news out, would look better had I not recieved a packet from my broker to increase the OS from 5,000,000,000 to 230,000,000,000
NEW YORK, May 14, 2008 (BUSINESS WIRE) -- Encompass Group Affiliates, Inc.
(formerly Advanced Communications Technologies, Inc.) (OTC Bulletin Board:
ADVC), an integrated reverse logistics holding company serving the consumer
products industry, today announced financial results for the third fiscal
quarter and the nine months ended March 31, 2008.
For the three and nine month periods ended March 31, 2008, the Company reported
record revenue of $19.5 million and $45.1 million, respectively, compared to
$2.6 million and $6.8 million, respectively, for the comparable periods. The
increases in revenue are principally attributable to the acquisition of Vance
Baldwin Electronics, which was completed on August 17, 2007. On a pro forma
basis, assuming Vance Baldwin had been included in consolidated results in full
for all periods, revenue for the current quarter would have increased by 17.9%
from $16.5 million for the three months ended March 31, 2007. Also on a pro
forma basis, revenue for the nine months ended March 31, 2008 would have
amounted to $51.5 million, compared to $44.9 million for the nine months ended
March 31, 2007, an increase of 14.7%.
For the quarters ended March 31, 2008 and 2007, net income (loss) amounted to
$363,000 and $(344,000), respectively, on a GAAP (generally accepted accounting
principles) basis. For such periods, non-GAAP adjusted net income (loss)
amounted to $676,000 and $(331,000), respectively.
For the nine month periods ended March 31, 2008 and 2007, net losses amounted to
$(436,000) and $(640,000), respectively, on a GAAP basis. For such periods,
adjusted net income (loss) amounted to $1.1 million and $(609,000),
respectively,
Adjusted EBITDA amounted to $1.6 million and $(294,000) for the quarters ended
March 31, 2008 and 2007, respectively, and $3.3 million and $(507,000) for the
nine month periods ended March 31, 2008 and 2007, respectively.
"I am pleased to report that the three months ended March 31, 2008 represents
the first profitable quarter in the Company's history when certain
non-operating, financial gains are excluded from past results. This marks a
significant achievement and reflects strong performances by both Vance Baldwin
and Cyber-Test in terms of revenue, profitability and combined operating
efficiencies," said Wayne Danson, President and Chief Executive Officer of
Encompass. "While the double digit growth rate being experienced by these units
is significant, we nonetheless continue to pursue all avenues to further
maximize revenue and profitability, including acquisitions."
Danson noted that, besides the record January results and the strong quarter,
the Company has achieved other objectives since the prior quarter end. "We are
excited that our stockholders approved the change of our name to Encompass Group
Affiliates, Inc. from Advanced Communications Technologies, Inc., which we feel
is an important step in our efforts to better integrate and brand the Company's
business operations. A sound branding program will become even more important as
we continue to expand our service offerings through the acquisition of other
businesses."
"Ongoing operations had a record month in January and are currently generating
sales at over a 30% higher level than a year ago. The addition of new customers
and programs as well as increased business from established customers are
fueling the sales increases. We have made significant progress toward our
targeted growth rates for each of our operating units," said Steve Miller, Chief
Operating Officer of Encompass.
Non-GAAP Measures
To supplement our consolidated financial statements presented in accordance with
GAAP, we use certain non-GAAP measures of certain components of financial
performance. These non-GAAP measures include earnings before interest, taxes,
depreciation and amortization ("EBITDA"), adjusted EBITDA and adjusted net
income (loss). Adjusted EBITDA represents earnings before interest, taxes,
depreciation, amortization of acquisition-related intangible assets, non-cash
stock-based and other compensation expense and purchase accounting for inventory
and its effect on cost of sales in the period. Adjusted net income (loss)
represents our net income (loss) before non-cash stock-based and other
compensation expense, amortization of acquisition-related intangible assets, and
purchase accounting for inventory and its effect on cost of sales in the period.
These non-GAAP measures are provided to enhance investors' overall understanding
of our current financial performance and prospects for the future.
We believe these non-GAAP measures provide useful information to both management
and investors by excluding certain expenses that may not be indicative of our
core operating measures. We use EBITDA, adjusted EBITDA and adjusted net income
(loss) as measures of operating performance because they assist us in comparing
our operating performance on a consistent basis as such measures do not reflect
the impact of certain items not directly resulting from our core operations.
These non-GAAP financial measures should not be considered a substitute for, or
superior to, GAAP results. |
