Revises 2011 Adjusted EBITDA(1) Guidance to $42 Million Due to Ramp-Up Costs
Maintains Revenue Guidance of $440 Million
BLUE BELL, Pa., Dec. 12, 2011 (GLOBE NEWSWIRE) -- UniTek Global Services, Inc. ("UniTek" or the "Company") (Nasdaq:UNTK), a premier provider of permanently outsourced infrastructure services to the wireless and wireline telecommunications, broadband cable and satellite television industries, today announced that it has been awarded a three-year turf agreement in the Northeast region with a major wireless carrier. UniTek expects total revenue under this agreement to be at least $150 million over the next three years. Work under this contract is expected to begin in 2012.
Additionally, UniTek has been awarded work related to the development of another carrier's wireless network by two major OEM suppliers, covering multiple markets nationwide. This work is expected to include site acquisition, construction, maintenance, and storm restoration services. The Company has already begun mobilization for this work, which is anticipated to generate over $20 million in revenue in 2012 from existing and new markets.
In the fourth quarter of 2011, UniTek expects to incur approximately $2.0 million in incremental expenses associated with these projects including the deployment of resources and supporting infrastructure. Based on this projection, UniTek has revised its adjusted EBITDA guidance for the fourth quarter of 2011 to $12 million, representing full year adjusted EBITDA guidance of $42 million. UniTek is maintaining its revenue guidance of approximately $120 million in the fourth quarter of 2011, and $440 million for the 2011 full year.
"We anticipate that these contract awards will play a significant role in UniTek's planned expansion in the wireless industry. We are now executing on our strategy to become a leading service provider for major wireless carriers as they upgrade their networks nationwide," said C. Scott Hisey, UniTek's Chief Executive Officer. "We are excited about these awards, and have already begun to ramp operations in preparation for the start of this work. Although our projected revenue for the fourth quarter of 2011 remains consistent with previous guidance, we expect to incur incremental expenses of up to $2 million in this period associated with normal ramp up costs for these projects. We view these expenses as investments in the future of our business and are confident that these contract awards will help us grow our wireless presence in 2012 and beyond."
Note: See accompanying tables for reconciliation of net income to adjusted EBITDA(1).
About UniTek Global Services
UniTek Global Services is a provider of engineering, construction management and installation fulfillment services to companies specializing in the telecommunications, broadband cable, wireless, two-way radio, transportation, public safety and satellite industries. UniTek has created a scalable operating platform, enabling each UniTek subsidiary to deliver quality services to its Fortune 200 customers. UniTek, based in Blue Bell, PA, utilizes a diverse workforce of over 6,500 deployed in over 108 locations in the United States and Canada. www.unitekgs.com
Forward Looking Statements
The Company may from time to time make written or oral "Forward-looking statements," including statements contained in this release and in the Company's filings with the Securities and Exchange Commission. These forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. These risks and uncertainties include the risk that the registration statement never becomes effective and we are not able to conduct any offering of securities in connections with the registration statement, as well as other risk factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. The words "may," "could," "should," "would," "believe," "are confident," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions are intended to identify forward-looking statements. All such statements are made in good faith by the Company pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The Company does not undertake to update any forward looking statement, whether written or oral, which may be made from time to time by or on behalf of the Company, except as may be required by applicable law or regulations.
|UNITEK GLOBAL SERVICES, INC.|
|RECONCILIATIONS OF NET INCOME (LOSS) TO ADJUSTED EBITDA|
|(In thousands, except for per share information)|
|Adjusted EBITDA reconciliation:|
|Net income (loss)||--||(11,750)|
|Non-cash stock based compensation||800||5,175|
|Non-cash interest expense/debt extinguishment||200||5,150|
|Net income after certain non-cash adjustments(2)||$ 3,500||$ 9,625|
|Income tax expense||1,350||3,950|
|Cash interest expense||3,200||13,000|
|Other (income) expense, non-cash||(50)||(225)|
|Adjusted EBITDA(1)||$ 12,000||$ 42,000|
|Earnings per share:|
|Net (loss) income per share||($0.00)||($0.74)|
|Net income per share after certain non-cash adjustments||$0.21||$0.60|
|Weighted average shares of common stock outstanding||16,350||15,966|
(1) Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a key indicator used by our management to evaluate operating performance of our company and to make decisions regarding compensation and other operational matters. While this Adjusted EBITDA is not intended to replace any presentation included in our consolidated financial statements under generally accepted accounting principles, or GAAP, and should not be considered an alternative to operating performance, we believe this measure is useful to investors in assessing our performance with other companies in our industry. This calculation may differ in method of calculation from similarly titled measures used by other companies.
(2) Net income (loss) after certain non-cash adjustments is a key indicator used by our management to evaluate operating performance of the Company. While the net income (loss) after certain non-cash adjustments is not intended to replace any presentation included in the consolidated financial statements under generally accepted accounting principles, or GAAP, and should not be considered an alternative to operating performance, we believe this measure is useful to investors in assessing our performance in comparison with other companies in our industry. Specifically, (i) non-cash compensation expense may vary due to factors influencing the estimated fair value of performance based rewards, estimated forfeiture rates and amounts granted, (ii) non-cash interest expense varies depending on the timing of amendments to our debt and changes to the debt structure and (iii) amortization of intangible assets is impacted by the Company's acquisition strategy and timing of acquisitions.
The Piacente Group, Inc. | Investor Relations Lee Roth (212) 481-2050
UniTek Global Services
Blue Bell, Pennsylvania, UNITED STATES
The Piacente Group, Inc. | Investor Relations Lee Roth (212) 481-2050