the safe
harbors created thereby. Since these statements (future operational results and
sales) involve risks and uncertainties and are subject to change at any time,
the company's actual results may differ materially from expected results.
CONTACT: Sitestar Corporation, Sherman Oaks
Clinton J. Sallee, 818/380-8180
Facsimile: 818/380-8188
csallee@sitestar.com
sitestar.com |
