Cordia Corporation - CORG - Announces Financial Results for Fiscal Year 2005; Net Income of $1.3 Million for Fiscal Year 2005 versus a Loss of $(169,800) for the Same Period 2004.WINTER GARDEN, Fla. -- Revenues Increased 218% to $42 Million for Fiscal Year 2005 versus $13.2 Million for 2004 Cordia Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CORG CORG Combat Operations Research Group ), a global communications service provider A Communications Service Provider or CSP is a company that transports information electronically. The term encompasses public and private companies in the wireline, wireless, Internet, cable, satellite, and managed services businesses. of 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 announced the results of operations for the fiscal year ended December December: see month. 31, 2005. The Company reported revenues of $41.95 million for the twelve months ended December 31, 2005; an increase of approximately $28.7 million or 218%, from the $13.2 million in reported revenues for the twelve months ended December 31, 2004. CORG reported 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. of $1.13 million 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 for the twelve months ended December 31, 2005, an improvement of $1.28 million over the loss from continuing operations of $(143,055), as compared to the same period during 2004. Net income increased to $1.27 million, or $0.27 per basic share and $0.20 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, compared to a net loss of $(169,800) or $(0.04) per basic and fully diluted share for the same period last year. Our balance sheet shows $11 million in total assets as of December 31, 2005 as compared to $5.5 million at December 31, 2004 and stockholder equity increased to approximately $2.6 million from a deficit of $(851,144) at December 31, 2004. 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, "(w)e are extremely pleased with our strong annual financial results. We accomplished several milestones in 2005, while maintaining our rapid growth and expansion. We continued to rollout our VOIP network while building strategic relationships nationally and internationally, with a particular focus on the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. region. We now provide service to customers in over 45 countries, with 35% of our VoIP sales being generated overseas. Our acquisition of 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 Triamis Group Limited in February 2006, will continue this trend and positions Cordia to take advantage of the opportunities and rapid growth of the APAC APAC Australian Partnership for Advanced Computing APAC Agricultural Policy Analysis Center APAC Asia and Pacific APAC Asian Pacific American Coalition APAC Adapted Physical Activity Council (American Alliance for Health) region. 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 with over 20 specific plans for South and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , expands our global market reach in the Hispanic Hispanic Multiculture A person of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race Social medicine Any of 17 major Latino subcultures, concentrated in California, Texas, Chicago, Miam, NY, and elsewhere market. We will continue our strategy of investing in next generation integrated products and services such as dual mode mobile Dual mode handsets are compatible with both GSM and CDMA networks and are essentially 2 phones in one device. This is different from dual SIM or dual band features.
Mr. Dupre continued, "(w)e are constantly developing and improving our service and anticipate the roll-out of additional services during the second quarter of 2006. By developing our own VoIP system and fostering relationships domestically and internationally it is our intention to promote globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation and offer a sophisticated line of services for the consumer regardless of location. We have a healthy balance sheet, strong cash flow and an experienced team of managers in place to execute Cordia's plans to the next level of growth." Kevin Griffo, President of Cordia Corporation, stated, "I am proud of the progress that Cordia has made during the last six months. We have transitioned to a more highly focused sales and distribution organization. We continue to upgrade our operations resulting in better customer service, 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. . We have implemented stringent credit criteria for all new sales and as a result have seen monthly churn churn: see butter. drop by approximately 50% through the first quarter of 2006. As a result, we anticipate a significant reduction in our bad debt exposure for 2006. We expect to continue this positive trend as we add new sales channels and open new territory over the next couple of quarters. The transformation over the last six months has been challenging but we believe Cordia is now better positioned to handle the new opportunities that we are facing both domestically and internationally." Conference Call Reminder A conference call to discuss our fiscal year 2005 results will take place at 4:15 p.m. Eastern, on Wednesday, April 5, 2006. Anyone interested in participating should call 800-289-0533 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 913-981-5525 if calling internationally approximately 5 to 10 minutes prior to 4:15 p.m. There will be a playback Playback could mean:
This call is being webcast by ViaVid Broadcasting and may 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 July 3, 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 ("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 Communicating information, including data, text, pictures, voice and video over long distance. See communications. 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, legislative and judicial developments that could cause actual results to vary in such forward-looking statements.
CORDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31,
2005 2004
------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $ 944,840 $ 300,119
Cash - restricted 1,401,058 -
Accounts receivable, less allowance for
doubtful accounts of $864,827 (2005)
and $627,158 (2004) 5,992,833 4,423,423
Prepaid expenses 514,576 324,420
Accrued usage receivable 332,534 263,014
Deferred tax assets 278,000 -
------------ ------------
TOTAL CURRENT ASSETS 9,463,841 5,310,976
------------ ------------
Property and equipment, at cost
Office and computer equipment 787,809 236,597
Computer software 602,012 -
Leasehold improvements 255,050 -
------------ ------------
1,644,871 236,597
Less: Accumulated
depreciation/amortization 354,430 59,182
------------ ------------
NET PROPERTY AND EQUIPMENT 1,290,441 177,415
------------ ------------
Other Assets
Security deposits and other assets 216,358 59,064
------------ ------------
TOTAL ASSETS $10,970,640 $ 5,547,455
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Current portion, capital lease
obligations $ 11,099 $ -
Accounts payable 2,708,784 3,316,121
Accrued expenses 4,260,304 2,154,910
Income taxes payable 109,000 -
Unearned income 1,161,562 867,728
Loans payable-other 57,000 57,000
------------ ------------
TOTAL CURRENT LIABILITIES 8,307,749 6,395,759
------------ ------------
Noncurrent Liabilities
Deferred rent 45,410 2,840
Deferred income taxes 9,000 -
Capital lease obligation, net of
current 50,165 -
------------ ------------
TOTAL NONCURRENT LIABILITIES 104,575 2,840
------------ ------------
COMMITMENTS AND CONTINGENCIES
Stockholders' Equity (Deficit)
Preferred stock, $.001 par value;
5,000,000 shares authorized,
797,800 shares issued and
outstanding 798 -
Common stock, $.001 par value;
100,000,000 shares authorized,
5,639,410 (2005) and 4,541,210
(2004) shares issued and outstanding 5,639 4,541
Additional paid-in capital 6,054,606 3,660,087
Accumulated deficit (3,406,729) (4,459,774)
------------ ------------
2,654,314 (795,146)
Less: Treasury stock, at cost, 177,694
(2005) and 77,694 (2004) common shares (95,998) (55,998)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 2,558,316 (851,144)
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $10,970,640 $ 5,547,455
============ ============
CORDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Year Ended
December 31,
2005 2004
------------ ------------
Revenues
Telecommunications revenue $41,238,380 $12,622,964
Other 712,835 606,492
------------ ------------
41,951,215 13,229,456
Cost of Revenues
Resale and wholesale line charges 21,807,095 6,207,042
------------ ------------
Gross Profit 20,144,120 7,022,414
------------ ------------
Operating Expenses
Sales and marketing 4,336,415 2,596,326
Provision for doubtful accounts 5,381,753 627,544
General and administrative 8,978,211 3,892,658
Depreciation 313,998 48,941
------------ ------------
19,010,377 7,165,469
------------ ------------
Operating Income (Loss) 1,133,743 (143,055)
Other Income (Expenses)
Net Interest Income (expense) 26,358 (8,936)
------------ ------------
Income (Loss) Before Income Taxes 1,160,101 (151,991)
Income Tax (Benefit) (105,359) 17,809
------------ ------------
Net Income (Loss) 1,265,460 (169,800)
Dividends on preferred stock (212,415) -
------------ ------------
Net Income (Loss) applicable to common
stockholders $ 1,053,045 $ (169,800)
============ ============
Basic Income (Loss) per share $ 0.23 $ (0.04)
============ ============
Weighted Average Common Shares Outstanding 4,675,779 4,722,032
============ ============
Diluted Income (Loss) per share $ 0.20 $ (0.04)
============ ============
Weighted Average Common and Common
Equivalent Shares Outstanding 6,379,229 4,722,032
============ ============
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