RUSHVILLE, Ind., Dec. 17, 2010 (GLOBE NEWSWIRE) -- Omnicity Corp (OTCQB:OMCY),the Midwest's largest and fastest growing fixed Wireless Internet Service Provider (WISP), today announced its financial results for the first quarter ended October 31, 2010. The Company has posted its first EBITDA positive quarter, the latest in a series of five continually improving cash flow quarters, driven by its successful strategy of combining acquisitions of other wireless internet service providers with an aggressive program of marketing driven organic growth, and by disciplined attention to operating details and costs.
Revenues for the 1st quarter of 2010 more than doubled, increasing 105% to $1.26 million compared to 1st quarter 2009 revenues of $617 thousand. Cash flow improvements were even more dramatic, with Omnicity posting its first ever EBITDA positive quarter of $40,000 compared to negative $395,000 for the first quarter of last year and negative $17,000 for the fourth quarter of 2010.
Adjusted EBITDA ("EBITDA") (Conventional earnings before interest, taxes, depreciation, and amortization) was positively impacted in the first quarter from reductions in costs associated with connectivity, operations, and general and administrative expenses. The Company has reported its final results on Form 10-Q with the Securities and Exchange Commission filed December 15, 2010.
Greg Jarman, CEO, said, "We are very pleased with our earnings progress over the last quarter, and we believe that our EBITDA profitability will continue to improve over the foreseeable future. With recently closed financings in hand we expect to rapidly increase EBITDA as we complete acquisitions that generate incremental profit margins of at least 40%. We have 10 acquisitions ready to complete. While we are focused on increasing our top-line revenues, we intend to continue to rapidly improve profitability and drive operating margins. We expect these acquisitions, along with stepped up marketing driven internal growth, will positively impact Omnicity's valuation in the public market."
About Omnicity:
Omnicity Corp is a public company based in Indiana providing broadband access, including advanced services of voice, video and data, in un-served and underserved small and rural markets and is working to be the premier consolidator of rural market broadband nationwide. Omnicity's strategy is to provide a total broadband solution and continue rapid growth through acquisitions of networks and subscribers, organic growth and continue to partner with Rural Electric Membership Co-ops and Rural Telephone Companies. Omnicity has an experienced broadband operations team with extensive wireless broadband/ISP expertise as well as the expertise to consolidate large numbers of networks and subscribers through its roll-up strategy.
Forward-looking statements, made pursuant to safe harbor provisions of the PSLR Act of 1995, inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. By making these forward-looking statements, the Company undertakes no obligation to update these statements for changes after the date of this release.