LEAGUE CITY, Texas, April 1, 2013 (GLOBE NEWSWIRE) -- ERF Wireless Inc. (OTCBB:ERFB), a leading provider of enterprise-class wireless and broadband products and services, announced today that the Company filed its Form 10-K with the Securities and Exchange Commission reporting results for the year ended December 31, 2012.
The Company's revenues and gross profits improved significantly in 2012 as compared to the prior fiscal year ended December 31, 2011. Such improvements are highlighted as follows:
- The Company reported revenues of $7,328,000 for the year ended December 31, 2012, as compared to revenues of $5,320,000 for the same prior year ended December 31, 2011; an increase of $2,008,000 or 38%.
- The Company reported gross profit of $3,353,000 for the year ended December 31, 2012, compared to $1,818,000 for the same prior year period ended December 31, 2011, an increase of $1,535,000 or 84%. This increase reflects the strong operating margins recognized in our oil and gas Internet service operations.
- The Company reported total comprehensive loss of $4,821,000 for the year ended December 31, 2012, as compared to a total comprehensive loss of $3,404,000 for the same prior year ended December 31, 2011; an increase of $1,417,000 or 42%.
- The Company's Energy Broadband Inc. subsidiary reported revenues of $4,642,000 for the year ended December 31, 2012, as compared to revenues of $2,713,000 for the same prior year ended December 31, 2011; an increase of $1,929,000 or 71%.
- The Company reported an increase of $1,439,000 or 26% increase in operating expenses in the year ended December 31, 2012, as compared to the same prior year ended December 31, 2011. The increase is primarily related to employment and professional expense.
- The Company's net cash used for 2012 and 2011 was $1,439,000 and $2,822,000, respectively, or an improvement of $1,282,000. For the three quarters ended September 30, 2012, the Company used operational cash of $1,400,000 and a total of only $39,000 in the fourth quarter of 2012.
- Lastly, the Company invested $1,453,000 in cash during the year ended December 31, 2012, primarily for the purchase of assets in its Energy Broadband subsidiary for the continued expansion of networks and infrastructure, including increasing its Mobile Broadband Tower, ("MBT") fleet associated with the increased oil and gas business growth being experienced.
Richard Royall, CFO of ERF Wireless, commented, "During 2012, we experienced continued major improvement in our Energy Broadband subsidiary's business in the oil and gas sector which positively impacted the Company's overall results as Energy Broadband delivered reliable, cost-effective high- speed bandwidth to an industry that has traditionally been served by low bandwidth VSAT providers only."
The annual results also included a Gross Profit improvement for ERF Wireless of 84% for the year 2012 as compared to the prior year 2011, with Gross Profit Margins increasing to 46% for the year 2012 from 34% for the prior year 2011. The annual results for prior year 2011 also included a one-time gain of $1,183,000 associated with the divestiture of certain non-core wireless broadband assets and operations.
Primary and fully-diluted net loss per share for the year ended December 31, 2012, was ($1.39). Primary and fully-diluted net loss per share for the year ended December 31, 2011, was ($2.47).
Dr. H. Dean Cubley, CEO of ERF Wireless, commented, "During calendar year 2012, we experienced very favorable results in Energy Broadband due to the overall continued acceptance of our turnkey communications services offerings to the oil and gas industry as well as the increased oil and gas drilling activity in North America. In 2012 we continued to lay the foundation for future growth by partnering with other large wireless network operators to provide Energy Broadband wireless connectivity in regions where ERF Wireless did not currently own networks or needed increased coverage. In addition, in 2012 we continued aggressively building out our own networks in additional oil- and gas-rich territories in multiple states. These efforts have resulted in Energy Broadband being able to expand its operational footprint into many different active oil and gas drilling regions in conjunction with the increases in rig count being experienced by the oil and gas industry. Given the foundation that we have put in place with Energy Broadband during the last four years, during calendar year 2012 we realized substantially more recurring wireless circuit, construction and services revenues from all of our oil and gas contracts."
Additional Highlights and Recent Events
The Company made significant progress with its strategic business plan in 2012 and continuing on into early 2013 as evidenced by the completion and announcement of numerous agreements and business developments. Some of these are:
- The Company welcomed experienced CEO, CFO and Director, Bruce Lancaster as an independent Director and Chairman of the Audit Committee to its Board of Directors.
- The Company appointed Tim Maxson to succeed Tom Wiedebush as Chief Operating Officer.
- The Company welcomed veteran oil and gas executive, Manny Carter to its Board of Directors.
- The Company completed building its high-speed wireless broadband network in the Eagle Ford Shale region of South Texas. This network covers major oil and gas drilling and production areas that extend southwest from Yoakum, Texas, to an area near Cotulla, Texas.
- The Company also completed network expansions and established three separate new network regions in the Permian Basin of West Texas in areas west and south of the Midland-Odessa area.
- The Company announced that it is providing terrestrial wireless communications services in the Wattenberg Field of the Niobrara Basin north of Denver, Colorado.
About ERF Wireless
ERF Wireless Inc. is a fully reporting public corporation located in League City, Texas, and is the parent company of Energy Broadband Inc., ERF Enterprise Network Services, ERF Bundled Wireless Services, ERF Wireless Messaging Services and ERF Network Services. The company specializes in providing wireless and broadband product and service solutions to enterprise, commercial and residential clients on a regional, national and international basis. Its principals have been in the wireless broadband, network integration, triple-play FTTH, IPTV and content delivery business for more than 40 years. For more information, please visit our websites at www.erfwireless.com, www.energybroadband.com and www.erfwireless.net or call 281-538-2101. (ERFBG)
The information in this release may contain forward-looking statements relating to anticipated or expected events, activities, trends or results. Forward-looking statements, can be identified by the use of forward looking terminology such as "believes," "suggests," "expects," "may," "goal," "estimates," "should," "likelihood," "plans," "targets," "intends," "could," or "anticipates," or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy or objectives. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Forward-looking statements in this release include, without limitation, the Company's expectations of continued expansion into oil and gas markets and of our terrestrial broadband networks, along with other performance results. These statements are made to provide the public with management's current assessment of our business, and it should not be assumed that that the forward looking statements will prove to be correct. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. The forward-looking statements contained in this release only as of the date hereof, and we expressly disclaim any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in management's expectations or any change in events, conditions or circumstances on which any such statement is based. Certain factors may cause results to differ materially from those anticipated by some of the statements made in this release. Please carefully review our filings with the Securities and Exchange Commission as we have identified many risk factors that impact our business plan.
CONTACT: ERF Wireless Inc. Clareen O'Quinn 281-538-2101 ext. 113 firstname.lastname@example.orgSource:ERF Wireless, Inc.