Mitesco Reports $2 Million Q3 Profit From Restructuring
Mitesco (OTC:MITI) reported a significant financial turnaround in Q3 2024, posting a $2.0 million net income compared to a $2.5 million loss in the previous year. The company achieved $.29 EPS on 6.3 million shares outstanding. Operating expenses decreased to $721,000 from $2.4 million year-over-year. The company has successfully restructured over $25 million in liabilities, including $13 million in senior securities and $12 million in debt converted to restricted common stock at $4.00 per share. The company's Centcore data center business is gaining traction, particularly among municipal entities and financial institutions. Additionally, Mitesco appointed Marty Valania, a digital marketing veteran, to its Advisory Board to support growth initiatives.
Mitesco (OTC:MITI) ha riportato un significativo miglioramento finanziario nel terzo trimestre del 2024, registrando un utile netto di 2,0 milioni di dollari rispetto a una perdita di 2,5 milioni di dollari dell'anno precedente. L'azienda ha ottenuto un utile per azione di $0,29 su 6,3 milioni di azioni in circolazione. Le spese operative sono diminuite a $721.000 rispetto a 2,4 milioni di dollari dell'anno precedente. L'azienda ha ristrutturato con successo oltre 25 milioni di dollari in passività, inclusi 13 milioni di dollari in titoli senior e 12 milioni di dollari in debito convertito in azioni comuni a restrizioni a $4,00 per azione. Il business del centro dati Centcore dell'azienda sta guadagnando terreno, in particolare tra enti municipali e istituzioni finanziarie. Inoltre, Mitesco ha nominato Marty Valania, un veterano del marketing digitale, nel suo Consiglio di consulenza per supportare le iniziative di crescita.
Mitesco (OTC:MITI) reportó una notable mejora financiera en el tercer trimestre de 2024, registrando un ingreso neto de 2,0 millones de dólares en comparación con una pérdida de 2,5 millones de dólares del año anterior. La empresa logró un EPS de $0,29 sobre 6,3 millones de acciones en circulación. Los gastos operativos disminuyeron a $721,000 desde 2,4 millones de dólares en el año interanual. La empresa ha reestructurado con éxito más de 25 millones de dólares en pasivos, incluidos 13 millones de dólares en valores senior y 12 millones de dólares en deuda convertida en acciones comunes restringidas a $4,00 por acción. El negocio del centro de datos Centcore de la empresa está ganando tracción, especialmente entre entidades municipales e instituciones financieras. Además, Mitesco nombró a Marty Valania, un veterano del marketing digital, para su Junta Asesora para apoyar las iniciativas de crecimiento.
미테스코 (OTC:MITI)는 2024년 3분기에 재정적 전환을 이뤄내며 200만 달러의 순이익을 기록했으며, 이는 이전 해의 250만 달러 손실에 비해 상당한 개선입니다. 회사는 630만 주의 주식에서 주당 $0.29의 EPS를 달성했습니다. 운영 비용은 작년 대비 240만 달러에서 721,000 달러로 줄어들었습니다. 회사는 1,300만 달러의 고위험 증권 및 1,200만 달러의 부채를 $4.00의 주가로 제한된 보통주로 전환하는 등 2,500만 달러 이상의 부채를 성공적으로 구조조정했습니다. 회사의 센트코어 데이터 센터 사업은 특히 지방 정부 및 금융 기관들 사이에서 점점 더 인기를 끌고 있습니다. 또한, 미테스코는 성장 전략을 지원하기 위해 디지털 마케팅 전문가인 마르티 발라니아를 자문 위원회에 임명했습니다.
Mitesco (OTC:MITI) a signalé un retournement financier significatif au troisième trimestre de 2024, affichant un revenu net de 2,0 millions de dollars par rapport à une perte de 2,5 millions de dollars l'année précédente. L'entreprise a réalisé un BPA de 0,29 $ sur 6,3 millions d'actions en circulation. Les frais d'exploitation ont diminué à 721 000 $ par rapport à 2,4 millions de dollars d'une année à l'autre. L'entreprise a restructuré avec succès plus de 25 millions de dollars de passifs, y compris 13 millions de dollars en titres seniors et 12 millions de dollars de dettes converties en actions ordinaires restreintes à 4,00 $ par action. L'activité du centre de données Centcore de la société est en plein essor, en particulier parmi les entités municipales et les institutions financières. De plus, Mitesco a nommé Marty Valania, un expert en marketing numérique, à son Conseil consultatif pour soutenir les initiatives de croissance.
Mitesco (OTC:MITI) berichtete im dritten Quartal 2024 von einem wichtigen finanziellen Wendepunkt und erzielte einen Nettoertrag von 2,0 Millionen Dollar im Vergleich zu einem Verlust von 2,5 Millionen Dollar im Vorjahr. Das Unternehmen erreichte einen Gewinn von 0,29 $ pro Aktie bei 6,3 Millionen ausstehenden Aktien. Die Betriebskosten sanken im Jahresvergleich von 2,4 Millionen Dollar auf 721.000 Dollar. Mitesco hat erfolgreich über 25 Millionen Dollar an Verbindlichkeiten umstrukturiert, darunter 13 Millionen Dollar in nachrangige Wertpapiere und 12 Millionen Dollar Schulden, die in beschränkte Stammaktien zu einem Preis von 4,00 $ pro Aktie konvertiert wurden. Das Datenzentrumsunternehmen Centcore des Unternehmens gewinnt besonders bei kommunalen Einheiten und Finanzinstituten an Bedeutung. Darüber hinaus ernannte Mitesco Marty Valania, einen erfahrenen Experten im digitalen Marketing, in sein Beratungsgremium, um die Wachstumsinitiativen zu unterstützen.
- Q3 2024 net income of $2.0 million vs $2.5 million loss previous year
- Operating expenses reduced by 70% to $721,000 from $2.4 million
- Successful restructuring of $25 million in liabilities
- $12 million debt converted to equity at $4.00 per share
- Additional $4 million of debt converted post Q3
- Remaining obligations from discontinued clinic business still pending resolution
- Significant interest expenses from prior clinic business liabilities
Digital Marketing Pro Joins to Drive Growth
VERO BEACH, Fla., Dec. 02, 2024 (GLOBE NEWSWIRE) -- Mitesco, Inc. (OTC:MITI, “the Company”, www.mitescoinc.com) announced that its financial results for the quarter ended September 30, 2024, included a substantial gain from its restructuring efforts, and provides this update and perspective on the near term expectations for the Company. It also noted the addition of Marty Valania, a 25-year veteran of digital marketing and technology to its Advisory Board.
Highlights include:
- For the quarter ending September 30, 2024, the net income was
$2.0 million income vs a loss in the year earlier of ($2.5 million ). - For the Q3 period, it reported a fully diluted income of $.29 EPS on 6.3 million shares outstanding, vs ($.48) loss on 5.3 million shares outstanding in the year prior.
- For the 9 months ending September 30, 2024, the operating expenses were
$721,000 vs$2.4 million in the year prior. - Net income for the 9-month period was
$697,000 versus a loss of ($15.8 million ). - The expenses year to date were dominated by interest expense related to liabilities related to the prior clinic business, the majority of which have now been eliminated because of the restructuring effort.
Mack Leath, CEO, provided this commentary, “Clearly our restructuring effort is in gear and providing important results for our shareholders. We are finding support from our holders of our debt and senior securities who see the longer term potential. We still have much work ahead of us as we rebuild our balance sheet and create success of size in our operating businesses.”
He continued, “Since the end of the quarter we have converted an additional
As previously reported on Form 8k, over
When asked about the new Centcore data center business (www.centcoreusa.com) and the Vero Technology Ventures effort, he replied, “Centcore is finding interest in its highly secure data center offerings, with a significant and growing pipeline of prospects. Interesting segments include municipal entities who are using GIS solutions from ESRI, with whom we have a relationship, and smaller financial institutions, which has been a surprise to us. It seems they have new security compliance issues to address that can be quite expensive and complicated, and where a move into our data center would resolve much of that complexity and cost expense. Our implementation partner, Accucom (www.accucomci.com), provides both the day-to-day systems support, as well as evaluating the conversion effort required for each client. The use of the Centcore Partner Program allows us to keep our overhead and costs down, and helps the partners find new revenue sources they otherwise might not uncover.”
“The Vero Technology Ventures effort is focused on cloud computing software solutions, generally where there is a significant data storage and retrieval need. This is the most profitable part of the data center operations, and we would like to build it more rapidly. We have an internal project aimed at A.I. based support for sales and marketing which we are starting this quarter, along with several investment situations that are likely efforts for FY2025,” Leath explained.
Regarding its interest in digital marketing, Leath noted, “We believe all B2B business development marketing will be driven by digital marketing going forward and accelerated by A.I. in both targeting and qualification of prospects. We intend to form a business unit that will focus on this area and have asked Mr. Valania to help us make that effort. His resume is impressive, and we expect his P&L responsibilities to make that effort contribute to our profitability quickly.”
He concluded, “We thank our shareholders for their continued support, and believe the data center business provides a platform for both short-term, and longer duration growth going forward.”
Contact:
Mitesco Investor Relations
Jimmy Caplan
jimmycaplan@me.com
512.329.9505
Mitesco Media Relations
Rick Eisenberg
eiscom@msn.com
917-691-8934
Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements related to the expected foreclosure of several of our clinics. Words such as “expects,” “anticipates,” “aims,” “projects,” “intends,” “plans,” “believes,” “estimates,” “seeks,” “assumes,” “may,” “should,” “could,” “would,” “foresees,” “forecasts,” “predicts,” “targets,” “commitments,” and variations of such words and similar expressions are intended to identify such forward-looking statements. We caution you that the foregoing may not include all the forward-looking statements made in this press release.
These forward-looking statements are based on the Company’s current plans, assumptions, beliefs, and expectations. Forward-looking statements are subject to the occurrence of many events outside of the Company’s control. Actual results and the timing of events may differ materially from those contemplated by such forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. These risks and uncertainties include, among other things, the ability to obtain additional financing,; the risk that defaults under the Company’s leases could trigger other damages and remedies; the risk that commenced and threatened litigation may result in material judgments against the Company; the risk that foreclosure of the Company’s clinics may adversely affect the Company’s internal programs and the Company’s ability to recruit and retain skilled and motivated personnel, and may be distracting to employees and management; the risk that foreclosure of the Company’s clinics may negatively impact the Company’s business operations and reputation with or ability to serve customers; and other risks and uncertainties included in the Company’s reports on Forms 10-K, 10-Q, and 8-K and in other filings the Company makes with the Securities and Exchange Commission from time to time, available at www.sec.gov.
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