Record Earnings Achieved as Company Expands Customer Base, Reduces Debt & Maximizes Operations
-- Total Revenue was $5,597,330, an increase of $1,917,348 or 52.1
percent from $3,679,982 for the same period in 2005.
-- EBITDA was $2,243,921, an increase of $824,604 or 58.1 percent from
$1,419,317 for the same period in 2005.
-- Net Income was $992,385, an increase of $352,271 or 55 percent from
$640,114 for the same period in 2005.
-- Total notes payable, including notes payable to shareholders was
$1,211,034, a decrease of $716,401 or 37.2 percent from $1,927,435 for the
same period in 2005.
-- End of year income per share was $0.01.
In fiscal year 2006, Sitestar acquired the Internet service customers from
NetRover, Inc., Prolynx, Inc. and First USA, Inc., yielding approximately
$1,477,000 in additional net revenues. Additionally, the Company continued
its strategy to foster sustainable growth and increase shareholder value by
developing its mergers and acquisitions pipeline, intensifying investor
relations to improve market awareness for Sitestar, exploring methods to
raise capital for larger acquisitions and evaluating new and emerging
technologies for inclusion within the Sitestar portfolio of services.
"2006 was an excellent year for Sitestar during which we delivered upon our
stated objectives of growing our customer base and revenues, being fiscally
responsible and maximizing shareholder value," said Frank R. Erhartic, Jr.,
CEO for Sitestar. "We achieved a 56.2 percent increase in Internet sales,
our core growth area. We also completed important acquisitions that will
generate strong revenue over the next several years. Plus we continued to
pay down and, in a number of cases, retire debt which not only improves our
balance sheet but affords us the financial flexibility to consummate future
acquisitions."
"Finally, we entered 2007 with positive momentum and a foundation for
significant growth," added Mr. Erhartic. "The investor community is taking
notice of Sitestar and our acquisition opportunity pipeline is strong. We
are optimistic about Sitestar's growth potential and believe that both
investors and the share price will respond commensurately."
Sitestar has scheduled an online shareholder chat discussion for Wednesday,
April 25, 2007 at 4:30pm Eastern Daylight Time to review its end of year
results. Investors interested in participating are encouraged to register
on the Sitestar corporate web site (http://www.sitestar.com). Once
registered, participants may suggest topics for discussion. On the day of
the event, registered parties will receive an email with instructions on
how to join the online discussion.
Safe Harbor for Forward Looking Statements
This press release contains forward-looking statements that are based on
management's expectations, estimates, projections and assumptions. The
Company assumes no obligation except as required by law to update the
forward-looking statements contained in this press release as a result of
new information or future events or developments. These forward-looking
statements generally can be identified by words such as "believes,"
"expects," "projects," "anticipates," "foresees," "forecasts," "estimates,"
"should" or other words or phrases of similar import. Forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, as amended. These statements are
not guarantees of future performance and involve certain risks and
uncertainties, which are difficult to predict. Therefore, actual future
results and trends may differ materially from what is forecast in
forward-looking statements due to a variety of factors, including and
without limitation, as found in the Company's reports filed with the
Securities and Exchange Commission.
About Sitestar
Sitestar (www.sitestar.com) is an Internet and computer solutions provider
that offers narrowband and broadband Internet access services, Web hosting
and design, and other value-added services including web acceleration, spam
and virus filtering as well as spyware protection. Headquartered in
Lynchburg, Virginia, Sitestar maintains multiple sites of operation and
provides services to customers throughout the U.S. and Canada, with
concentrations in customers in the Mid-Atlantic and Rocky Mountain regions
in the U.S. and in Ontario, Canada. With a focus on competitive pricing,
reliability, service and speed, Sitestar delivers customer value.
Contact Information: Contact: Frank R. Erhartic, Jr. 434-239-4272 Email Contact