LYNCHBURG, VA -- (Marketwire) -- 05/17/10 -- Sitestar Corporation (OTCBB: SYTE), a holding company for technology related businesses, announced financial results for its year ended December 31, 2009 in which the Company posted another profitable year. Financial highlights for the year include:
- Total Revenue was $7,692,908, a decrease of $1,092,651 or 12.4% from $8,785,559 for the same period in 2008.
- EBITDA was $2,903,713, a decrease of $1,242,656 or 30.0% from $4,146,369 for the same period in 2008.
- Net Income was $79,997, a decrease of $1,116,762 or 93.3% from $1,196,759 for the same period in 2008.
- Outstanding shares were repurchased during 2009 under the Repurchase Program. This reduced the outstanding shares by 6,888,953 from 83,088,658 to 76,199,705 from the same period in 2009.
"In spite of the worldwide economic challenge and the lack of a major acquisition in 2009, we were able to still maintain our profitability for 2009," said Frank R. Erhartic, Jr., CEO for Sitestar. "We are also continuing to repurchase our company's stock and have repurchased over 8 percent of the outstanding shares in 2009.
"Due to the change in the way Sitestar is now recording revenues, we will be restating the 2008 10-K financials and the quarterlies of 2009," commented Erhartic. "In the past, we recorded revenues that caused the accumulation of late fees and other such fees on non-collectable accounts and overstated revenue bad debt expense and accounts receivable. We have adjusted our reporting to more closely recognize what we expect to collect."
Commenting on the Company's outlook for the current fiscal year, Mr. Erhartic added the following guidance, "We feel that many companies have held off selling their companies to us due to the economic uncertainty of their other ventures. Although we feel acquisition is one of our best ways to acquire customers and increase revenue, Sitestar will use its resources to expand into new markets and products."
For more detailed information on Sitestar's financial position and results of operations, please see the company's 10-K Edgar filing at http://www.sec.gov.
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.
Sitestar is a holding company for technology related businesses, including Internet Service Providers (ISPs) and computer sales and services. Sitestar offers consumer and business-grade Internet access, web hosting and computer related services. Other services offered are wholesale managed modem and call center services for downstream ISPs. Headquartered in Lynchburg, Virginia, Sitestar maintains multiple sites of operation and provides services to customers throughout the U.S. and Canada. With a focus on competitive pricing, reliability, service and speed, Sitestar delivers customer value. For more information, visit www.sitestar.com.
Frank R. Erhartic, Jr.
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