PBiz Reports Third Quarter Financial Results.NASHVILLE Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. , Tenn. -- Private Business, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :PBIZ), a leading provider of financial technology to community financial institutions and middle-market businesses, today announced its operating results for the third quarter and first nine months of 2005. Revenues for the three months ended September 30, 2005, totaled $9.5 million, compared with $10.0 million in the third quarter of the previous year. 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. was $1.2 million for the third quarter of 2005 compared with operating income of $1.2 million for the third quarter of 2004. Net income available to common shareholders totaled $137,000, or $0.01 per 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, in the third quarter of 2005, versus $1.1 million, or $0.07 per diluted share, in the year-earlier quarter. For the nine months ended September 30, 2005, revenues totaled $28.2 million, compared with $30.0 million in the corresponding period of the prior year. Operating income for the nine months ended September 30, 2005, was $3.0 million, versus $1.4 million in the first nine months of 2004. Net income available to common shareholders totaled $101,000, or $0.01 per diluted share in the first nine months of 2005, compared with $231,000, or $0.02 in the year-earlier period. As previously reported, the Company's operating results for the first nine months of 2004 reflected two one-time charges, consisting of a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of unamortized deferred financing costs related to the 1998 Credit Agreement and a one-time expense for directors' and officers' insurance premiums, totaling $1.7 million. Additionally, the third quarter results for 2004 include the reversal of $972,000 of income tax contingency contingency n. an event that might not occur. . Operating income for the first nine months of 2005 and 2004, excluding the one-time charges described above, would have been $3.0 million and $3.1 million, respectively, and net income, which excludes 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 and the one-time gain related to recovery of non-trade receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed and the income tax contingency reversal, would have been $1.7 million and $1.6 million, respectively. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the nine months ended September 30, 2005 and 2004, excluding the one-time charges, would have been $0.01 and $0.01, respectively. Revenues for the third quarter ended September 30, 2005, totaled $9.5 million compared with $9.5 million for the second quarter of 2005. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the third quarter ended September 30, 2005, totaled $8.3 million compared with $8.3 million for the second quarter of 2005. Operating income for the third quarter ended September 30, 2005, totaled $1.2 million compared with $1.2 million for the second quarter of 2005. Net income available to common shareholders for the third quarter ended September 30, 2005, totaled $137,000 or $0.01 per diluted share compared with net income of $125,000 or $0.01 per diluted share for the second quarter of 2005. Commenting on the third quarter and first nine months of 2005 results, Henry M. Baroco, Private Business' Chief Executive Officer and Board member, stated, "While I am not satisfied with the third quarter results, I am encouraged by the comparison of the third quarter results with those achieved in the second quarter of this year. Third quarter total revenues, operating income and net income were essentially equal with the second quarter of 2005, which demonstrates stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders compared with the prior two years of decreases." "The Captiva merger, announced on October 21, 2005, is a significant step forward in the evolution of PBiz," Baroco continued. "This merger, which is expected to close on November 30, 2005, brings a new focus to the combined company while helping our efforts to increase revenues in the existing PBiz business. As we have discussed in prior press releases and SEC filings, we are committed to evaluating and pursuing strategic acquisitions. With the Captiva merger, we will have completed two such transactions in less than six months." "We will continue to explore other acquisitions that provide opportunities to leverage our existing market position and customer base," Baroco concluded. About PBiz Private Business, Inc. (PBiz) is a leading supplier of financial technology to community financial institutions and middle-market businesses. The Company is headquartered in Brentwood, Tennessee Brentwood is a city in Williamson County, Tennessee, United States. The population was 23,445 as of the U.S. Census Bureau's 2000 census, and as of 2007, Brentwood's population has increased to over 30,000. Brentwood is an affluent Nashville suburb. , and its common stock trades on The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol PBIZ. PBiz provides information related to non-GAAP financial measurements from time to time that adjust for certain items outside of the ordinary course of its business. Such non-GAAP financial measures are not determined 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 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 and are susceptible to varying calculations. Accordingly, non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies. To enable interested parties to reconcile non-GAAP measures to the Company's GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financials, the Company clearly defines and quantifies all adjustments to GAAP measurements. The Company provides non-GAAP financial measurements that adjust for certain items outside of the ordinary course of business in order to assist in comparing the Company's current operating performance to its historical performance. These adjustments typically reflect non-recurring items but sometimes reflect items, such as dispositions of assets that are not technically non-recurring but are outside of the ordinary course of operations. Investors are encouraged to use this information in connection with the information contained in the Company's GAAP financial statements. Certain statements made in this press release may constitute 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. within the meaning 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. Such forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the company is unable to predict or control, that may cause the company's actual results or performance to materially differ from any future results or performance expressed or implied by such forward-looking statements. These statements involve risks and uncertainties, including, without limitation, risks and uncertainties associated with the company's ability to achieve its growth plans and to identify or complete acquisitions. These risks and uncertainties are in addition to other factors detailed from time to time in the company's filings with the Securities and Exchange Commission. The company cautions investors that any forward-looking statements made by the company are not necessarily indicative of future performance. The company is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or 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 services. *T -0- PRIVATE BUSINESS, INC. Consolidated Financial Highlights (in thousands, except per share amounts) Three Months EndedNine Months Ended September 30,September 30, ------------------------------------------ 2005200420052004 ------------------------------------ Operating Highlights: Revenue: Participation Fees$5,776$6,394$17,257$19,232 Software license5650292163 Retail planning services2,1762,2726,5716,736 Maintenance and other1,4841,2824,0723,866 ------------------------------------ 9,4929,99828,19229,997 Operating costs operating costs npl → gastos mpl operacionales and expenses: General and administrative3,5103,88410,86612,290 Selling and marketing4,5084,55813,45413,387 Research and development4958167292 Amortization247263657879 Other operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. , net(11)1981,740 ------------------------------------ 8,3038,78225,15228,588 Operating income1,1891,2163,0401,409 Other income------265 Interest expense, net(79)(93)(219)(382) ------------------------------------ Income before income taxes1,1101,1232,8211,292 Income tax provision (benefit)433(531)1,100(462) ------------------------------------ Net income6771,6541,7211,754 Preferred stock dividends5405401,6201,523 ------------------------------------ Net income available to common shareholders$137$1,114$101$231 ==================================== Earnings per share: Basic$0.01$0.08$0.01$0.02 ==================================== Diluted$0.01$0.07$0.01$0.01 ==================================== Weighted average shares outstanding: Basic14,75614,30314,66414,193 ==================================== Diluted15,01114,79514,99614,675 ==================================== As of --------------------- Sept. 30,Dec. 31, 20052004 ------------------ Balance Sheet Highlights: Cash and Cash equivalents$144$7 Working capital (deficit)154(158) Total assets30,05021,336 Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , net of current portion4171,666 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. 13,94313,396 PRIVATE BUSINESS, INC. Reconciliation of Non-GAAP Financial Measurements to GAAP Financial Statements (in thousands, except per share amounts) Nine Months Ended September 30, --------------------- 20052004 ------------------ Operating income as reported$3,040$1,409 Add:Write-off unamortized deferred financing costs related to 1998 Credit Agreement--780 Add:Directors and officers insurance premiums related to periods prior to Lightyear transaction closing--896 ------------------ Adjusted operating income3,0403,085 Interest expense, net(219)(382) ------------------ Adjusted income before income taxes (1)2,8212,703 Adjusted income tax provision (2)1,1001,054 ------------------ Adjusted net income1,7211,649 Preferred stock dividends(1,620)(1,523) ------------------ Adjusted net income available to common shareholders$101$126 ================== Adjusted diluted earnings per share$0.01$0.01 ================== Diluted weighted average shares outstanding14,99614,675 ================== Notes: (1)In addition to the adjustments described above, adjusted income before income taxes for the nine months ended September 30, 2004 excludes a $265,000 gain related to recovery of non-trade receivables, which has been included as other income in the operating highlights. (2)The adjusted income tax provision for the nine months ended September 30, 2004 was calculated using the Company's effective tax rate of 39% and excludes the $972,000 reversal of income tax contingency recorded during the period. *T Additional information on this Company can be found on the World Wide Web: http://www.pbizinc.com For further information, please contact: Michael Berman Michael Berman may refer to:
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion