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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
Halliburton Investor Relations
Geralyn DeBusk, President, or Hala Elsherbini, COO
972-458-8000
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Net Sales increased 29% to $4.5 million compared with $3.5 million in the year-ago third quarter.
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For the most recent nine-month period, Net Sales improved by 39% to $13.5 million compared to $9.7 million in the same prior period.
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Cost of Materials sold for the third quarter of fiscal year 2011 decreased by 54% to $181,000 compared to $396,000 in third quarter of Fiscal 2010.
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Gross Margin increased to 44% in the fiscal third quarter compared to 28% in the prior 2011 quarter.
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Total Operating Expense decreased by 30% from $3.0 million in the year-ago third quarter to $2.1 million due to ongoing continuation to streamline operations.
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Loss from Operations decreased significantly from ($0.9) million in the year-ago third quarter to break even in the current quarter.
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The Company’s cash position for the quarter has increased by 182% to $694,000 vs. $246,000 at fiscal year end September 30, 2010.
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Beacon Enterprise Solutions Group, Inc. and Subsidiaries
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Condensed Consolidated Balance Sheets
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(all amounts in 000's except share data)
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June 30,
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September 30,
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|||||||
2011
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2010
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|||||||
ASSETS
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(unaudited)
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Current assets:
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Cash and cash equivalents
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$ | 694 | $ | 246 | ||||
Accounts receivable, net
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3,289 | 4,535 | ||||||
Inventory, net
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566 | 557 | ||||||
Prepaid expenses and other current assets
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846 | 357 | ||||||
Current assets of discontinued operations
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133 | |||||||
Total current assets
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5,395 | 5,828 | ||||||
Property and equipment, net
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332 | 420 | ||||||
Goodwill
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2,792 | 2,792 | ||||||
Other intangible assets, net
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2,818 | 3,011 | ||||||
Other assets
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23 | 20 | ||||||
Total assets
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$ | 11,360 | $ | 12,071 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
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Current liabilities:
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Bridge note - related party
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$ | 100 | $ | 100 | ||||
Current portion of long-term debt
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210 | 379 | ||||||
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Senior secured notes payable, net of unamortized deferred debt discount of $95
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2,905 | - | ||||||
Accounts payable
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2,184 | 2,971 | ||||||
Accrued expenses and other current liabilities
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1,543 | 880 | ||||||
Current liabilities of discontinued operations
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8,558 | |||||||
Total current liabilities
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6,942 | 12,888 | ||||||
Non-current line of credit - related party
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- | 630 | ||||||
Long-term debt, less current portion
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59 | 403 | ||||||
Deferred tax liability
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197 | 153 | ||||||
Total liabilities
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7,198 | 14,074 | ||||||
Stockholders' equity (deficiency)
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Series A convertible preferred stock, $1,000 stated value, 4,500 shares authorized, 30 shares issued and outstanding at June 30, 2011 and September 30, 2010, respectively, (liquidation preference $95)
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30 | 30 | ||||||
Series A-1 convertible preferred stock, $1,000 stated value, 1,000 shares authorized, 311 shares issued and outstanding at June 30, 2011 and September 30, 2010, respectively, (liquidation preference $461)
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311 | 311 | ||||||
Series B convertible preferred stock, $1,000 stated value, 4,000 shares authorized, 700 shares issued and outstanding (liquidation preference $1,007)
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700 | 700 | ||||||
Series C-1 convertible preferred stock, $1,500 stated value, 400 shares authorized, 350 issued and outstanding at June 30, 2011 (liquidation preference $693)
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525 | - | ||||||
Series C-2 convertible preferred stock, $1,500 stated value, 2,000 shares authorized, 100 issued and outstanding at June 30, 2011 (liquidation preference $195)
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150 | - | ||||||
Common stock, $0.001 par value 70,000,000 shares authorized 37,451,396 and 37,376,396 shares issued and outstanding at June 30, 2011 and September 30, 2010, respectively.
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37 | 37 | ||||||
Additional paid in capital
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38,128 | 37,137 | ||||||
Accumulated deficit
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(35,749 | ) | (39,711 | ) | ||||
Accumulated other comprehensive income (loss)
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30 | (507 | ) | |||||
Total stockholders' equity (deficiency)
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4,162 | (2,003 | ) | |||||
Total liabilities and stockholders' equity
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$ | 11,360 | $ | 12,071 |
Beacon Enterprise Solutions Group, Inc. and Subsidiaries
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Condensed Consolidated Statements of Operations
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(Unaudited)
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(all amounts in 000's except share and per share data)
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For the Three
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For the Three
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For the Nine
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For the Nine
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Months Ended
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Months Ended
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Months Ended
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Months Ended
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June 30
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June 30
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June 30
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June 30
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2011
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2010
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2011
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2010
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Net sales
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$ | 4,502 | $ | 3,546 | $ | 13,479 | $ | 9,687 | ||||||||
Cost of materials sold
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181 | 396 | 806 | 1,252 | ||||||||||||
Cost of services
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2,309 | 1,088 | 8,084 | 3,724 | ||||||||||||
Gross profit
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2,012 | 2,062 | 4,589 | 4,711 | ||||||||||||
Operating expenses
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Salaries and benefits
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758 | 1,785 | 4,296 | 4,564 | ||||||||||||
Selling, general and administrative
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1,302 | 1,203 | 3,172 | 3,902 | ||||||||||||
Total operating expense
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2,060 | 2,988 | 7,468 | 8,466 | ||||||||||||
Loss from operations
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(48 | ) | (926 | ) | (2,879 | ) | (3,755 | ) | ||||||||
Other expenses
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Other expenses
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(273 | ) | (162 | ) | (823 | ) | (413 | ) | ||||||||
Change in fair value of warrants
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- | - | - | (4,373 | ) | |||||||||||
Total other expenses
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(273 | ) | (162 | ) | (823 | ) | (4,786 | ) | ||||||||
Net loss before income taxes
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(321 | ) | (1,088 | ) | (3,702 | ) | (8,541 | ) | ||||||||
Income tax (expense) benefit
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(75 | ) | (44 | ) | (164 | ) | 44 | |||||||||
Loss from continuing operations
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(396 | ) | (1,132 | ) | (3,866 | ) | (8,497 | ) | ||||||||
Net (loss) income from discontinued operations
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- | (7,623 | ) | 7,892 | (7,180 | ) | ||||||||||
Net (loss) income
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(396 | ) | (8,755 | ) | 4,026 | (15,677 | ) | |||||||||
Preferred Stock:
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Contractual dividends
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(26 | ) | (30 | ) | (64 | ) | (156 | ) | ||||||||
Deemed dividends related to beneficial conversion feature
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(24 | ) | (93 | ) | ||||||||||||
Net (loss) income available to common stockholders
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$ | (422 | ) | $ | (8,809 | ) | $ | 3,962 | $ | (15,926 | ) | |||||
Net (loss) income per share to common stockholders - basic & diluted
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Net loss per share from continuing operations
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(0.01 | ) | (0.03 | ) | (0.10 | ) | (0.28 | ) | ||||||||
Net (loss) income per share from discontinued operations
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- | (0.22 | ) | 0.21 | (0.24 | ) | ||||||||||
$ | (0.01 | ) | $ | (0.25 | ) | $ | 0.11 | $ | (0.52 | ) | ||||||
Weighted average shares outstanding - basic & diluted
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37,378,868 | 34,049,390 | 37,377,220 | 30,528,800 | ||||||||||||
Other comprehensive income, net of tax
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Net (loss) income
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$ | (422 | ) | $ | (8,809 | ) | $ | 3,962 | $ | (15,926 | ) | |||||
Foreign currency translations adjustment
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(8 | ) | (148 | ) | 537 | (47 | ) | |||||||||
Comprehensive (loss) income
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$ | (430 | ) | $ | (8,957 | ) | $ | 4,499 | $ | (15,973 | ) |