Applied Digital Solutions Reports Strong Revenue and Ebitda Growth for Its Core Business.Business Editors/High Tech Writers PALM BEACH, Fla.--(BUSINESS WIRE)--Nov. 14, 2000 Core group performance exceeds expectations: Third quarter revenue, including acquisitions, grows 21.2% and 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 jumps 49.8% versus the second quarter of 2000 Fourth quarter EBIDTA EBIDTA Earnings Before Interest Depreciation Taxes and Amortization , projected at over $16 million, continues growth trend Applied Digital Solutions, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ADSX ADSX Applied Digital Solutions, Inc. (stock symbol) ), a leading, single-source provider of e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. solutions, today reported stronger-than-expected revenue and EBITDA growth for its core business group for the three months ended September September: see month. 30, 2000. On a quarter-to-quarter basis, including the positive effects of acquisitions, revenue for the core group for the second quarter of 2000 grew $7.2 million, or 21.2%, and EBITDA jumped $1.2 million, or 49.8%, over the second quarter of 2000. Excluding the positive effects of acquisitions, revenue for the core group grew $0.1 million, or 0.5%, and EBITDA climbed $600,000, or 75%, for the third quarter of 2000 versus the second quarter of 2000. Total revenue for the three-month period ended September 30, 2000 was $73.8 million compared to $107.2 million for the third quarter of 1999. Most of that decline can be attributed to the fact that 1999's revenue figure includes $22.8 million from companies that have been subsequently disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. . Total revenue for the nine-month period ended September 30, 2000 was $228.6 million. Included in 1999's revenue is $52.0 million from companies subsequently disposed. Commenting on the current (fourth) quarter, Mr. Sullivan indicated an acceleration of the positive trend: "We are extremely excited about the preliminary results from the fourth quarter. We expect to be on an annual run rate of close to half a billion in revenues by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. with an actual EBITDA figure of over $16 million for the quarter. The momentum we will be bringing into 2001 is unprecedented in our history." Total EBITDA for the three-month period ended September 30, 2000 amounted to $1.8 million, compared to $4.6 million in the same period in 1999. Total EBITDA for the nine-month period ended September 30, 2000, was a loss of $10.7 million compared to $11.6 million for the same period in 1999. Commenting on the third quarter results, Richard J. Sullivan, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Applied Digital Solutions, said: "We continue to make excellent progress in putting together our 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. strategy of enabling e-business through CTII CTII Comprehensive Technologies International, Inc. (TM). Our growth momentum, both in terms of revenue and EBITDA, shows that we're on the right track. It's also important to put the third quarter in the context of our ongoing effort, reflected in our SysComm transaction announced today, to move some of our assets into the public markets and thereby create more value for our shareholders. As we continue to employ this strategy more widely in the future, we will be able both to implement our CTII strategy while unlocking the true value of our assets for our shareholders. The basic idea is to allow each of our technology groups to identify and act upon marketplace opportunities that are consistent with our overall CTII(TM) direction. This should enable our shareholders to benefit by participating in each of these ventures as they unfold unfold - inline . The SysComm transaction is only the first step toward a wider implementation of this strategy." About the CTII(TM) Initiative Applied Digital Solutions has successfully focused its strategic direction and organized the company into four core business groups: 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 , Telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. , Network and Applications. As part of this successful transformation, the company has positioned itself as a leading-edge provider of Computer Telephony See CTI, VoIP and IP telephony. Computer Telephony - Computer Telephone Integration Internet Integration (CTII) services. This CTII focus differentiates Applied Digital Solutions in the e-business solutions marketplace. With CTII, Applied Digital provides the full range of services and skills that companies need to conduct business online. Through its four integrated business groups, Applied Digital designs and deploys complete, front-to-back, web-enabled e-business systems -- all with a single point of contact for the customer. About IntelleSale.com, Inc. IntelleSale is the leading provider of open-box, overstock o·ver·stock tr.v. o·ver·stocked, o·ver·stock·ing, o·ver·stocks To stock more of (something) than necessary or desirable. n. An excessive supply. Verb 1. , off-lease, new and refurbished computer equipment and related components at deeply discounted prices. The Company sells products online through http://www.intellesale.com , and other Internet portals, such as C/Net, Amazon.com, Egghead and Ubid. Additionally, the Company sells products through traditional distribution channels, including the IntelleSale sales force and advertising via catalogs and other conventional media. Earlier this year, IntelleSale launched a new B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business website ( http://www.intellesalebusiness.com ) to take advantage of the trend toward greater B2B and Internet sales. About Applied Digital Solutions, Inc. Applied Digital Solutions is a leading edge, single-source provider of e-business solutions. The company differentiates itself in the marketplace by enabling e-business through Computer Telephony Internet Integration (CTII). With five-year revenue growth (from 1994 to 1998) of 64,012%, Applied Digital Solutions is ranked as the fifth fastest-growing technology company by Deloitte & Touche in its 1999 Technology Fast 500 listing. For more information, visit the Company's web site at http://www.adsx.com .
Financial Information Follows
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Applied Digital Solutions, Inc. and Subsidiaries
Selected Operating Information
(In thousands, except per share data)
Three Months
Ended Nine Months Ended
September 30, September 30,
----------------- ----------------------
2000 1999 2000 1999
-------- -------- ---------- -----------
(unaudited)
Revenue $73,846 $107,262 $222,862 $231,790
EBITDA (1) 1,805 4,644 (10,773) 11,574
Pretax income (loss) (2,857) 1,027 (30,235) 789
Net income (loss) available
to common stockholders (17,728) 341 (18,900) (1,304)
Income (loss) per common
share
Basic $(0.03) $ 0.01 $ (0.38) $ (0.02)
Diluted $(0.03) $ 0.01 $ (0.38) $ (0.02)
Weighted average number of
common shares outstanding
Basic 63,862 47,087 54,623 46,102
Diluted 63,862 47,424 54,623 46,102
Selected Balance Sheet Data
(in thousands, unaudited)
---------------------------
September 30, December 31,
2000 1999
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Cash and cash equivalents $ 9,508 $ 5,138
Total current assets 123,004 138,881
Total assets 341,626 228,976
Total current liabilities 57,935 73,772
Total liabilities 139,608 133,482
Stockholders' equity 199,771 228,976
(1) EBITDA as used herein is pre tax income (loss) before interest income and expense, depreciation and amortization, and unusual and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. |
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