Ascendant Solutions, Inc. Announces Third Quarter 2007 Earnings.Earnings Momentum Continues 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 third quarter 2007 earnings. Consolidated revenue for the quarter increased approximately 23.2% to $15,138,000, compared to consolidated revenue of $12,284,000 in the third quarter of 2006. Consolidated net income for the quarter increased significantly to $892,000 compared to a loss of ($8,000) for the same period in 2006, resulting in 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 $0.04 compared to the third quarter 2006 loss of less than ($0.01) per share. In addition, the Company's third quarter 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 was in excess of 3 times the EBITDA of the third quarter of last year, increasing to $1,350,000 from $387,000. (See tables below entitled Results of 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 and Reconciliation of GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Financial Measures to Non-GAAP Financial Measures for a reconciliation of net income (loss) to EBITDA on a GAAP basis.) For the nine months ended September 30, 2007, the Company reported consolidated revenue of $43,980,000, an increase of approximately 13.4% over the $38,777,000 reported in the comparable period of 2006. Net income for the period was $1,544,000, or an EPS of $0.07, as compared to a net loss of ($331,000), or ($0.01) per share, reported during the first nine months of 2006. EBITDA for the nine months of 2007 increased approximately 314% to $2,694,000 from $650,000 reported in the comparable period of 2006. 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 main factors of our positive third-quarter results include improved profitability from our real estate segment due to increased commissions from tenant representative services, and a non-cash adjustment in the corporate/other portion of our business relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a gain booked at Fairways Frisco. These factors were partially offset by losses at Park InfusionCare, which was sold on November 7, 2007, from our healthcare business which had increased revenues, but which was also impacted by higher operating costs operating costs npl → gastos mpl operacionales associated with labor costs. The substantial improvement in both net income and EBITDA demonstrates our management's commitment to increasing long-term shareholder value." Mr. Bowe continued, "Further, the recently announced sale of Park InfusionCare is an example of the strategic cycle of making an investment, improving the value of that investment, then completing a sale in order to realize value for our company and our stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . We will use the proceeds of the Park sale for general corporate purposes and to help fund future acquisitions." 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. Healthcare Results: The Company's healthcare results includes its subsidiary, Dougherty's Holdings, Inc. ("DHI DHI see dairy herd improvement. "), an operator of a number of retail pharmacies and also includes Park InfusionCare, which operates infusion therapy centers. As previously released, the Company completed the sale of Park InfusionCare to Maverick Healthcare Group, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control on November 7, 2007. The healthcare business reported a 5.6% increase in third quarter 2007 revenue to $10,894,000, compared to $10,313,000 in the third quarter of 2006. The growth in revenue is primarily attributed to an increase in the number of retail pharmacy prescriptions filled and increases in the volume of infusion therapy drugs dispensed. The healthcare business experienced a net loss for the third quarter 2007 of ($11,000) compared to a net profit in the third quarter of 2006 of $330,000, due primarily to losses at Park InfusionCare, which was sold on November 7, 2007, and increased payroll costs at both the retail pharmacies and Park InfusionCare. EBITDA for the third quarter was $199,000 compared to EBITDA of $512,000 in the third quarter of 2006, a decrease of 61%. For the nine-month period ended September 30, 2007, the healthcare business reported $32,809,000 in revenue, an increase of 8.4% over the $30,273,000 in revenue reported for the same period in 2006. Net income increased approximately 920% to $908,000 compared to $89,000 in 2006. EBITDA improved significantly to $1,457,000 compared to EBITDA of $404,000 for the comparable period in 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 third quarter 2007 revenue from its real estate advisory services businesses increased approximately 115% to $4,244,000 from $1,971,000 in the comparable period of 2006, primarily as a result of an increase in commissions from tenant representative services, partially offset by fewer fees received from advisory transactions. Net income for the third quarter 2007 increased approximately 2,015% to $994,000 from $47,000 in the third quarter 2006. EBITDA increased approximately 399% to $1,188,000 in the third quarter 2007 from $238,000 in the comparable period of 2006. For the nine-month period ended September 30, 2007, real estate advisory services revenues increased approximately 31.4% to $11,171,000 from $8,504,000 for the comparable period of 2006. Net income of $1,705,000 for the 2007 period increased approximately 125% compared to the $758,000 reported in 2006. EBITDA increased approximately 59.6% to $2,203,000 in 2007 as compared to $1,380,000 reported in 2006. Corporate and Other The Company incurred higher professional fees in the normal course of business during the three and nine month periods ended September 30, 2007 when compared to the same periods in 2006. The Company's results were also impacted by non-cash adjustments of $199,000 and ($89,000) in the third quarters of 2007 and 2006 respectively, representing the Company's share of the equity in gains (losses) of Fairways Frisco. On August 3, 2007, the Frisco Square Partnerships transferred a significant portion of its real estate interests and related liabilities to a new limited partnership in exchange for an interest in such entity. As part of that transaction, a third-party financial partner contributed cash to the formation of the new partnership and accordingly, Fairways Frisco realized a gain on the sale of its land and buildings. For the nine month periods ended September 30, 2007 and 2006, these non-cash adjustments were ($4,000) and ($373,000), respectively. 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; however the failure to do so will result in a dilution of the Company's interest. [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 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. 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.: extensive regulation of the pharmacy business, the competitive nature of the retail pharmacy industry, third-party payor 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, 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 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, 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 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 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 Form 10-Q See 10-Q. . [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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