DataWave Reports Earnings of $381,495 in the Third Quarter of Fiscal 2005.VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography -- DataWave Systems Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DWVSF): Quarter ended December December: see month. 31, 2004 (all figures in U.S. dollars). DataWave announces its net income before merger costs was $413,724 compared with $122,935 the previous year or an increase of 237% for the third quarter in fiscal 2005. Net income, as reported under 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. 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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), for the third quarter in fiscal 2005 was $381,495 compared with $122,935 for the same period last year. 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 (earnings before interest expense, taxes, depreciation and amortization) of $745,779 before merger costs was $347,138 or 87% higher than for the same period last year (see attached schedule for non-GAAP financial measures). Merger costs were $32,229 for the third quarter in fiscal 2005. Total revenues of $6,748,487 for the quarter were $2,176,000 or 48% higher than the same period last year. Revenue less direct costs were $2,323,768 for the quarter are $399,802 higher than for the same period last year and 34% of current quarter revenues. Our Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. operations, which generates most of its revenues from the sale of prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. long distance and prepaid wireless phone cards and
PINs to retailers, provided $3,877,957 of revenues for the three months
ended December 31, 2004, an increase of 43% from the same period last
year. The U.S. operations generated revenues of $2,862,800, an increase
of 60% from last year; the increase comes primarily from significant
growth in promotional long distance business during the last quarter. A
portion of this growth can be attributed to several key accounts who
distribute these products as a complimentary service to the United
States military.DataWave has now deployed more than 6,000 terminals in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. that distribute prepaid products from over twenty-five suppliers. These terminals have dispensed dis·pense v. dis·pensed, dis·pens·ing, dis·pens·es v.tr. 1. To deal out in parts or portions; distribute. See Synonyms at distribute. 2. To prepare and give out (medicines). 3. PINs or activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. cards with a gross value of U.S. $33 million in the quarter ended December 31, 2004 and U.S. $83 million for the nine month period ended December 31, 2004. The Company recognizes POSA POSA Public Order and Security Act POSA Pattern Oriented Software Architecture POSA Passive Optical Sample Assembly POSA Parks and Open Space Advocates (Seattle, WA) PoSA Pomona College Student Art Gallery cellular revenue on net agency basis. "We are pleased to report another profitable quarter and to have increased our revenues in what is traditionally a slow quarter," said DataWave Chairman and 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. Josh JOSH Joshua JOSH Job Scheduling Hierarchically Emanuel Besides being a common first name, Emanuel (sometimes spelled Emmanuel or Immanuel) may refer to:
The Company has incurred merger costs related to the proposed merger with Integrated Data Corp (approximately $199,000 for the nine months ended December 31, 2004). The proposed merger was terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: by mutual agreement on November November: see month. 9th, 2004. A complete analysis of our quarterly results ending December 31, 2004 is provided on our Form 10-QSB quarterly report filed on Edgar and is available on the United States Securities and Exchange Commission's web site (www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ) under DataWave's Central Index Number (CIK CIK Central Index Key (SEC) CIK Commission Internationale de Karting (French) CIK Crypto Ignition Key CIK Contribution in Kind CIK Confederazione Italiana Kendo ) 0001000157. Schedule for non-GAAP Financial Measures As a supplement to the Company's consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge presented on a GAAP basis, the Company provides the additional non-GAAP measure of EBITDA (earnings before interest expense, taxes, depreciation and amortization). A non-GAAP financial measure is a numerical numerical expressed in numbers, i.e. Arabic numerals of 0 to 9 inclusive. numerical nomenclature a numerical code is used to indicate the words, or other alphabetical signals, intended. measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and 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 GAAP. EBITDA is reconciled with Net Income as follows:
Three months ended Nine months ended
December 31, December 31,
------------------------ ------------------------
FY2005 FY2004 FY2005 FY2004
----------- ----------- ----------- -----------
Net Income (GAAP) $ 381,495 $ 122,935 $ 622,470 $ 400,914
Add:
Interest Expense
(in other income) 3,697 - 7,596 -
Income taxes - - - -
Depreciation and
amortization 328,454 275,706 881,103 638,150
----------- ----------- ----------- -----------
EBITDA 713,646 398,641 1,511,169 1,039,064
Merger costs 32,229 - 199,244 -
----------- ----------- ----------- -----------
EBITDA before
merger costs $ 745,875 $ 398,641 $ 1,710,413 $ 1,039,064
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Management uses EBITDA internally to evaluate its operating performance and for planning and forecasting of the Company's future periods. EBITDA is not a generally accepted earnings measure and should not be considered as an alternative to net income or cash flows as determined in accordance with GAAP. As there is no standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. method of calculating EBITDA, the Company's use of the term may not be comparable with similarly titled measures used by other companies. In addition, we have presented merger costs as a separate item because these costs are expected to be non-recurring. Fiscal 2005 Third Quarter Consolidated Financial Statements: These financial statements have been prepared by Management in accordance with generally accepted accounting principles in the United States and are reported in U.S. dollars.
DATAWAVE SYSTEMS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in United States dollars and presented in accordance with
U.S. GAAP)
(Unaudited)
--------------------------------------------------------------------
December 31 March 31
2004 2004
------------ ------------
Assets
Current
Cash and cash equivalents $ 4,009,010 $ 852,406
Restricted cash 40,000 -
Accounts receivable and other 6,166,286 4,337,034
Inventories 5,187,949 2,234,443
Prepaid expenses and deposits 450,218 451,377
------------ ------------
Total current assets 15,853,463 7,875,260
Restricted cash - 54,000
Machinery and equipment, net 2,450,719 2,332,997
Equity investment 22,630 -
Deferred development costs 91,013 49,335
Other long term receivables 110,865 110,865
Goodwill 1,861,260 1,845,619
Intangible assets, net 279,962 378,529
------------ ------------
Total assets $ 20,669,912 $ 12,646,605
------------ ------------
------------ ------------
Liabilities
Current
Accounts payable and accrued
liabilities $ 14,308,315 $ 7,638,011
Deferred revenue 714,364 61,572
Current portion of capital lease
obligations 71,602 64,641
Current portion of deferred inducement 28,940 27,716
------------ ------------
Total current liabilities 15,123,221 7,791,940
Capital lease obligations 70,150 125,026
Deferred income taxes 276,705 267,766
Deferred inducement 304,486 280,835
------------ ------------
Total liabilities 15,774,562 8,465,567
------------ ------------
Shareholders' equity
Common shares
Authorized, 100,000,000 common
shares, no par valueIssued
43,889,334 shares issued and
outstanding at December 31, 2004
and March 31, 2004 respectively 15,006,743 15,006,743
Additional paid-in capital 2,725,492 2,725,492
Accumulated other comprehensive
income 369,808 277,966
Accumulated deficit (13,206,693) (13,829,163)
------------ ------------
Total shareholders' equity 4,895,350 4,181,038
------------ ------------
Total liabilities and
shareholders' equity $ 20,669,912 $ 12,646,605
------------ ------------
------------ ------------
DATAWAVE SYSTEMS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in United States dollars and presented in accordance with
U.S. GAAP)
(Unaudited)
--------------------------------------------------------------------
Three months ended Nine months ended
December 31, December 31,
2004 2003 2004 2003
----------- ----------- ----------- -----------
Revenue
Sales $ 4,903,379 $ 2,417,266 $11,138,480 $ 7,336,070
Net agency sales 1,845,108 2,155,221 5,456,537 6,119,157
----------- ----------- ----------- -----------
Total revenue 6,748,487 4,572,487 16,595,017 13,455,227
----------- ----------- ----------- -----------
Operating costs
and expenses
Cost of revenues 4,424,719 2,648,521 10,354,656 7,951,314
General and
administrative 773,206 801,460 2,351,874 2,209,524
Selling and
marketing 562,264 374,188 1,388,638 1,198,325
Product
development 305,435 374,821 926,836 1,120,857
Merger costs 32,229 - 199,244 -
Depreciation and
amortization 328,454 275,706 881,103 638,150
----------- ----------- ----------- -----------
Total operating
costs and
expenses 6,426,307 4,474,696 16,102,351 13,118,170
----------- ----------- ----------- -----------
Operating income 322,180 97,791 492,666 337,057
Other income,
net (644) 7,991 2,250 27,228
Equity income
from investee 55,309 - 87,121 -
Gain (loss) on
foreign exchange 4,650 17,153 40,433 36,629
----------- ----------- ----------- -----------
Income before
income taxes 381,495 122,935 622,470 400,914
Income taxes - - - -
----------- ----------- ----------- -----------
Net income $ 381,495 $ 122,935 $ 622,470 $ 400,914
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net income per
share
Basic and
diluted $ 0.01 $ 0.00 $ 0.01 $ 0.01
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted-average
number of common
shares - basic
and diluted 43,889,334 43,889,334 43,889,334 43,889,334
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
DATAWAVE SYSTEMS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in United States dollars and presented in accordance with
U.S. GAAP)
(Unaudited)
--------------------------------------------------------------------
Three months ended Nine months ended
December 31, December 31,
2004 2003 2004 2003
----------- ----------- ----------- -----------
Operating
activities
Net income $ 381,495 $ 122,935 $ 622,470 $ 400,914
Adjustments to
reconcile net
income to net
cash provided by
operating
activities:
Depreciation and
amortization 328,454 275,706 881,103 638,150
Equity income
from investee (55,309) - (87,121) -
Net change in
non-cash
operating assets
and liabilities
Accounts
receivable and
other (1,102,391) (807,845) (1,829,252) (2,705,158)
Inventories (1,043,680) (1,161,265) (2,953,506) (1,613,951)
Prepaid expenses
and deposits (90,566) (189,660) 1,159 (378,844)
Accounts payable
and accrued
liabilities 3,224,528 1,608,520 6,670,304 3,943,393
Deferred revenue 300,405 (24,476) 652,792 (119,614)
----------- ----------- ----------- -----------
Net cash
provided by
(used in)
operating
activities 1,942,936 (176,085) 3,957,949 164,890
----------- ----------- ----------- -----------
Investing
activity
Restricted cash 14,000 - 14,000 -
Equity
investment (22,630) - (22,630) -
Purchase of
machinery and
equipment (158,949) (153,932) (744,800) (634,690)
----------- ----------- ----------- -----------
Net cash (used
in) investing
activity (167,579) (153,932) (753,430) (634,690)
----------- ----------- ----------- -----------
Financing
activity
Repayment of
capital lease
obligations (16,278) - (47,915) -
----------- ----------- ----------- -----------
Net cash (used
in) financing
activity (16,278) - (47,915) -
----------- ----------- ----------- -----------
Increase
(decrease) in
cash 1,759,079 (330,017) 3,156,604 (469,800)
Cash and cash
equivalents,
beginning of
period 2,249,931 1,999,280 852,406 2,139,063
----------- ----------- ----------- -----------
Cash and cash
equivalents, end
of period $ 4,009,010 $ 1,669,263 $ 4,009,010 $ 1,669,263
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
About DataWave (www.datawave.com) DataWave has been an innovator and developer of prepaid and stored-value programs and merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. solutions since it was founded in 1994. DataWave pioneered a system that allows for point-of-sale point of sale n. pl. points of sale A business or place where a product or service can be purchased. Also called point of purchase. point activation activation /ac·ti·va·tion/ (ak?ti-va´shun) 1. the act or process of rendering active. 2. the transformation of a proenzyme into an active enzyme by the action of a kinase or another enzyme. 3. of high value, high shrinkage Shrinkage The amount by which inventory on hand is shorter than the amount of inventory recorded. Notes: The missing inventory could be due to theft, damage, or book keeping errors. products, such as cash cards and phone cards. The system works equally well over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , through intelligent freestanding free·stand·ing adj. Standing or operating independently of anything else: a freestanding bell tower; a freestanding maternity clinic. vending machines vending machine, coin-operated, automatic device for selling goods. Many vending machines are capable of making change, and some of the more sophisticated ones accept paper money or credit cards. or with various card activation devices, including cash registers. The DataWave financial middleware Software that functions as a conversion or translation layer. It is also a consolidator and integrator. Custom-programmed middleware solutions have been developed for decades to enable one application to communicate with another that either runs on a different platform or comes from a infrastructure, integrated with financial banking partners, affords opportunities to deliver Prepaid Cash Card programs to multiple niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. . The DataWave Point of Sale ("POSA") activation technology, integrated with prepaid wireless or long distance, prepaid internet products, and prepaid Voice Over Internet providers Internet provider - Internet Service Provider , can offer distribution of POSA products to new and existing customers. DataWave Systems Inc. John Gunn John Gunn may refer to:
Legal Notice Regarding 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. : Statements in this news release which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this release include, but are not limited to: our costs of merger being non-recurring. It is important to note that the Company's actual results and outcomes may differ materially from those contained in the forward-looking statements contained in this release. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties such as: the possibility that our terminated merger with IDC will result in costs or obligations that affect our financial operations beyond December 31, 2004. Although we believe that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Readers should refer to the risk disclosures outlined in our annual report on Form 10-KSB for the year ended March 31, 2004, filed with the United States Securities and Exchange Commission. "DataWave" is a registered trademark of the Company. All other trademarks and trade names referred to are the property of their respective owners. DataWave Systems Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :DWVSF) |
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