Lightyear Network Solutions on Thursday said it reported its first profit since it became a public company in early 2010.
The Louisville, Ky.-based telecommunications provider reported net income in the fourth quarter of $5 million, which included a non-recurring gain and recognition of a tax benefit stemming from the companys 2010 acquisition of SouthEast Telephone, Inc. For the year, Lightyear posted net income of $1.6 million on $52.3 million in revenues.
In a press release, the company said it landed a number of big accounts during the year in such industries as casino gaming, global plastics manufacturing, supermarket chains and call centers.
Lightyear serves about 60,000 customer locations with a significant concentration in Florida, Georgia, Indiana, Kentucky and Ohio.
Most of Lightyears revenues derive from its agents rather than its direct sales force.
In its annual filing with the Securities and Exchange Commission, Lightyear revealed that it direct sales force of 6,500 representatives accounted for just 16 percent of revenues. These sales reps mostly target residential and small office/home office customers.
Lightyears agents generated about 84 percent of the companys revenues in 2010, and Lightyear had about 150 authorized agents at the end of the year, according to the annual report.
Lightyear became a public company last year through a reverse merger with Libra Alliance Corp., a shell company that was incorporated 14 years ago in Nevada to provide Internet services to small and medium-sized businesses but ceased operations in 2001.
Several months later Lightyear completed its acquisition of Southeast Telephone in a transaction valued at $7.2 million.
At the time of the acquisition, Pikeville, Ky.-based Southeast Telephone served roughly 31,000 lines mostly to homes and reported revenues of $16.4 million for the six months ending June 30, 2010.
The October 2010 acquisition of Southeast Telephone nearly doubled Lightyears customer base, increased revenues and contributed to EBITDA (earnings before interest, taxes, depreciation and amortization), according to Lightyear CEO Sherman Henderson.
There may be more acquisitions to come.
Lightyear noted in its annual filing that it plans to further expand through organic growth and a series of acquisitions.
Shares of Lightyear trade over the counter under the symbol LYNS and were recently priced at $2.25. The company has a market capitalization of $45.2 million, according to the OTC Bulletin Board. Market value reflects the closing price multiplied by the shares outstanding,” according to the New York Stock Exchange.