Intrado Reports First-Quarter 2002 Results; Q1 Revenue Up 83% and EBITDA Increases to $2.5 Million; Intrado Produces Profitable Quarter with Fully Diluted EPS of $0.02.Business Editors/High-Tech Writers BOULDER Boulder, city, United States Boulder, city (1990 pop. 83,312), seat of Boulder co., N central Colo.; inc. 1871. A Rocky Mountain resort and a suburb of Denver, it is the seat of the Univ. of Colorado (1876). , Colo.--(BUSINESS WIRE)--April 29, 2002 Intrado Intrado Inc. Introduction Intrado Inc. provides the core of the United States’ enhanced 9-1-1 or E9-1-1 infrastructure. As 9-1-1 has evolved to become fundamental to telecommunications service, Intrado has played a key role in helping to define, build and Inc. (Nasdaq:TRDO), the nation's leading provider of solutions that manage and deliver mission-critical information for telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. providers and public safety organizations, today announced its financial results for the first quarter ended March 31, 2002. Intrado reported revenue of $24.2 million, up 83% from $13.2 million for the same quarter last year. Net income for the first quarter of 2002 was $313,000, or $0.02 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 $3.2 million, or $0.28 per fully diluted share for the same period in 2001. Intrado also generated $2.5 million in 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.
"In the first quarter of 2002, through diligence Vigilant activity; attentiveness; or care, of which there are infinite shades, from the slightest momentary thought to the most vigilant anxiety. Attentive and persistent in doing a thing; steadily applied; active; sedulous; laborious; unremitting; untiring. and the right balance between growth and profitability, we exceeded the goals in our internal plan and continued to successfully navigate (1) "Surfing the Web." To move from page to page on the Web. (2) To move through the menu structure in a software application. a difficult telecommunications environment," said George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Heinrichs Heinrichs is a form of Henry and may refer to
Recent Highlights -- $2.5 million of EBITDA in the first quarter -- $4.3 million of cash attributable to a decrease in accounts receivable and days' sales outstanding, which went from 52 days at December 31, 2001, to 38 days at the end of the first quarter. "We made major progress in developing our intelliBase NRLLDB offering during the first quarter, receiving invaluable guidance on market needs and requirements from our NRLLDB Advisory Board. We signed two carriers for Beta tests A test of new or revised hardware or software that is performed by users at their facilities under normal operating conditions. Beta testing follows alpha testing. Vendors of packaged software often offer their customers the opportunity of beta testing new releases or versions, and the commencing in the second quarter and will be making a concerted effort to deliver the offering to carriers," Heinrichs stated. "We also made significant steps with our recently announced Location Platform (MPC/GMLC) by adding functionality that will be used to support telematics Originally coined to mean the convergence of telecommunications and information processing, the term later evolved to refer to automation in automobiles. GPS navigation, integrated hands-free cellphones, wireless communications and automatic driving assistance systems all come under the and Automatic Crash Notification (ACN ACN Accenture (stock symbol) ACN Accenture ACN Australian Company Number ACN Automatic Collision Notification (US DOT) ACN Acetonitrile ACN Anglican Communion Network ) trials." Business Unit Performance Summary Intrado provided the following first-quarter performance summary for each of its four revenue-generating business units: ILEC (Incumbent Local Exchange Carrier) A traditional local telephone company such as one of the Regional Bell companies (RBOCs). Contrast with CLEC. See ELEC and TELRIC. Business Unit: Revenue for the ILEC business unit increased to $12.8 million in the first quarter of 2002, up 75% from $7.3 million in the first quarter of 2001. This increase is from one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. sales of licensed software, successful integration of the database division acquired in May 2001, growth in subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. counts, and sales of new product offerings to existing customers. Gross margin for this business unit was 54% for the quarter. ILEC records under Intrado's data management services offering grew 2% from 86.8 million in the first quarter of 2001 to 88.7 million in the first quarter of 2002. Wireless Business Unit: Wireless revenue for the first quarter of 2002 grew 172% to $4.9 million, up from $1.8 million in the first quarter of 2001. Revenue-generating subscribers in the first quarter grew to 17.9 million, a 203% increase over the same period last year. Total public safety agency requests for wireless services increased to 8,973, a 5% increase over the fourth quarter of 2001. Intrado's wireless carriers represent approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 77.6 million subscribers. First-quarter 2002 gross margin for the Wireless business unit was 29%, compared to a negative 35% in the first quarter of 2001. CLEC (Competitive Local Exchange Carrier) An organization offering local telephone service that is not one of the traditional telephone companies. The Telecommunications Act of 1996 allowed competition to the incumbent telcos (ILECs), enabling new companies (CLECs) Business Unit: The CLEC business unit reported $4.1 million in revenue for the first quarter of 2002, up 32% from $3.1 million in the first quarter of 2001. CLEC revenue growth reflects the addition of new customers, as well as overall growth in the subscriber base for Intrado's customers. Intrado now has 44 CLEC contracts, representing 9.2 million subscribers. Gross margin for the CLEC business unit continued to be strong at 61% of revenue for the first quarter of 2002, as compared to 56% in the first quarter of 2001. Direct Business Unit: Revenue for the Direct business unit was $2.5 million for the first quarter of 2002, compared with $1.1 million for the same quarter last year, a 127% increase. The increase in revenue resulted primarily from sales of systems and licensed software products, the successful integration of the call-handling division acquired in May 2001 and growth in the number of subscribers for intelliCast products and services. The Direct business unit subscriber base increased to 7.2 million in the first quarter of 2002, up 4% from the first quarter of 2001. The intelliCast subscriber base grew to 2.4 million at the end of the first quarter of 2002. Gross margin was 16% in the first quarter of 2002, as compared to a negative 60% in the first quarter of 2001. Intrado finished the quarter with $11.2 million in cash, down from $15.7 million at December 31, 2001. The decrease was primarily driven by: -- $2.5 million of EBITDA in the first quarter -- $4.3 million of cash attributable to a decrease in accounts receivable and days' sales outstanding, which went from 52 days at December 31, 2001, to 38 days at the end of the first quarter. These above investments and changes in working capital were partially offset by: -- $2.5 million of EBITDA in the first quarter -- $4.3 million of cash attributable to a decrease in accounts receivable and days' sales outstanding, which went from 52 days at December 31, 2001, to 38 days at the end of the first quarter. Second-Quarter 2002 Outlook The following statements are based on current expectations. These statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , and actual results may differ materially from current expectations. Intrado's expectations for second-quarter 2002 revenue range between $25.5 million and $26.5 million, reflecting normal seasonal revenue patterns for licensed products and other non-recurring revenue. Second-quarter 2002 expectations for net income range between $1.2 million and $1.8 million with gross margin expected to be in the range of 46% to 47%. On a fully diluted pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta basis, EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. is expected to be between $0.07 and $0.11 per share. As of March 31, 2002, Intrado has available Net 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. (NOL NOL - Never Offline ) carry-forwards of approximately $18.5 million to offset any future income. Intrado anticipates that it will utilize available NOL carry-forwards to offset any income generated in Q2 2002. Intrado expects to generate between $3.7 million and $4.1 million in EBITDA in the second quarter of 2002, and to realize between $3.4 million and $3.8 million on Cash Flow from Operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . Intrado anticipates that its free cash flow from operating, investing and financing activities will range between a negative $1.0 million and break-even in the second quarter of 2002, including approximately $2.2 million of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software development costs. Additionally, Intrado provided the following performance guidance for each of its business units: ILEC Business Unit: Intrado's expectations for the ILEC business unit's second-quarter 2002 revenue range between $13.0 million and $13.5 million. ILEC gross margin is expected to be in the range of 52% to 54% in the second quarter of 2002. Business unit departmental expense is estimated to be $1.0 million for the second quarter of 2002. Wireless Business Unit: Intrado's expectations for the Wireless business unit's second-quarter 2002 revenue are approximately $5.4 million. Wireless gross margin is expected to be in the range of 32% to 35% in the second quarter. Business unit departmental expense is estimated to be $1 million for the second quarter of 2002. CLEC Business Unit: Intrado's expectations for the CLEC business unit's second-quarter 2002 revenue are approximately $4 million. CLEC gross margin is expected to be in the range of 59% to 61% in the second quarter of 2002. Business unit departmental expense is estimated to be $0.4 million for the second quarter of 2002. Direct Business Unit: Intrado's expectations for the Direct business unit's second-quarter 2002 revenue are approximately $3.2 million. Direct gross margin is expected to be in the range of 24% to 26% in the second quarter of 2002. Business unit departmental expense is estimated to be $0.7 million for the second quarter of 2002. Intrado expects its Corporate support unit's second-quarter 2002 expenses to range between $6.5 million and $6.7 million, which include the positive impact on net income of implementing FAS 142. In Q2, 2001 Intrado expensed $270,000 related to goodwill amortization for the LPSS LPSS Lucent Public Safety Systems LPSS Long-Pulse Spallation Source LPSS Amphibious Transport Submarine LPSS Low-Pressure Sewer Systems acquisition. FAS 142 precludes the ongoing amortization of goodwill and certain other intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. related to the LPSS acquisition. At the end of Q1 2002, Intrado had $6 million available 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. with GE Capital and an additional $3.0 million under capital lease facilities. Conference Call Webcast Intrado will be hosting a live broadcast 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 of the previously announced conference call on Tuesday Tuesday: see week. , April 30, 2002, at 4:30 p.m. ET, 2:30 p.m. MT, and 1:30 p.m. PT to discuss first-quarter 2002 results. To participate, access Intrado's Web site at www.intrado.com and click on the WEBCAST button. About Intrado Founded in 1979, Intrado Inc. (Nasdaq:TRDO) is pioneering the technology of Informed Response(TM) by providing telecommunications companies See telecom company. and public safety organizations with accurate, efficiently delivered, mission-critical information -- enabling Intrado to respond effectively, anywhere and anytime, regardless of location, device or protocol. Intrado's unparalleled industry knowledge in data management, network transactions, call handling and notification technology reduces the effort, cost, time and complexity associated with providing reliable communications information for 9-1-1, safety and commercial applications. Intrado recently received International Organization of Standardization International Organization of Standardization, n.pr a nongove-rnmental federation of worldwide bodies that publishes international agreements covering a broad range of services and technologies to promote the use of common standards across the world. (ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. ) 9001-2000 certification. To receive Intrado press releases and company updates via e-mail, please register at Intrado's Web site: www.intrado.com. 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. Statement Under 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 This announcement contains expectations and other 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. regarding Intrado's future financial performance. Readers are cautioned that actual results may differ materially from the forward-looking statements in this release as a result of certain factors, including unforeseen delays in the implementation of wireless 9-1-1 services, the amount and timing of expenditures necessary to expand Intrado's infrastructure, and Intrado's ability to predict accurately the fixed and variable costs related to wireless 9-1-1 services, other factors identified from time to time in filings with the Securities and Exchange Commission (SEC). Moreover, Intrado's future financial results may vary significantly from Intrado's expectations based on a number of factors, including: (1) the lengthy sales cycles associated with Intrado's services and products, (2) Intrado's reliance on large contracts from a limited number of significant customers, (3) rate of adoption of 9-1-1 technology by wireless carriers and other potential customers, (4) continuing technological and 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. changes in the telecommunications industry that may affect both Intrado and its customers, including delays in Phase II implementation under FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. rules, (5) market acceptance of new and existing products and services offered by Intrado and its competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , including Intrado's NRLLDB product, (6) Intrado's ability to accurately predict costs related to new products, (7) technical difficulties and network downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. , including that caused by unauthorized access to Intrado's systems, and (8) additional factors described in Intrado's 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 year ended December 31, 2001. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Intrado undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , or otherwise.
INTRADO INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31, December 31,
2002 2001
------------- -------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 11,240 $ 15,716
Accounts receivable, net 10,295 14,639
Inventory 5,455 6,823
Prepaids and other 7,027 4,346
Deferred income taxes -- current portion 1,165 1,165
------------- -------------
Total current assets 35,182 42,689
PROPERTY AND EQUIPMENT, net 20,488 17,584
GOODWILL AND OTHER INTANGIBLES 21,561 22,148
DEFERRED INCOME TAXES 2,911 2,911
DEFERRED CONTRACT COSTS 4,417 5,057
SOFTWARE DEVELOPMENT COSTS, net 5,959 3,907
OTHER ASSETS 689 1,139
------------- -------------
Total assets $ 91,207 $ 95,435
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,032 $ 4,622
Accrued liabilities 6,287 9,810
Current portion of capital lease
obligations 4,308 4,012
Payable to Lucent 4,494 4,393
Deferred contract revenue 3,520 5,198
------------- -------------
Total current liabilities 22,641 28,035
CAPITAL LEASE OBLIGATIONS, NET OF
CURRENT PORTION 3,627 3,429
LINE OF CREDIT 2,000 2,000
OTHER ACCRUED LIABILITIES 1,371 1,270
DEFERRED CONTRACT REVENUE 12,031 11,671
------------- -------------
Total liabilities 41,670 46,405
------------- -------------
STOCKHOLDERS' EQUITY
Common stock 15 15
Additional paid-in-capital 75,218 74,969
Common stock warrants 324 379
Treasury stock (39) (39)
Accumulated deficit (25,981) (26,294)
------------- -------------
Total stockholders' equity 49,537 49,030
------------- -------------
Total liabilities
and stockholders' equity $ 91,207 $ 95,435
============= =============
INTRADO INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share data)
Unaudited
THREE MONTHS ENDED
MARCH 31,
2002 2001
------------- -------------
REVENUE:
ILEC Business Unit $ 12,819 $ 7,252
CLEC Business Unit 4,071 3,090
Wireless Business Unit 4,873 1,788
Direct Business Unit 2,476 1,059
------------- -------------
Total revenue 24,239 13,189
COSTS AND EXPENSES:
ILEC Business Unit 5,927 4,391
CLEC Business Unit 1,643 1,371
Wireless Business Unit 3,461 2,406
Direct Business Unit 2,081 1,697
Sales and marketing 4,529 2,732
General and administrative 5,079 2,610
Research and development 979 1,226
------------- -------------
Total operating expenses 23,699 16,433
------------- -------------
INCOME (LOSS) FROM OPERATIONS 540 (3,244)
OTHER INCOME (EXPENSE):
Interest and other income 57 157
Interest and other expense (284) (88)
------------- -------------
NET INCOME (LOSS) BEFORE INCOME TAXES 313 (3,175)
BENEFIT FOR INCOME TAXES - -
------------- -------------
NET INCOME (LOSS) $ 313 $ (3,175)
============= =============
NET INCOME (LOSS) PER SHARE:
Basic $ 0.02 $ (0.28)
============= =============
Diluted $ 0.02 $ (0.28)
============= =============
SHARES USED IN COMPUTING NET INCOME
(LOSS) PER SHARE
Basic 15,081,952 11,505,889
============= =============
Diluted 16,772,595 11,505,889
============= =============
NET INCOME (LOSS) $ 313 $ (3,175)
Interest income (57) (157)
Interest expense 273 88
Depreciation expense 1,305 1,457
Amortization expense 692 85
------------- -------------
EBITDA $ 2,526 $ (1,702)
============= =============
INTRADO INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Unaudited
THREE MONTHS ENDED
MARCH 31,
2002 2001
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 313 $ (3,175)
Adjustments to reconcile net income
(loss) to net cash provided by (used in)
operating activities --
Depreciation and amortization 1,997 1,530
Loss on disposal of assets 11 8
Stock-based compensation 31 -
Accretion of investments in
marketable securities - (43)
Provision for doubtful accounts 71 75
Non-cash interest expense 99 -
Change in --
Accounts receivable 4,273 (817)
Inventory 1,369 -
Prepaids and other (2,109) (2)
Deferred costs 639 237
Accounts payable and accrued liabilities (4,010) 906
Deferred revenue (1,318) (240)
------------- -------------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 1,366 (1,521)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment (2,886) (1,321)
Sale of investments in
marketable securities - 4,000
Deferred acquisition costs - (34)
Software development costs (2,156) (25)
------------- -------------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES (5,042) 2,620
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on
capital lease obligations (963) (628)
Proceeds from exercise of stock options 163 187
------------- -------------
NET CASH USED IN FINANCING ACTIVITIES (800) (441)
------------- -------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (4,476) 658
CASH AND CASH EQUIVALENTS, beginning
of period 15,716 5,036
------------- -------------
CASH AND CASH EQUIVALENTS, end of period $ 11,240 $ 5,694
============= =============
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period for interest $ 172 $ 91
============= =============
SUPPLEMENTAL DISCLOSURE OF NONCASH
FINANCING AND INVESTING ACTIVITIES:
Property acquired with capital leases $ 1,456 $ -
============= =============
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