SOURCE: FTS Group, Inc.

November 14, 2005 10:51 ET

FTS Group, Inc. Reports Third Quarter Results

Company Cuts Net Loss by 65%, SG&A by 52% and Increases 9-Month Revenue by 82%

TAMPA, FL -- (MARKET WIRE) -- November 14, 2005 -- FTS Group, Inc. (OTC BB: FLIP), a publicly traded holding company operating in the wireless industry through its wholly owned subsidiary FTS Wireless, Inc., today announced operating results for the quarter ending September 30, 2005.

--  Net loss dropped 65%
--  S,G&A expenses were reduced 52%
--  Quarterly sales grew 28%
--  Nine-month sales Grew 82%
--  Stockholders equity improved by $492,147
--  Current liabilities dropped $232,427
    
FTS Chief Executive Officer Scott Gallagher stated, "I'm very encouraged by what we accomplished this quarter. Our net loss, SG&A, three and nine month revenue numbers all saw significant year over year improvements as well as many other key business metrics." Gallagher went on to say "The fourth quarter is looking very positive so far with same store sales up, in some cases over 100% from October. Company wide handset sales are posting solid double-digit growth rates at this point in the quarter. We expect these trends to pick up speed heading into the holiday season."

FTS will be holding an investor conference call on November 28th, 2005 at 4:30 p.m. EST

Investors wishing to participate on the call should dial:
US dial in # US 866-831-6247
International dial in # 1-617-213-8856
Access code 66240520
Investors wishing to ask specific questions should e-mail them to FTSGroup@aol.com, subject field: CC Question.

                                      FTS GROUP, INC. AND SUBSIDIARY
                                       CONSOLIDATED BALANCE SHEETS
                                 SEPTEMBER 30, 2005 AND DECEMBER 31,2004
                                   ------------------------------------
                                       2005                    2004
                                   ------------            ------------
                                    (Reviewed)               (Audited)

ASSETS

CURRENT ASSETS
Cash                               $      2,308            $      7,949
Accounts receivable                     165,046                  87,485
Inventory                                68,686                  44,998
Prepaid Expenses                          5,400                  35,430
                                   ------------            ------------
Total current assets                    241,440                 175,862
                                   ------------            ------------
PROPERTY AND EQUIPMENT, NET             217,204                 124,555
                                   ------------            ------------
OTHER ASSETS
Investment in private entity              7,500                   7,500
Deposits                                 20,489                  19,489
                                   ------------            ------------
Total other assets                       27,989                  26,989
                                   ------------            ------------
                                   $    486,633                 327,406
                                   ------------            ------------

LIABILITIES AND STOCKHOLDERS'
EQUITY

CURRENT LIABILITIES

   Accounts payable and accrued
    expenses                       $    342,386            $    259,723
   Notes payable-Individuals              3,250                  37,250
   Notes payable-related parties
    Net of debt discount                 70,661                 111,751
   Note payable-Dutchess Private
    Equities Fund                             -                 240,000
                                   ------------            ------------
Total current liabilities               416,297                 648,724
                                   ------------            ------------

CONVERTIBLE DEBENTURES                        -                 100,493
                                   ------------            ------------

STOCKHOLDERS' EQUITY 10%
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 September 30, 2005                   56,982                  37,882
Additional paid in capital            9,462,043               7,848,833
Accumulated deficit                  (9,448,689)             (8,308,526)
                                   ------------            ------------
Total stockholders' equity               70,336                (421,811)
                                   ------------            ------------
                                   $    486,633            $    327,406
                                   ------------            ------------

                               CONSOLIDATED STATEMENTS OF OPERATIONS
                     FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
                                           (UNAUDITED)
                                   ------------------------------------
                                       2005                    2004
                                   ------------            ------------
REVENUES Sales, Net                $    283,505            $    221,084
COST OF GOODS SOLD                      216,971                 138,074
                                   ------------            ------------
GROSS PROFIT                             66,534                  83,010
                                   ------------            ------------
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES                 245,388                 518,635
                                   ------------            ------------
LOSS FROM OPERATIONS                   (178,854)               (435,625)
                                   ------------            ------------
OTHER INCOME (EXPENSE)
Interest                                   (491)                (58,602)
Impairment of long Lived Assets               -                 (38,000)

NET LOSS                           $   (179,345)           $   (532,227)
                                   ============            ============
PER SHARE INFORMATION: WEIGHTED
 AVERAGE SHARES OUTSTANDING (BASIC
 AND DILUTED)                        56,982,202              29,643,160
                                   ============            ============
NET LOSS PER COMMON SHARE (BASIC
 AND DILUTED)                      $      (0.00)           $      (0.02)
                                   ============            ============


                                FTS GROUP, INC. AND SUBSIDIARY
                              CONSOLIDATED STATEMENTS OF OPERATIONS
                      FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
                                           (UNAUDITED)
                                   ------------------------------------
                                       2005                    2004
                                   ------------            ------------
REVENUES Sales, Net                $    934,096            $    510,991
COST OF GOODS SOLD                      612,356                 312,689
                                   ------------            ------------
GROSS PROFIT                            312,740                 198,302
                                   ------------            ------------
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES               1,271,665               1,628,309
                                   ------------            ------------
LOSS FROM OPERATIONS                   (949,925)             (1,430,007)
                                   ------------            ------------
OTHER INCOME (EXPENSE)
Interest                               (190,238)                (77,704)
Impairment of long Lived Assets               -                (102,000)

NET LOSS                           $ (1,140,163)           $ (1,609,711)
                                   ============            ============
PER SHARE INFORMATION: WEIGHTED
 AVERAGE SHARES OUTSTANDING (BASIC
 AND DILUTED)                        53,952,681              25,676,509
                                   ============            ============
NET LOSS PER COMMON SHARE
(BASIC AND DILUTED)                $      (0.02)           $      (0.06)
                                   ============            ============
About FTS Group, Inc.

FTS Group, Inc. (OTC BB: FLIP), is a publicly traded holding company operating in the wireless industry through its wholly owned subsidiary FTS Wireless, Inc. The Company operates eight retail wireless locations in Florida's Gulf Coast market and Globally over the Internet through its web site CellChannel.com and FTSWireless.com. For additional information relating to the business of FTS Group or FTS Wireless please review the Companies quarterly and annual filings with the Securities and Exchange Commission at www.SEC.gov or contact the Company at the e-mail or phone number below.

Additional information for investors

This release may contain forward-looking statements regarding the Company's business, customer prospects, or other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in the forward-looking statements. Investors should read and understand the risk factors detailed in the Company's 10-KSB for the fiscal year ended December 31, 2004 and in other filings with the Securities and Exchange Commission and www.SEC.gov.

Contact Information

  • Contact:
    FTS Group, Inc.
    Scott Gallagher, CEO
    (215) 688-2355
    Email Contact