UniTek Global Services, Inc. Reports Third Quarter and Nine-Month Results

UniTek Global Services, Inc. Reports Third Quarter and Nine-Month Results

For the Nine Months Ended September 28 2013 Compared to the First Nine Months
                                   of 2012:

                 Revenues Increased 15.3% to $365.1 Million;

             Adjusted EBITDA^(1) Improved 10.9% to $33.0 Million;

                Net Loss was $26.7 Million From $55.1 Million

BLUE BELL, Pa., Nov. 12, 2013 (GLOBE NEWSWIRE) -- UniTek Global Services, Inc.
("UniTek" or the "Company") (Nasdaq:UNTK), a premier provider of permanently
outsourced infrastructure services to the telecommunications, broadband cable,
wireless, transportation, public safety and satellite television industries,
today announced financial results for the third quarter and nine months ended
September 28, 2013.

"Our results reflect the coordinated actions we have taken to build UniTek
into a company that we anticipate will be better aligned to leverage all of
our assets across the organization to achieve long-term, organic growth. We
believe that we are on our way to building UniTek into a strong brand, with
the people, resources and tools in place to deliver consistent, high-value and
quality service to our customers. In the year since we began the re-alignment
process, and in the face of a number of unanticipated challenges, we believe
we made meaningful progress in creating an organization with a business
focused on verticals and geographies that we expect will experience growth
over the next decade," said Rocky Romanella, Chief Executive Officer of
UniTek.

"We are implementing our solutions in several premier buildings in Manhattan
and other urban areas in the Northeast. This speaks to the strength of our
sales team, as well as to our sound strategy that offers customers greater
flexibility, cost-effectiveness and excellence backed by solutions that
address the demands of the market. Additionally, after the quarter's end we
reached a preliminary agreement to settle a shareholder class action suit
against the Company relating to the restatement disclosed earlier this year.
Stabilizing our capital structure and improving our working capital are goals
for the coming year. I am excited by the recent direction of the business,
which is a testament to the strength of our business model and the loyalty of
our customers and employees. I am increasingly confident that UniTek is
positioned to become a best-in-class fully-integrated solutions provider
during these transformative times," concluded Mr. Romanella.

Financial Results for the Nine Months Ended September 28, 2013

Total revenues increased 15.3% to $365.1 million for the nine months ended
September 28, 2013, from $316.7 million for the nine months ended September
29, 2012.

Revenues from the Company's Fulfillment segment increased 7.2% to $240.9
million for the nine months ended September 28, 2013 compared to $224.6
million for the nine months ended September 29, 2012. This growth in revenues
was primarily attributable to $21.2 million from the impact of our September
2012 satellite acquisition and $2.8 million in growth from satellite Internet
customers, partially offset by $(8.0) million in lower volume from our cable
fulfillment customers.

In our Company's Engineering and Construction segment, revenues for the nine
months ended September 28, 2013 increased 34.9% to $124.2 million, from $92.1
million for the nine months ended September 29, 2012. The increase was mainly
due to $27.0 million in revenue growth from our wireless turf projects in the
northeastern United States. As the Company previously disclosed, in the second
quarter of 2013, our major turf vendor advised the Company that it would
reduce the amount of wireless construction work to be performed by us.

Adjusted EBITDA^(1) increased to $33.0 million for the nine months ended
September 28, 2013, compared to $29.8 million for the nine months ended
September 29, 2012. The increase was caused by $7.5 million of higher gross
profit, partially offset by an increase in selling, general and administrative
expenses of $4.2 million excluding the effect of $2.5 million lower expense
for stock-based compensation and transaction costs.

Loss from continuing operations was $(26) million, or $(1.37) per basic and
diluted share, for the first nine months of 2013, compared with a loss from
continuing operations of $(20.4) million, or $(1.14) per basic and diluted
share, for the same period of 2012.

Net loss for the nine months ended September 28, 2013 was $(26.7) million, or
$(1.40) per basic and diluted share, compared with net loss of $(55.1)
million, or $(3.07) per basic and diluted share, for the first nine months of
2012. The year-over-year improvement was attributable to the items discussed
above, as well as a loss from discontinued operations $(34.7) million from the
sale of our wireline business in the nine-months ended September 29, 2012.

Net income (loss) excluding certain items^(2) for the first nine months of
2013 was a net loss of $(7.0) million as compared to a net loss of $(3.9)
million in the same period last year. The increase in the loss was primarily
due to the higher interest expense of $11.1 million associated with our new
debt structure and amortization of the debt costs, as well as higher selling,
general and administrative costs of $1.7 million offset by improved gross
profit of $7.5 million.

Financial Results for the Three Months Ended September 28, 2013

Total revenues were relatively flat at $130.0 million for the quarter ended
September 28, 2013, compared to $130.5 million for the quarter ended September
29, 2012.

Revenues from the Company's Fulfillment segment increased 4.7% to $88.6
million for the three months ended September 28, 2013, compared to $84.6
million for the three months ended September 29, 2012. The increase in
Fulfillment revenues was primarily attributable to $6.9 million from the
impact of our satellite market acquisition in September 2012 offset by lower
volume from our cable fulfillment customers.

In our Company's Engineering and Construction segment, revenues for the three
months ended September 28, 2013 decreased 9.6% to $41.5 million, from $45.9
million for the three months ended September 29, 2012. The decrease was
largely attributable to a $(7.9) million reduction in wireless turf work
versus the same three months in 2012, offset by an increase in other
construction and systems integration projects.

Adjusted EBITDA^(1) decreased 9.3% to $16.0 million for the quarter ended
September 28, 2013, compared to $17.7 million for the third quarter of 2012.
The year-over-year decrease in Adjusted EBITDA^(1) was primarily caused by a
decrease of $1.8 million in gross profit.

Loss from continuing operations was $(11.4) million, or $(0.60) per basic and
diluted share, for the third quarter of 2013, compared with income from
continuing operations of $4.2 million, or $0.22 per basic and diluted share,
for the third quarter of 2012.

Net loss for the three-month period ended September 28, 2013 was $(11.3)
million, or $(0.59) per basic and diluted share, compared with net loss of
$(26.6) million, or $(1.42) per basic and diluted share, for the third quarter
of 2012.

Net income or (loss) excluding certain items^(2) for the third quarter of 2013
was income of $2.2 million as compared to income of $5.8 million in the same
quarter last year, primarily due to the higher interest expense of $4.2
million associated with the new debt structure and amortization of the debt
costs.

Andrew Herning, Chief Financial Officer of UniTek, added, "There is no doubt
this was a challenging quarter; however, we are optimistic our plan will
translate into organic growth over the long-term. We have made significant
changes across our organization in support of our goals to become more
effective at delivering value to our customers. We are still laying the
groundwork toward building an organization with a solid financial foundation.
To that end, we are focused on generating positive cash flow to reduce our
debt over time, and are working diligently to run our business in an efficient
and cost effective manner."

Conference Call

Management will host a listen-only conference call to review the Company's
financial results at 8:30 a.m. Eastern time, on Wednesday, November 13, 2013.
Interested parties may access the call by calling (877) 868-1833 from within
the United States, or (970) 315-0472 if calling internationally and requesting
conference call 10011848. Please dial-in approximately five minutes prior to
the start of the call. A replay will be available through November 20, 2013
and can be accessed by dialing (855) 859-2056 (US), or (404) 537-3406
(international), and entering access ID number 10011848.

The call will be also be available as a live, listen-only webcast under the
"Events and Presentations" page on the "Investor Relations" section of the
Company's website. Following the live event, an online archive will be
available for 90 days.

About UniTek Global Services

UniTek Global Services is a provider of engineering, construction management
and installation fulfillment services to companies specializing in the
telecommunications, broadband cable, wireless, two-way radio, transportation,
public safety and satellite industries. UniTek has created a scalable
operating platform, enabling each UniTek subsidiary to deliver quality
services to its Fortune 200 customers. UniTek's website is:
www.unitekglobalservices.com.

Forward-Looking Statements

The statements in this press release that are not historical fact are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Forward-looking statements include statements concerning
plans, objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than statements of
historical facts, and include without limitation statements regarding the
projected growth of and developments in the Company's business, enhancements
to the Company's brand and attractiveness to employees, the building of
shareholder value, expected impacts on revenues from AT&T, and the achievement
of revenue and growth objectives. These statements are subject to
uncertainties and risks including, but not limited to, the Company's ability
to address issues arising from previously disclosed accounting-related
matters, operating performance, general financial, economic, and political
conditions affecting the Company's business and its target industries, the
ability of the Company to perform its obligations under its contracts and
agreements with customers, and other risks contained in reports filed by the
Company with the Securities and Exchange Commission, including in our Form
10-K for the year ended December 31, 2012. The words "may," "could," "should,"
"would," "believe," "are confident," "anticipate," "estimate," "expect,"
"intend," "plan," "aspire," and similar expressions are intended to identify
forward-looking statements. All such statements are made in good faith by the
Company pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. The Company does not undertake to update any
forward looking statement, whether written or oral, which may be made from
time to time by or on behalf of the Company, except as may be required by
applicable law or regulations.

1) Adjusted EBITDA is a key indicator used by our management to evaluate
operating performance of our continuing operations and to make decisions
regarding compensation and other operational matters as well as by our
investors and lenders in evaluating our performance. While this Adjusted
EBITDA is not intended to replace any presentation included in our
consolidated financial statements under generally accepted accounting
principles, or GAAP, and should not be considered an alternative to operating
performance, we believe this measure is useful to investors in assessing our
performance with other companies in our industry. This calculation may differ
in method of calculation from similarly titled measures used by other
companies or from required calculations pursuant to our loan agreements. We
compensate for these limitations by relying primarily on our GAAP results and
using Adjusted EBITDA only as supplemental information. Adjusted EBITDA is our
EBITDA adjusted for discontinued operations, stock-based compensation and
other unusual or non-recurring costs, including the costs associated with the
Restatement, the Audit Committee Investigation and related costs.

2) Our management is using net income (loss) excluding certain items as an
indicator to evaluate the operating performance of the Company excluding the
impact of various recent events.While net income (loss) excluding certain
items is not intended to replace any presentation included in the consolidated
financial statements under generally accepted accounting principles, or GAAP,
and should not be considered an alternative to operating performance, we
believe this measure is useful to investors in assessing our performance by
not giving effect to various recent events that have impacted our
business.Specifically, these items are (i) (income) loss from discontinued
operations, (ii) restructuring charges, (iii) asset impairment, (iv)
investigation and related costs, (v) loss on extinguishment of debt and (vi),
(income) expense related to contingent consideration.

Adjusted EBITDA
The following table presents the reconciliation of net loss to Adjusted
EBITDA:
                                                             
                      Three Months Ended          Nine Months Ended
(in thousands)         September28, September29, September28, September29,
                      2013          2012          2013          2012
                                                             
Net loss               $(11,314)   $(26,609)   $(26,685)   $(55,084)
(Income) loss from
discontinued           (67)          30,773        652           34,672
operations
Income tax expense     273           293           449           315
Impairment charges     1,090         —             1,090         —
Depreciation and       4,807         6,701         16,067        19,790
amortization
Restructuring charges  670           1,594         1,149         6,400
Restatement,
investigation and      2,524         —             7,590         —
related costs
Interest expense       8,051         3,883         21,592        10,496
Loss on extinguishment 9,247         —             9,247         —
of debt
(Income) expense
related to contingent  —             —             (114)         10,077
consideration
Stock-based            517           1,003         1,674         4,050
compensation
Transaction costs      —             121           80            201
Other expense          239           (76)          232           (1,146)
(income), net
Adjusted EBITDA        $16,037     $17,683     $33,023     $29,771
                                                             

                                                            
Net Income (Loss) Excluding Certain Items
                                                            
                              3 months ended        9 months ended         
                              September September September September
                               28, 2013   29, 2012   28, 2013   29, 2012
                                                            
Net loss                       $(11,314)  $(26,609)  $(26,685)  $(55,084)
(Income) loss from             (67)       30,773     652        34,672
discontinued operations
Restructuring charges          670        1,594      1,149      6,400
Impairment charges             1,090      --       1,090      --
                                                            --
Restatement, investigation and 2,524      --       7,590      --
related costs
Loss on extinguishment of debt 9,247      --       9,247      --
(Income) expense related to    --       --       (114)      10,077
contingent consideration
Net income (loss) excluding    $2,150     $5,758     $(7,071)   $(3,935)
certain items
                                                            

                                                                
UNITEK GLOBAL SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
                                                                
(in thousands, except per share amounts)            September28, December31,
                                                   2013          2012
ASSETS                                              (Unaudited)   
CURRENT ASSETS                                                   
Cash and cash equivalents                           $1,619      $3,836
Accounts receivable, net of allowances              94,046        102,490
Inventories                                         15,675        15,266
Other current assets                                8,334         7,560
Total current assets                                119,674       129,152
Restricted cash                                     24,716        --
Property and equipment, net of accumulated          17,565        26,393
depreciation of $50,700 and $41,953
Amortizable intangible assets, net (includes
amortizable customer relationships, net, of $33,558 35,491        42,013
and $38,090)
Goodwill                                            121,890       121,920
Other assets, net                                   6,253         6,925
Total assets                                        $325,589    $326,403
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
CURRENT LIABILITIES                                              
Current portion of long-term debt                   $7,393      $3,450
Current portion of capital lease obligations        6,011         7,688
Accounts payable                                    34,600        48,845
Accrued insurance                                   17,589        16,248
Accrued compensation and benefits                   6,614         9,766
Other current liabilities                           19,647        27,361
Total current liabilities                           91,854        113,358
Long-term debt, net of current portion              188,194       153,014
Long-term capital lease obligations, net of current 4,753         8,040
portion
Other liabilities                                   4,376         3,688
Total liabilities                                   289,177       278,100
                                                                
Commitments and contingencies                                    
                                                                
STOCKHOLDERS' EQUITY                                             
Preferred Stock, $0.00002 par value (20,000 shares  --            --
authorized, no shares issued or outstanding)
Common Stock,$0.00002 par value (200,000 shares
authorized, 18,965 and 18,736 issued and            --            --
outstanding)
Additional paid-in capital                          274,842       260,077
Accumulated other comprehensive income              86            57
Accumulated deficit                                 (238,516)     (211,831)
Total stockholders' equity                          36,412        48,303
Total liabilities and stockholders' equity          $325,589    $326,403
                                                                

                                                                
UNITEK GLOBAL SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income or Loss
(Unaudited)
                                                                
                                  Three Months Ended    Nine Months Ended
(in thousands, except per share    Sept.28,  Sept.29,  Sept.28,  Sept.29,
amounts)
                                  2013       2012       2013       2012
                                                                
Revenues                           $130,037 $130,482 $365,062 $316,667
Cost of revenues                   104,227    102,824    298,594    257,657
Gross profit                       25,810     27,658     66,468     59,010
Selling, general and               10,290     11,099     35,199     33,490
administrative expenses
(Income) expense related to        --         --         (114)      10,077
contingent consideration
Restructuring charges              670        1,594      1,149      6,400
Restatement, investigation and     2,524      --         7,590      --
related costs
Impairment charges                 1,090      --         1,090      --
Depreciation and amortization      4,807      6,701      16,067     19,790
Operating income (loss)            6,429      8,264      5,487      (10,747)
Interest expense                   8,051      3,883      21,592     10,496
Loss on extinguishment of debt     9,247      --         9,247      --
Other expense (income), net        239        (76)       232        (1,146)
(Loss) income from continuing      (11,108)   4,457      (25,584)   (20,097)
operations before income taxes
Income tax expense                 273        293        449        315
(Loss) income from continuing      (11,381)   4,164      (26,033)   (20,412)
operations
Income (loss) from discontinued    67         (30,773)   (652)      (34,672)
operations
Net loss                           $(11,314)  $(26,609)  $(26,685)  $(55,084)
Other comprehensive income or                                    
loss:
Foreign currency translation       (8)        (5)        29         36
Comprehensive loss                 $(11,322)  $(26,614)  $(26,656)  $(55,048)
                                                                
Net loss per share – basic and                                   
diluted
Continuing operations              (0.60)     $0.22      $(1.37)    $(1.14)
Discontinued operations            0.01       (1.64)     (0.03)     (1.93)
Total                              $(0.59)    $(1.42)    $(1.40)    $(3.07)
                                                                
Weighted average shares of common
stock outstanding – basic and      19,101     18,732     19,013     17,969
diluted
                                                                

UNITEK GLOBAL SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
                                                               
                                                  Nine Months Ended
(in thousands)                                     September28, September29,
                                                  2013          2012
Cash flows from operating activities:                           
Net loss                                           $(26,685)     $(55,084)
Adjustments to reconcile net loss to net cash used              
in operating activities:
Provision for doubtful accounts                    2,351         2,076
Depreciation and amortization                      16,146        21,714
Impairment charges                                 1,090         35,180
Loss on extinguishment of debt                     9,247         --
Interest and fees added to debt principal          5,964         --
Amortization of deferred financing costs and debt  1,600         1,148
discount
(Income) expense related to contingent             (114)         10,077
consideration
Stock-based compensation                           1,674         4,050
Loss (gain) on sale of property and equipment      202           (1,267)
Deferred income taxes, net                         585           (5,220)
Contingent consideration                           --            (1,560)
Changes in working capital:                                     
Accounts receivable                                6,093         (29,964)
Inventories                                        (409)         (5,866)
Prepaid expenses and otherassets                  (1,079)       (1,645)
Accounts payable and other liabilities             (17,385)      21,518
Net cash used in operating activities              (720)         (4,843)
                                                               
Cash flows from investing activities:                           
Acquisition of property and equipment              (1,736)       (4,239)
Proceeds from sale of property and equipment       391           1,917
Cash paid for acquisition of businesses, net of    --            (16,858)
cash acquired
Net cash used in investing activities              (1,345)       (19,180)
                                                               
Cash flows from financing activities:                           
(Repayment of) proceeds from prior revolving       (26,892)      19,490
credit facility, net
Proceeds from new revolving credit facility, net   64,500        --
Proceeds from term loan facilities                 --            33,750
Repayment of term loan facilities                  (622)         (888)
Repayment of capital leases                        (5,768)       (8,928)
Restriction of cash to collateralize letters of    (24,716)      --
credit
Payment of contingent consideration                --            (17,980)
Payment of financing fees                          (6,765)       (1,016)
Other financing activities                         (9)           (194)
Net cash (used in) provided by financing           (272)         24,234
activities
                                                               
Effect of exchange rate on cash and cash           120           (14)
equivalents
Net (decrease) increase in cash and cash           (2,217)       197
equivalents
Cash and cash equivalents at beginning of period   3,836         533
Cash and cash equivalents at end of period         $1,619        $730
                                                               
Supplemental cash flow information:                             
Interest paid                                      $11,784       $8,993
Income taxes paid                                  382           784
                                                               
Significant non-cash investing and financing                    
activities:
Value of warrants issued to lenders under term     $13,100       $--
loan facilities
Fair value of equity paid for acquisition          --            5,789
Acquisition of property and equipment financed by  804           3,788
capital leases

CONTACT: The Piacente Group | Investor Relations
         MaryBeth Csaby
         (212) 481-2050 X407
         unitek@tpg-ir.com