Intellicheck Mobilisa Reports Second Quarter 2014 Financial Results

Intellicheck Mobilisa, Inc. (NYSE MKT:IDN), a global leader in identity solutions and wireless security systems, has released its financial results for the second quarter ended June 30, 2014.

Financial Highlights for the Second Quarter:

• Revenue for the quarter ended June 30, 2014 was $1.2 million compared with $1.7 million in the year-ago second quarter, and up from $1.1 million of the previous quarter.
• Adjusted EBITDA for the second quarter 2014 was negative $952,000 compared to negative $635,000 in the second quarter 2013, and negative $710,000 for the previous quarter.
• Net loss for the quarter was ($1,101,000) or ($0.03) per share, compared with a net loss of ($919,000) or ($0.03) per share in the second quarter 2013. Weighted average Per-share figures are based on 39,202,643 shares outstanding at the end of the second quarter 2014 and 27,795,594 shares outstanding at the end of the second quarter 2013.
• Bookings for the quarter were over $2.3 million, the best quarter in three years, improved 9% over last year’s second quarter, and up 109% from $1.1 million from the previous quarter.
• The Company’s backlog is $1.3 million and is also up over 10% from the same period last year, and up 228% from the beginning of the year.

Corporate Highlights for the Quarter and Subsequent Months

Management Initiatives

• Announced a shareholder proposal for a 1 for 8 reverse stock split, which is due to be voted upon today, August 12. The Company expects to discuss the results of the shareholder vote on today’s conference call. The Company believes the reverse stock split would result in increasing its stock price and therefore expand its shareholder base with institutional and retail investors who are unable to invest in lower-priced stocks.
• Announced the appointment of its new Chief Operating Officer, William H. Roof, Ph.D., who returns to the Company to oversee the sales, marketing, customer service, information technology, and enterprise wireless departments. Dr. Roof’s prior experience at IDN, along with his engineering experience in the civilian, law enforcement, and military sectors, are strong assets to the Company.
• Mr. William Georges joins the Board of Directors. Mr. Georges is a 26-year veteran of law enforcement and serves on the Traffic Law Enforcement Committee of the Transportation Research Board of the National Academies.
• Major General Jack Davis, USMC Retired, joins the Board of Directors. General Davis has more than 40 years military and law enforcement experience. He is expected to help the Company with its new Fugitive Finder application.
• Exhibited at the Hospitality Industry Technology Exposition & Conference (HITEC 2014) in Los Angeles, which expanded awareness of our products with key potential customers.

Product and Technology Initiatives

• Awarded several contracts for its TWIC readers, including with a major U.S. oil company, Holt Logistics’ Gloucester Terminals (New Jersey), the Port of Portland (Oregon), the Port of Cleveland (Ohio) and Washington State Ferries.
• Expanded sales via an agreement with a major U.S. supermarket chain for its ID scanning software for the chain’s customer rewards program.
• Received positive feedback from the law enforcement community as a result of the release of our Fugitive Finder smartphone app, including inquiries from 76 police jurisdictions in 32 states following a profile of the product on Policeone.com.

Dr. Nelson Ludlow, President and CEO of Intellicheck Mobilisa, commented, “We completed the restructure of the sales team into new vertical markets and continue expansion of our sales and marketing team. We have already seen initial results, with significant new bookings at the end of Q2, resulting in the best new bookings for one quarter in over three years. Our SaaS model is also taking hold, with gross profit margins improving substantially for the quarter.”

Dr. Ludlow continued, “We just appointed Dr. William Roof as our new Chief Operating Officer, and Mr. William Georges and General Davis have joined the Board of Directors. All three bring a wealth of talent, particularly in law enforcement, and are expected to help us grow our Fugitive Finder / Law Enforcement product line.”

Conference Call Information

Intellicheck Mobilisa will hold an earnings conference call today at 1:00 pm ET/10:00 am PT to discuss operating results. The company also intends to discuss the results of its Special Meeting of Stockholders, which is scheduled for 12:00 pm ET/9:00 am PT today.

To listen to the conference call, please dial 877-407-8037. For callers outside the U.S., please dial 201-689-8037. 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 13585715.

The conference call will also be simultaneously webcast, and can be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=172935.

The webcast will be available for 14 days following the conference call.

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 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; barZapp™, an ID-checking mobile app that allows a user’s smartphone to check an ID card. 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. 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.