Centiv Reports 2002 Results; Centiv Focuses Organization on Building Instant Impact Service.Business Editors VERNON HILLS Vernon Hill II (born circa 1946) is the founder and former chairman, president, and chief executive officer of Commerce Bancorp and Commerce Bank of Cherry Hill Township, New Jersey. , Ill.--(BUSINESS WIRE)--March 31, 2003 Centiv, Inc. (Nasdaq:CNTV CNTV Comisión Nacional de Televisión (Spanish, Colombia) ), today announced fourth quarter revenues grew 310% to $13.4 million compared to $3.2 million in the fourth quarter of 2001. For the total year, revenues more than doubled to $25.5 million in 2002 compared to $12.4 million in 2001. The revenue growth was primarily due to a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. equipment order of $11.0 million from Anheuser Busch Busch , Adolf Georg Wilhelm 1891-1952. German-born Swiss violinist and conductor best known for his work as leader of the Busch Quartet, an internationally acclaimed chamber group formed in 1919. and its network of independent and company owned distributor-wholesalers. The sale included printers, software and other capital equipment used for the creation of point-of-purchase signage materials. Revenues from Centiv's new web-based Instant Impact product were up 289% to $638,000 in 2002 compared to $164,000 in 2001. "With our previously announced exit from the printing supplies business effective March 2003, our exclusive focus today and in the future is to build Centiv as the premier marketing services company managing the on-demand On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front custom POP signage requirements for the Consumer Packaged Goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one Industry. With internal resources aligned to reflect our current stage of development we are very excited about the prospects for the business and expect Instant Impact revenues in Q1 2003 alone to meet or exceed Instant Impact sales for all of 2002," commented John Larkin John Larkin is the name of several individuals:
The net loss 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 decreased by $269,000 to $2.0 million ($0.43 per share) in Q4 2002 compared to a loss of $2.3 million ($0.46 per share) in Q4 2001. The net loss in Q4 2002 included a 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 previously announced, of $1.5 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of shares in exchange for a note from the Company's former CEO. 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. in Q4 2002 included one-time charges of $360,000 relating to the Anheuser Busch upgrade, the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → and costs relating to raising equity. In addition, there was a restructuring charge 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. of $87,000 relating to the termination of the Anheuser Busch printing supplies and call center agreement. For the total year, the net loss from continuing operations improved $893,000 to $2.9 million ($0.61 per share) compared to $3.8 million ($0.77 per share) in 2001. Excluding the $1.9 million of adjustments described above, the net loss from continuing operations was $1.0 million for the total year 2002 (an improvement of $2.8 million over prior year). Results Including Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. As previously announced, the Company completed the sale of the Channels Business in December December: see month. 2001 and the CalGraph Business effective January January: see month. 31, 2002. The results of these businesses have been included in discontinued operations. The net income from discontinued operations in 2002 was $380,000($0.08 per share) compared to a net loss of $3.1 million ($0.62 per share) in 2001. In 2002, the net income from discontinued operations of $380,000 ($0.08 per share) included an after-tax gain of $488,000 on the sale of the CalGraph Business, partially offset by a $108,000 operating loss 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. . In 2001, the net loss from discontinued operations included a net loss of $2.4 million ($0.48 per share) on the sale of the Channels Business including the goodwill write-off of $2.0 million and deferred tax asset write off of $0.2 million. The remaining net loss came from the operating results of the Channels and CalGraph Businesses. In connection with the $2.2 million convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". and warrant financing completed on March 28, 2002, the Company recorded a beneficial conversion feature on the convertible preferred stock and warrants based on the fair value of the common stock of $1.00 per share as of the closing date and the warrants having an exercise price of $1.50 per share. The beneficial conversion feature was calculated to be $810,000 ($0.17 per share) and this amount has been deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. from the net income in determining the earnings per share for common shareholders. Before the impact of the beneficial conversion feature of the preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , the net loss including discontinued operations for the total year was $2.6 million ($0.53 per share) in 2002 compared to a loss of $6.9 million ($1.39 per share) in 2001. Including the beneficial conversion feature, the net loss including discontinued operations for the total year was $3.4 million ($0.69 per share) in 2002. Larkin further stated: "2003 represents the true starting point Noun 1. starting point - earliest limiting point terminus a quo commencement, get-go, offset, outset, showtime, starting time, beginning, start, kickoff, first - the time at which something is supposed to begin; "they got an early start"; "she knew from the for a company that has been in transition for three years. No longer burdened by businesses non-core to our vision of altering the POP signage industry, we are energized and focused against the execution of our plan." About Centiv(R) Centiv, Inc. (Nasdaq:CNTV), headquartered in Vernon Hills, IL, offers solutions for locally customized POP signage to the consumer products, food and packaged goods industries. The delivered product is high quality, digitally produced signage that is mass customized for the unique requirements of each retail location. Centiv is a registered trademark in the U.S. Patent and Trademark Office. Additional information regarding Centiv, Inc., may be obtained by contacting Centiv headquarters, 998 Forest Edge Drive, Vernon Hills, IL 60061. Phone 847-876-8300 or fax 847-955-1269, or visit its website: http://www.centiv.com for a product demonstration. This press release contains statements that constitute 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 Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this press release and include all statements that are not historical statement of fact. The words "may", "would", "could", "will", "increase", "expect", "implement", "estimate", "anticipate", "believes", "intends", "plans", and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that such statements are not guarantees of future performance and involve various risks and uncertainties, many of which are beyond the Company's control. Actual results may differ materially from those discussed in the forward-looking statements as a result of factors described below. These risks include, but are not limited to, competitive market pressures, material changes in customer demand, availability of labor, the Company's ability to perform contracts, governmental policies adverse to the computer industry, economic and competitive conditions, and other risks outside the control of the Company, as well as those factors discussed in detail in the Company's filings with the Securities and Exchange Commission, including "Factors That May Affect Future Results" section 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 the fiscal year ended December 31, 2001.
Centiv, Inc.
Summary of Operations
(Dollars in Thousand)
Three Months Ended Year Ended
------------------- -------------------
12/31/02 12/31/01 12/31/02 12/31/01
--------- --------- --------- ---------
Sales $13,431 $3,277 $25,508 $12,432
Gross Profit 1,636 513 4,546 2,450
Gross Profit Percentage 12.2% 15.7% 17.8% 19.7%
Operating Expenses 1,854 1,074 5,390 4,309
Depreciation 157 108 570 313
Restructuring Charges 87 - 87 -
Operating Loss (462) (669) (1,501) (2,172)
Loss on Repurchase of Stock (1,492) - (1,492) -
Interest Income(Expense) (22) (97) 104 (872)
Pretax Loss from Continuing
Operations (1,976) (766) (2,889) (3,044)
Income Tax Expense (49) (1,528) (49) (787)
Net Loss from Continuing
Operations (2,025) (2,294) (2,938) (3,831)
Discontinued Operations (net of
tax) - (3,053) 380 (3,068)
------------------- -------------------
Net Loss $(2,025) $(5,347) $(2,558) $(6,899)
=================== ===================
Effect of beneficial conversion
feature of preferred stock - - (810) -
------------------- -------------------
Net Loss attributable to common
shareholders $(2,025) $(5,347) $(3,368) $(6,899)
=================== ===================
Basic and Diluted Income (Loss)
applicable to common shares:
-------------------------------
Shares Outstanding (000's) 4,678 4,957 4,894 4,976
Continuing Operations per share
before beneficial conversion
feature (0.43) (0.46) (0.61) (0.77)
Effect of Beneficial Conversion
Feature - - (0.17) -
------------------- -------------------
Loss from continuing ops.
attributable to common
shareholders (0.43) (0.46) (0.77) (0.77)
Discontinued Operations per
share - (0.62) 0.08 (0.62)
------------------- -------------------
Net Loss per share (0.43) (1.08) (0.69) (1.39)
=================== ===================
Centiv, Inc.
Balance Sheet
(Dollars in Thousand)
12/31/02 12/31/01
--------- ---------
ASSETS
------
Current Assets:
---------------
Cash $1,304 $228
Accounts Receivables 1,668 969
Inventory 824 978
Other Current Assets 748 1,198
Net Current Assets, Discontinued Operations - 2,801
--------- ---------
Total Current Assets 4,544 6,174
Property, Plant & Equipment 1,707 2,071
Other Assets 137 39
Net Other Assets, Discontinued Operations - 860
--------- ---------
Total Assets $6,388 $9,144
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LIABILITIES & EQUITY
--------------------
Current Liabilities:
--------------------
Bank Debt - 795
Accounts Payable 2,888 3,617
Accrued Liabilities 733 1,000
Deferred Revenue 140 208
Net Current Liabilities, Discontinued Operations - 2,755
--------- ---------
Current Liabilities 3,761 8,375
Noncurrent deferred income tax liability 162 157
Convertible Subordinated Debt 990 -
Total Liabilities 4,913 8,532
Shareholder Equity 1,475 612
--------- ---------
Total Liabilities & Equity $6,388 $9,144
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