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NORCROSS, Ga., Jun 16, 2008 (BUSINESS WIRE) -- The date of the conference call should read Wednesday, June 18, 2008 (sted Wednesday, June 17, 2008)
The corrected release reads:
EASYLINK SERVICES INTERNATIONAL CORPORATION ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER FISCAL 2008
EasyLink Services International Corporation ("EasyLink" or "Company") (NasdaqCM: ESIC, www.easylink.com), a global provider of comprehensive messaging services and e-commerce solutions, reports its financial results for the third quarter fiscal 2008 ended April 30, 2008.
"This was another strong quarter for us, and we remain on track with our financial goals for the year," says Thomas J. Stallings, CEO of EasyLink. "The solid revenue and gross margins reflect the ability of our dedicated team. We closed several new relationships in the quarter with name brand organizations that will use our fax or EDI services globally. We also continue seeking accretive acquisitions to enhance our product offerings and increase shareholder value."
Highlights for the third quarter and nine-months ended April 30, 2008 are as follows:
-- Total revenue for the third quarter was $23.6 million with a gross profit margin of 71.6%. Total revenue for the nine-month period was $68.2 million with a gross profit margin of 71.1%.
-- Revenue for the third quarter from On Demand Messaging, which includes faxing, production messaging, document capturing, and management and e-mail services, was $11.3 million, representing 48% of total consolidated revenue and a 68.1% gross profit margin.
-- Revenue for the nine-month period from the On Demand Messaging segment was $32.0 million, representing 47% of total consolidated revenue and a 67.5% gross profit margin.
-- Revenue for the third quarter from Supply Chain Messaging, which includes electronic data interchange (EDI) products and services and telex, was $12.3 million, representing 52% of total consolidated revenue and a 74.8% gross profit margin.
-- Revenue for the nine-month period from the Supply Chain Messaging segment was approximately $36.2 million, representing 53% of total consolidated revenue and a 74.2% gross profit margin.
-- Net income for the third quarter was $6.9 million or $0.28 per basic share and $0.17 per diluted share. The Company recorded a tax benefit in the third quarter of approximately $4.4 million from the release of its deferred tax asset reserve to offset fiscal 2008 taxable income. Net income for the nine-month period was $8.2 million or $0.33 per basic share and $0.29 per diluted share.
-- Adjusted EBIDTA for the third quarter was $7.2 million and $19.7 million for the nine-month period. EasyLink intends to focus on Adjusted EBITDA (EBITDA that includes non-cash compensation expense) as a measure of the Company's performance, which it believes serves as a better measure of the Company's performance than net income, because it excludes ongoing non-cash charges.
EasyLink provides adjusted EBITDA in this press release as additional information regarding its operating results. This measure is not in accordance with, or an alternative for, generally accepted accounting principles (GAAP), and may be different from non-GAAP EBITDA measures used by other companies. EasyLink believes that this presentation of adjusted EBITDA facilitates investors' understanding of its historical operating trends because it provides an important supplemental measurement in evaluating the operating results of our business. This release should be read in conjunction with the Company's Form 8-K earnings release filed with the Securities and Exchange Commission for the quarter ended April 30, 2008.
Investor Conference Call - Wednesday, June 18, 2008
The Company plans to hold a conference call on Wednesday, June 18, 2008 at 10:00 a.m. EDT to discuss its third quarter fiscal year 2008 results in detail.
The Company invites all those interested in hearing management's discussion to join the call by dialing 877-548-7911 (U.S. and Canada) or 719-325-4898 (International).
A live replay of the call will also be available on the Company's website, www.easylink.com, for forty-five days.
About EasyLink Services International Corporation
EasyLink Services International Corporation (EasyLink) (NasdaqCM: ESIC), headquartered in Norcross, GA, is uniquely positioned to deliver a variety of messaging services that range from simple web-based fax delivery for small businesses to sophisticated fax hosting, tailored corporate e-mail messaging, EDI business-to-business exchanges and specialized telex protocol transmissions for marine and finance industries. With over two decades of servicing customers around the globe, EasyLink has established a proven track record for providing effective, reliable and secure communications. For more information on EasyLink, visit www.easylink.com.
Forward-Looking and Cautionary Statements
Except for the historical information and discussion contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those indicated by such forward-looking statements. These and other risk factors are set forth under the caption "Risk Factors" in the Company's Annual Report on Form 10-K, the Company's quarterly reports on Form 10-Q and the Company's other filings with the U.S. Securities and Exchange Commission. These filings are available on a website maintained by the Securities and Exchange Commission at www.sec.gov. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein as a result of new information, future events or otherwise.
EASYLINK SERVICES INTERNATIONAL CORPORATION
Consolidated Statements of Income (unaudited)
Three Months Ended Nine Months Ended
April 30, April 30,
---------------------- ------------------------
2008 2007 2008 2007
----------- ---------- ------------ -----------
Service revenue $23,599,696 $5,390,270 $68,236,367 $16,500,465
Cost of services 6,701,442 1,190,759 19,745,758 3,760,384
----------- ---------- ------------ -----------
Gross Profit 16,898,254 4,199,511 48,490,609 12,740,081
Operating expenses:
Product development
and enhancement 2,111,513 595,836 5,983,735 1,898,177
Selling and
marketing 2,897,718 379,589 8,207,447 1,268,905
General and
administrative 7,367,411 2,589,139 21,918,906 7,677,614
----------- ---------- ------------ -----------
Operating income 4,521,612 634,947 12,380,521 1,895,385
----------- ---------- ------------ -----------
Other income
(expense):
Interest and
investment income 163,160 69,856 595,836 233,542
Interest expense (2,306,541) (18,791) (10,464,847) (59,065)
Equity in Losses in
Investment -- -- (930,269) --
Foreign exchange
gain 128,292 -- 914,214 --
Other income
(expense) 11,209 288 89,359 (21,288)
----------- ---------- ------------ -----------
Income before income
taxes 2,517,732 686,300 2,584,814 2,048,574
(Benefit) provision
for income taxes (4,418,376) 135,097 (5,612,515) 219,367
----------- ---------- ------------ -----------
Net income 6,936,108 551,203 8,197,329 1,829,207
Dividends on preferred
stock (49,180) (48,767) (149,956) (233,425)
Extinguishment of
dividends on retired
preferred stock -- -- -- 200,000
Income attributable to
common stockholders $ 6,886,928 $ 502,436 $ 8,047,373 $ 1,795,782
=========== ========== ============ ===========
Basic income per
common share $ 0.28 $ 0.02 $ 0.33 $ 0.08
=========== ========== ============ ===========
Diluted income per
common share $ 0.17 $ 0.02 $ 0.29 $ 0.07
=========== ========== ============ ===========
Anti-dilutive stock
options, warrants and
series C preferred
stock 5,793,178 2,371,473 5,625,675 1,482,592
=========== ========== ============ ===========
Weighted average
number of common
shares outstanding -
basic 24,604,376 22,823,776 24,318,536 22,759,581
=========== ========== ============ ===========
Weighted average
number of common
shares outstanding
-diluted 48,852,869 24,234,565 48,844,713 24,674,040
=========== ========== ============ ===========
EASYLINK SERVICES INTERNATIONAL CORPORATION
Consolidated Balance Sheets
(in thousands)
April 30, July 31,
2008 2007
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 27,179 $ 5,444
Accounts receivable, net of allowance for
doubtful accounts and allowance for sales
returns and allowances 14,071 3,479
Prepaid expenses and other current assets 4,528 603
--------- ---------
Total current assets 45,778 9,526
Property and equipment, net 8,313 944
Goodwill 44,052 6,293
Other intangible assets, net 29,120 3,737
Investments 431 13,223
Restricted cash 417 434
Deferred acquisition costs - 1,039
Other assets 225 222
--------- ---------
Total assets $ 128,336 $ 35,418
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,681 $ 615
Current portion of long term debt 3,907 10,000
Accrued expenses 8,378 1,153
Deferred revenue 681 227
Other current liabilities 880 574
--------- ---------
Total current liabilities 17,527 12,569
Long term debt 49,540 -
Deferred tax liability 10,307 -
Other liabilities 1,182 709
--------- ---------
Total liabilities 78,556 13,278
Stockholders' Equity:
Preferred stock (a) (a)
Common Stock 251 233
Additional paid-in capital 122,326 101,861
Accumulated other comprehensive loss (955) -
Accumulated deficit (71,842) (79,954)
--------- ---------
Total stockholders' equity 49,780 22,140
--------- ---------
Total liabilities and stockholders' equity $ 128,336 $ 35,418
========= =========
(a) less than 1,000
EASYLINK SERVICES INTERNATIONAL CORPORATION
Calculation of Adjusted Earnings before Interest, Taxes, Depreciation
and Amortization (unaudited, includes non-cash compensation)
(in thousands)
Three Months Nine Months
Ended April Ended April
30, 30,
--------------- ---------------
2008 2007 2008 2007
-------- ------ -------- ------
Net Income $ 6,936 $ 551 $ 8,197 $1,829
Interest 2,307 19 10,465 59
Taxes (4,418) 135 (5,613) 219
Depreciation and amortization 2,177 524 6,303 1,517
Non-cash compensation 115 201 346 695
-------- ------ -------- ------
Adjusted EBITDA $ 7,117 $1,430 $ 19,698 $4,319
======== ====== ======== ======
SOURCE: EasyLink Services International Corporation
The Investor Relations Group 212-825-3210 Investor Relations: Rachel Colgate rcolgate@investorrelationsgroup.com Michael Crawford mcrawford@investorrelationsgroup.com Emily Hanan ehanan@investorrelationsgroup.com or Media Relations: Susan Morgenbesser smorgenbesser@investorrelationsgroup.com
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