Cordia Corporation - CORG - Announces Financial Results for First Quarter 2006.WINTER GARDEN, Fla. -- Cordia Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CORG CORG Combat Operations Research Group ), a global communications services provider, announced the results of operations for the first quarter ended March 31, 2006. The Company reported revenues of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $10.1 million for the quarter ended March 31, 2006, from approximately $9.3 million in reported revenues for the quarter ended March 31, 2005. CORG reported a first 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 of $430,694 and operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $242,718 for the quarter ended March 31, 2006, compared to EBITDA of $461,429 and an operating profit of $428,409 for the same period during 2005. Net income for the quarter was $103,009, or $0.02 per basic share and $0.01 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share (Including $142,003 of Income tax), compared to net income of $422,830 or $0.09 per basic and $0.08 fully diluted share last year (Including $4,531 of Income tax). There was approximately $803,000 in additional expenses incurred during this quarter as compared to the quarter ended March 31, 2005 for the development of our global VoIP business. This includes approximately $592,000, on personnel, which included support staff, sales and marketing, and developers and approximately $211,000 on our facilities and infrastructure for our VoIP expansion. Cordia's balance sheet remained strong with a current ratio remaining at 1.1 and cash increasing over $40,000 to approximately $2.4 million, with no long term debt as of March 31, 2006, as compared to December December: see month. 31, 2005. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased to approximately $2.9 million from approximately $2.6 million at December 31, 2005. Joel Joel, book of the Bible Joel, prophetic book of the Bible. It is a collection of the oracles of an otherwise unknown prophet, dated variously from the 9th to the 3d cent. B.C., though a date in c.400 B.C. is likely. Dupre Dupre is a fictional character from the Ultima universe. He is one of the companions of the Avatar. The character is based on Greg Dykes from Custom Creation (not to be confused with Greg Dyke from the BBC), a personal friend of Ultima , Chief Executive Officer of Cordia Corporation, stated, "Our first quarter financial performance was strong considering the significant investment we have been making in the development of our VoIP infrastructure as we expand our footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. from a regional carrier to a global telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. provider. Key events included the continued expansion of our presence in the Asia Pacific region with our acquisition of the Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. based Wi-Fi (WIreless-FIdelity) A logo from the Wi-Fi Alliance that certifies network devices comply with the IEEE 802.11 wireless Ethernet standards. In the early 2000s, Wi-Fi/802.11 became widely used (initially 802.11b, then 802. operator, Triamis Group, and the launch of VOZSIP, Cordia's fully integrated Spanish language Spanish language, member of the Romance group of the Italic subfamily of the Indo-European family of languages (see Romance languages). The official language of Spain and 19 Latin American nations, Spanish is spoken as a first language by about 330 million persons VoIP service targeting domestic customers along with specific plans for South/Central America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. . We are now serving customers in over 45 countries around the world. While we have yet to see the financial benefit of these activities, we are putting the appropriate building blocks in place and look forward to maximizing growth and shareholder value." Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) Griffo, President of Cordia Corporation, stated, "I am pleased with the continued progress that our company has made to run a more stream lined and efficient organization. These efforts have resulted in Cordia attracting better customers thus reducing bad debt and lowering our company churn rate (1) The percentage of customers who cancel their online, cellphone or other subscription service during a certain time period. (2) The percentage of employees who leave the company during a certain time period. See churning. . Our bad debt expense decreased to $820,612 this quarter from approximately $1.6 million from last quarter. We expect our increased efforts will enable us to continue to reduce our bad debt exposure throughout 2006, while we focus on higher margins in our core business. In turn, this will give us the required capital from operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. to continue investing in building strong VoIP solutions. Ultimately, we believe that this strategy will provide shareholders with a stronger business model with higher margins." Conference Call Reminder The conference call will take place at 1:00 p.m. eastern, on Tuesday Tuesday: see week. , May 16, 2006. Anyone interested in participating should dial 888-424-6234 if calling within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. or 973-321-1020 if calling internationally approximately 5 to 10 minutes prior to 1:00 p.m. There will be a playback Playback could mean:
This call is being webcast by ViaVid Broadcasting and can be accessed at Cordia's website at http://www.cordiacorp.com. The webcast may also be accessed at ViaVid's website at www.viavid.net. The webcast can be accessed through August 16, 2006 on either site. To access the webcast, you will need to have the Windows Media Player Digital jukebox software for Windows from Microsoft that plays a variety of audio, video and streaming formats including MP3, WMA, CD audio and MIDI. Starting with Version 6.2 in 1999, the Windows Media Rights Manager was added for securing copyrighted content. on your desktop. For the free download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. of the Media Player, please visit: www.microsoft.com/windows/windowsmedia/en/download/default.asp . About Cordia Corporation Cordia Corporation, through its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Cordia Communications Corp. and CordiaIP Corp., offers business, residential, and wholesale customers local and long distance telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. utilizing traditional wireline and Voice over Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. ("VoIP") technologies. In addition, Cordia develops and provides a suite of proprietary web-based billing software and outsourced services to local, long distance and VoIP telecommunications providers. 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. This release contains 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. that involve risks and uncertainties. Cordia's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, availability of management; availability, terms, and deployment of capital; Cordia's ability to successfully market its services to current and new customers, generate customer demand for its product and services in the geographical areas in which Cordia can operate, access new markets, all in a timely manner, at reasonable cost and on satisfactory terms and conditions, as well as regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. , legislative and judicial developments that could cause actual results to vary in such forward-looking statements. Tables Follow
CORDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2006 2005
(unaudited)
------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $980,579 $944,840
Cash - restricted 1,405,973 1,401,058
Accounts receivable, less allowance for
doubtful accounts of
$1,284,184 (2006) and $864,827
(2005) 4,921,211 5,992,833
Prepaid expenses 539,281 514,576
Accrued usage receivable 349,729 332,534
Deferred tax assets 412,365 278,000
------------ ------------
TOTAL CURRENT ASSETS 8,609,138 9,463,841
------------ ------------
Property and equipment, at cost
Office and computer equipment 978,359 787,809
Computer software 790,108 602,012
Leasehold improvements 282,330 255,050
------------ ------------
2,050,797 1,644,871
Less: Accumulated
depreciation/amortization 529,486 354,430
------------ ------------
NET PROPERTY AND EQUIPMENT 1,521,311 1,290,441
------------ ------------
Other Assets
Goodwill 383,317 -
Security deposits and other assets 283,722 216,358
------------ ------------
667,039 216,358
------------ ------------
TOTAL ASSETS $10,797,488 $10,970,640
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion, capital lease
obligations $11,315 $11,099
Accounts payable 2,215,484 2,708,784
Accrued expenses 4,177,559 4,260,304
Income taxes payable 279,685 109,000
Unearned income 1,104,075 1,161,562
Loans payable-other - 57,000
------------ ------------
TOTAL CURRENT LIABILITIES 7,788,118 8,307,749
------------ ------------
Noncurrent Liabilities
Deferred rent 46,623 45,410
Deferred income taxes 36,368 9,000
Capital lease obligation, net of
current 47,254 50,165
------------ ------------
TOTAL NONCURRENT LIABILITIES 130,245 104,575
------------ ------------
COMMITMENTS AND CONTINGENCIES
Stockholders' Equity
Preferred stock, $.001 par value;
5,000,000 shares authorized, 707,800
(2006) and 797,800 (2005) shares issued
and outstanding 708 798
Common stock, $.001 par value;
100,000,000 shares authorized,
5,808,774 (2006) and 5,639,410 (2005)
shares issued and outstanding 5,809 5,639
Additional paid-in capital 6,270,299 6,054,606
Comprehensive income 2,027 -
Accumulated deficit (3,303,720) (3,406,729)
------------ ------------
2,975,123 2,654,314
Less: Treasury stock, at cost,177,694
common shares (95,998) (95,998)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 2,879,125 2,558,316
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $10,797,488 $10,970,640
============ ============
CORDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three Months Ended
March 31,
2006 2005
----------- -----------
Revenues
Telecommunications $9,898,341 $9,129,190
Other 167,978 164,634
----------- -----------
10,066,319 9,293,824
Cost of Revenues
Resale and wholesale line charges 5,317,941 5,024,714
----------- -----------
Gross Profit 4,748,378 4,269,110
----------- -----------
Operating Expenses
Sales and marketing 717,878 921,726
Provision for doubtful accounts 820,612 1,071,940
General and administrative 2,779,194 1,814,015
Depreciation 187,976 33,020
----------- -----------
4,505,660 3,840,701
----------- -----------
Operating Income 242,718 428,409
----------- -----------
Other Income (Expenses)
Interest income 4,915 -
Interest expense (2,621) (1,048)
----------- -----------
2,294 (1,048)
----------- -----------
Income Before Income Taxes 245,012 427,361
Income tax provision 142,003 4,531
----------- -----------
Net Income $103,009 $422,830
=========== ===========
Basic Income per share $0.02 $0.09
=========== ===========
Weighted Average Common Shares Outstanding 5,529,841 4,506,543
=========== ===========
Diluted Income per share $0.01 $0.08
=========== ===========
Weighted Average Common and Common
Equivalent Shares Outstanding 7,004,879 5,308,556
=========== ===========
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