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First Communications, Inc. Announces Audited Results for the Year Ended December 31, 2009
Date:5/8/2010

008 to 2009;
  • EBITDA (as defined below) of $14.1 million for 2009, compared to $0.8 million for 2008; and
  • Higher net income primarily resulting from higher EBITDA as discussed above and the gain associated with the Tower Asset Contribution discussed in the footnotes to the audited financial statements.

  • Note: The results for the year 2008 include a full 12 month contribution from First Communications, LLC (“FC LLC”), and Xtension Services, Inc. ("Xtensions"), and just over 9 months contribution from First Telecom Services, LLC (“FTS”) and a 3 months contribution from First Global Telecom, Inc. (“Globalcom”). Additionally, the 2009 financial statements include $5.8 million of revenue and $3.7 million in EBITDA earned from the towers assets before the contribution thereof on August 20, 2009 to an affiliate of Diamond.

    EBITDA is defined herein as net income (loss) before depreciation and amortization, impairment of goodwill and other intangibles, interest expense, and provision for (benefit from) income taxes, and before a one-time gain related to the Company’s 2009 Contributed Assets and related financing as discussed in the footnotes to the audited financial statements.

    Selected Financial Information

    (Please see “First Communications, Inc. Selected Financial Information” chart located to the right of this page.)

    Operational Highlights and Current Outlook:

    Ray Hexamer, CEO of First Communications commented:

    “After a disappointing year in 2008, we made significant progress in 2009’s difficult economic environment by realigning our resources while investing in new product and sales resources. We also finished the first of a three year capital project in lighting and expanding our expansive fiber network. The continued double digit growth in bandwidth demand has placed a premium on many of
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