Sitestar Reports Third Quarter Results
Company Doubles Net Income, Sharply Increases EBITDA & Revenue and Posts Ninth Consecutive Profitable Quarter
Lynchburg, VA, November 16, 2006 --(PR.com)-- Sitestar Corporation (OTCBB: SYTE), a provider of residential and business Internet access and value-added computer services, announced today that Internet-related growth drove third quarter net income to double, and for EBITDA (earnings before interest, taxes, depreciation and amortization) and total revenue to nearly double compared to the same period last year, propelling the Company to achieve profitability for the ninth consecutive quarter. Sitestar also continued to trim its current notes payable and negotiate more favorable rates and terms with its suppliers to achieve reduced expenses. In addition, the Company increased its customer base through the acquisition of the assets of FIRST NET.
Sitestar reported an increase of 142.4 percent in net income for the third quarter of 2006, posting $282,468 compared to $116,524 for the same period in 2005. Third quarter EBITDA increased by 97.6 percent or $306,487 to $620,537, up from $314,050 in the same period in 2005. Total revenue for the third quarter of 2006 was of $1,463,885, a 78.9 percent increase over the $818,408 reported for the 2005 third quarter. Similarly, Sitestar’s year-to-date net income increased by 131.7 percent to $797,811 compared to $344,333 in 2005. Year-to-date EBITDA was $1,721,583, an increase of 104.7 percent or $880,566 compared to $841,017 from the same period in 2005. Total revenue for the year-to-date totaled $4,286,437, which represents a 78.7 percent increase over 2005 year-to-date total revenue of $2,399,414
“Our solid quarterly results demonstrate our ongoing ability to execute our plan," said Frank R. Erhartic, Jr., CEO for Sitestar. “We’re generating repeatable and predictable revenue over each quarter, increasing our customer base through strategic and sensible acquisitions that have a positive and sustainable impact on our balance sheet and steadily paying down and retiring debt. Moving forward, our disciplined approach to growing and managing Sitestar will continue to reward our shareholders.”
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 (www.sitestar.com) is an Internet and computer solutions provider that offers narrow-band (dial-up) services and broadband Internet access services (ISDN, DSL, satellite, cable and wireless), Web hosting and design, and other value-added services including Web acceleration, spam and virus filtering as well as spyware protection. Headquartered in Lynchburg, Virginia, Sitestar maintains multiple sites of operation and provides services to customers throughout the U.S. and Canada, with concentrations in customers in the Mid-Atlantic and Rocky Mountain regions in the U.S. and in Ontario, Canada. With a focus on competitive pricing, reliability, service and speed, Sitestar delivers customer value.
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Sitestar reported an increase of 142.4 percent in net income for the third quarter of 2006, posting $282,468 compared to $116,524 for the same period in 2005. Third quarter EBITDA increased by 97.6 percent or $306,487 to $620,537, up from $314,050 in the same period in 2005. Total revenue for the third quarter of 2006 was of $1,463,885, a 78.9 percent increase over the $818,408 reported for the 2005 third quarter. Similarly, Sitestar’s year-to-date net income increased by 131.7 percent to $797,811 compared to $344,333 in 2005. Year-to-date EBITDA was $1,721,583, an increase of 104.7 percent or $880,566 compared to $841,017 from the same period in 2005. Total revenue for the year-to-date totaled $4,286,437, which represents a 78.7 percent increase over 2005 year-to-date total revenue of $2,399,414
“Our solid quarterly results demonstrate our ongoing ability to execute our plan," said Frank R. Erhartic, Jr., CEO for Sitestar. “We’re generating repeatable and predictable revenue over each quarter, increasing our customer base through strategic and sensible acquisitions that have a positive and sustainable impact on our balance sheet and steadily paying down and retiring debt. Moving forward, our disciplined approach to growing and managing Sitestar will continue to reward our shareholders.”
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 (www.sitestar.com) is an Internet and computer solutions provider that offers narrow-band (dial-up) services and broadband Internet access services (ISDN, DSL, satellite, cable and wireless), Web hosting and design, and other value-added services including Web acceleration, spam and virus filtering as well as spyware protection. Headquartered in Lynchburg, Virginia, Sitestar maintains multiple sites of operation and provides services to customers throughout the U.S. and Canada, with concentrations in customers in the Mid-Atlantic and Rocky Mountain regions in the U.S. and in Ontario, Canada. With a focus on competitive pricing, reliability, service and speed, Sitestar delivers customer value.
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Contact
Sitestar Corporation
Frank R. Erhartic, Jr.
434-239-4272
www.sitestar.com
Frank R. Erhartic, Jr.
434-239-4272
www.sitestar.com
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