Adjusted EBITDA, a non-GAAP measure, was $18.9 million for the first nine months of 2011, compared to $16.4 million in the same period in 2010, an increase of 15.2%. The Company maintains a revolving lease facility for the vehicles used in its daily operations. These leases are required to be treated as an operating lease for purposes of GAAP. Certain peers in our sector may have vehicle leases that qualify for capital lease treatment for GAAP purposes. Accordingly, the vehicle lease payments made of approximately $8.6 million and $7.5 million during the nine months ended September 30, 2011 and 2010, respectively, would need to be added back to the adjusted EBITDA figures above in order to be comparable to a company whose vehicle leases are accounted for as capital leases. If these lease payments were added back, our adjusted EBITDA would be $27.5 million and $23.9 million for the nine months ended September 30, 2011 and 2010, respectively.
The Company generated approximately $15.6 million in operating cash flow in the nine month period ended September 30, 2011 compared to $14.3 million in the same period last year. In addition, during 2011, the Company completed a public offering of 12.9 million shares of its common stock, of which the Company sold approximately 6.0 million shares and a selling shareholder sold 6.9 million shares, at a price of $3.00 per share. The Company did not receive any proceeds from the sale of shares by the selling shareholder. The Company did receive net proceeds of approximately $16.2 million after deducting offering expenses, underwriting discounts and commissions. As of September 30, 2011, the Company had $15.1 million in cash and cash equivalents compared to $1.2 million at December 31, 2010.
James L. Mandel, CEO of Multiband, commented, “We continue to execute to our plan, focusing not only on organic growth but increased efficiency. Additionally, during the last part of the quarter, we began the integration process of acquired assets from WPCS International. The two new entities contributed approximately $1 million in revenue and near break even income which were both right on our internal projections. We look forward to growing these divisions and adding additional operating units moving forward as we continue our combined strategy of increased efficiency and acquisition activities.”