By a News Reporter-Staff News Editor at Electronics Business Journal -- CiG Wireless Corp (OTCBB: CIGW) announced its earnings for the second quarter ended June 30, 2014. CiG Wireless Corp. (the "Company") headquartered currently in Wellington, Florida is a growing company that operates, develops and owns wireless communication towers in the United States.
Revenue for the three months ended June 30, 2014 was approximately $1.7 million, which was an increase of approximately $1.1 million or 209% compared to the same period of the prior year. The increase was primarily attributable to revenue generated from the acquisitions completed during 2013 and 2014. The acquisitions, which added 108 towers to the Company's portfolio, included 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 during 2013 and 2014, the acquisition of 19 constructed towers from PTA, FLA, Inc. completed in multiple transactions during 2013 and 2014 and the acquisition of two constructed towers from Fidelity Towers, Inc. completed in 2013 and 2014.
Loss from operations for the three months ended June 30, 2014 was approximately $2.5 million compared to a loss of approximately $1.5 million in the same period of the prior year. The increase in operating loss is primarily due to higher stock compensation expense by $0.6 million during the current quarter and an impairment loss of $0.5 million related to terminated construction projects. Depreciation, amortization and accretion expense for the three months ended June 30, 2014 increased by approximately $0.7 million, or 190% compared to the same period for the prior year. The increase in depreciation, amortization and accretion expense was primarily attributable to the acquisition of 108 towers completed during 2013 and 2014.
Net income for the three months ended June 30, 2014 was approximately $13.4 million compared to a net loss of approximately $1.8 million in the same period for the prior year. The increase in net income was the result of the gain from the decrease in the fair value of derivatives of $16.7 million and improved operating results due to revenue growth partially offset by higher interest expense in connection with the increase in the Company's borrowings under the credit facility entered into in September 2012 (the "Credit Facility").
As of June 30, 2014, the Company's cash and cash equivalents balance was approximately $1.2 million. During the three months ended June 30, 2014, the Company paid approximately $7.4 million for acquisitions and the construction of antenna towers. These payments were funded through proceeds available under the credit Facility.
As of June 30, 2014, the Company owned 178 wireless communication towers and had a geographical presence in 24 states. Approximately 97% of the Company's revenues were derived from site rental revenues of the Company's communication towers.
Keywords for this news article include: Electronics, CiG Wireless Corp, Wireless Technology, Wireless Communication.
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