x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT
OF 1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT
OF 1934
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
2010
(unaudited)
|
September 30,
2009
(unaudited)
|
September 30,
2010
(unaudited)
|
September 30,
2009
(unaudited)
|
|||||||||||||
REVENUES
|
$ | 69,875 | $ | 71,421 | $ | 195,011 | $ | 200,975 | ||||||||
COSTS
AND EXPENSES
|
||||||||||||||||
Cost
of products and services (exclusive of depreciation and amortization shown
separately below)
|
49,425 | 54,645 | 137,192 | 158,855 | ||||||||||||
Selling,
general and administrative
|
14,680 | 13,774 | 41,698 | 43,023 | ||||||||||||
Depreciation
and amortization
|
2,027 | 2,414 | 6,609 | 8,402 | ||||||||||||
Total
costs and expenses
|
66,132 | 70,833 | 185,499 | 210,280 | ||||||||||||
INCOME
(LOSS) FROM OPERATIONS
|
3,743 | 588 | 9,512 | (9,305 | ) | |||||||||||
OTHER
EXPENSE
|
||||||||||||||||
Interest
expense
|
(1,026 | ) | (1,026 | ) | (3,215 | ) | (2,771 | ) | ||||||||
Interest
income
|
1 | 9 | 7 | 19 | ||||||||||||
Other
income
|
23 | 76 | 51 | 424 | ||||||||||||
Total
other expense
|
(1,002 | ) | (941 | ) | (3,157 | ) | (2,328 | ) | ||||||||
NET
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTEREST IN
SUBSIDIARIES
|
2,741 | (353 | ) | 6,355 | (11,633 | ) | ||||||||||
PROVISION
FOR INCOME TAXES
|
1,573 | 372 | 3,756 | 574 | ||||||||||||
NET
INCOME (LOSS)
|
1,168 | (725 | ) | 2,599 | (12,207 | ) | ||||||||||
LESS:
NET LOSS ATTRIBUTABLE TO THE NONCONTROLLING INTEREST IN
SUBSIDIARIES
|
- | (266 | ) | - | (2,044 | ) | ||||||||||
NET
INCOME (LOSS) ATTRIBUTABLE TO MULTIBAND CORPORATION AND
SUBSIDIARIES
|
1,168 | (459 | ) | 2,599 | (10,163 | ) | ||||||||||
Preferred
stock dividends
|
408 | 70 | 1,140 | 214 | ||||||||||||
INCOME
(LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$ | 760 | $ | (529 | ) | $ | 1,459 | $ | (10,377 | ) | ||||||
INCOME
(LOSS) PER COMMON SHARE – BASIC:
|
||||||||||||||||
INCOME
(LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$ | .08 | $ | (0.05 | ) | $ | .15 | $ | (1.08 | ) | ||||||
INCOME
(LOSS) PER COMMON SHARE – DILUTED:
|
||||||||||||||||
INCOME
(LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$ | .07 | $ | (0.05 | ) | $ | .15 | $ | (1.08 | ) | ||||||
Weighted
average common shares outstanding – basic
|
10,084 | 9,659 | 9,930 | 9,653 | ||||||||||||
Weighted
average common shares outstanding - diluted
|
10,188 | 9,659 | 10,047 | 9,653 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
2010
(unaudited)
|
September 30,
2009
(unaudited)
|
September 30,
2010
(unaudited)
|
September 30,
2009
(unaudited)
|
|||||||||||||
NET
INCOME (LOSS)
|
$ | 1,168 | $ | (725 | ) | $ | 2,599 | $ | (12,207 | ) | ||||||
OTHER
COMPREHENSIVE INCOME (LOSS), NET OF TAX:
|
||||||||||||||||
Unrealized
gains (losses) on securities:
|
||||||||||||||||
Unrealized
holding gains (losses) arising during period
|
1 | (29 | ) | (5 | ) | (37 | ) | |||||||||
COMPREHENSIVE
INCOME (LOSS) BEFORE
NONCONTROLLING INTEREST IN SUBSIDIARIES
|
1,169 | (754 | ) | 2,594 | (12,244 | ) | ||||||||||
COMPREHENSIVE
LOSS ATTRIBUTABLE TO THE
NONCONTROLLING INTEREST IN SUBSIDIARIES
|
- | (266 | ) | - | (2,044 | ) | ||||||||||
COMPREHENSIVE
INCOME (LOSS) ATTRIBUTABLE
TO MULTIBAND CORPORATION AND SUBSIDIARIES
|
$ | 1,169 | $ | (488 | ) | $ | 2,594 | $ | (10,200 | ) |
September 30, 2010
(unaudited)
|
December 31, 2009
(audited)
|
|||||||
CURRENT
ASSETS
|
||||||||
Cash
and cash equivalents
|
$
|
4,912
|
$
|
2,240
|
||||
Securities
available for sale
|
2
|
7
|
||||||
Accounts
receivable, net
|
15,789
|
14,336
|
||||||
Other
receivable – related party
|
518
|
518
|
||||||
Inventories
|
9,700
|
8,561
|
||||||
Prepaid
expenses and other
|
2,039
|
549
|
||||||
Current
portion of notes receivable
|
6
|
6
|
||||||
Total
Current Assets
|
32,966
|
26,217
|
||||||
PROPERTY
AND EQUIPMENT, NET
|
8,218
|
8,546
|
||||||
OTHER
ASSETS
|
||||||||
Goodwill
|
38,067
|
38,067
|
||||||
Intangible
assets, net
|
18,391
|
22,677
|
||||||
Other
receivable – related party – long term
|
985
|
1,011
|
||||||
Notes
receivable – long-term, net of current portion
|
24
|
25
|
||||||
Other
assets
|
6,446
|
2,988
|
||||||
Total
Other Assets
|
63,913
|
64,768
|
||||||
TOTAL
ASSETS
|
$
|
105,097
|
$
|
99,531
|
September 30, 2010
(unaudited)
|
December 31, 2009
(audited)
|
|||||||
CURRENT
LIABILITIES
|
||||||||
Line
of credit
|
$ | 48 | $ | 49 | ||||
Short
term debt
|
1,062 | 66 | ||||||
Related
parties debt – short term
|
680 | 1,345 | ||||||
Current
portion of long-term debt
|
- | 228 | ||||||
Current
portion of capital lease obligations
|
428 | 489 | ||||||
Accounts
payable
|
28,606 | 28,008 | ||||||
Accrued
liabilities
|
25,701 | 22,026 | ||||||
Deferred
service obligations and revenue
|
2,193 | 2,602 | ||||||
Total
Current Liabilities
|
58,718 | 54,813 | ||||||
LONG-TERM
LIABILITIES
|
||||||||
Accrued
liabilities – long term
|
3,441 | 4,415 | ||||||
Long-term
debt, net of current portion and original issue discount
|
4,915 | 4,853 | ||||||
Related
parties debt - long-term, net of current portion and original issue
discount
|
29,536 | 29,856 | ||||||
Capital
lease obligations, net of current portion
|
461 | 491 | ||||||
Total
Liabilities
|
97,071 | 94,428 | ||||||
COMMITMENTS
AND CONTINGENCIES
|
||||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Cumulative
convertible preferred stock, no par value:
|
||||||||
8%
Class A (14,171 shares issued and outstanding, $148,796 liquidation
preference)
|
213 | 213 | ||||||
10%
Class B (470 and 1,370 shares issued and outstanding, $4,935 and
$14,385 liquidation preference)
|
5 | 14 | ||||||
10%
Class C (112,000 and 112,880 shares issued and outstanding, $1,120,000 and
$1,128,800 liquidation preference)
|
1,453 | 1,465 | ||||||
10%
Class F (150,000 shares issued and outstanding, $1,500,000 liquidation
preference)
|
1,500 | 1,500 | ||||||
8%
Class G (11,595 shares issued and outstanding, $115,950 liquidation
preference)
|
48 | 48 | ||||||
6%
Class H (1.25 shares issued and outstanding, $125,000 liquidation
preference)
|
- | - | ||||||
8%
Class J (100 shares issued and outstanding, $10,000,000 liquidation
preference)
|
10,000 | 10,000 | ||||||
15%
Class E cumulative preferred stock, no par value, (205,000 and 220,000
shares issued and outstanding, $2,050,000 and $2,200,000
liquidation preference)
|
2,050 | 2,200 | ||||||
Common
stock, no par value (10,165,057 and 9,722,924 shares issued and
outstanding)
|
38,950 | 38,054 | ||||||
Stock
subscriptions receivable
|
- | (26 | ) | |||||
Stock-based
compensation and warrants
|
47,290 | 46,572 | ||||||
Accumulated
other comprehensive income – unrealized gain on securities available for
sale
|
2 | 7 | ||||||
Accumulated
deficit
|
(93,485 | ) | (94,944 | ) | ||||
Total
Stockholders' Equity
|
8,026 | 5,103 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 105,097 | $ | 99,531 |
Nine Months Ended
|
||||||||
September 30, 2010
(unaudited)
|
September 30, 2009
(unaudited)
|
|||||||
OPERATING
ACTIVITIES
|
||||||||
Net
income (loss)
|
$
|
2,599
|
$
|
(12,207
|
)
|
|||
Adjustments
to reconcile net income (loss) to net cash provided (used) by operating
activities:
|
||||||||
Depreciation
and amortization
|
6,609
|
8,402
|
||||||
Loss
on sale of assets
|
(1
|
)
|
|
(35
|
)
|
|||
Amortization
of original issue discount
|
72
|
35
|
||||||
Amortization
of imputed interest discount
|
-
|
35
|
||||||
Amortization
of deferred financing costs
|
42
|
15
|
||||||
Interest
receivable added to note receivable balance
|
3
|
-
|
||||||
Change
in allowance for doubtful accounts on accounts receivable
|
(428
|
)
|
51
|
|||||
Change
in reserve for stock subscriptions and interest receivable
|
25
|
43
|
||||||
Expense
related to repricing of warrants
|
-
|
30
|
||||||
Services
provided in exchange for reduction of debt
|
(12
|
)
|
-
|
|||||
Stock
based compensation expense
|
649
|
133
|
||||||
Common
shares issued for services
|
10
|
-
|
||||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
(1,025
|
)
|
(7,104
|
)
|
||||
Other
receivables – related party
|
(40
|
)
|
-
|
|||||
Inventories
|
(1,072
|
)
|
5,647
|
|||||
Prepaid
expenses and other
|
3,695
|
(1,095
|
)
|
|||||
Other
assets
|
341
|
(21
|
)
|
|||||
Accounts
payable and accrued liabilities
|
3,231
|
1,463
|
||||||
Deferred
service obligations and revenue
|
(409
|
)
|
1,671
|
|||||
Net
cash flows provided (used) by operating activities
|
14,289
|
(2,937
|
)
|
|||||
INVESTING
ACTIVITIES
|
||||||||
Purchases
of property and equipment
|
(1,527
|
)
|
(2,166
|
)
|
||||
Checks
issued in excess of bank balance with the purchase of 80% of outstanding
stock of DirecTECH operating entities
|
-
|
(369
|
)
|
|||||
Purchases
of intangible assets
|
(36
|
)
|
(175
|
)
|
||||
Collections
on notes receivable
|
1
|
37
|
||||||
Net
cash flows used by investing activities
|
(1,562
|
)
|
(2,673
|
)
|
||||
FINANCING
ACTIVITIES
|
||||||||
Payments
on short-term debt
|
(7,949
|
)
|
(25
|
)
|
||||
Payments
on long-term debt
|
(278
|
)
|
(2,657
|
)
|
||||
Payments
on related parties debt – short term
|
(665
|
)
|
-
|
|||||
Payments
on related parties debt - long term
|
(242
|
)
|
(1,400
|
)
|
||||
Payments
on capital lease obligations
|
(426
|
)
|
(335
|
)
|
||||
Payments
for debt issuance costs
|
-
|
(144
|
)
|
|||||
Net
advances (repayments) on line of credit
|
(1
|
)
|
5
|
|||||
Payments
received on stock subscription receivable
|
(2
|
)
|
-
|
|||||
Payment
on mandatory redeemable preferred stock
|
-
|
(150
|
)
|
|||||
Proceeds
from related parties debt – short term
|
-
|
3,700
|
||||||
Proceeds
from issuance of preferred stock
|
-
|
500
|
||||||
Proceeds
from issuance of long-term debt
|
-
|
6,100
|
||||||
Stock
issuance costs
|
(15
|
)
|
-
|
|||||
Redemption
of preferred stock
|
(168
|
)
|
(18
|
)
|
||||
Preferred
stock dividends
|
(309
|
)
|
(59
|
)
|
||||
Net
cash flows provided (used) by financing activities
|
(10,055
|
)
|
5,517
|
|||||
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
2,672
|
(93)
|
||||||
CASH
AND CASH EQUIVALENTS - Beginning of Period
|
2,240
|
4,346
|
||||||
CASH
AND CASH EQUIVALENTS - END OF PERIOD
|
$
|
4,912
|
$
|
4,253
|
Nine Months Ended
|
||||||||
September 30,
2010
(unaudited)
|
September 30,
2009
(unaudited)
|
|||||||
Cash
paid for interest, net of amortization of OID and interest
discount
|
$ | 3,078 | $ | 1,872 | ||||
Cash
paid for federal and state income taxes
|
3,734 | 611 | ||||||
Non-cash
investing and financing transactions:
|
||||||||
Purchase
of property and equipment via increase in capital lease
obligations
|
340 | 562 | ||||||
Increase
in prepaid expense via increase in debt
|
36 | - | ||||||
Purchase
of intangible assets via issuance of short-term notes payable and common
stock
|
163 | - | ||||||
Intrinsic
value of preferred dividends
|
3 | 3 | ||||||
Conversion
of accrued interest into common stock
|
2 | 2 | ||||||
Conversion
of accrued dividends into common stock
|
595 | 166 | ||||||
Increase
in prepaid expense via short-term debt issued
|
8,806 | - | ||||||
Increase
in other assets via issuance of common stock
|
180 | - | ||||||
Increase
in short term debt via offset to accounts payable
|
- | 159 | ||||||
Reduction
in related party debt by other receivable – related party
|
66 | - | ||||||
Warrants
issued for long-term notes payable
|
- | 372 | ||||||
Warrants
issued in lieu of dividends
|
57 | - | ||||||
Reduction
of notes payable -related party with exchange for preferred
stock
|
- | 1,500 | ||||||
Reduction
of accounts payable with proceeds from sale of intangible asset and
equipment
|
- | 446 | ||||||
Reduction
in accounts payable and accrued expenses with issuance of long-term
debt
|
- | 394 | ||||||
Purchase
of 80% of outstanding stock of DirecTECH operating entities via issuance
of short and long term notes payable
|
- | 38,240 | ||||||
Reduction
in accrued compensation via issuance of stock options
|
113 | - | ||||||
Reduction
of notes payable via reduction of related party receivable in connection
with the purchase of outstanding stock of DirecTECH operating
entities
|
- | 5,844 | ||||||
Reduction
of notes payable with issuance notes payable in connection with
acquisition
|
- | 300 | ||||||
Purchase
of 29% of outstanding stock of NC (formerly MMT) via issuance of short and
long term notes payable
|
- | 1,660 | ||||||
Purchase
of 80% of outstanding stock of DirecTECH operating entities via payment to
escrow in 2008
|
- | 500 |
NOTE
1 - Unaudited Consolidated Financial
Statements
|
NOTE
2 - Summary of Significant Accounting
Policies
|
1.
|
Maintain
continued profitability in the Company’s HSP
segment.
|
2.
|
Evaluate
factors such as anticipated usage and inventory turnover to maintain
optimal inventory levels.
|
3.
|
Obtain senior debt financing with
extended terms to refinance the Company’s note payable to DirecTECH
Holding Company, Inc., which matures on January 1,
2013.
|
4.
|
Expand call center support with
sales of call center services to both existing and future system operators
and to buyers of the Company’s video
subscribers.
|
5.
|
Solicit
additional equity investment in the Company by issuing either preferred or
common stock.
|
·
|
installation
and service of DirecTV video programming for residents of single family
homes
|
·
|
installation
of home security systems and internet
services
|
1.
|
from
voice, video and data communications products which are sold and
installed
|
2.
|
direct
billing of user charges to multiple dwelling units, through the activation
of, enhancement of, and residual fees on video programming services
provided to residents of multiple dwelling
units
|
MBCorp.
|
MDU
|
HSP
|
Total
|
|||||||||||||
Balance,
December 31, 2009
|
$ | - | $ | 381 | $ | 37,686 | $ | 38,067 | ||||||||
Acquisitions/impairment
|
- | - | - | - | ||||||||||||
Balance,
September 30, 2010
|
$ | - | $ | 381 | $ | 37,686 | $ | 38,067 |
September 30, 2010
|
December 31, 2009
|
|||||||||||||||
Gross
Carrying
|
Accumulated
|
Gross
Carrying
|
Accumulated
|
|||||||||||||
Amount
|
Amortization
|
Amount
|
Amortization
|
|||||||||||||
Intangible
assets subject to amortization
|
||||||||||||||||
Right
of entry contracts
|
$
|
2,716
|
$
|
1,525
|
$
|
2,577
|
$
|
1,228
|
||||||||
Contracts
with DirecTV
|
36,902
|
19,702
|
36,902
|
15,574
|
||||||||||||
Customer
contracts
|
102
|
102
|
102
|
102
|
||||||||||||
Total
|
$
|
39,720
|
$
|
21,329
|
$
|
39,581
|
$
|
16,904
|
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30,
2010
|
September 30,
2009
|
September 30,
2010
|
September 30,
2009
|
|||||||||||||
Risk-free
interest rate
|
1.46 | % | * | 2.42 | % | 1.43 | % | |||||||||
Expected
life of options granted
|
5.0
Years
|
* |
5.0
Years
|
5.0
Years
|
||||||||||||
Expected
volatility range
|
95.5 | % | * | 95.2 | % | 95 | % | |||||||||
Expected
dividend yield
|
0 | % | * | 0 | % | 0 | % |
Number of
Restricted Shares
|
Weighted-
Average Grant
Date Fair Value
|
|||||||
Outstanding
and not vested at January 1, 2010
|
-
|
$
|
-
|
|||||
Granted
|
257,625
|
$
|
1.95
|
|||||
Vested
|
(50,000
|
)
|
$
|
2.00
|
||||
Outstanding
and not vested at September 30, 2010
|
207,625
|
$
|
1.95
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
2010
(unaudited)
|
September 30,
2009
(unaudited)
|
September
30, 2010
(unaudited)
|
September
30, 2009
(unaudited)
|
|||||||||||||
Weighted
average number of common shares outstanding - basic
|
10,084 | 9,659 | 9,930 | 9,653 | ||||||||||||
Weighted
average dilutive impact of equity-based compensation
awards
|
104 | - | 117 | - | ||||||||||||
Weighted
average number of common and common equivalent shares outstanding -
diluted
|
10,188 | 9,659 | 10,047 | 9,653 | ||||||||||||
Awards
excluded from diluted income(loss) per share
|
7,188 | 2,872 | 7,193 | 2,872 |
NOTE
3 – Business Acquisitions
|
Cash
paid
|
$ | 500 | ||
Short-term
debt
|
500 | |||
Promissory
note
|
39,400 | |||
Total
consideration
|
40,400 | |||
Less
consideration for 29% of NC (recorded separately as an equity
transaction)
|
(1,660 | ) | ||
Consideration
for 80% of outstanding stock of EC, NE, SC, MBMDU, DV, and
Security
|
$ | 38,740 | ||
Assets
|
$ | 33,444 | ||
Intangible
assets
|
27,634 | |||
Goodwill
|
36,972 | |||
Accounts
payable and accrued liabilities
|
(53,004 | ) | ||
Noncontrolling
interest
|
(6,306 | ) | ||
$ | 38,740 |
NOTE
4 – Noncontrolling Interest
|
September 30,
2010
|
December 31,
2009
|
|||||||
Noncontrolling
interest in subsidiaries, beginning balance
|
$ | - | $ | 3,471 | ||||
Purchase
of 80% of NE, SC, EC, MBMDU, DV & Security
|
- | 6,306 | ||||||
Purchase
of 29% of NC from noncontrolling interest
|
- | (2,054 | ) | |||||
Net
income(loss) attributable to the noncontrolling interest in
subsidiaries
|
- | (1,727 | ) | |||||
Purchase
remaining 20% of NC, NE, SC, EC MBMDU, DV & Security from
noncontrolling interest
|
- | (5,996 | ) | |||||
Noncontrolling
interest in subsidiaries, ending balance
|
$ | - | $ | - |
NOTE
5 – Inventories
|
September 30,
2010
|
December 31,
2009
|
|||||||
DirecTV
– serialized
|
$
|
2,377
|
$
|
2,948
|
||||
DirecTV
– nonserialized
|
4,170
|
3,455
|
||||||
Other
|
3,153
|
2,158
|
||||||
Total
|
$
|
9,700
|
$
|
8,561
|
NOTE
6 – Securities Available for
Sale
|
September 30,
2010
|
December 31,
2009
|
|||||||
Beginning
balance
|
$
|
7
|
$
|
46
|
||||
Initial
investment
|
-
|
-
|
||||||
Current
period unrealized loss
|
(5
|
)
|
(39
|
)
|
||||
Ending
balance
|
$
|
2
|
$
|
7
|
September 30,
2010
|
December 31,
2009
|
|||||||
Cost
|
$
|
-
|
$
|
-
|
||||
Unrealized
gain
|
$
|
2
|
$
|
7
|
||||
Fair
value at period end
|
$
|
2
|
$
|
7
|
NOTE
7 – Accrued Liabilities
|
September
30,
2010
|
December
31,
2009
|
|||||||
Payroll
and related taxes
|
$
|
6,120
|
$
|
6,971
|
||||
Accrued
worker compensation claims
|
3,028
|
457
|
||||||
Accrued
incurred but not reported health insurance claims
|
1,100
|
1,088
|
||||||
Accrued
legal settlements, fees and contingencies (see Note 9)
|
6,902
|
5,684
|
||||||
Accrued
preferred stock dividends
|
809
|
626
|
||||||
Accrued
liability – vendor chargeback
|
40
|
40
|
||||||
Accrued
contract labor
|
3,336
|
2,002
|
||||||
Accrued
income taxes
|
318
|
296
|
||||||
Other
– short term
|
4,048
|
4,862
|
||||||
Accrued
liabilities – short term
|
25,701
|
22,026
|
||||||
Accrued
worker compensation claims long term
|
1,709
|
-
|
||||||
Accrued
legal settlement long term, 15 equal monthly installments remaining (see
Note 9)
|
1,132
|
3,615
|
||||||
Multi-year
insurance premium obligations
|
600
|
800
|
||||||
Accrued
liabilities – long term
|
3,441
|
4,415
|
||||||
Total
accrued liabilities
|
$
|
29,142
|
$
|
26,441
|
NOTE
8 - Business Segments
|
Three months ended September 30, 2010:
|
MBCorp
|
MDU
|
HSP
|
Total
|
||||||||||||
Revenues
|
$
|
-
|
$
|
5,766
|
$
|
64,109
|
$
|
69,875
|
||||||||
Income
(loss) from operations
|
(911
|
)
|
(993
|
)
|
5,647
|
3,743
|
||||||||||
Identifiable
assets
|
9,293
|
12,210
|
83,594
|
105,097
|
||||||||||||
Depreciation
and amortization
|
149
|
615
|
1,263
|
2,027
|
||||||||||||
Capital
expenditures
|
114
|
315
|
21
|
450
|
Three months ended September 30, 2009
|
MBCorp
|
MDU
|
HSP
|
Total
|
||||||||||||
Revenues
|
$
|
-
|
$
|
$6,595
|
$
|
64,826
|
$
|
71,421
|
||||||||
Loss
from operations
|
(976
|
)
|
36
|
1,528
|
588
|
|||||||||||
Identifiable
assets
|
2,744
|
12,868
|
92,288
|
107,900
|
||||||||||||
Depreciation
and amortization
|
99
|
1,022
|
1,293
|
2,414
|
||||||||||||
Capital
expenditures
|
69
|
636
|
35
|
740
|
Nine months ended September 30, 2010:
|
MBCorp
|
MDU
|
HSP
|
Total
|
||||||||||||
Revenues
|
$
|
-
|
$
|
16,804
|
$
|
178,207
|
$
|
195,011
|
||||||||
Income
(loss) from operations
|
(3,071
|
)
|
(2,392
|
)
|
14,975
|
9,512
|
||||||||||
Identifiable
assets
|
9,293
|
12,210
|
83,594
|
105,097
|
||||||||||||
Depreciation
and amortization
|
452
|
2,385
|
3,772
|
6,609
|
||||||||||||
Capital
expenditures
|
285
|
1,186
|
57
|
1,528
|
Nine months ended September 30, 2009
|
MBCorp
|
MDU
|
HSP
|
Total
|
||||||||||||
Revenues
|
$
|
-
|
$
|
18,625
|
$
|
182,350
|
$
|
200,975
|
||||||||
Loss
from operations
|
(2,997
|
)
|
(346
|
)
|
(5,962
|
)
|
(9,305
|
)
|
||||||||
Identifiable
assets
|
2,744
|
12,868
|
92,288
|
107,900
|
||||||||||||
Depreciation
and amortization
|
278
|
3,049
|
5,075
|
8,402
|
||||||||||||
Capital
expenditures
|
215
|
1,896
|
55
|
2,166
|
NOTE
9 – Commitments and
Contingencies
|
NOTE
10 – Income Taxes
|
NOTE
11 – Related Party
Transactions
|
DOLLAR AMOUNTS AS A PERCENTAGE OF REVENUES
|
||||||||||||||||
THREE MONTHS ENDED
|
NINE MONTHS ENDED
|
|||||||||||||||
September 30,
2010
(unaudited)
|
September 30,
2009
(unaudited)
|
September 30,
2010
(unaudited)
|
September 30,
2009
(unaudited)
|
|||||||||||||
REVENUES
|
100 | % | 100 | % | 100 | % | 100 | % | ||||||||
COST
OF PRODUCTS & SERVICES (Exclusive of depreciation and amortization
shown below)
|
70.7 | % | 76.5 | % | 70.3 | % | 79.0 | % | ||||||||
SELLING,
GENERAL & ADMINISTRATIVE
|
21.1 | % | 19.3 | % | 21.4 | % | 21.4 | % | ||||||||
DEPRECIATION
& AMORTIZATION
|
2.9 | % | 3.4 | % | 3.4 | % | 4.2 | % | ||||||||
INCOME
(LOSS) FROM OPERATIONS
|
5.3 | % | .8 | % | 4.9 | % | -4.6 | % | ||||||||
INTEREST
EXPENSE & OTHER, NET
|
-1.4 | % | -1.3 | % | -1.6 | % | -1.2 | % | ||||||||
INCOME
(LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTEREST IN
SUBSIDIARIES
|
3.9 | % | -.5 | % | 3.3 | % | -5.8 | % | ||||||||
PROVISION
FOR INCOME TAXES
|
2.2 | % | .5 | % | 2.0 | % | .3 | % | ||||||||
NET
INCOME (LOSS)
|
1.7 | % | -1.0 | % | 1.3 | % | -6.1 | % | ||||||||
LESS:
NET INCOME (LOSS) ATTRIBUTABLE TO THE NONCONTROLLING INTEREST IN
SUBSIDIARIES
|
- | -.4 | % | - | -1.0 | % | ||||||||||
NET
INCOME (LOSS) ATTRIBUTABLE TO THE MULTIBAND CORPORATION AND
SUBSIDIARIES
|
1.7 | % | -.6 | % | 1.3 | % | -5.1 | % |
1.
|
Maintain
continued profitability in the Company’s HSP
segment.
|
2.
|
Evaluate
factors such as anticipated usage and inventory turnover to maintain
optimal inventory levels.
|
3.
|
Obtain senior debt financing with
extended terms to refinance the Company’s note payable to DirecTECH
Holding Company, Inc., which matures on January 1,
2013.
|
4.
|
Expand call center support with
sales of call center services to both existing and future system operators
and to buyers of the Company’s video
subscribers.
|
5.
|
Solicit
additional equity investment in the Company by issuing either preferred or
common stock.
|
1
|
from voice, video and data communications products which are sold and installed | |
2.
|
direct
billing of user charges to multiple dwelling units, through the activation
of, enhancement of, and residual fees on video programming services
provided to residents of multiple dwelling
units
|
|
(a)
|
Exhibits
|
31.1
|
Certification
of Chief Executive Officer pursuant to Rules 13a-14 and 15d-14 of the
Exchange Act.
|
31.2
|
Certification
of Chief Financial Officer pursuant to Rules 13a-14 and 15d-14 of the
Exchange Act.
|
32.1
|
Certification
of Chief Executive Officer pursuant to 18 U.S.C. Section
1350.
|
32.2
|
Certification
of Chief Financial Officer pursuant to 18 U.S.C. Section
1350.
|
MULTIBAND
CORPORATION
Registrant
|
||
Date: November
12, 2010
|
By:
|
/s/
James L. Mandel
Chief
Executive Officer
|
Date: November
12, 2010
|
By:
|
/s/
Steven M. Bell
Chief
Financial Officer
(Principal
Financial and Accounting
Officer)
|