TAMPA, Fla., May 17, 2005 (PRIMEZONE) -- FTS Group, Inc. (OTCBB:FLIP), a publicly traded holding company operating in the wireless industry through its wholly owned subsidiary FTS Wireless, Inc., today announced record operating results for the quarter ending March 31, 2005.
FTS CEO Scott Gallagher commented, "We're proud to report record operating results to the stockholders of our Company and a return to positive stockholders equity. During the first three months of 2005, we increased our top-line sales by some 68% over the prior year and totally eliminated our convertible debt. We reduced total liabilities by nearly $400K and most importantly, gross profit as a percentage of revenue jumped from around 21% in 04 to around 55% this year."
Gallagher went on to say, "We expect these positive trends to continue into 2005 and remain confident that our Company will become profitable during the second half of the year."
FTS GROUP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2005
2005
-----------
ASSETS
CURRENT ASSETS
Cash $ 736
Accounts receivable 87,485
Inventory 211,819
Prepaid Expenses 54,134
-----------
Total current assets 293,961
-----------
PROPERTY AND EQUIPMENT, NET 201,542
-----------
OTHER ASSETS
Investment in private entity 7,500
Deposits 20,489
-----------
Total other assets 27,989
-----------
$ 523,492
===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued
expenses $ 228,040
Notes payable -- individuals 3,250
Notes payable related parties 1,867
Note payable-Dutchess Private
Equities Fund
Net of debt discount, $7,516 at
March 31, 2005 35,907
-----------
Total current liabilities 269,064
-----------
STOCKHOLDERS' EQUITY 10%
Convertible preferred stock,
Series A, $0.01 par value,
150,000 shares authorized,
0 shares issued and outstanding
Preferred stock, $0.01 par
value, 4,850,000 undesignated
shares authorized, none issued
Common stock, $0.001 par value,
150,000,000 shares authorized,
54,877,195 issued and
outstanding at March 31, 2005 54,877
Additional paid in capital 9,335,064
Accumulated deficit (9,079,513)
-----------
Total stockholders' equity 310,428
Less: Stock subscription
receivable (56,000)
-----------
Total stockholders' equity 254,428
$ 523,492
===========
FTS GROUP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004
(UNAUDITED)
-----------
2005 2004
------------ ------------
REVENUES Sales, Net $ 303,970 $ 181,335
COST OF GOODS SOLD 135,518 143,134
------------ ------------
GROSS PROFIT 168,452 38,201
------------ ------------
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 755,327 907,906
------------ ------------
LOSS FROM OPERATIONS (586,875) (869,705)
------------ ------------
OTHER INCOME (EXPENSE)
Interest Expense (184,000) --
------------ ------------
NET LOSS $ (770,987) $ (869,705)
============ ============
PER SHARE INFORMATION:
WEIGHTED AVERAGE SHARES
OUTSTANDING (BASIC AND
DILUTED) 47,575,884 19,169,673
============ ============
NET LOSS PER COMMON SHARE
(BASIC AND DILUTED) $ (0.02) $ (0.05)
============ ============
About FTS Wireless, Inc.
FTS Wireless Inc., a wholly owned subsidiary of FTS Group, Inc. (OTCBB:FLIP) is an emerging regional operator of retail wireless locations that market and sell next generation wireless products and services, and operate Wi-Fi HotSpot's. FTS Wireless currently operates a chain of retail wireless locations in the Florida Gulf Coast region and the Philadelphia suburban market. The company markets and sells products worldwide through its e-commerce site's www.CellularDeals.com and www.CellChannel.com . For additional information about FTS Group, Inc. or its subsidiary, please visit our website at www.FTSWireless.com or review our periodic filings with the Securities and Exchange Commission at http://www.sec.gov.
Forward-Looking Statements
Included in this release are certain "forward-looking" statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important factors that should be considered is contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.