Intellicheck Mobilisa Announces 2012 Fourth Quarter and Year End Financial Results
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http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130327:nBw275392a http://www.businesswire.com/news/home/20130327005392/en Conference Call Scheduled for Today, Wednesday, March 27, at 1:00 pm ET/10:00 am PT PORT TOWNSEND, Wash.--(Business Wire)-- Intellicheck Mobilisa, Inc. (NYSE MKT: IDN), a global leader in identity solutions and wireless security systems, has released its financial results for the fourth quarter and year ended December 31, 2012. Revenues for the quarter ended December 31, 2012 were $528,000 compared to $2,868,000 in the same period of the previous year. Included in the revenue for the current quarter is an adjustment of ($671,000) relating to the uncertainty of the collection of certain accounts receivable regarding a contract with the U.S. Navy, which the company learned about during the fourth quarter of 2012. The Company believes this is a valid receivable, and is pursuing its collection. Although this revenue had been recognized in prior periods, the Company believes this is the proper accounting treatment, given that new information was received during the fourth quarter. Adjusted EBITDA was ($1,681,000) for the fourth quarter of 2012 compared to $284,000 for the fourth quarter of 2011. Net loss for the three months ended December 31, 2012 was ($1,955,000) or ($0.07) per diluted share compared to a net loss of ($14,000) or ($0.00) per diluted share for the three months ended December 31, 2011. The Company`s backlog, which presents non-cancelable sales orders for products not yet shipped and services to be performed, was approximately $1.2 million at December 31, 2012, compared to $2.8 million at December 31, 2011. For the year ended December 31, 2012, revenues were $8,803,000 compared to revenues of $12,484,000 reported in the same period of the prior year. Included in the 2012 revenue is the aforementioned adjustment of ($671,000) relating to the uncertainty of an accounts receivable. Adjusted EBITDA for 2012 was ($1,114,000) compared to $875,000 in 2011. Net loss was ($2,260,000) or ($0.08) per diluted share for the year ended December 31, 2012, compared to a net loss of ($291,000) or ($0.01) per diluted share for the year ended December 31, 2011. Nelson Ludlow, Ph.D., President and CEO of Intellicheck Mobilisa, stated, "As I anticipated in my letter to shareholders issued on November 30, our financial results for the fourth quarter and year 2012 were not strong. I detailed in that letter, we are reviving innovation and new product development, providing stronger customer service, completing partnership agreements and increasing emphasis on closing sales. The changes we are making are beginning to positively impact revenue, and I am pleased to note that we are forecasting Q1 2013 revenues to be significantly better than Q4 2012, but under Q1 revenue from 2012. We have more work to do, but we believe that we are on the right track." Q4 2012 and Recent Highlights: * Nelson Ludlow, Ph.D. appointed President and CEO; Michael D. Malone, Vice Admiral, U.S. Navy, Retired, appointed Chairman of Board of Directors; * Mark Armstrong hired as Senior VP of Sales, a new position for the Company; * Mobilisa, Inc. subsidiary awarded wireless contract worth $671,962 from Jefferson County Public Utility District and Northwest Open Access Network (NoaNet); * Mobilisa, Inc. subsidiary awarded wireless contract worth $283,948 from NoaNet to provide broadband to schools and libraries in Spokane area and Whitman County; * Intellicheck Mobilisa awarded software license agreement by major U.S. luxury retailer to deploy ID-Check® verification software in retailer`s stores nationwide; * Intellicheck Mobilisa partners with Vanguards of Enterprise Ltd. of Trinidad & Tobago to help market, sell, distribute and install wireless, maritime security and intelligent buoy monitoring solutions to Caribbean countries. Conference Call Information IDN will host a conference call for members of the investment community today at 1:00 p.m. Eastern / 10:00 a.m. Pacific Time. To listen to the conference call, please dial (877) 407-8037 approximately 10 minutes before the scheduled beginning. For callers outside the U.S., please dial (201) 689-8037. A webcast of the call may be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=170676. For those unable to participate in the live conference, a recording will be available for 48 hours after the call. The rebroadcast can be accessed by dialing (877) 660-6853 and (201) 612-7415 for international callers. The conference replay ID is 410895. After the 48-hour window, please visit the investor relations portion of our website at www.icmobil.com for rebroadcast. About Intellicheck Mobilisa Intellicheck Mobilisa is a leading technology company providing wireless technology and identity systems for various applications, including mobile and handheld access control and security systems for the government, military and commercial markets. Products include the Fugitive Finder system, an advanced ID card access control product currently protecting military bases and secure federal locations; ID Check, a patented technology that instantly reads, analyzes, and verifies encoded data in magnetic stripes and barcodes on government-issued IDs, designed to improve the Customer Experience for the financial, hospitality and retail sectors; and Aegeus, a wireless security buoy system for the government, military and oil industry. For more information on Intellicheck Mobilisa, please visit www.icmobil.com. Safe Harbor Statement Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. When used in this press release, words such as "will," "believe," "expect," "anticipate," "encouraged," and similar expressions, as they relate to the company or its management, as well as assumptions made by and information currently available to the company`s management identify forward-looking statements, including, without limitation, any forecasts with respect to quarterly revenues or earnings (loss) per share. Actual results may differ materially from the information presented here. Additional information concerning forward-looking statements is contained under the heading of risk factors listed from time to time in the company`s filings with the SEC. We do not assume any obligation to update the forward-looking information. Adjusted EBITDA Intellicheck Mobilisa uses Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adding back to net income (loss) interest, income taxes, impairments of long-lived assets and goodwill, depreciation, amortization and stock-based compensation expense. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing Intellicheck Mobilisa financial results with other companies that also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as impairments of long-lived assets and goodwill, amortization, depreciation and stock-based compensation, as well as non-operating charges for interest and income taxes, investors can evaluate the Company's operations and can compare its results on a more consistent basis to the results of other companies. In addition, adjusted EBITDA is one of the primary measures management uses to monitor and evaluate financial and operating results. Intellicheck Mobilisa considers Adjusted EBITDA to be an important indicator of the Company's operational strength and performance of its business and a useful measure of the Company's historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes interest income and expense, impairments of long lived assets and goodwill, stock based compensation expense, all of which impact the Company's profitability, as well as depreciation and amortization related to the use of long term assets which benefit multiple periods. Intellicheck Mobilisa believes that these limitations are compensated by providing Adjusted EBITDA only with GAAP net income (loss) and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) presented in accordance with GAAP. Adjusted EBITDA as defined by the Company may not be comparable with similarly named measures provided by other entities. A reconciliation of Adjusted EBITDA to GAAP net income or loss is included in the enclosed schedule. INTELLICHECK MOBILISA, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) ASSETS 2012 2011 CURRENT ASSETS: Cash and cash equivalents $ 1,685,879 $ 1,394,148 Accounts receivable, net of allowance of $1,613 and $4,884, respectively 869,747 3,058,788 Inventory 337,559 11,894 Other current assets 105,881 108,770 Total current assets 2,999,066 4,573,600 PROPERTY AND EQUIPMENT, net 449,438 439,736 GOODWILL 12,308,661 12,308,661 INTANGIBLE ASSETS, net 4,631,577 5,551,149 OTHER ASSETS 72,006 72,006 Total assets $ 20,460,748 $ 22,945,152 LIABILITIES AND STOCKHOLDERS` EQUITY CURRENT LIABILITIES: Accounts payable $ 247,289 $ 221,019 Accrued expenses 556,814 675,907 Deferred revenue, current portion 1,450,923 1,692,881 Total current liabilities 2,255,026 2,589,807 OTHER LIABILITIES Deferred revenues, long-term portion 341,948 405,190 Deferred rent 185,339 194,759 Total liabilities 2,782,313 3,189,756 COMMITMENTS AND CONTINGENCIES (Notes 11 and 12) STOCKHOLDERS` EQUITY: Common stock - $.001 par value; 40,000,000 shares authorized; 27,724,267 and 27,462,504 shares issued and outstanding as of 2012 and 2011, respectively 27,724 27,462 Additional paid-in capital 100,882,019 100,699,156 Accumulated deficit (83,231,308 ) (80,971,222 ) Total stockholders` equity 17,678,435 19,755,396 Total liabilities and stockholders` equity $ 20,460,748 $ 22,945,152 INTELLICHECK MOBILISA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended December 31, Year Ended December 31, 2012 2011 2012 2011 REVENUES $ 528,376 $ 2,868,031 $ 8,803,217 $ 12,484,331 COST OF REVENUES (482,244 ) (927,466 ) (3,001,997 ) (4,339,772 ) Gross profit 46,132 1,940,565 5,801,220 8,144,559 OPERATING EXPENSES Selling 382,253 430,569 1,613,819 1,896,747 General and administrative 1,129,161 872,418 4,209,385 3,922,024 Research and development 490,414 651,488 2,239,011 2,608,020 Total operating expenses 2,001,828 1,954,475 8,062,215 8,426,791 Income (loss) from operations (1,955,696 ) (13,910 ) (2,260,995 ) (282,232 ) OTHER INCOME (EXPENSE) Interest income 909 3 909 40 Interest expense - - - (8,667 ) 909 3 909 (8,627 ) Net (loss) income $ (1,954,787 ) $ (13,907 ) $ (2,260,086 ) $ (290,859 ) PER SHARE INFORMATION Net (loss) income per common share - Basic $ (0.07 ) $ 0.00 $ (0.08 ) $ (0.01 ) Diluted $ (0.07 ) $ 0.00 $ (0.08 ) $ (0.01 ) Weighted average common shares used in computing per share amounts - Basic 27,724,267 27,462,504 27,724,267 27,247,558 Diluted 27,724,267 27,462,504 27,724,267 27,247,558 INTELLICHECK MOBILISA, INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS` EQUITY For the years ended December 31, 2011 and 2012 (Unaudited) Additional Common Stock Paid-in Accumulated Shares Amount Capital Deficit Total BALANCE, January 1, 2012 27,462,504 $ 27,462 $ 100,699,156 $ (80,971,222 ) $ 19,755,396 Stock-based compensation expense - - 52,677 - 52,677 Exercise of stock options 261,763 262 130,186 - 130,448 Net loss - - - ( 2,260,086 ) (2,260,086 ) BALANCE, December 31, 2012 27,724,267 $ 27,724 $ 100,882,019 $ (83,231,308 ) $ 17,678,435 INTELLICHECK MOBILISA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the years ended December 31, 2012 2011 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (2,260,086 ) $ (290,859 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 1,094,173 1,123,509 Non cash stock based compensation expense 52,677 33,887 Provision for doubtful accounts (3,271 ) 3,233 Amortization of debt discount - 6,667 Changes in assets and liabilities: Decrease (increase) in accounts receivable 2,192,312 (156,227 ) (Increase) decrease in inventory (325,665 ) 5,630 Decrease (increase) in other current assets 2,888 6,425 Decrease (increase) in other assets - 1,045 (Decrease) increase in accounts payable and accrued expenses (92,823 ) (328,056 ) (Decrease) increase in deferred revenue (305,200 ) (546,451 ) (Decrease) increase in deferred rent (9,420 ) 69,333 Net cash provided by (used in) operating activities 345,585 (71,864 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (184,303 ) (49,647 ) Net cash (used in) investing activities (184,303 ) (49,647 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of notes payable - (200,000 ) Net proceeds from issuance of common stock from exercise of stock options and warrants 130,448 226,755 Net cash provided by financing activities 130,448 26,755 Net increase (decrease) in cash and cash equivalents 291,730 (94,756 ) CASH AND CASH EQUIVALENTS, beginning of year 1,394,148 1,488,904 CASH AND CASH EQUIVALENTS, end of year $ 1,685,878 $ 1,394,148 SUPPLEMENTAL CASH FLOW INFORMATION Interest $ - $ 2,000 INTELLICHECK MOBILISA, INC. (Unaudited) A reconciliation of GAAP net (loss) income to Adjusted EBITDA follows: (Unaudited) Three Months Ended For the years ended December 31, December 31, 2012 2011 2012 2011 Net (loss) income $ (1,955,000 ) $ (14,000 ) $ (2,260,000 ) $ (291,000 ) Reconciling items: Interest - net (1,000 ) - (1,000 ) 9,000 (Benefit) provision for income taxes - - - - Depreciation and amortization 270,000 276,000 1,094,000 1,123,000 Stock-based compensation costs 5,000 22,000 53,000 34,000 Adjusted EBITDA $ (1,681,000 ) $ 284,000 $ (1,114,000 ) $ 875,000 Dian Griesel Inc. Investor Relations: Tom Caden/Cheryl Schneider, 212-825-3210 or Media Relations: Enrique Briz, 212-825-3210 Copyright Business Wire 2013