Glowpoint Announces Third Quarter 2013 Results

DENVER, Nov. 6, 2013

Financial Highlights:

• Revenue increased 27 percent year over year to $8.3 million in the third quarter of 2013 from $6.6 million in the third quarter of 2012. This increase is attributable to the third quarter 2013 revenue contribution from the October 2012 acquisition of Affinity VideoNet.
• Adjusted EBITDA (as defined below and reconciled to GAAP in the attached schedule) was $1.2 million in the third quarter of 2013, compared with $0.6 million for the same period last year and $1.2 million for the second quarter of 2013.
• Loss from operations was $0.1 million in the third quarter of 2013, compared with $0.6 million for the same period last year.
• Net cash provided by operating activities was $0.5 million for the third quarter of 2013. The Company paid down $0.5 million on its line of credit during the quarter, resulting in no outstanding balance at the end of the third quarter.
• The Company ended the third quarter with $2.1 million of cash compared with $2.2 million at the end of 2012, while paying down $0.8 million on its line of credit during the nine months ended September 30, 2013.
• During the third and fourth quarters, the Company retired all outstanding shares of Series B-1 preferred stock in exchange for common stock, which retired a total of $10.2 million of liquidation preference and eliminated any future dividends related to the exchanged shares of preferred stock.
• In October 2013, the Company refinanced its debt facilities by securing a new credit facility consisting of a term loan commitment of $11.0 million and a line of credit up to $2.0 million. At closing, the Company borrowed $9.0 million on the term loan and $0.2 million on the revolver, and used the proceeds of such borrowings to repay existing term loans of $8.5 million in addition to the payment of facility fees and expenses.

"Adjusted EBITDA of $1.2 million for the third quarter more than doubled from the third quarter of last year and slightly improved from the second quarter of 2013," stated David Clark, CFO of Glowpoint. "We generated $1.8 million of cash flow from operations and paid down $0.8 million on our revolver to $0 during the first nine months of 2013, while ending the quarter with $2.1 million in cash.  We were very pleased to complete the preferred stock exchange and debt refinancing as these transactions simplify our capital structure and provide us with greater liquidity and financial flexibility."

"We've made great strides this year in capital restructuring, organizational and personnel enhancements, and re-positioning our services for the next wave of video collaboration. I'm pleased with the progress we've made through this phase of the journey. We're producing tangible results, strengthening our balance sheet, and gradually showing improvement in our core services. Moving forward, we'll continue to focus on implementing changes needed to support our transformation, enhancing the leadership team, and creating new services with a sustainable goal to increase value for customers as well as for our shareholders," said Peter Holst, President and CEO of Glowpoint. 

The results of our operations and financial condition for the three and nine months ended September 30, 2013 and 2012, are more fully discussed in our Form 10-Q for the quarter ended September 30, 2013, filed with the Securities and Exchange Commission on November 6, 2013. Investors are encouraged to carefully review the Form 10-Q for the quarter ended September 30, 2013, for a complete analysis of our results from operations and financial condition.

Teleconference

Glowpoint will host a conference call at 4:30 p.m. EST today to discuss the financial results for the third quarter of 2013, along with updates on the business. To view the webcast, please visit: https://glowpoint.webcasts.com. To participate in the teleconference, callers may dial the toll-free number +1 877-485-3103 (U.S. callers only) or +1 201-689-8890 (from outside the U.S.). For those unable to participate during the live call, a recording of the call will be archived for viewing two hours following the call at www.glowpoint.com/investor-relations.