C2 Global Technologies Inc.
OTC Bulletin Board : COBT

C2 Global Technologies Inc.

November 15, 2010 16:52 ET

C2 Global Technologies Inc. Reports 2010 Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2010) - C2 Global Technologies Inc. ("C2" or the "Company") (OTCBB:COBT) today reported its financial results for the third quarter ended September 30, 2010. All amounts are stated in US dollars.

The Company had net income attributable to its controlling interest of $0.6 million or $0.03 per common share, basic and diluted, for the third quarter of 2010, compared to net income of $0.2 million or $0.01 per common share, basic and diluted, for the third quarter of 2009.

For the third quarter of 2010 the Company's revenue from continuing operations was $0.3 million, compared to $1.9 million for the third quarter of 2009. All of the revenue was earned by the Company's 75%-owned subsidiary, Counsel RB Capital, LLC ("Counsel RB").

For the nine months ended September 30, 2010, the Company had net income of $2.0 million compared to a net loss of $0.4 million for the nine months ended September 30, 2009. The net earnings per common share for the nine months ended September 30, 2010 were $0.09, basic and diluted, compared to a net loss per common share of $0.02, basic and diluted, for the nine months ended September 30, 2009. The Company's operating revenue from continuing operations for the nine months ended September 30, 2010 was $3.1 million, as compared to $1.9 million for the nine months ended September 30, 2009. All of the revenue was earned by Counsel RB.

"We are very pleased with the progress that Counsel RB has made since commencing operations in the second quarter of 2009. It has exceeded expectations and we continue to allocate energy and resources to building this important operating segment", said Allan Silber, Chairman and CEO of C2.

Please see the Company's Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on March 31, 2010, and the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2010, filed with the SEC on November 15, 2010, for further information.

About C2 Global Technologies Inc.

C2 operates in two business segments: asset liquidation and patent licensing. C2's asset liquidation business acquires and disposes of distressed and surplus assets through its interest in Counsel RB Capital. C2's patent licensing business develops and licenses its patents, which include two foundational patents in VoIP technology. For further information, please visit C2's website at www.c2global.com.

Forward-Looking Statements

This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended, that are based on management's exercise of business judgment as well as assumptions made by, and information currently available to, management. When used in this document, the words "may", "will", "anticipate", "believe", "estimate", "expect", "intend", and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as noted in our securities and other regulatory filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation, and do not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements. 

C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(In thousands, except share and per share amounts) September 30, 2010   December 31, 2009  
  (unaudited)      
ASSETS        
Current assets:            
  Cash $ 1,118   $ 93  
  Accounts receivable   193     1,000  
  Receivable from a related party   237      
  Note receivable       653  
  Deposits       300  
  Inventory – equipment   257     442  
  Other current assets   46     110  
  Deferred income tax assets   588     729  
    Total current assets   2,439     3,327  
Other assets:            
  Inventory – real estate   1,073     1,396  
  Asset liquidation investments   4,278     3,943  
  Investments   2,859     2,788  
  Goodwill   173     173  
    Total assets $ 10,822   $ 11,627  
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
Current liabilities:            
  Accounts payable and accrued liabilities $ 1,094   $ 1,457  
  Income taxes payable   146     26  
  Debt payable to third parties   2,574     4,626  
  Debt payable to a related party       1,564  
    Total liabilities   3,814     7,673  
             
Stockholders' equity:            
  Preferred stock   6     6  
  Common stock   227     227  
  Additional paid-in capital   274,749     274,706  
  Accumulated deficit   (269,266 )   (271,287 )
  Stockholders' equity before non-controlling interest   5,716     3,652  
  Non-controlling interest in subsidiary   1,292     302  
    Total equity   7,008     3,954  
    Total liabilities and stockholders' equity $ 10,822   $ 11,627  
 
 
The notes contained in our Quarterly Report on Form 10-Q are an integral part of these condensed consolidated financial statements
 
C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 
 
  Three Months Ended September 30,   Nine Months Ended September 30,  
(In thousands, except per share amounts) 2010   2009   2010   2009  
                         
                         
Revenue:                        
  Asset liquidation $ 340   $ 1,869   $ 3,061   $ 1,904  
    Total revenue   340     1,869     3,061     1,904  
                         
Operating costs and expenses:                        
  Asset liquidation   243     889     2,079     889  
  Patent licensing   12     19     19     21  
  Selling, general and administrative   661     593     1,897     1,688  
    Total operating costs and expenses   916     1,501     3,995     2,598  
    (576 )   368     (934 )   (694 )
Earnings of equity accounted asset liquidation investments   1,370     51     4,408     443  
Operating income (loss)   794     419     3,474     (251 )
Other income (expenses):                        
  Other income   169         60     22  
  Interest expense   (48 )   (123 )   (310 )   (186 )
    Total other income (expenses)   121     (123 )   (250 )   (164 )
Income (loss) from continuing operations before the undernoted   915     296     3,224     (415 )
Earnings (loss) of equity accounted investments (net of $0 tax)   (93 )   77     58     97  
Income tax expense (recovery)   (110 )   65     271     12  
Net income (loss)   932     308     3,011     (330 )
Net (income) loss attributable to non-controlling interest   (283 )   (64 )   (990 )   (21 )
Net income (loss) attributable to controlling interest $ 649   $ 244   $ 2,021   $ (351 )
                         
Weighted average common shares outstanding   22,718     22,718     22,718     22,725  
Weighted average preferred shares outstanding   1     1     1     1  
                         
Earnings (loss) per share attributable to controlling interest:                        
  Common shares $ 0.03   $ 0.01   $ 0.09   $ (0.02 )
  Preferred shares $ 1.14   $ 0.43   $ 3.55   $ N/A  
 
The notes contained in our Quarterly Report on Form 10-Q are an integral part of these condensed consolidated financial statements

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