ARI Returns to Profitability; Reports increased first quarter revenues and net income.Business Editors MILWAUKEE--(BUSINESS WIRE)--Dec. 4, 2003 ARI ARI Acute respiratory infection, see there (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :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 electronic catalog-enabled business solutions that connect equipment manufacturers with their service and distribution networks, today reported results for the first quarter of fiscal 2004 ended October October: see month. 31, 2003. Revenues for the first quarter of fiscal 2004 were $3.3 million, a 8% increase from revenues of $3.1 million for the first quarter of the prior fiscal year. Net income for the first quarter of fiscal 2004 was $72,000 or $0.01 per share, up $317,000 or $0.05 per share, compared to a net loss of $245,000 or $0.04 per share for the comparable prior period. "Fiscal 2004 is off to a great start with our return to profitability in the first quarter. Revenues in our core 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. business continued to increase, cash flow remains strong and our net income benefited from actions taken over the past year to reduce 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. and restructure our debt," said 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:
Dearing said recurring re·cur 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 in the company's catalog business increased 19%, with overall catalog sales up 13% in the first quarter. "Electronic catalog revenues increased in both North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding.See also: Spite the continued difficult economic climate for our primary customer base of equipment manufacturers," added Dearing. 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.
"Our financial position continues to be solid, with a cash balance of $1.8 million at the end of the first quarter. We have earmarked about half of that total cash balance for principal and interest payments on our debt, which will be sufficient to cover all the payments required for the balance of the fiscal year, which ends July July: see month. 31, 2004. In other words Adv. 1. in other words - otherwise stated; "in other words, we are broke" put differently , we've we've Contraction of we have. we've have already got our debt payments covered for the whole year after just one quarter," said Dearing. Dearing noted that the integration of the assets of VertX Commerce Corporation, which was acquired on October 27, 2003, is proceeding according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. plan. "We will begin to realize the fruits of this acquisition as the year progresses. As we indicated in the acquisition announcement, we expect the acquisition to be immediately accretive to revenue, EBITDA and net income per share." "With a solid first quarter behind us, we continue to expect that fiscal 2004 will be a profitable year for ARI. Although revenue growth will be modest, we expect to continue to generate positive cash flow, EBITDA and net income for the year," concluded Dearing. ARI is a leading provider of electronic catalog-enabled business solutions for sales, service and life-cycle life-cycle - software life-cycle product support in the manufactured equipment market. ARI currently provides approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 74 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" (many of which contain multiple lines of equipment) for approximately 57 equipment manufacturers in the U.S. and Europe. More than 82,000 catalog subscriptions are provided through ARI to approximately 23,000 dealers and distributors in more than 100 countries in a dozen segments of the worldwide manufactured equipment market including outdoor power, power sports, recreation vehicle, floor maintenance, auto and truck parts aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. , marine and construction. The Company builds and supports a full suite of multi-media electronic catalog publishing and viewing software for the Web or CD and provides expert catalog publishing and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" . ARI also provides a template-based dealer website service that makes it quick and easy for an equipment dealer to have a professional and attractive website. In addition, ARI e-Catalog systems support a variety of electronic pathways for parts orders, warranty An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a warranty. claims and other transactions between manufacturers and their networks of sales and service points. ARI currently operates three offices in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and one in Europe and has sales and service agents in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. and France providing marketing and support of its products and services. First Quarter Earnings Conference Call ARI's First Quarter Conference Call is scheduled for Thursday Thursday: see week. , December December: see month. 4, 2003 at 3:30 p.m. Central Time/4:30 p.m. Eastern Time. If you would like to participate on a listen-only basis, please dial in five to ten minutes prior to the starting time Noun 1. starting time - the time at which something is supposed to begin; "they got an early start"; "she knew from the get-go that he was the man for her" commencement, get-go, offset, outset, showtime, start, kickoff, beginning, first at 1-800-915-4836 (International callers dial 1-973-317-5319) and request to be connected to Brian Dearing's conference call. A rebroadcast is available beginning at 5:30 p.m. Central Time, Thursday, December 4, 2003 by calling 1-800-428-6051 (International callers dial 1-973-709-2089) and enter passcode #316687. A replay of ARI's conference call as well as notes and financial information presented in the call will be available on ARI's Website, www.arinet.com, after 6:00 p.m. Central Time on December 5. Statements in this news release are "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 Disclosure" in Exhibit 99.1 of the Company's 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. for fiscal year ended July 31, 2003 filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. 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 ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission.
ARI Network Services, Inc.
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended
October 31
2003 2002
---------- ---------
Net revenues:
Subscriptions, support and other services fees $2,289 $1,991
Software licenses and renewals 589 557
Professional services 407 507
---------- ---------
3,285 3,055
Operating expenses:
Cost of products and services sold:
Subscriptions, support and other services fees 145 189
Software licenses and renewals (a) 462 425
Professional services 191 150
---------- ---------
798 764
Depreciation and amortization (exclusive of
amortization of software products included in
cost of products and services sold) 35 59
Customer operations and support 288 310
Selling, general and administrative 1,758 1,514
Software development and technical support 381 475
---------- ---------
Operating expenses before amounts capitalized 3,260 3,122
Less capitalized portion (98) (160)
---------- ---------
Net operating expenses 3,162 2,962
---------- ---------
Operating income (loss) 124 93
Other income (expense)
Interest expense (81) (335)
Other, net 29 (3)
---------- ---------
Total other expense (52) (338)
---------- ---------
Net income (loss) $72 $(245)
========== =========
Average common shares outstanding 5,768 6,329
Basic and diluted net income (loss) per share $0.01 ($0.04)
========== =========
(a) includes amortization of software products of $443 and $419 and
excluding other depreciation and amortization shown separately
Earnings before Interest, Taxes, Depreciation and Amortization
Net Income $72 $(245)
Plus: Interest 81 335
Amortization of software products 443 419
Other depreciation and amortization 35 59
---------- ---------
Earnings before interest, taxes, depreciation and
amortization $631 $568
========== =========
ARI Network Services, Inc.
Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
October 31 July 31
ASSETS 2003 2003
--------- ---------
Current Assets:
Cash $1,774 $2,120
Trade receivables, less allowance for doubtful
accounts of $84 at October 31, 2003 and $98 at
July 31, 2003 964 1,088
Prepaid expenses and other 95 115
--------- ---------
Total Current Assets 2,833 3,323
Equipment and leasehold improvements:
Computer equipment 4,475 4,475
Leasehold improvements 73 73
Furniture and equipment 1,389 1,372
--------- ---------
5,937 5,920
Less accumulated depreciation and amortization 5,509 5,474
--------- ---------
Net equipment and leasehold improvements 428 446
Other assets 20 0
Capitalized software product costs 9,808 9,602
Less accumulated amortization 8,164 7,721
--------- ---------
Net capitalized software product costs 1,644 1,881
--------- ---------
Total Assets $4,925 $5,650
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Current portion of notes payable $800 $400
RFC line of credit 94 346
Accounts payable 336 401
Deferred revenue 4,842 5,280
Accrued payroll and related liabilities 1,108 1,088
Other accrued liabilities 689 601
Current portion of capital lease obligations 17 20
--------- ---------
Total Current Liabilities 7,886 8,136
Long term liabilities:
Notes payable (net of discount) 4,154 3,769
Other long term liabilities 555 559
Capital lease obligations 12 16
--------- ---------
Total Long Term Liabilities 4,721 4,344
Shareholders' equity (deficit):
Cumulative preferred stock, par value $.001 per
share, 1,000,000 shares authorized; 0 and 20,350
shares issued and outstanding at October 31, 2003
and July 31, 2003, respectively - -
Common stock, par value $.001 per share,
25,000,000 shares authorized; 5,768,444 and
6,645,191 shares issued and outstanding at
October 31, 2003 and July 31, 2003,
respectively 5 6
Common stock warrants and options 36 141
Additional paid-in-capital 93,477 94,295
Accumulated deficit (101,200) (101,272)
--------- ---------
Total Shareholders' Equity (Deficit) (7,682) (6,830)
--------- ---------
Total Liabilities and Shareholders' Equity
(Deficit) $4,925 $5,650
========= =========
ARI Network Services, Inc.
Statements of Cash Flows
(In thousands)
(Unaudited)
2003 2002
--------------
Operating activities
Net income (loss) $72 $(245)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Amortization of software products 443 419
Amortization of deferred financing costs, debt
discount and excess carrying value over face amount
of notes payable (15) 237
Depreciation and other amortization 35 59
Stock issued as contribution to 401(k) plan 37 -
Net change in receivables, prepaid expenses and other
current assets 149 133
Net change in accounts payable, deferred revenue,
accrued liabilities and long term liabilities (653) (370)
--------------
Net cash provided by operating activities 68 233
Investing activities
Purchase of equipment and leasehold improvements (17) (3)
Purchase of assets related to acquisitions (108) -
Software product costs capitalized (64) (160)
--------------
Net cash used in investing activities (189) (163)
Financing activities
Payments under notes payable (200) (80)
Payments of capital lease obligations (7) (47)
Debt issuance costs incurred (20) -
Proceeds from issuance of common stock 2 -
--------------
Net cash used in financing activities (225) (127)
--------------
Net increase (decrease) in cash (346) (57)
Cash at beginning of period 2,120 879
--------------
Cash at end of period $1,774 $822
==============
Cash paid for interest $22 $29
==============
Noncash investing and financing activities
Issuance of common stock in connection with acquisitions $37 $-
Exchange of equity to debt 1,000 -
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