Ascendant Solutions, Inc. Announces Second Quarter Fiscal 2006 Results.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- 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 ) (the "Company") today announced its financial results for its second quarter ending June June: see month. 30, 2006 which included a 2.5% increase in consolidated revenues which were $12,889,000 as compared to revenues of $12,576,000 for the second quarter of 2005. The Company reported a consolidated net loss of $180,000 (after charges of approximately $154,000, representing the Company's portion of the net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. incurred Fairways Frisco, LP). The Company's net loss narrowed by $259,000 when compared to the Company's second quarter 2005 net loss. 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 second quarter reflected continued progress in improving the profitability at Dougherty's Pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. , our flagship store. However, further progress is required in improving the financial performance at Medicine Man pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major and Park InfusionCare. We are pleased with the results of our real estate advisory service operations during the second quarter. We continue to work toward further improvements in the efficiency and profitability of both the healthcare and real estate advisory service operations over the balance of the year." Segment highlights that contributed to the Company's second quarter 2006 results include: 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 real estate advisory services businesses showed growth in revenues 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 during the second quarter of 2006 as a result of increased advisory services transactions. Revenues increased by $184,000 as compared to the second quarter of 2005. During the second quarter of 2006, real estate advisory services earned EBITDA of $495,000, an increase of 136% over the second quarter of 2005. (See the attached table for a reconciliation of EBITDA to net income on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis). In June 2006, the Company's wholly-owned subsidiary ASDS of Orange County, Inc. refinanced its term note payable incurred in connection with the acquisition of CRESA Partners of Orange County, LP in May 2004. This note payable was replaced by a bank at a discount of $100,000 to its outstanding principal balance and a reduction in the annual interest rate of 0.75%. The discount is recognized as other income in the Company's consolidated statement of operations See Income statement. for the three months ending June 30, 2006. The term of the note was also extended to June 2009. Corporate & Other: During the second quarter ended June 30, 2006, the Company recorded a $154,000 non-cash charge 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. as required under the equity method of accounting to record the Company's share of net losses incurred by Fairways Frisco. The Company is not obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to fund any 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. incurred by Fairways Frisco. 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 revenues of $10,021,000 during the second quarter of 2006 as compared to $9,892,000 for the second quarter of 2005. EBITDA was a loss of $85,000 for the second quarter of 2006, as compared to positive EBITDA of $93,000 in the same quarter of 2005. (See the attached table for a reconciliation of EBITDA to net income on a GAAP basis). The increase in revenue of $1,020,000, or 13.7% at the retail pharmacies, is offset by a decrease of $891,000 or 36.2% of revenue at Park InfusionCare. The decrease in infusion revenue is due to a decrease in the number of patient therapies, and the impact on ongoing business from the Company's prior announcement in November November: see month. 2005 of the plans to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: operations. In May 2006, DHI announced that it had decided to continue its infusion therapy operations, Park InfusionCare as part of its core business. As a result the results of Park InfusionCare are included in results from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the during the second quarter. The Company had previously recorded an estimated charge of $230,000 for employee retention costs directly related to any potential disposition or strategic transaction for Park InfusionCare. As no such transaction was consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. , none of these retention costs were paid and the Company recorded a reversal of this accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. as part of results from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in its June 30, 2006 quarterly report on Form 10-Q Form 10-Q See 10-Q. . About Ascendant Solutions Ascendant Solutions, Inc. ("Ascendant") 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 seeking to invest in, or acquire, manufacturing, distribution or service companies. The Company also conducts various real estate activities, performing real estate advisory services for corporate clients, and, through an affiliate, purchase 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 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. . 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 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" . 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 in integrating and managing our subsidiaries, our dependence upon management, our dependence upon a small staff, certain subsidiaries accounting for a significant percentage of revenue, unforeseen acquisition costs, the potential for future leveraged acquisitions, restrictions on the use of net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. , and the difficulty in predicting operations; (b) the following risks to Dougherty's Holdings, Inc.: extensive regulation of the pharmacy business, the competitive nature of the retail pharmacy industry, third party payor payor (payer) n. The one who must make payment on a promissory note. attempts to reduce reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. 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, price increases as a result of our potential failure to maintain sufficient pharmaceutical sales, 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 variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality of financial results among quarters, the inability to retain senior management and/or attract and retain qualified employees, the regulatory and compliance requirements Compliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance (also known as Federal aid or Federal funds). of the real estate brokerage industry and the risks of failing to comply with such requirements, and the potential liabilities that arise from our real estate brokerage activities; (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 general economic conditions of areas in which we focus our real estate development activities, the risks of natural disasters, the illiquidity of real estate investments; 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. . Please refer to the Company's annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially. In addition to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. risk factors, our future operating results are difficult to predict. Factors that are likely to cause varying results include (a) our ability to profitably operate Dougherty's Holdings, Inc. and CRESA Partners of Orange County, L.P. and to pay the principal and interest on the significant debt incurred to make these acquisitions; (b) our ability to profit from our investments in other entities, including, but not limited to, Ampco Partners, Ltd., Fairways Frisco, L.P., Fairways 03 New Jersey, L.P. and CRESA Capital Markets Group, L.P.; (c) our ability to successfully operate Park InfusionCare; (d) the results of our investments in real estate; (e) fluctuations in general interest rates; (f) the availability and cost of capital to us; (g) the existence and amount of unforeseen acquisition costs; and (h) our ability to locate and successfully acquire or develop one or more business enterprises. Use of Non-GAAP Financial Information To supplement the Company's consolidated financial information presented 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 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 this press release, the Company uses the non-GAAP financial measure of EBITDA, defined as net income minus interest, taxes, depreciation and amortization. The Company's management reviews these non-GAAP financial measures internally to evaluate the Company's performance and manage its 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 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. and Quarterly Reports on Form 10-Q.
Three Months Ended June 30,
-----------------------------------------
Real Estate
Healthcare Services
--------------------- -------------------
2006 2005 2006 2005
---------- ---------- --------- ---------
Revenue $10,021 $9,892 $2,868 $2,684
Cost of sales 7,202 6,674 1,817 1,783
---------- ---------- --------- ---------
Gross profit 2,819 3,218 1,051 901
---------- ---------- --------- ---------
Other income 69 1 100 --
Equity in income (losses) of
equity method investees -- -- -- --
Discontinued operations 230 -- -- --
---------- ---------- --------- ---------
Net income $(58) $(76) $291 $6
========== ========== ========= =========
Plus:
Interest Expense (Income) 86 84 106 110
Taxes -- -- 28 17
Depreciation & Amortization 117 85 70 77
Discontinued operations (230) -- -- --
---------- ---------- --------- ---------
EBITDA from continuing
operations $(85) $93 $495 $210
========== ========== ========= =========
Three Months Ended June 30,
-----------------------------------------
Corporate and Other Consolidated
--------------------- -------------------
2006 2005 2006 2005
---------- ---------- --------- ---------
Revenue $-- $-- $12,889 $12,576
Cost of sales -- -- 9,019 8,457
---------- ---------- --------- ---------
Gross profit -- -- 3,870 4,119
---------- ---------- --------- ---------
Other income 8 35 177 36
Equity in income (losses) of
equity method investees (121) (134) (121) (134)
Discontinued operations -- -- 230 --
---------- ---------- --------- ---------
Net income $(413) $(369) $(180) $(439)
========== ========== ========= =========
Plus:
Interest Expense (Income) 3 (5) 195 189
Taxes 3 -- 31 17
Depreciation & Amortization 6 3 193 165
Discontinued operations -- -- (230) --
---------- ---------- --------- ---------
EBITDA from continuing
operations $(401) $(371) $9 $(68)
========== ========== ========= =========
Six Months Ended June 30,
-----------------------------------------
Real Estate
Healthcare Services
--------------------- -------------------
2006 2005 2006 2005
---------- ---------- --------- ---------
Revenue $19,961 $19,717 $6,532 $6,128
Cost of sales 14,132 13,326 3,941 3,832
---------- ---------- --------- ---------
Gross profit 5,829 6,391 2,591 2,296
---------- ---------- --------- ---------
Other income 91 4 100 (1)
Equity in income (losses) of
equity method investees -- -- -- --
Discontinued operations 230 -- -- --
---------- ---------- --------- ---------
Net income $(241) $(205) $713 $459
========== ========== ========= =========
Plus:
Interest Expense (Income) 169 169 211 210
Taxes -- -- 73 77
Depreciation & Amortization 194 171 145 146
Discontinued operations (230) -- -- --
---------- ---------- --------- ---------
EBITDA from continuing
operations $(108) $135 $1,142 $892
========== ========== ========= =========
Six Months Ended June 30,
-----------------------------------------
Corporate and Other Consolidated
--------------------- -------------------
2006 2005 2006 2005
---------- ---------- --------- ---------
Revenue $-- $-- $26,493 $25,845
Cost of sales -- -- 18,073 17,158
---------- ---------- --------- ---------
Gross profit -- -- 8,420 8,687
---------- ---------- --------- ---------
Other income 12 35 203 38
Equity in income (losses) of
equity method investees (216) (135) (216) (135)
Discontinued operations -- -- 230 --
---------- ---------- --------- ---------
Net income $(794) $(692) $(322) $(438)
========== ========== ========= =========
Plus:
Interest Expense (Income) (1) (12) 379 367
Taxes 12 -- 85 77
Depreciation & Amortization 12 5 351 322
Discontinued operations -- -- (230) --
---------- ---------- --------- ---------
EBITDA from continuing
operations $(771) $(699) $263 $328
========== ========== ========= =========
June 30, 2006 and December 31, 2005
-----------------------------------------
Real Estate
Healthcare Services
--------------------- -------------------
2006 2005 2006 2005
---------- ---------- --------- ---------
Total assets $7,460 $8,631 $10,724 $11,341
========== ========== ========= =========
June 30, 2006 and December 31, 2005
-----------------------------------------
Corporate and Other Consolidated
--------------------- -------------------
2006 2005 2006 2005
---------- ---------- --------- ---------
Total assets $1,637 $2,026 $19,821 $21,998
========== ========== ========= =========
June 30 December 31
Selected Balance Sheet Data 2006 2005
----------- -----------
($ in thousands)
Assets:
Cash and cash equivalents $1,882 $3,221
Accounts receivable 4,510 5,108
Inventories 2,674 2,826
Working capital (a) (1,235) 4,506
Equity method investments 815 1,086
Goodwill 7,299 7,299
Total assets $19,821 $21,998
=========== ===========
Liabilities & Stockholders Equity:
Accounts payable & accrued liabilities $4,777 $6,308
Long-term debt (including current maturities) 11,286 11,923
Stockholders' equity $2,836 $3,073
=========== ===========
(a) Includes $6,478 and $1,049 for current maturities of long term
debt at June 30, 2006 and December 31, 2005, respectively.
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