CiG Wireless Corp today announced its earnings for the three months ended March 31, 2014. CiG Wireless Corp headquartered currently in Atlanta, Georgia is a growing company that operates, develops and owns wireless communication towers in the United States.
Revenue for the three months ended March 31, 2014 was approximately $1.6 million compared to approximately $0.5 million in the same period of the prior year. The increase in revenues of over $1.0 million or 200% was attributable to the acquisition of 100 towers and the construction of three towers during 2013 and the first quarter of 2014. The addition of 100 towers to the Company’s portfolio was accomplished through the acquisition of 38 constructed towers from Liberty Towers, LLC in August 2013, the acquisition of 49 constructed towers from Southern Tower Antenna Rental, LLC completed in multiple transactions, the acquisition of 12 constructed towers from PTA, FLA, Inc. completed in multiple transactions and the acquisition of one constructed tower from Fidelity Towers, Inc.
Loss from operations for the three months ended March 31, 2014 was approximately $2.0 million, which was generally flat compared to the same period for the prior year. Depreciation, amortization and accretion expense for the three months ended March 31, 2014 increased by approximately $0.7 million or an increase of 1.7% compared to the same period for the prior year. The increase was attributable to the addition of 103 towers to the Company’s portfolio of assets that took place during 2013 and the first quarter 2014.
Net loss for the three months ended March 31, 2014 was approximately $18.3 million compared to approximately $2.4 million in the same period for the prior year. The increase in net loss was the result of the change in the fair value of derivatives of $14.7 million, indemnity fees of $0.9 million and higher interest expense in connection with the increase in the Company’s borrowings under its credit facility entered into in September 2012 (the “Credit Facility”).
As of March 31, 2014, the Company’s cash and cash equivalents balance was approximately $2.0 million. During the three months ended March 31, 2014, the Company paid approximately $4.1 million for acquisitions and the construction of antenna towers. These payments were funded through proceeds available under the Credit Facility and the issuance of Series A-1 and Series A-2 Preferred Stock.
As of March 31, 2014, the Company owned 170 wireless communication towers and had a geographical presence in 23 states. Approximately 93% of the Company’s revenues were derived from site rental revenues of the Company’s communication towers.
The Company started the process of relocating its corporate headquarters to Florida. This process is expected to be completed during the third quarter 2014.
About CiG Wireless Corp
CiG Wireless Corp (www.cigwireless.com) is a leading independent owner and operator of wireless communication infrastructures in the United States. The primary focus of the Company is leasing antenna space on its multi-tenant towers to a variety of wireless service providers under long-term lease contracts. The Company’s common stock is traded publicly in the US on the OTC Bulletin Board (CIGW) and on the Entry Standard of the Frankfurt Stock Exchange in Germany.
SOURCE CiG Wireless Corp
