FiberTower Corp. (FTWR)
Q2 2010 Earnings Call
August 06, 2010 11:00 am ET
Kirsten Chapman - IR
Kurt Van Wagenen - President and CEO
Thomas Scott - SVP and CFO
Romeo Reyes - Jefferies & Co.
Kevin Roe - Roe Equity Research
Gerald Hallaren - Townhall Investment Research
Chris Cook - Zazove
Madhu Kodali - Yaksha Capital
Previous Statements by FTWR
» FiberTower Corporation Q1 2010 Earnings Call Transcript
» FiberTower Corp Q4 2009 Earnings Call Transcript
» FiberTower Corporation Q3 2009 Earnings Call Transcript
Good morning, ladies and gentlemen. Thank you for your standing by. Welcome to the FiberTower second quarter 2010 earnings conference call. During today's presentation all parties will be in a listen-only-mode. Following the presentation, the conference will be open for questions. (Operators Instructions) This conference is being recorded today, Friday, August 06, 2010.
I would now like to turn the conference over to Kirsten Chapman. Please go ahead.
Thank you. Good morning, everyone. Thank you for joining us for the FiberTower Corporation second quarter 2010 conference call. Joining me on the call today are Kurt Van Wagenen, FiberTower's President and Chief Executive Officer; and Thomas Scott, Senior Vice President and Chief Financial Officer.
Today, Kurt will open with an overview of the quarter, Tom will follow with the financial detail and then Kurt will conclude with closing remarks and open the call for questions. Before we get underway, let me first remind you that FiberTower issued a press release yesterday after market closed which provides details of the company's quarterly financial and operating results.
The company has also prepared a slide presentation for today's quarterly earnings conference call. If you are not logged in to the webcast and would like to view the slide presentation, you may do so at the company's website on Events and Presentations page. The company's website is www.fibertower.com. If you have any questions, please call Lippert/Heilshorn & Associates at 415-433-3777. A telephone replay of today call will be available until midnight Pacific Time on August 11 by dialing 1-800-406-7325 or 1-303-590-3030, and enter pass code 4324056. A webcast replay will also be available at the FiberTower website for 90 days.
Please note information recorded on this call speaks only as of today, August 06, 2010, and therefore you are advised that time-sensitive information may no longer be accurate as of the time of any replay.
Before we begin, I will review a Safe Harbor statement, which can be found on slide two of the presentation. Management's comments today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Information about the potential factors that could affect the company's financial results is available in the risk factors as updated in the company's SEC filings.
Also please note the company uses some metrics, not in accordance with the Generally Accepted Accounting Principles commonly known as GAAP to monitor the financial performance of operations. Non-GAAP financial measures should be viewed in addition to and not as an alternative for the reported financial results as determined in accordance with GAAP.
Adjusted EBITDA is defined as net income or loss from operations before, interest, taxes, depreciation and amortization, impairment and restructuring charges, stock based compensation, gain on early extinguishment of debt, debt exchange expenses and other income or expense.
During the second quarter FiberTower recorded revenue associated within early termination liability or ETL of $275,000 bringing the total ETL for the first half of 2010 to $862,000. As this ETL is not recurring revenue, management has adjusted measurement metrics including revenue, adjusted EBITDA and guidance throughout the call and the presentation to exclude the impact of ETL.
Reconciliations can be found at the end of the presentation. As a reminder, you may access the slide presentation today at the Events and Presentations page in the Investors section of the company's website at www.fibertower.com.
It is now my pleasure to turn the call over to Kurt Van Wagenen, CEO of FiberTower. Please go ahead, Kurt
Kurt Van Wagenen
Thank you, Kirsten. Good morning, everyone. We reported very good results for the second quarter, including accelerating top-line revenue growth, a significant improvement in adjusted EBITDA, continued strong booking and renewed network expansion, all of which validates we are executing well on the company objectives we established for 2010. In addition, I am pleased to report this morning that the company achieved a significant financial milestone in July by being adjusted EBITDA positive at the corporate level.
As discussed on previous calls, this was a primary objective for us in 2010 and it is notable that we accomplish this objective at front end of our projected timeline which was no later than the third quarter.
Our revenue growth was strong in Q2. Second quarter 2010 revenue, net of ETL was $18.1 million, increasing 16% compared to the same period a year ago. Equally important, our revenue growth accelerated in the second quarter to 5% as compared to 3% in the first quarter of 2010. We expect revenue to ramp further in the second half of the year as we continue to turn up business booked in the first half of the year.
We also delivered network growth for the first time in several quarters with our deployed sites count increasing to 3,136 sites from 3,119 in the first quarter and our billing customer locations growing to 6,244 locations in the second quarter from 6207 in the first quarter.
And we grew monthly revenue per deployed site 16% on a year-over-year basis to $1925 from $1666. Our sales momentum continued to be robust in the second quarter as we posted some of the highest sales bookings we have seen in the company's history. As a result, we have already sold more in the first half of 2010 than in all of 2009.