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Contact:
Bruce
Widener, CEO
502-657-3507
investors@askbeacon.com
Porter,
LeVay & Rose, Inc.
Marlon
Nurse, V.P. – Investor Relations
212-564-4700
Geralyn
DeBusk, President or Hala Elsherbini, COO
Halliburton
Investor Relations
972-458-8000
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o
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Net
sales increased 38% to $4.0 million compared with $2.9 million in the
year-ago first quarter.
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o
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Cost
of materials sold for the first quarter of fiscal year 2011 was $0.3
million compared to $0.5 million in the year-ago first
quarter. Cost of services was $2.5 million compared to $1.3
million in the year-ago first quarter. Gross profit was $1.2 million
compared to $1.1 million in the year-ago first
quarter.
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o
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Net
income for the first quarter was $6.3 million compared to a loss of ($1.0)
million in the year-ago first quarter. Fiscal year 2011’s first quarter
included a $7.9 million one-time gain from discontinued operations
relating to the Company’s Swiss subsidiary (FASB subtopic
810-10).
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o
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This
resulted in positive net income per share of $0.17 compared to a net loss
of ($0.04) per share during the year-ago first
quarter.
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o
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Current
liabilities at the end of the first fiscal quarter improved to $6.2
million compared to $12.9 million at fiscal year end, due to the
elimination of discontinued
operations.
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o
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Total
assets were $11.6 million and total liabilities were $6.4 million
resulting in positive shareholders’ equity of $5.2 million as of December
31, 2010, compared to negative shareholders’ equity of ($2.0) million as
of September 30, 2010.
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Beacon
Enterprise Solutions Group, Inc. and Subsidiaries
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||||||||
Condensed
Consolidated Balance Sheets
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||||||||
(all
amounts in 000's except share data)
|
||||||||
December
31,
|
September
30,
|
|||||||
2010
|
2010
|
|||||||
ASSETS
|
(unaudited)
|
|||||||
Current
assets:
|
||||||||
Cash and cash
equivalents
|
$ | 108 | $ | 246 | ||||
Accounts receivable,
net
|
4,241 | 4,535 | ||||||
Inventory,
net
|
526 | 557 | ||||||
Prepaid expenses and other
current assets
|
608 | 357 | ||||||
Current assets of discontinued
operations
|
- | 133 | ||||||
Total current
assets
|
5,483 | 5,828 | ||||||
Property
and equipment, net
|
385 | 420 | ||||||
Goodwill
|
2,792 | 2,792 | ||||||
Other
intangible assets, net
|
2,947 | 3,011 | ||||||
Other
assets
|
27 | 20 | ||||||
Total
assets
|
$ | 11,634 | $ | 12,071 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIENCY)
|
||||||||
Current
liabilities:
|
||||||||
Bridge note - related
party
|
$ | 100 | $ | 100 | ||||
Current portion of long-term
debt
|
261 | 379 | ||||||
Senior Secured Notes Payable, net
of deferred debt discount of $78
|
1,473 | - | ||||||
Accounts
payable
|
2,368 | 2,971 | ||||||
Accrued expenses and other
current liabilities
|
1,952 | 880 | ||||||
Current liabilities of
discontinued operations
|
- | 8,558 | ||||||
Total current
liabilities
|
6,154 | 12,888 | ||||||
Non-current
Line of Credit - related party
|
- | 630 | ||||||
Long-term
debt, less current portion
|
136 | 403 | ||||||
Deferred
tax liability
|
167 | 153 | ||||||
Total
liabilities
|
6,457 | 14,074 | ||||||
Stockholders'
equity (deficiency)
|
||||||||
Preferred Stock: $0.01 par value,
5,000,000 shares
|
||||||||
authorized, 1,041 shares
outstanding in the
|
||||||||
following
classes:
|
||||||||
Series A convertible preferred
stock, $1,000 stated value,
|
||||||||
4,500 shares authorized, 30
shares issued and outstanding
|
||||||||
at December 31, 2010 and
September 30, 2010, respectively,
|
||||||||
(liquidation preference
$94)
|
30 | 30 | ||||||
Series A-1 convertible preferred
stock, $1,000 stated value,
|
||||||||
1,000 shares authorized, 311
shares issued and outstanding
|
||||||||
at December 31, 2010 and
September 30, 2010, respectively
|
||||||||
(liquidation preference
$442)
|
311 | 311 | ||||||
Series B convertible preferred
stock, $1,000 stated value,
|
||||||||
4,000 shares authorized, 700
shares issued and outstanding
|
||||||||
at December 31, 2010 and
September 30, 2010, respectively,
|
700 | 700 | ||||||
(liquidation preference
$981)
|
||||||||
Common stock, $0.001 par value
70,000,000 shares authorized
|
||||||||
37,376,396 shares issued and
outstanding
|
||||||||
at December 31, 2010 and
September 30, 2010, respectively.
|
37 | 37 | ||||||
Additional paid in
capital
|
37,491 | 37,137 | ||||||
Accumulated
deficit
|
(33,473 | ) | (39,711 | ) | ||||
Accumulated other comprehensive
income (loss)
|
81 | (507 | ) | |||||
Total stockholders' equity
(deficiency)
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5,177 | (2,003 | ) | |||||
Total liabilities and
stockholders' equity
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$ | 11,634 | $ | 12,071 |
Beacon
Enterprise Solutions Group, Inc. and Subsidiaries
|
||||||||
Condensed
Consolidated Statements of Operations
|
||||||||
(Unaudited)
|
||||||||
(all
amounts in 000's except share and per share data)
|
||||||||
For
the Three
|
For
the Three
|
|||||||
Months
Ended
|
Months
Ended
|
|||||||
December
31,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
Net
sales
|
$ | 3,974 | $ | 2,873 | ||||
Cost of materials
sold
|
276 | 483 | ||||||
Cost of
services
|
2,523 | 1,276 | ||||||
Gross
profit
|
1,175 | 1,114 | ||||||
Operating
expenses
|
||||||||
Salaries and
benefits
|
1,675 | 1,041 | ||||||
Selling, general and
administrative
|
888 | 1,017 | ||||||
Total operating
expense
|
2,563 | 2,058 | ||||||
Loss
from operations
|
(1,388 | ) | (944 | ) | ||||
Other
expenses
|
||||||||
Other
expenses
|
(285 | ) | (185 | ) | ||||
Change in fair value of
warrants
|
- | (24 | ) | |||||
Total other
expenses
|
(285 | ) | (209 | ) | ||||
Net
loss before income taxes
|
(1,673 | ) | (1,153 | ) | ||||
Income
tax benefit (expense)
|
38 | (39 | ) | |||||
Loss
from continuing operations
|
(1,635 | ) | (1,192 | ) | ||||
Net
income of discontinued operations including gain on
|
||||||||
deconsolidation of $7,892 in the
three months ended
|
||||||||
December 31,
2010)
|
7,892 | 161 | ||||||
Net
income (loss)
|
6,257 | (1,031 | ) | |||||
Series
A, A-1 and B Preferred Stock:
|
||||||||
Contractual
dividends
|
(19 | ) | (48 | ) | ||||
Deemed dividends related to
beneficial conversion feature
|
(25 | ) | ||||||
Net
income (loss) available to common stockholders
|
$ | 6,238 | $ | (1,104 | ) | |||
Net
income (loss) per share to common stockholders - basic and
diluted
|
||||||||
Net loss per share from
continuing operations
|
(0.04 | ) | (0.05 | ) | ||||
Net income per share from
discontinued operations
|
0.21 | 0.01 | ||||||
$ | 0.17 | $ | (0.04 | ) | ||||
Weighted
average shares outstanding
|
||||||||
basic and
diluted
|
37,376,396 | 26,156,058 | ||||||
Other
comprehensive income, net of tax
|
||||||||
Net income
(loss)
|
$ | 6,238 | $ | (1,104 | ) | |||
Foreign currency translations
adjustment
|
(102 | ) | (15 | ) | ||||
Comprehensive income
(loss)
|
$ | 6,136 | $ | (1,119 | ) |