Ascendant Solutions, Inc. Announces First Quarter 2007 Earnings.Net Income Increased 465% DALLAS -- Ascendant Solutions, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ASDS ASDS Advanced SEAL Delivery System ASDS American Society of Dermatologic Surgery ASDS Accunet Spectrum of Digital Services (AT&T) ASDS Advanced Sensor Distribution System ASDS Air Situation Display System ASDS Airborne Serial Data System ) today announced its first quarter 2007 earnings which included consolidated revenue of $14,657,000, compared to consolidated revenue of $13,625,000 in the first quarter of 2006. Consolidated net income increased to $518,000, approximately 465%, compared to a loss of $142,000 in the first quarter of 2006. The Company further reported net earnings per share ("EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ") of $0.02, compared to the first quarter 2006 loss of $0.01 per share. In addition, the Company's 2007 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 (defined as net income minus, interest, taxes, depreciation and amortization) increased approximately 259% percent in the first quarter of 2007 to $912,000 from $254,000 in the first quarter of 2006. (See table below for a reconciliation of EBITDA to net income (loss) on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis.) David E. Bowe, President & 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. , commented, "The significant progress in our earnings is the result of our successful, ongoing efforts to increase revenue and improve operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . We will continue to work toward further improvements in efficiency and profitability in our existing portfolio as we explore new growth and acquisition opportunities." Key measures used by the Company's management to evaluate business segment performance include revenue, cost of sales, gross profit, investment income and EBITDA. EBITDA is calculated as net income before deducting interest, taxes, depreciation and amortization. Although EBITDA is not a measure of actual cash flow because it does not consider changes in assets and liabilities that may impact cash balances, the Company believes it is a useful metric to evaluate operating performance and has therefore included such measures in the discussion of operating results below. Healthcare Results The Company's subsidiary, Dougherty's Holdings, Inc. ("DHI DHI see dairy herd improvement. "), which owns and operates Dougherty's Pharmacy, Medicine Man Pharmacies and Park InfusionCare, reported an 8.1% increase in first quarter of 2007 revenues to $10,772,000, compared to $9,961,000 in the first quarter of 2006. The growth in revenue is primarily attributed to an increase in the number of retail pharmacy prescriptions filled. Gross profit increased to 33.8% of revenue in the first quarter of 2007, as compared to 30.4% of revenue in the first quarter of 2006, as a result of improvements at both the retail pharmacies and Park InfusionCare. Net income for the first quarter of 2007 improved significantly to $442,000, compared to a net loss in the first quarter of 2006 of $184,000. EBITDA increased by $653,000 to $628,000 in the first quarter of 2007, from an EBITDA loss of $25,000 in the first quarter of 2006. Real Estate Advisory Services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal The Company's first quarter 2007 revenue from its real estate advisory services businesses rose to $3,885,000 from $3,664,000 in the comparable period of 2006, primarily as a result of an increase in commissions from tenant representative services, offset by fewer fees received from advisory transactions. Net income for the first quarter of 2007 increased approximately 22.5% to $518,000 from $423,000 in the first quarter of 2006, and EBITDA increased 7.9% to $700,000 in the first quarter 2007 from $649,000 in the comparable period of 2006. Corporate and Other The Company's results were impacted by non-cash adjustments of $97,000 and $130,000 in the first quarters of 2007 and 2006 respectively, representing the Company's share of the equity in losses of Fairways Frisco. The Company is under no obligation to fund the operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. or debts of Fairways Frisco. [TABLE OMITTED] About Ascendant Solutions Ascendant Solutions, Inc. ("Ascendant" or the "Company") is a diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services company that has invested in or acquired, or seeks to invest in or acquire, manufacturing, distribution or service companies. The Company also conducts various real estate activities, including performing real estate advisory services for corporate clients and, through an affiliate, purchasing real estate assets as a principal. Ascendant specializes in solving complex transactions where creative and quick solutions can add value to an enterprise. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statements under 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 of 1995 This news release includes certain forward-looking statements. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions, plans, projections, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts. All forward-looking statements included in this news release are based on information available to the Company on the date hereof. Such statements speak only as of the date hereof. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, (a) the following general risks: our limited funds and risks of not obtaining additional funds, certain of our subsidiaries are highly leveraged, potential difficulties managing our subsidiaries, our dependence upon management and a small staff, certain subsidiaries accounting for a significant percentage of revenue, the potential for future leveraged acquisitions, and the difficulty in predicting operations; (b) the following risks to Dougherty's Holdings, Inc.: potential problems that may arise in operating the Park InfusionCare business, extensive regulation of the pharmacy business, the competitive nature of the retail pharmacy industry, third party payor attempts to reduce reimbursement rates, difficulty in collecting accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , dependence upon a single pharmaceutical products supplier, shortages in qualified employees, and liability risks inherent in the pharmaceutical industry; (c) the following risks to CRESA Partners of Orange County, L.P.: the size of our competitors, our concentration on the southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, real estate market, the inability to retain senior management and/or attract and retain qualified employees, (d) the following risks to our investments in real estate: our dependence on tenants for lease revenues, the risks inherent in real estate development activities, the ability of the Frisco Square Partnerships to obtain financing on acceptable terms, the general economic conditions of areas in which we focus our real estate development activities, and the illiquidity of real estate investment; and (e) the following other risks: a majority of our common stock is beneficially owned by our principal stockholders, officers and directors, relationships and transactions with related parties, our stock is not traded on 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 or a national securities exchange, effect of penny stock Penny Stock A stock that sells for less than $1 a share but may also rise to as much as $10/share as a result of heavy promotion. All penny stocks are traded OTC or on the pink sheets. Notes: Penny stocks are highly speculative and risky. regulations, and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Because such forward-looking statements are subject to risks, uncertainties and assumptions, you are cautioned not to place undue reliance on these forward-looking statements, which reflect management's view only as of the date the forward-looking statement is made. Our forward-looking statements are based on the current expectations of management, and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future. The cautionary statements made in this report should be read as being applicable to all related forward-looking statements, wherever they appear in this report. Use of Non-GAAP Financial Information To supplement the Company's 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. consolidated financial information presented in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP") in the press release, the Company uses the non-GAAP financial measure of EBITDA. The Company's management reviews these non-GAAP financial measures internally to evaluate the Company's performance and manage the operations. Additionally, the Company believes that such information also provides investors a better understanding of the Company's current operating results and provides comparable measures to help investors understand the Company's future operating results. The non-GAAP measures included in this press release have been reconciled to the comparable GAAP measures, within the attached table, as required under SEC rules regarding the use of non-GAAP financial measures. The Company urges investors to carefully review the GAAP financial information included as part of the Company's Annual Report on From 10-K and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion