Internet America, Inc. (OTCBB: GEEK) today announced results for its fiscal first quarter ended September 30, 2010. Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation expense and loss on the transfer of assets) for the quarter ended September 30, 2010 increased by $554,000 to $315,000 as compared to a loss of ($239,000) for the prior year period. The Company’s net income for the quarter ended September 30, 2010 was $25,000, or $0.00 per share, as compared to a net loss of ($522,000), or ($0.03) per share, for the prior year period.
Wireless broadband Internet revenue for the quarter ended September 30, 2010 increased by $102,000 to $1,218,000 as compared to $1,116,000 for the prior year period. Billy Ladin, CEO, commented, “We are pleased with the results of the September quarter, which was our fourth sequential quarter of improving net income and adjusted EBITDA profits in a more challenging economic environment.”
About Internet America
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.Use of Non-GAAP Financial Measures 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 cash flow. 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.