Conversion Services International Reports 4th Quarter and Full Year 2009 Results
Poster: SySAdmin
Posted on April 13, 2010 at 7:14:01 AM
Conversion Services International Reports 4th Quarter and Full Year 2009 Results
EAST HANOVER, N.J., April 13 -- Conversion Services International, Inc. (CSI, OTC Bulletin Board: CVNS), a premier professional services firm focused on delivering business intelligence and business process optimization solutions to Global 2000 organizations and other businesses, has announced its financial results for the three and twelve months ended December 31, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060421/NYF015LOGO)
Conversion Services International, Inc. ("CSI") reported its net income for the three months ended December, 2009 of $0.5 million. Net income attributable to common stockholders was $0.3 million, or $0.00 per share. In the fourth quarter of 2008, the Company reported a net loss of $2.1 million and a loss of $2.2 million, or $0.02 per share attributable to common stockholders.
Revenues for the fourth quarter of 2009 were $6.5 million, representing an increase of $1.1 million, or 19.3%, from $5.4 million reported in the same period a year ago. Gross profit for the quarter of $2.2 million, or 33.6% of revenues, increased by $0.6 million as compared to gross profit of $1.6 million, or 29.1% of revenues for the three months ended December 31, 2008.
For the twelve months ended December, 2009, revenues were $24.2 million, which represents a $4.5 million, or 22.5%, increase from $19.7 million in the comparable prior year period. Gross profit for the twelve months year-to-date in 2009 of $6.8 million, or 28.3% of revenues, increased by $1.9 million as compared to gross profit of $4.9 million, or 24.8% of revenues, during the prior year period.
CSI reported net income for the twelve month period ended December 31, 2009 of $31,956 and a loss of $0.5 million, or $0.00 per share attributable to common stockholders. For the twelve month period ended December 31, 2008, the Company reported a net loss of $10.5 million and a loss of $11.1 million, or $0.10 per share attributable to common stockholders.
Lori Cohen, president and chief executive officer of CSI, stated, "We focused our 2009 efforts on generating more profitable business, and reducing or eliminating low margin business, which is illustrated by the 3.5% point increase in our gross profit percentage (from 24.8% in 2008 to 28.3% in 2009) for the year ended December 31, 2009, as compared to the prior year period. Our improved financial results in 2009 have allowed us to strengthen our company by reducing our debt and improving our balance sheet. Although we are pleased with our results this year, we must strive to maintain this positive trend and our efforts to continue to be profitable, further strengthen our balance sheet and, importantly, increase shareholder value."
About Conversion Services International, Inc.
Conversion Services International, Inc. (CSI, OTC Bulletin Board: CVNS) is a leading provider of professional services focusing on strategic consulting, data warehousing, business intelligence and business process reengineering, as well as integration and information technology management solutions. CSI offers an array of products and services to help companies define, develop, and implement the warehousing and strategic use of both enterprise-wide and specific categories of strategic data. CSI's customers include ADP, AmerisourceBergen Specialty Group, Coach, Commerzbank, Goldman Sachs, Liberty Mutual, Merck, Morgan Stanley, New York Independent System Operators, Nikon USA, Northeast Utilities and Pfizer. Information about CSI can be found on the web at http://www.csiwhq.com/ or by calling its corporate headquarters at 888-CSI-5036.
Note on Forward-Looking Statements
Except for the historical information contained herein, this press release contains, among other things, certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such statements may include, without limitation, statements with respect to CSI's plans, objectives, expectations and intentions and other statements identified by words such as "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. These statements are based upon the current beliefs and expectations of CSI's management and are subject to significant risks and uncertainties, the ability to maintain revenue growth, the ability to locate and acquire other businesses and to successfully integrate such acquisitions, the ability to decrease operating expenses, and those detailed in CSI's filings with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond CSI's control). CSI undertakes no obligation to update publicly any forward-looking statements.
Investor Relations:
Conversion Services International, Inc.
973-560-9400
investorrelations@csiwhq.com
Media Contact:
Tracee Lee Beebe
Marketing & Communications
Conversion Services International, Inc.
973-560-9400
tbeebe@csiwhq.com
CONVERSION SERVICES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31,
2009 2008
---- ----
ASSETS
CURRENT ASSETS
Cash $96,957 $338,240
Accounts receivable, net of allowance for
doubtful accounts of $108,001 3,912,021 3,440,810
and $260,205 as of December 31, 2009 and
2008, respectively
Accounts receivable from related parties,
net of allowance for doubtful 236,233 284,028
accounts of $26,407 and $7,024 as of
December 31, 2009 and 2008,
respectively
Prepaid expenses 124,764 140,493
------- -------
TOTAL CURRENT ASSETS 4,369,975 4,203,571
--------- ---------
PROPERTY AND EQUIPMENT, at cost, net 36,887 68,536
OTHER ASSETS 110,494 306,778
------- -------
Total Assets $4,517,356 $4,578,885
========== ==========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Line of credit $2,541,900 $2,349,920
Accounts payable and accrued expenses 1,964,513 1,503,145
Short term notes payable - 1,384,811
Deferred revenue 240,606 159,177
Related party note payable 92,236 102,796
------ -------
TOTAL CURRENT LIABILITIES 4,839,255 5,499,849
Long-term debt, net of current portion 500,000 -
------- ---
Total Liabilities 5,339,255 5,499,849
--------- ---------
Convertible preferred stock, $0.001 par
value, $100 stated value, 20,000,000
shares authorized.
Series A convertible preferred stock,
19,000 shares issued and outstanding at
December 31, 2009 and 2008, respectively 1,488,332 1,108,332
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
Common stock, $0.001 par value,
300,000,000 shares authorized;
122,295,838 and 119,594,463 issued and
outstanding at December 31, 2009 and
2008, respectively 122,296 119,594
Series B convertible preferred stock,
20,000 shares issued and outstanding at
December 31, 2009 and 2008, respectively 1,352,883 1,352,883
Additional paid in capital 68,260,325 68,575,918
Treasury stock, at cost, 1,145,382 shares
in treasury as of December 31, 2009 and
2008 (423,869) (423,869)
Accumulated deficit (71,621,866) (71,653,822)
----------- -----------
Total Stockholders' Deficit (2,310,231) (2,029,296)
---------- ----------
Total Liabilities and Stockholders'
Deficit $4,517,356 $4,578,885
========== ==========
CONVERSION SERVICES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31,
2009 2008
---- ----
REVENUE:
Services $20,720,057 $16,409,181
Related party services 2,095,983 2,340,658
Reimbursable expenses 1,184,738 719,956
Other 193,425 273,791
------- -------
24,194,203 19,743,586
COST OF REVENUE:
Services 14,232,615 11,832,715
Related party services 1,847,984 2,151,157
Reimbursable expenses 1,270,279 864,250
--------- -------
17,350,878 14,848,122
---------- ----------
GROSS PROFIT 6,843,325 4,895,464
--------- ---------
OPERATING EXPENSES
Selling and marketing 3,028,003 3,262,546
General and administrative 2,759,233 3,592,309
Goodwill & intangibles impairment - 6,857,125
Depreciation and amortization 106,033 264,996
------- -------
5,893,269 13,976,976
--------- ----------
INCOME (LOSS) FROM OPERATIONS 950,056 (9,081,512)
------- ----------
OTHER INCOME (EXPENSE)
Equity in earnings (losses) from
investments (103,298) 21,045
Loss on extinguishment of debt - (664,372)
Interest expense, net (814,802) (1,104,927)
-------- ----------
(918,100) (1,748,254)
-------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 31,956 (10,829,766)
INCOME TAX BENEFIT - 363,400
--- -------
NET INCOME (LOSS) 31,956 (10,466,366)
Accretion of issuance costs associated with
convertible preferred stock (380,000) (380,000)
Dividends on convertible preferred stock (180,000) (217,081)
-------- --------
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(528,044) $(11,063,447)
========= ============
Basic and diluted loss per share
attributable to common stockholders $(0.00) $(0.10)
Weighted average common shares used to
compute loss per common share:
Basic and diluted 120,123,905 115,358,271
Photo: http://www.newscom.com/cgi-bin/prnh/20060421/NYF015LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com
Source: Conversion Services International, Inc.
CONTACT: Investor Relations, Conversion Services International, Inc.,
+1-973-560-9400, investorrelations@csiwhq.com, or Media, Tracee Lee Beebe,
Marketing & Communications, Conversion Services International, Inc.,
+1-973-560-9400, tbeebe@csiwhq.com
Web Site: http://www.csiwhq.com/
EAST HANOVER, N.J., April 13 -- Conversion Services International, Inc. (CSI, OTC Bulletin Board: CVNS), a premier professional services firm focused on delivering business intelligence and business process optimization solutions to Global 2000 organizations and other businesses, has announced its financial results for the three and twelve months ended December 31, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060421/NYF015LOGO)
Conversion Services International, Inc. ("CSI") reported its net income for the three months ended December, 2009 of $0.5 million. Net income attributable to common stockholders was $0.3 million, or $0.00 per share. In the fourth quarter of 2008, the Company reported a net loss of $2.1 million and a loss of $2.2 million, or $0.02 per share attributable to common stockholders.
Revenues for the fourth quarter of 2009 were $6.5 million, representing an increase of $1.1 million, or 19.3%, from $5.4 million reported in the same period a year ago. Gross profit for the quarter of $2.2 million, or 33.6% of revenues, increased by $0.6 million as compared to gross profit of $1.6 million, or 29.1% of revenues for the three months ended December 31, 2008.
For the twelve months ended December, 2009, revenues were $24.2 million, which represents a $4.5 million, or 22.5%, increase from $19.7 million in the comparable prior year period. Gross profit for the twelve months year-to-date in 2009 of $6.8 million, or 28.3% of revenues, increased by $1.9 million as compared to gross profit of $4.9 million, or 24.8% of revenues, during the prior year period.
CSI reported net income for the twelve month period ended December 31, 2009 of $31,956 and a loss of $0.5 million, or $0.00 per share attributable to common stockholders. For the twelve month period ended December 31, 2008, the Company reported a net loss of $10.5 million and a loss of $11.1 million, or $0.10 per share attributable to common stockholders.
Lori Cohen, president and chief executive officer of CSI, stated, "We focused our 2009 efforts on generating more profitable business, and reducing or eliminating low margin business, which is illustrated by the 3.5% point increase in our gross profit percentage (from 24.8% in 2008 to 28.3% in 2009) for the year ended December 31, 2009, as compared to the prior year period. Our improved financial results in 2009 have allowed us to strengthen our company by reducing our debt and improving our balance sheet. Although we are pleased with our results this year, we must strive to maintain this positive trend and our efforts to continue to be profitable, further strengthen our balance sheet and, importantly, increase shareholder value."
About Conversion Services International, Inc.
Conversion Services International, Inc. (CSI, OTC Bulletin Board: CVNS) is a leading provider of professional services focusing on strategic consulting, data warehousing, business intelligence and business process reengineering, as well as integration and information technology management solutions. CSI offers an array of products and services to help companies define, develop, and implement the warehousing and strategic use of both enterprise-wide and specific categories of strategic data. CSI's customers include ADP, AmerisourceBergen Specialty Group, Coach, Commerzbank, Goldman Sachs, Liberty Mutual, Merck, Morgan Stanley, New York Independent System Operators, Nikon USA, Northeast Utilities and Pfizer. Information about CSI can be found on the web at http://www.csiwhq.com/ or by calling its corporate headquarters at 888-CSI-5036.
Note on Forward-Looking Statements
Except for the historical information contained herein, this press release contains, among other things, certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such statements may include, without limitation, statements with respect to CSI's plans, objectives, expectations and intentions and other statements identified by words such as "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. These statements are based upon the current beliefs and expectations of CSI's management and are subject to significant risks and uncertainties, the ability to maintain revenue growth, the ability to locate and acquire other businesses and to successfully integrate such acquisitions, the ability to decrease operating expenses, and those detailed in CSI's filings with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond CSI's control). CSI undertakes no obligation to update publicly any forward-looking statements.
Investor Relations:
Conversion Services International, Inc.
973-560-9400
investorrelations@csiwhq.com
Media Contact:
Tracee Lee Beebe
Marketing & Communications
Conversion Services International, Inc.
973-560-9400
tbeebe@csiwhq.com
CONVERSION SERVICES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31,
2009 2008
---- ----
ASSETS
CURRENT ASSETS
Cash $96,957 $338,240
Accounts receivable, net of allowance for
doubtful accounts of $108,001 3,912,021 3,440,810
and $260,205 as of December 31, 2009 and
2008, respectively
Accounts receivable from related parties,
net of allowance for doubtful 236,233 284,028
accounts of $26,407 and $7,024 as of
December 31, 2009 and 2008,
respectively
Prepaid expenses 124,764 140,493
------- -------
TOTAL CURRENT ASSETS 4,369,975 4,203,571
--------- ---------
PROPERTY AND EQUIPMENT, at cost, net 36,887 68,536
OTHER ASSETS 110,494 306,778
------- -------
Total Assets $4,517,356 $4,578,885
========== ==========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Line of credit $2,541,900 $2,349,920
Accounts payable and accrued expenses 1,964,513 1,503,145
Short term notes payable - 1,384,811
Deferred revenue 240,606 159,177
Related party note payable 92,236 102,796
------ -------
TOTAL CURRENT LIABILITIES 4,839,255 5,499,849
Long-term debt, net of current portion 500,000 -
------- ---
Total Liabilities 5,339,255 5,499,849
--------- ---------
Convertible preferred stock, $0.001 par
value, $100 stated value, 20,000,000
shares authorized.
Series A convertible preferred stock,
19,000 shares issued and outstanding at
December 31, 2009 and 2008, respectively 1,488,332 1,108,332
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
Common stock, $0.001 par value,
300,000,000 shares authorized;
122,295,838 and 119,594,463 issued and
outstanding at December 31, 2009 and
2008, respectively 122,296 119,594
Series B convertible preferred stock,
20,000 shares issued and outstanding at
December 31, 2009 and 2008, respectively 1,352,883 1,352,883
Additional paid in capital 68,260,325 68,575,918
Treasury stock, at cost, 1,145,382 shares
in treasury as of December 31, 2009 and
2008 (423,869) (423,869)
Accumulated deficit (71,621,866) (71,653,822)
----------- -----------
Total Stockholders' Deficit (2,310,231) (2,029,296)
---------- ----------
Total Liabilities and Stockholders'
Deficit $4,517,356 $4,578,885
========== ==========
CONVERSION SERVICES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31,
2009 2008
---- ----
REVENUE:
Services $20,720,057 $16,409,181
Related party services 2,095,983 2,340,658
Reimbursable expenses 1,184,738 719,956
Other 193,425 273,791
------- -------
24,194,203 19,743,586
COST OF REVENUE:
Services 14,232,615 11,832,715
Related party services 1,847,984 2,151,157
Reimbursable expenses 1,270,279 864,250
--------- -------
17,350,878 14,848,122
---------- ----------
GROSS PROFIT 6,843,325 4,895,464
--------- ---------
OPERATING EXPENSES
Selling and marketing 3,028,003 3,262,546
General and administrative 2,759,233 3,592,309
Goodwill & intangibles impairment - 6,857,125
Depreciation and amortization 106,033 264,996
------- -------
5,893,269 13,976,976
--------- ----------
INCOME (LOSS) FROM OPERATIONS 950,056 (9,081,512)
------- ----------
OTHER INCOME (EXPENSE)
Equity in earnings (losses) from
investments (103,298) 21,045
Loss on extinguishment of debt - (664,372)
Interest expense, net (814,802) (1,104,927)
-------- ----------
(918,100) (1,748,254)
-------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 31,956 (10,829,766)
INCOME TAX BENEFIT - 363,400
--- -------
NET INCOME (LOSS) 31,956 (10,466,366)
Accretion of issuance costs associated with
convertible preferred stock (380,000) (380,000)
Dividends on convertible preferred stock (180,000) (217,081)
-------- --------
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(528,044) $(11,063,447)
========= ============
Basic and diluted loss per share
attributable to common stockholders $(0.00) $(0.10)
Weighted average common shares used to
compute loss per common share:
Basic and diluted 120,123,905 115,358,271
Photo: http://www.newscom.com/cgi-bin/prnh/20060421/NYF015LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com
Source: Conversion Services International, Inc.
CONTACT: Investor Relations, Conversion Services International, Inc.,
+1-973-560-9400, investorrelations@csiwhq.com, or Media, Tracee Lee Beebe,
Marketing & Communications, Conversion Services International, Inc.,
+1-973-560-9400, tbeebe@csiwhq.com
Web Site: http://www.csiwhq.com/