ARI Quarterly Revenues Jump 74%; EBITDA Turns Positive; 13 Straight Quarters of Revenue Growth; 10 Quarters of EBITDA Improvement.MILWAUKEE--(BUSINESS WIRE)--June 3, 1999-- ARI ARI Acute respiratory infection, see there Network Services, Inc. (NASDAQ/NMS:ARIS ARIS American Religious Identification Survey ARIS Architecture of Integrated Information Systems ARIS Active Rack Isolation System ARIS Aggregate Route-based IP Switching ARIS Agentia Romana pentru Investitii Straine ), a leading provider of Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. services for manufacturers with shared service and distribution networks, today reported a 74% increase in quarterly revenues and continued improvements in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become and cash flow. The Milwaukee-based company recorded revenues of $3.0 million for the third fiscal quarter ended April 30, 1999, a 74% increase from revenues of $1.7 million in the third quarter of fiscal 1998. Through the first nine months of the current fiscal year, ARI's revenues totaled $8.6 million, up 56% over the first nine months of last year. Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. E. Dearing Dearing, as a name, may refer to:
intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues were 66% of total revenues, which indicates a solid base for future quarters," Dearing said. Dearing noted that the firm's trailing twelve month revenues totaled $11.0 million and that the revenues for the first nine months of fiscal 1999 have already exceeded revenue totals for the full year in fiscal 1998. "This was our thirteenth consecutive quarter of year-over-year increases in revenue," added Dearing. EBITDA (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
ARI reported a net loss for the third quarter of $889,000 or $0.17 per share compared to a net loss of $895,000 or $0.21 per share in the third fiscal quarter a year ago. For the first nine months of fiscal 1999, the firm reported a net loss of $2.9 million or $0.58 per share compared to a net loss of $2.4 million or $0.58 per share for the first nine months of fiscal 1998. Dearing said that the flat net income for the quarter was due to operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. improvements being offset by increases in non-cash amortization of goodwill from acquisitions, including the POWERCOM-2000 acquisition. "Our plan anticipated some short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. non-cash impact from the acquisition. But we felt the opportunity for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategic growth was too good to pass up," Dearing said. "We feel similarly about the long-term opportunities that will result from the acquisition of Network Dynamics Incorporated (NDI NDI National Death Index, see there ) which closed May 13, 1999. Acquiring NDI is an excellent opportunity for ARI, but at the same time, amortizing additional goodwill from the NDI acquisition will postpone post·pone tr.v. post·poned, post·pon·ing, post·pones 1. To delay until a future time; put off. See Synonyms at defer1. 2. To place after in importance; subordinate. our ability to reach full profitability in the last quarter of this year as we had previously anticipated. As a result, we are revising our forecast as follows: First, we expect to maintain positive cash flows from operations for the fourth quarter of this fiscal year and beyond. Second, we expect to achieve full profitability -- including non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. -- some time in the second half of the next fiscal year. However, since we use the purchase method to account for our acquisitions and then amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. them quickly over five years, future acquisitions could have a negative short-term impact on profits." Dearing indicated that ARI expects to have a good fourth quarter. "To begin with, our fourth quarter is traditionally our strongest. We also will be reporting revenues from the newly acquired NDI business. In addition, we expect that concerns about Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 will accelerate customer interest in the purchase of our new Y2K-compliant systems, especially in the outdoor power and power sports industries. Furthermore, we expect to begin to realize sales from a new Web-based version of our electronic catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. software which we launched this past quarter," Dearing added. The Web-based catalog is part of an exclusive agreement with the Associated Equipment Distributors (AED AED - Automated Engineering Design ) and the Construction Industry Manufacturers Association (CIMA) calling for ARI to develop an industry-wide electronic information support and communications system In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. for Web-based electronic communication within the construction equipment industry. ARI Network Services, Inc., is a leading provider of Internet e-commerce services for manufacturers with shared service and distribution networks. ARI currently serves the manufactured equipment, agribusiness agribusiness Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts. , freight transportation and newspaper publishing industries. The Company's communications systems provide an electronic pathway pathway /path·way/ (path´wa) 1. a course usually followed. 2. the nerve structures through which an impulse passes between groups of nerve cells or between the central nervous system and an organ or muscle. for product orders, warranty registrations, sales reports and other transactions between manufacturers and their networks of sales and service points. ARI also builds and manages electronic commerce databases, including electronic parts catalogs Noun 1. parts catalog - a list advertising parts for machinery along with prices parts catalogue catalogue, catalog - a complete list of things; usually arranged systematically; "it does not pretend to be a catalog of his achievements" and industry-common directories of products, companies and locations. Statements in this news release include "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and . The forward-looking statements can generally be identified by words such as "believes," "anticipates," "expects" or words of similar meaning. Forward-looking statements also include statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's future performance, such as future prospects, revenues, profits and cash flows. The forward-looking statements are subject to risks and uncertainties, which may cause actual results to be materially different from any future performance suggested in the forward-looking statements. Such risks and uncertainties include those factors described under "Forward Looking Statements" in the Company's most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. or quarterly report on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission. The forward-looking statements are made only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements.
ARI Network Services, Inc.
Balance Sheet
(Dollars in thousands, except per share data)
(Unaudited)
April 30 July 31
1999 1998
ASSETS Unaudited Audited
-------------- -------------
Current Assets:
Cash and cash equivalents $32 $194
Accounts receivable
Trade, less allowance for doubtful
accounts of $291 in April of
1999 and $185 in July of 1998 3,078 2,643
Other 1 2
Prepaid expenses 281 116
-------------- -------------
Total Current Assets 3,392 2,955
Equipment & leasehold improvements:
Network system hardware 3,826 3,778
Leasehold improvements 239 239
Furniture and equipment 845 485
-------------- -------------
4,910 4,502
Less accumulated depreciation and
amortization 4,457 4,107
-------------- -------------
Net equipment and leasehold
improvements 453 395
Other assets 2,935 336
Network system:
Network platform 11,467 11,467
Industry-specific applications 21,779 19,906
-------------- -------------
33,246 31,373
Less accumulated amortization 24,064 22,251
-------------- -------------
9,182 9,122
Total Assets $15,962 $12,808
============== =============
LIABILITIES & SHAREHOLDERS' EQUITY Current
liabilities:
Notes payable $13 $28
Accounts payable 1,041 581
Unearned income 3,008 776
Accrued payroll and related expenses 804 620
Other accrued expenses 229 158
Current portion of capital lease
obligations 15 30
---------------------------
Total Current Liabilities 5,110 2,193
Line of credit payable to shareholder 2,950 1,620
Capital lease obligations 25 33
Shareholders' equity:
Preferred stock, par value $.001 per
share, 1,000,000 shares authorized:
20,350 and 20,000 shares issued
and outstanding at April 30, 1999
and July 31, 1998, respectively 0 0
Common stock, par value $.001 per
share, 25,000,000 shares
authorized; 5,097,432 and
4,247,460 shares issued and
outstanding at April 30, 1999 and
July 31, 1998, respectively 5 4
Additional paid-in-capital 86,829 85,028
Accumulated deficit (78,957) (76,070)
---------------------------
Total Shareholders' Equity 7,877 8,962
---------------------------
Total Liabilities &
Shareholders' Equity $15,962 $12,808
===========================
ARI NETWORK SERVICES, INC.
CONDENSED STATEMENT OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended
April 30
1999 1998
Net revenues:
Network & other services $1,520 $1,400
Software & development 1,472 317
-------------------------
2,992 1,717
Operating expenses:
Variable costs of products and services sold (exclusive of
depreciation and amortization shown below):
Network and other services 372 315
Software and development 464 169
-------------------------
Total variable costs of products
and services sold 836 484
Depreciation and amortization 873 535
Network operations 193 176
Selling, general and administrative 1,791 1,230
Network construction and expansion 531 521
-------------------------
Operating expenses before amounts
capitalized 4,224 2,946
Less capitalized expenses(a) (418) (362)
-------------------------
Total operating expenses 3,806 2,584
-------------------------
Operating income (loss) (814) (867)
Other income (expense) (75) (28)
-------------------------
Net income (loss) $(889) $(895)
=========================
Average common shares outstanding 5,097 4,247
Basic and diluted net income (loss)
per share (0.17) (0.21)
Nine months ended
April 30
1999 1998
Net revenues:
Network & other services $6,068 $4,050
Software & development 2,530 1,469
-------------------------
8,598 5,519
Operating expenses:
Variable costs of products and services sold (exclusive of
depreciation and amortization shown below):
Network and other services 1,100 964
Software and development 1,200 481
-------------------------
Total variable costs of products
and services sold 2,300 1,445
Depreciation and amortization 2,586 1,553
Network operations 566 559
Selling, general and administrative 5,204 3,634
Network construction and expansion 2,040 1,694
-------------------------
Operating expenses before amounts
capitalized 12,696 8,885
Less capitalized expenses(a) (1,426) (1,094)
-------------------------
Total operating expenses 11,270 7,791
-------------------------
Operating income (loss) (2,672) (2,272)
Other income (expense) (215) (84)
-------------------------
Net income (loss) $(2,887) $(2,356)
=========================
Average common shares outstanding 4,950 4,076
Basic and diluted net income (loss)
per share (0.58) (0.58)
(a) In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). 86, includes a portion of network and product development expense and other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. directly related to the development process. See notes to unaudited condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. financial statements. |
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