WARWICK, R.I., Nov. 14 /PRNewswire-FirstCall/ -- ICOA, Inc. (OTC Bulletin Board: ICOA), a national provider of wireless broadband Internet networks, today announced financial and operational results for the three and nine months ended September 30, 2005. In the third quarter of 2005, ICOA reported record quarterly revenue of $776,212, a 158% increase over $300,184 for the third quarter of 2004. Gross profit for the third quarter of 2005 was a quarterly record of $106,762 or 14%, compared to negative ($24,323) or negative (8%) for the same period in 2004. The gross profit improvement was an overall 22% for the third quarter of 2005 over the same period in 2004. For the first nine months of 2005, ICOA recorded revenue of $1,704,876, a 119% increase over $778,614 reported for the same period in 2004. Gross profit for the first nine months of 2005 was a record $131,931 or 8%, compared to ($53,407) or negative (7%) for the same period in 2004, an improvement of 15% year over year. In the third quarter of 2005, the operating loss was ($893,827), and included increased SG&A expenses connected with the company's growth. For the same period of 2004, the operating loss was ($788,474). Net loss for the third quarter of 2005 was ($3,215,847), with 59% or $1,913,213 comprised of one time non-cash restructuring charges connected with the settlement of various loans, accrued interest and beneficial conversion feature on convertible debentures issued. Net loss for the third quarter of 2004 was ($911,419). For the first nine months of 2005, the company reported a net loss of ($6,829,055) compared to a net loss of ($2,197,899) for the same period in 2004. Interest expense of $3,623,902 in 2005 compared to $360,872 in 2004 with 53% of the net loss in 2005 attributable to the company's recognition of one time non-cash restructuring charges connected with the settlement of various loans, accrued interest and beneficial conversion feature on convertible debentures issued. "Over the last twenty-four months, our primary focus has been the strategic, financial and operational transitioning of ICOA from a kiosk- focused business to a scalable national broadband wireless service provider," said ICOA CEO Rick Schiffmann. "Our success is reflected in this quarter's financial results, including a 158% increase in year over year revenues and a significant improvement in gross margin. Operationally, ICOA has reached the point where we are able to begin realizing improved economies of scale." "To build on this momentum," continued Schiffmann, "ICOA is now focused on forging a new era of growth in broadband wireless services through the continued expansion of our owned and managed national footprint, entering promising high-margin verticals via continued acquisitions of accretive assets, driving additional revenue across our existing assets through increased usage and ancillary services and reducing relative operational costs from our business as we strive to achieve greater national scale." CFO Stephen Cummings added, "During this quarter, the company made significant strides in reducing its cost structures relative to revenue resulting in increased EBITDA. Additionally, in the third quarter of 2005, recurring revenue accounted for 69% of ICOA's total revenue, an improvement over last year's third quarter when recurring revenue accounted for 38% of revenue. The company's record revenue growth this quarter, combined with our focus on expense management, yielded significant improvements to gross margin performance and we are looking to a continuation of this trend." Cummings continued, "As we look to capitalize on opportunities in our existing sales pipelines and the broader opportunities presented by the rapid growth across the broadband wireless industry as a whole, capital formation under more favorable terms and continued adherence to conservative capital management remain a priority." Operational highlights for the third quarter included: * ICOA's owned and managed footprint increased to 1,400 locations, a 215% increase from a year earlier. * Customer demand defined as total user sessions increased 135% since January 2005, while the number of unique customers increased by 155% over the same period. * ICOA's airport footprint expanded from 7 to 25 facilities, a 258% increase from a year earlier while network coverage of airport facility annual passengers increased 205% from 20 million to over 61 million. * ICOA's managed services customer base increased by 88% since January of 2005. Detailed operating results will be provided in the company's Form 10-QSB that will be filed with the Securities and Exchange Commission today and can be accessed via http://www.icoacorp.com/investors.html. About ICOA, Inc. ICOA, Inc. is a national provider of neutral-host wireless and wired broadband Internet networks in high-traffic public locations. ICOA provides design, installation, operations, maintenance and management of neutral, common-use 802.11x standard WLAN Wi-Fi hot spot and hot zone infrastructure throughout airport facilities, quick-service restaurants, universities, travel plazas, marinas, hospitality and municipal/hot zone locations. ICOA owns or operates over 1,400 broadband access installations in high-traffic locations across 45 states. For additional information, visit http://www.icoacorp.com. To subscribe to ICOA's email alert system, please send an email to: news- firstname.lastname@example.org. For more information, contact ICOA Vice President of Corporate Development John Balbach at (401) 352-2368 or email email@example.com. The foregoing contains "forward-looking statements," which are based on management's beliefs, as well as on a number of assumptions concerning future events and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside ICOA's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see ICOA's filings with the Securities and Exchange Commission. ICOA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of ICOA.
SOURCE ICOA, Inc.