SYTE SITESTAR CORP - Releases Quarterly Report
New York, New York, Nov. 15, 2000 (Market News Publishing via COMTEX) --
Sitestar Corp., an Internet holding company, issued its quarterly report.
Sitestar revenue for the quarter increased by approximately 23% over the prior
quarter. Revenue for the nine months ended Sept. 30, 2000 was 5.2c per share,
and revenue for the third quarter was $474,000, or 1.9c per share, versus 1.4c
per share for the previous quarter. Cash flow for the ISP division, Sitestar's
core operation, was positive, and increased due to the revenue increase and an
approximate 20% decrease in telecommunications costs. Sitestar has been able to
service more customers for approximately the same fixed cost as incurred in the
prior quarters due to improving economies of scale.
Offering further insight into the numbers, Clinton J. Sallee, Sitestar's
president and chief executive officer commented, "As a result of our acquisition
strategy, we expect strong revenue growth in the coming years. Clearly, we are
on the right track, producing positive cash flow in our ISP operation and
enjoying positive developments in our other segments. Revenue has been growing
at a fast pace, and we are considering acquisitions that will catapult the
company to a higher level. The accounting losses per share include non-cash
expenses such as depreciation and amortization. Such expenses are accounting
procedures that are derived from our acquisition strategy and are not hindering
the future and the financial stability of the company."
About Sitestar Corporation Sitestar Corp. is a diversified Internet holding
company that participates, through its wholly-owned Web-based subsidiaries, in
emerging segments of the Internet such as e-commerce, value-added content, ISP
and Portal/Community.
To sustain its growth, the company acquires and invests in emerging
Internet-related enterprises to create a broad and diverse set of core Internet
businesses that deliver a variety of online solutions.
In addition to developing and integrating Internet-based technologies, the
company's primary objective is to maximize shareholder value by creating a
healthy mix of Internet operating companies and Internet-related portfolio
investments that will enhance the value of its core holdings.
Sitestar's wholly-owned subsidiaries include Neocom Microspecialists,
Sitestar.net, Soccersite.com, Greattools.com and Holland-American.com, and has a
minority equity investment in Qliq-On Corp. Sitestar corporate headquarters are
located at 16133 Ventura Blvd., Suite 635, Encino, CA 91436; telephone
818/981-4519; and facsimile 818/981-2658. Additional information is available on
the company's Web site at sitestar.com.
Sitestar's Corporate Mission The company's mission is to develop its Internet
operating subsidiaries and future portfolio investments in other Internet
enterprises into highly focused and successful stand-alone Internet businesses.
The company intends to achieve a fast-track development process by tapping the
services, support and knowledge of individuals and organizations that have
extensive experience in developing Internet concepts and 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.
Sitestar Corporation and Subsidiaries
Consolidated Statements of Operations
for the Nine Months Ended Sept. 30, 2000 and 1999
2000 1999
Revenue $ 1,290,774 $ 18,684
Cost of Revenue 639,467 22,740
Gross Profit (Loss) 651,307 (4,056)
Selling, General And
Administrative Expenses 2,090,377 2,198,517
Loss From Operations of Business
Transferred Under Contractual
Obligations 42,233 40,786
Loss From Operations (1,481,303) (2,243,359)
Other Income (Expenses)
Gain on sale of assets 363,831 -
Increase in market value
of marketable securities 30,697 -
Interest expense (252,648) (11,772)
Loss Before Income Taxes (1,339,423) (2,255,131)
Income Taxes - -
Net Loss $ (1,339,423)$ (2,255,131)
Basic and Diluted Loss Per Share $ (0.05) $ (0.12)
Weighted Average Shares
Outstanding -- Basic and Diluted 24,507,376 18,600,036
Sitestar Corporation and Subsidiaries
Consolidated Balance Sheet
Sept. 30, 2000
ASSETS
Current Assets
Cash and cash equivalents $ 77,455
Marketable Securities 705,697
Accounts receivable, less allowance for
doubtful accounts of $140,000 142,199
Other current assets 68,822
Total current assets 994,173
Property and Equipment, Net 396,913
Deferred Loan Costs 271,565
Customer List, Net 1,930,085
Excess of Cost Over Fair Value of
Net Assets Acquired, Net 2,358,621
Investments 160,000
Other Assets 16,045
Total Assets $ 6,127,402
Sitestar Corporation and Subsidiaries
Consolidated Balance Sheet, Continued
Sept. 30, 2000
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 195,
604
Accrued expenses 201,
066
Deferred revenue 121,
309
Due to stockholder 20,
000
Convertible debenture 985,
000
Note payable -- stockholders, current portion 233,
025
Notes payable, current portion 72,
050
Capital lease obligations, current portion 49,
185
Total current liabilities 1,877,
239
Notes Payable -- Stockholders,
Less Current Portion 53,
884
Notes Payable, Less Current Portion 422,
823
Capital Lease Obligations, Less Current Portion 10,
068
Total Liabilities 2,364,
014
Commitments and Contingencies
Stockholders' Equity
Preferred Stock, $.001 par
value, 10,000,000 shares authorized,
0 shares issued and outstanding
-
Common Stock, $.001 par value,
75,000,000 shares authorized,
25,735,816 shares issued and outstanding 25,
736
Additional paid-in capital 9,127,
327
Accumulated deficit (5,389,
675)
Total stockholders' equity 3,763,
388
Total Liabilities and
Stockholders' Equity $ 6,127,
402
-0-
TEL: 818/981-4519 Sitestar Corp., Encino
TEL: 818/981-4519 Sitestar Corp., Encin
Clinton J. Sallee, csallee@sitestar.com
INET : sitestar.com
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