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Towerstream Reports Fourth Quarter And 2010 Year End Results

Stocks in this article: TWER

MIDDLETOWN, R.I., March 17, 2011 (GLOBE NEWSWIRE) -- Towerstream (Nasdaq:TWER), a leading 4G service provider delivering high-speed wireless Internet access to businesses in 11 major metropolitan areas in the U.S., announced results for the fourth quarter ended December 31, 2010.

Fourth Quarter Operating Highlights  

  • Revenues increased 7% to $5.5 million during the fourth quarter 2010 compared to the third quarter 2010 and increased 35% compared to the same period last year
  • Gross margin remained strong at 75% during the fourth quarter 2010
  • Adjusted Market EBITDA profitability increased to $2.9 million in the fourth quarter 2010 as compared to $2.7 million for the third quarter 2010 and $2.0 million for the fourth quarter 2009
  • Adjusted EBITDA profitability, excluding non-recurring expenses of $0.3 million, increased to $0.7 million for the fourth quarter 2010 compared to $0.4 million for the third quarter 2010 and an Adjusted EBITDA loss of $0.2 million for the fourth quarter 2009
  • Customer churn for the fourth quarter 2010 was 1.36% compared to 1.60% during the third quarter 2010 and 1.43% during the fourth quarter 2009
  • Acquisition of Pipeline Wireless completed in December 2010 which increased the customer base in the Boston market by 32% and the market's annual revenue base by 29%

Management Comments

"We are pleased to report another quarter of strong revenue growth and improved Adjusted EBITDA profitability," stated Jeff Thompson, Chief Executive Officer.  "We completed our second acquisition in December 2010 and believe there will be additional acquisition opportunities in 2011."

"We have seen a significant increase in interest in our carrier class Wifi network in Manhattan," added Mr. Thompson. "We are working diligently to complete construction of the network by the middle of the year."

"Adjusted EBITDA profitability, excluding non-recurring expenses, increased from approximately $414,000 in the third quarter to approximately $706,000 in the fourth quarter," stated Joseph Hernon, Chief Financial Officer. "ARPU for new customers increased to $661 per month after averaging $540 per month over the past seven quarters during the long economic recession.  In addition, customer upgrades increased by more than 80% during the second half of 2010 as compared to the same period in 2009.  We are hopeful that the strong improvement in these key operating metrics signal increased confidence levels by our business customers and that these trends will continue in 2011."

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