Category 5 Announces Strong Six Month Earnings Results
SALT LAKE CITY, Oct 15, 2001 /PRNewswire via COMTEX/ -- Category 5 Technologies, Inc. (OTC Bulletin Board: CFVT chart, msgs), today announced its results for the six months ended June 30, 2001. Total revenues for the six months ended June 30, 2001, were $10,595,967. Net income for the period ended June 30, 2001, was $4,324,972 or $0.42 per share (fully diluted) in earnings.
Commented William Gibbs, Chief Executive Officer of Category 5, "In a time when the economy and Internet sales are down, we have managed to remain positive in our business prospects. Our sales and marketing channel has been very successful to date. We intend to continue our high velocity growth strategy to become the merchants' partner in success."
"Category 5 continues to be profitable in spite of the sluggish economic conditions," said Mitchell Edwards, Chief Financial Officer. "We continue to believe that our solid financial position and operating excellence will afford us the opportunity to rapidly expand our product and service offerings. We are aggressively pursuing revenue growth organically and through strategic acquisitions."
Category 5 Technologies, Inc. and Subsidiaries
Consolidated Combined Statement of Income
Six Months Ended Years Ended
June 30, December 31,
2001 2000 1999
Revenues $10,595,967 $20,070,443 $9,900,507
Cost of revenues 3,390,342 11,816,333 5,882,519
Gross profit 7,205,625 8,254,110 4,017,988
Selling, general and
administrative expenses 3,019,416 6,567,346 2,867,899
Income from operations 4,186,209 1,686,764 1,150,089
Other income:
Interest income (expense) (1,237) 11,023 4,308
Other -- 3,208 --
(1,237) 14,231 4,308
Net income before
income taxes 4,184,972 1,700,995 1,154,397
(Provision) benefit
for income taxes:
Current (690,000) -- --
Deferral 830,000 -- --
140,000 -- --
Net Income $4,464,972 1,700,995 1,154,397
Weighted average shares,
basic 9,430,556 9,000,000 9,000,000
Weighted average shares,
diluted 10,384,103 9,000,000 9,000,000
Earnings per share, basic $0.46 $0.19 $0.13
Earnings per share, diluted $0.42 $0.19 $0.13
Pro forma earnings per share:
Earnings as reported $4,324,972 $1,700,995 $1,154,397
Pro forma income taxes (1,710,000) (638,000) (433,000)
Pro forma earnings $2,614,972 $1,062,995 $721,397
Pro forma basic earnings
per share $0.28 $0.12 $0.08
Pro forma diluted earnings
per share $0.25 $0.12 $0.08
About Category 5 Technologies
Category 5 Technologies is a leader in using technology to make small and medium-sized businesses more efficient in their marketing and profitable in their operations. The Company provides marketing tools and commerce enabling technology and services to small and medium-sized businesses in the United States and internationally. From e-commerce platforms, web sites, shopping carts, merchant accounts and payment plug-ins, to communications and promotion tools, Category 5 enables both brick and mortar as well as Internet businesses to operate more efficiently and profitably, and to gain and retain new customers. Category 5 continues to seek synergistic companies, technologies and platforms for acquisition.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding Category 5's confidence in upcoming financial periods, market acceptance of our products and services, continued success in our business expansion initiatives, and progress toward its long term financial model. These statements reflect management's current expectations. However, actual results could differ materially as a result of unknown risks and uncertainties, including but not limited to, risks related to Category 5's limited operating history. For a more detailed description of these and other risks and uncertainties affecting Category 5's performance, please refer to the Company's Form 10-K dated October 15, 2001. Category 5 assumes no obligation to update the forward-looking information contained in this press release. |
