Lightyear Network Solutions Announces Third Quarter 2012 Financial Results

LOUISVILLE, Ky.--(BUSINESS WIRE)--Lightyear Network Solutions, Inc. (the “Company”) (OTC Markets: LYNS), an established provider of data, voice and wireless telecommunication services to business and residential customers throughout North America, announced today its financial results for the third quarter ended September 30, 2012.

“We continue to manage through these challenging economic times and the continued decrease in residential local phone service throughout the industry”

Financial highlights for the Third Quarter of 2012 include:

• Wireless services revenue grew by approximately $293,000 (or 27%) in the third quarter of 2012 compared with the third quarter of 2011, while local services revenue decreased by approximately $208,000 (or 11%) for the same period
• Operating expenses declined by approximately $667,000 (or 10%) in the third quarter of 2012 compared with the year-ago third quarter
• Cash generated from operations increased to approximately $331,000 for the third quarter of 2012 compared with approximately $177,000 for the second quarter of 2012
• Non-GAAP EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization and Non-Cash Stock-Based Compensation) decreased to approximately ($111,000) in the third quarter of 2012 compared with approximately $418,000 in the second quarter of 2012

“We continue to manage through these challenging economic times and the continued decrease in residential local phone service throughout the industry,” said Stephen M. Lochmueller, Lightyear’s Chief Executive Officer. “While we were disappointed with our EBITDA results, we were pleased with the increase of cash generated from operations and the growth of our wireless services revenue. The Company will continue to focus of providing the highest quality services in the most efficient manner possible. We are implementing plans that we expect will improve our EBITDA performance in coming quarters.”

About Lightyear Network Solutions, Inc.

Through its wholly owned subsidiaries, Lightyear Network Solutions, Inc. provides telecommunication services to large, medium and small businesses and to residential consumers throughout North America. Lightyear’s product offerings include local PRI and digital T1, enhanced Internet services, MPLS, Ethernet, Voice over Internet Protocol (VoIP), local and long distance service, and conferencing. Lightyear also offers wireless services to customers in the U.S. through wholesale contracts with multiple wireless providers. Lightyear built its own VoIP network in 2004 to enhance its product offerings and has partnered with some of the most prominent names in telecom including: Sprint, Verizon, AT&T, Level 3, Windstream, CenturyLink, tw telecom, XO Communications and Cisco. Lightyear Network Solutions is headquartered in Louisville, Ky. Additional information can be found at: www.lightyear.net.

Forward-Looking Statements

This press release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Lightyear’s actual results to differ materially from those currently anticipated. These forward-looking statements may include, without limitation, statements about our marketing and acquisition opportunities, business strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward-looking statements are reasonable, the risks and uncertainties which could cause our actual results to differ materially from those currently anticipated includes changes in market conditions, our ability to integrate acquired operations, the ability to obtain additional financing on satisfactory terms, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and risk factors described in our Form 10-K for the year ended December 31, 2011, filed on March 30, 2012, and other filings with the Securities and Exchange Commission. Lightyear undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.

Non-U.S. GAAP Financial Measures

The Company has utilized the non-GAAP information set forth below as an additional device to aid in understanding and analyzing its financial results for the three months ended September 30, 2012. Management believes that these non-GAAP measures will allow for an evaluation of the operating performance of the Company’s business and facilitate meaningful comparison of the results in the current period to those in prior and future periods. Reference to these non-GAAP measures should not be considered a substitute for results that are presented in a manner consistent with GAAP.

A limitation of utilizing these non-GAAP measures is that GAAP accounting does in fact reflect the underlying financial results of the Company’s business. Therefore, management believes that the GAAP measures as well as the corresponding non-GAAP measures of the Company’s financial performance should be considered together.

A reconciliation of the Company’s GAAP net (loss) income for the quarters ended September 30, 2012, and June 30, 2012, to its non-GAAP EBITDA for the same periods are set forth below: