Monday April 24, 8:34 am Eastern Time
Company Press Release
SOURCE: On-Site Sourcing
On-Site Sourcing Announces Quarterly EPS of $0.19 Versus $0.02 Last Year
Company Posts Record First Quarter Revenues and Earnings
ARLINGTON, Va., April 24 /PRNewswire/ -- On-Site Sourcing (Nasdaq: ONSS - news) today reported its financial results for the quarter ended March 31, 2000.
The Company announced that revenues for the first quarter of fiscal 2000 were nearly $9.8 million, an increase of 54% compared to revenues of $6.3 million for the same quarter of last year. Last year's first quarter had included sales of $193,000 from the Company's information technology division, which was sold in October 1999. The fiscal 2000 first quarter's financial results did not include the benefits of the recently completed Legend acquisition, which the Company indicated would be immediately accretive to earnings.
Earnings from operations rose from about $100,000 in the first quarter of 1999 to nearly $1.8 million in this year's first quarter. Net income increased from $78,220, or $0.02 per diluted share, in the 1999 first quarter to $984,770, or $0.19 per diluted share in the same quarter of 2000.
According to Christopher Weiler, chief executive officer, ``Our first quarter's performance demonstrates that we have a business model that is delivering strong results. Our strategy to focus on digital printing, imaging and reprographics clearly is paying off, and our web-based document management initiatives offer a new and exciting model for the industry.
``With the completion of our first acquisition, we're now entering a new phase of our development,'' he continues. ``The Legend acquisition is the first of several planned in the coming year that will strengthen our core operations and expand our reach into new geographic markets. Our goal is to accelerate revenue growth both internally and through acquisition.''
He adds, ``We are working aggressively to build our position as an e-based document management leader and innovator. To achieve this, we plan to make investments, particularly in sales and marketing, in order to fuel the future growth of the company. These investments will have an impact on our quarterly earnings, and we do not necessarily expect to generate sequential quarterly earnings growth. We do expect to produce significant top-line growth and even greater earnings growth, as we continue to expand our higher-margin businesses.''
The Company will host a conference call for investors on Monday, April 24, 2000, at 1 p.m. Eastern Daylight Time. The phone number is 888-209-3778. The call will be replayed from 3 p.m. EDT on Monday, April 24 to 3 p.m. EDT on Tuesday, April 25. The phone number for the replay is 800-633-8284 and the reservation number is 15024237.
First Quarter Highlights
* The revenue increase between quarters was largely attributable to the
growing success of the Company's imaging business. Imaging revenues
were nearly $3 million in the fiscal 2000 first quarter, compared to
imaging sales of $1.0 million generated in the fourth quarter of 1999
and $427,000 in the first quarter of 1999.
* The improvement in net income was due primarily to a significant
reduction in the cost of sales. This was the result of high gross
profit margins from the Company's imaging division, combined with
improved efficiencies associated with the increased sales volume.
Additionally, cost-cutting measures implemented over the last several
quarters contributed to the expense reduction.
* The gross margin rose from 22% in the first quarter of last year to 39%
in the first quarter of this year.
* Selling expenses rose from about $495,000, or 7.8% of total sales, in
the first quarter of 1999 to $910,230, or 9.3% of total sales, in the
comparable quarter of this year, reflecting the Company's planned
investment in additional sales activities.
``The team at On-Site Sourcing is extremely proud of this quarter's performance, as we've produced an 850% increase in earnings per share and a 54% increase in revenues. We're looking forward to an outstanding year,'' concludes Weiler.
On-Site Sourcing provides digital imaging, document management, litigation reprographics services, and facilities management throughout the East Coast. On-Site's clients include law firms, corporations, non-profit organizations, accounting firms, financial institutions and other organizations. On-Site currently operates in the New York City, Washington, D.C, Atlanta, Philadelphia and Baltimore markets.
This press release includes ``forward-looking statements'' within the meaning of the federal securities laws, which involve uncertainties and risks. These include statements regarding events or developments that the Company expects or anticipates will occur in the future, such as statements about the Company's strategies to improve operating performance. A number of risks and uncertainties could cause actual results, events and developments to differ from expectations, including the effectiveness of programs to increase revenues and cash flow and to reduce costs, and the actions of competitors. Please refer to the Company's 1999 Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete discussion of these and other important factors that could cause results to differ materially from those projected by these forward-looking statements. |
