MORRISVILLE, NC--(Marketwired - Oct 8, 2013) - Issuer Direct Corporation (OTCBB: ISDR) (the "Company" or "Issuer Direct"), a market leader and innovator of disclosure management solutions and cloud-based compliance technologies, today announced that it filed the unaudited historical Pro Forma Financial Statements on Form 8K/A with the SEC for the six months ended June 30, 2013, and for the year ended December 31, 2012 of the acquired company, PrecisionIR. Additionally, the Company also discusses below the integration success, as well as a statement on its dividends.
Pro Forma Highlights are as follows:
- Pro forma revenue for the six months ended June 30, 2013 was $8.8 million, compared to $3.1 million previously reported by the Company.
- Pro forma revenue for the year ended December 31, 2012 was $18.0 million, compared to $4.3 million previously reported by the Company.
The historical financial information filed earlier today shows that this acquisition has the potential to significantly increase the Company's revenue and operating income as previously stated by the Company. In addition, the pro forma EBITDA derived from these statements more than doubled from $1.0 million as previously filed to $2.4 million on a pro forma basis for the six months ended June 30, 2013. The Company cautions investors that historical pro forma financial statements are not necessarily an indicator of future financial results and that the results of the pro forma numbers are in no way attributable to the Company for the periods indicated.
For the next two years, the Company's GAAP earnings will include significant non-cash charges as shown on the unaudited pro forma statements of operations filed on form 8K/A related to the beneficial conversion feature granted to help finance this transaction. Therefore, the Company will report on non-GAAP earnings and EBITDA in the future in addition to its GAAP numbers.
Cost Savings Highlights:
The Company also announced that within the first forty-five days of the acquisition of PrecisionIR, it has already integrated the PrecisionIR Annual Report Service (ARS) system into Issuer Direct's North Carolina operations center, creating an annualized cost savings of approximately $300,000 per year. This is part of the total anticipated annualized cost savings of $700,000 to $800,000 to be implemented by the end of the fiscal year.
Plans for Debt Reduction and Re-Investment in Place of a Third Quarter Dividend:
A key element of the philosophy of Issuer Direct, its Board of Directors, and the management team is to enhance shareholder value, and in prior quarters the Company has issued a dividend allowing shareholders to participate directly in the Company's success. Payment of dividends is at the discretion of the Board of Directors and will depend upon revenue, earnings, cash flow from operations, the overall outlook for the Company's business, cash balances and alternative uses for cash resources. The company continued to generate positive operating cash flow in the third quarter. However, due to the Company's cash outlay in acquiring PrecisionIR, Issuer Direct's Board has elected not to issue a dividend for its third quarter. The Company believes that in the immediate future excess funds from operations should be used to pay down the Company's line of credit and to reinvest into high ROI projects at PrecisionIR, as this acquisition is expected to deliver substantial shareholder value. The Company is optimistic that they will be able to pay off the existing line of credit by the second quarter of fiscal 2014.
About Issuer Direct Corporation: Issuer Direct Corporation is a market leader and innovator of disclosure management solutions and cloud-based compliance technologies. With a focus on corporate issuers, the Company alleviates the complexity of maintaining compliance with its integrated portfolio of products and services that enhance companies' ability to efficiently produce and distribute their financial and business communications both online and in print.
Learn more about Issuer Direct today: http://ir.issuerdirect.com/tearsheet/html/isdr
Forward-Looking Statements. This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company's forward-looking statements, please see the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, including but not limited to the discussion under "Risk Factors" therein, which the Company has filed with the SEC and which may be viewed at http://www.sec.gov.