Positive Surprise on Thursday will be after my opinion: Not only positive EBITDA, a GAAP-income, too
EBITDA has near doubled from $685,000 in Q1/2013 to 1.2 million in Q2/2013
Adjusted EBITDA – The company reported positive Adjusted EBITDA for the second quarter 2013 of $1.2 million, or $0.05 per diluted share, as compared to first quarter 2013 positive Adjusted EBITDA of $685,000, or $0.03 per diluted share.
Adjusted EBITDA is defined as net income (loss) excluding: provision for income taxes; interest and other income (expense), net; depreciation; amortization; stock-based compensation charges; gain or loss on derivatives’ revaluation; net income (loss) from discontinued operations; impairment charges; LEC receivables reserve; finance-related charges; accrued lease liability/asset; and severance charges.
Most reasons for divergence between a positive EBITDA and a GAAP-loss like in following from Q2/2013 disappeared in Q3/2013 and will disappear in Q4/2013 and the following quarters.
From the report about Q2/2013:
Adjusted EBITDA* 1,175,000
Plus interest and other income (expense), net (420 ,000)
Less (provision) benefit for income taxes (159,000)
Less non-cash depreciation, amortization and stock compensation (1,691,000)
Plus revaluation of derivatives 638,000
Less net loss from discontinued operations (3,264,000)
Less finance related charges -
Plus accrual for lease (liability)/asset 155,000
Less severance charges (20,000)
GAAP net loss (3,586,000)
The net loss from discontinued operations of 3,264,000 was a result of the sale of Spreebird and will not lasten in Q3/2013 and the following quarters. Without this position the GAAP-loss in Q2 were decreased from $3,586,000 to only $322,000.
The result: If the EBITDA in Q3 will more increase than $322,000 (and I am sure, that will be more), we will see a GAAP-net-income.
My last estimates for Q3/2013: Revenues of 24.2 million, EBITDA of 1.5 million and a GAAP-net income of 0.1 million and my estimates for Q4/2013: Reveneus of 27.2 million, EBITDA of 2.1 million and a GAAP-net-income of 0.5 million.