GoAmerica(R) Announces Third Quarter 2008 Results.
Continued Growth in Revenue, Margins, and Operating Profitability
NOVATO, Calif., Nov. 14 /PRNewswire-FirstCall/ -- GoAmerica, Inc. , a provider of relay and wireless communications wireless communications
System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. and professional interpreter services for deaf, hard-of-hearing, and speech-impaired persons, today announced unaudited results for the quarter ended September 30, 2008 and the filing of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission ("SEC").
Total revenue for the three months ended September 30, 2008 was $35.7 million, compared to $4.8 million for the three months ended September 30, 2007. Total revenue for the nine months ended September 30, 2008 was $95.4 million, compared to $13.4 million for the nine months ended September 30, 2007. The year-over-year revenue growth is primarily attributable to the Company's first quarter purchase of the telecommunications relay services business of Verizon, its merger with Hands on Video Relay Services, Inc., its third quarter purchases of Sign Language Associates (SLA (1) (StereoLithography Apparatus) See 3D printing.
(2) (Service Level Agreement) A contract between the provider and the user that specifies the level of service expected during its term. ) and Visual Language Interpreting (VLI VLI Virtual LAN Internetwork (Cisco)
VLI Port Vila, Vanuatu - Bauerfield (Airport Code)
VLI Variable Life Insurance
VLI Visible Light Illuminator (special flashlight mounted on weapons) ), as well as organic growth in the Company's video relay services business.
Income from operations for the three months ended September 30, 2008 was approximately $828,000 compared with a loss from operations of $851,000 for the three months ended September 30, 2007. Income from operations for the nine months ended September 30, 2008 was approximately $4.2 million, compared with a loss from operations of $2.3 million for the nine months ended September 30, 2007.
Net loss for the three months ended September 30, 2008 was approximately $1.3 million compared with a net loss of $861,000 for the three months ended September 30, 2007. Net loss available to common stockholders, when taking into account the $840,000 of accrued 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. dividends, was $2.2 million, or $0.24 per common share, for the three months ended September 30, 2008 compared with a net loss $881,000, or $0.39 per common share, for the three months ended September 30, 2007. Net loss for the nine months ended September 30, 2008 was approximately $1.0 million compared with a net loss of $2.4 million for the nine months ended September 30, 2007.
Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Cash provided from operations for the nine months ended September 30, 2008 was $7.6 million, principally resulting from income from operations. Capital expenditures for the nine months ended September 30, 2008 were $3.0 million, used primarily to fund capacity expansion and call center operations, including telecommunications infrastructure.
GoAmerica had approximately $18.9 million in unrestricted cash and cash equivalents as well as $0.5 million in restricted cash. Additionally, the Company has $15.0 million of borrowing capacity under its revolving line of credit Revolving line of credit
A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. . The Company receives a significant majority of its payments from federal and state government agencies and as a result experiences a favorable fa·vor·a·ble
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. cash collection cycle.
On July 1, 2008, the Company announced it had merged with two of the nation's premier sign language interpreting services firms: Sign Language Associates and Visual Language Interpreting, both of which are based in the Washington, D.C. metro area This article is about the music production team. For the article about population centers, see metropolitan area.
Metro Area are a Brooklyn-based dance music production team composed of Morgan Geist and Darshan Jesrani. . The SLA and VLI transactions made GoAmerica the nation's leading provider of on-site sign language interpreting services, and will provide broader access to Video Remote Interpreting Video Remote Interpreting (VRI) is a service utilizing video cameras to provide sign language interpreting services without an interpreter present. A typical VRI setup involves a deaf and hearing user at one location with a camera and television screen, and an interpreter at (VRI VRI Vacation Register International
VRI Video Relay Interpreting
VRI Vehicle Research Institute (Western Washington University, Bellingham, Washington)
VRI Venture Research Institute (Lake Forest, California) ) services for its customers. The transactions also expand the availability of certified See certification. , high-quality interpreters and transcriptionists for the Company's other products and services.
"With the addition of SLA and VLI, we are now bringing together five operations into one and we are making significant strides," said John Ferron, CFO/COO of GoAmerica. "We have redefined our organizational structure, moved our headquarters to California, and have filled key positions in the organization as well as focused on more traditional integration activities. There's more to be achieved through the balance of the fourth quarter and we expect full integration to be complete by the end of the first quarter of 2009. During this timeframe, we will remain keenly focused on operational performance as well as implementing initiatives to improve our cost structure post-integration."
"As part of the overall integration activities, we have unified our service brands underneath the umbrella brand An umbrella brand is a brand that covers diverse kinds of products which are more or less related.
It applies also to any company that is identified only by its brand and history. Such a company now only acts as designer and distributor. Purple(TM) further tying our end to end service solutions to one brand promise, and an easily recognizable graphical connection. All of our service brands will now have elements of Purple in their execution, and will be supported by the shared slogan "Powered by Purple(TM)." This new brand platform provides us with reach and flexibility needed to continue to add to our portfolio of service brands, as we continue to look for ways to expand our service offerings." said Ed Routhier, President and Vice-Chairman of GoAmerica.
"Strategically we are in a strong position given our favorable liquidity and the fact that our three sources of revenue, text relay, video relay and community interpreting, are non-cyclical and do not heavily rely on discretionary consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. to grow," said Dan Luis, 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. of GoAmerica. "We continue to invest in our people, infrastructure, and product development initiatives as we position ourselves for growth and maintain our standing as the industry's employer of choice. I am optimistic op·ti·mist
1. One who usually expects a favorable outcome.
2. A believer in philosophical optimism.
op that our new products and services will result in enhanced growth opportunities in 2009."
About GoAmerica, Inc.
GoAmerica, Inc. is one of the nation's largest providers of communication services for the deaf, hard of hearing, and speech-disabled communities. As a leading provider of onsite interpreting services, video relay and text relay services, and video remote interpreting, the Company delivers a wide array of options designed to meet the varied communication needs of its customers. The Company's vision is to improve the quality of life of its customers by being their premier provider of high quality, innovative communication services that break down communications barriers. For more information on the Company or its services, visit http://www.goamerica.com/ or contact GoAmerica directly at TTY (TeleTYpewriter) See teletypewriter and TDD/TTY.
(hardware) tty - /tit'ee/ (ITS pronunciation, but some Unix people say it this way as well; this pronunciation is not considered to have sexual undertones), /T T Y/
2. 201-527-1520, voice 201-996-1717, Internet Relay by visiting http://www.i711.com/ or http://www.ip-relay.com/, or video phone by connecting to hovrs.tv.
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.
The statements contained in this news release that are not based on historical fact -- including statements regarding the anticipated results of the transactions described in this press release -- constitute "forward-looking statements" that are made in reliance upon the safe harbor provisions of 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. Forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "expect", "estimate", "anticipate", "continue", or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve risks and uncertainties, including, but not limited to: (i) our ability to integrate the businesses and technologies we have acquired; (ii) our ability to respond to the rapid technological change of the wireless data industry and offer new services; (iii) our dependence on wireless carrier networks; (iv) our ability to respond to increased competition in the wireless data industry; (v) our ability to generate revenue growth; (vi) our ability to increase or maintain gross margins, profitability, liquidity and capital resources; and (vii) difficulties inherent in predicting the outcome of regulatory processes. Such risks and others are more fully described in the Risk Factors set forth in our filings with the Securities and Exchange Commission. Our actual results could differ materially from the results expressed in, or implied by, such forward-looking statements. GoAmerica is not obligated to update and does not undertake to update any of its forward looking statements made in this press release. Each reference in this news release to "GoAmerica", the "Company" or "We", or any variation thereof, is a reference to GoAmerica, Inc. and its subsidiaries.
"GoAmerica", the "GoAmerica" logo, "i711", and the "i711.com" logo, "Relay and Beyond", and "Hands On VRS (Video Relay Service) A communications service for the hearing or speech impaired. A VRS is the video counterpart of a TTY relay service, in which the user types on a terminal, and the relay operator speaks the messages to the recipient (see TDD/TTY). " are registered trademarks of GoAmerica. "i711.com", "i711 Wireless", "Mobile Video Phone", and "MVP (Multimedia Video Processor) A high-speed DSP chip from Texas Instruments, introduced in 1994. Officially introduced as the TMS320C80, it combines RISC technology with the functionality of four DSPs on one chip. " are trademarks and service marks of GoAmerica. Other names may be trademarks of their respective owners.
CONTACTS: John Ferron GoAmerica CFO and COO email@example.com 415-408-2340 Laura Kowalcyk CJP Communications firstname.lastname@example.org 212-279-3115 x209 GOAMERICA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 30, December 31, 2008 2007 ---- ---- Assets Current assets: Cash and cash equivalents $18,889 $2,368 Accounts receivable, net 15,005 1,960 Merchandise inventories, net 370 206 Prepaid expenses and other current assets 1,559 220 ----- --- Total current assets 35,823 4,754 Goodwill 75,473 6,000 Identifiable intangible assets, net 58,162 -- Other assets 9,303 7,544 ----- ----- Total assets $178,761 $18,298 ======== ======= Liabilities and stockholders' equity Current liabilities: Accounts payable $3,888 $1,285 Accrued expenses 11,507 3,623 Deferred revenue -- 94 Loan payable -- 3,532 Current portion of long term debt 400 -- Other current liabilities 132 88 --- -- Total current liabilities 15,927 8,622 Long term debt less current portion, net of discount of $2,080 at September 30, 2008 67,220 -- Deferred tax liability 12,048 -- Other liabilities 2,780 124 Stockholders' equity 80,786 9,552 ------ ----- $166,713 $18,298 ======== ======= GOAMERICA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2008 2007 2008 2007 ---- ---- ---- ---- Revenues: Relay services $30,644 $4,293 $88,348 $11,787 Interpreting 5,024 -- 6,285 -- Other 67 543 814 1,661 -- --- --- ----- 35,735 4,836 95,447 13,448 Costs and expenses: Cost of relay services 15,972 2,999 47,607 8,074 Cost of interpreting 3,996 -- 5,235 -- Cost of other 65 444 959 1,393 Sales and marketing 2,990 612 8,702 1,615 General and administrative 8,721 1,479 20,693 4,092 Research and development 1,068 59 2,479 316 Depreciation and amortization 284 94 714 257 Amortization of intangible assets 1,811 -- 4,841 -- ----- ---- ----- ---- 34,907 5,687 91,230 15,747 ------ ----- ------ ------ Income (loss) from operations 828 (851) 4,217 (2,299) Other income (expense): Settlement losses -- -- -- (162) Gain on interest rate cap agreement (130) -- 111 -- Interest income (expense), net (1,819) (10) (5,092) 49 ------- ---- ------- -- Total other income (expense), net (1,949) (10) (4,981) (113) ------- ---- ------- ----- Income (loss) before income taxes (1,121) (861) (764) (2,412) Income tax provision 202 -- 202 -- --- --- --- --- Net income (loss) (1,323) (861) (966) (2,412) Preferred dividends (840) (20) (2,367) (20) ----- ---- ------- ---- Net loss applicable to common stockholders $(2,163) $(881) $(3,333) $(2,432) ======== ====== ======== ======== Loss per common share: Basic $(0.24) $(0.39) $(0.36) $(1.10) ======= ======= ======= ======= Diluted $(0.24) $(0.39) $(0.36) $(1.10) ======= ======= ======= ======= Weighted average shares outstanding Basic and Diluted 9,159,452 2,239,966 9,154,637 2,216,349
CONTACT: John Ferron CFO See Chief Financial Officer. and COO of GoAmerica, +1-415-408-2340, email@example.com; or Laura Kowalcyk of CJP CJP Canadian Journal of Psychiatry
CJP Chief Justice of Pakistan
CJP Commission on Judicial Performance (San Francisco, California)
CJP Complete Joint Penetration (welding) Communications for GoAmerica, +1-212-279-3115 x209, firstname.lastname@example.org
Web Site: http://www.goamerica.com/ http://www.i711.com/ http://www.ip-relay.com/