Internet America, Inc. (OTCBB:GEEK) today announced results for the fiscal third quarter ended March 31, 2010. Total revenues for the third quarter decreased by 2.5% to approximately $1,874,000, compared to total revenues of approximately $1,923,000 in the third quarter of 2009, and net loss for the third quarter of 2010 was approximately $159,000, or a loss of $0.01 per share, compared to net loss of approximately $492,000, or $0.03 per share, in the same period last year. Adjusted EBITDA income (earnings before interest, taxes, stock based compensation, and depreciation and amortization) was approximately $121,000 in the third quarter compared to adjusted EBITDA loss of approximately $194,000 in the third quarter a year ago. Total subscriber count decreased to 26,200 on March 31, 2010 compared to 27,500 subscribers at the end of the same period last year due to the anticipated decline of dial-up Internet service customers and an increase in wireless broadband Internet subscriber count, which increased by 400, or 5.0%, to approximately 8,400 as of March 31, 2010, from 8,000 as of March 31, 2009.
Internet America is a leading Internet service provider serving the Texas market. Based in Houston, Internet America offers businesses and individuals a wide array of Internet services including broadband Internet delivered wirelessly and over DSL, dedicated high-speed access, web hosting, and dial-up Internet access. Internet America provides customers a wide range of related value-added services, including Fax-2-Email, online backup and storage solutions, parental control software, and global roaming solutions. Internet America focuses on the speed and quality of its Internet services and its commitment to providing excellent customer care. Additional information on Internet America is available on the Company’s web site at http://www.internetamerica.com.
In this press release, the Company refers to a non-GAAP financial measure called adjusted EBITDA because of management’s belief that this measure is a financial indicator of the Company’s ability to internally generate operating funds. Management also believes that this non-GAAP financial measure is useful information to investors because it is widely used by professional research analysts in the valuation and investment recommendations of companies in the Company’s peer group. Adjusted EBITDA should not be considered an alternative to net income, as defined by GAAP.