Issuer Direct Announces Second Quarter Results
On Monday August 10, 2009, 9:11 am EDT
CARY, N.C., Aug. 10, 2009 (GLOBE NEWSWIRE) -- Issuer Direct Corporation (OTCBB:ISDR - News), a market innovator of issuer focuses services to public companies, today announced financial results for its second fiscal quarter ended June 30, 2009.
Net income for the quarter ended June 30, 2009 was $268,852, or $0.02 per share on revenues of $765,808, as compared to a net loss of $332,826, or $(0.02) per share on revenues of $450,799 for the comparable period in 2008.
Revenue for the six month period ended June 30, 2009 totaled $1,238,341, a 42% increase over the comparable period in 2008. Net income totaled $360,194, or $0.02 per share, in the six months ended June 30, 2009, as compared to a net loss of $721,365, or $(0.04) per share, in the comparable period in 2008.
"We had a very strong second quarter in terms of both financial results and client segment advancement," said Brian R. Balbirnie, Chairman and Chief Executive Officer of Issuer Direct Corporations. "Our second quarter results were exactly what we anticipated due to the success of our print and proxy service offerings as well as the introduction of our transfer agent service." The Company operates its transfer agent business under the brand Direct Transfer.
About Issuer Direct Corporation:
Issuer Direct Corporation ("IDC") is a market leader and innovator in public company products and services. As an issuer services focused company, Issuer Direct alleviates the complexity of maintaining compliance through integrated products and services that help companies produce and distribute their financial and business communications both online and in print. As a shareholder compliance company; Issuer Direct is dedicated to assisting corporate issuers in an ever-changing regulatory environment and to comply with the myriad of rules imposed by regulatory bodies.
The Issuer Direct logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4547
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 our actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. We disclaim any intention to, and undertake 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 our forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2008, including but not limited to the discussion under "Risk Factors" therein, filed with the SEC, which you may view at www.sec.gov.
Unaudited Selected Financial Data
Three months ended Six months ended
June 30 June 30
--------------------- ---------------------
Revenue Streams 2009 2008 2009 2008
------------------------ ---------- ---------- ---------- ----------
Compliance and
reporting services $ 198,160 $ 185,610 $ 394,020 $ 367,074
Printing and financial
communication 189,520 169,898 294,607 239,661
Fulfillment and
distribution 144,935 80,391 285,039 114,614
Software licensing 63,487 14,900 80,919 22,800
Transfer agent services 169,706 -- 183,756 --
---------- ---------- ---------- ----------
Total $ 765,808 $ 450,799 $1,238,341 $ 744,149
========== ========== ========== ==========
Issuer Direct Corporation
Unaudited Consolidated Statements of Operations
For the Three Months For the Six Months
Ended Ended
--------------------- ---------------------
June 30 June 30 June 30 June 30
2009 2008 2009 2008
---------- ---------- ---------- ----------
Revenues
Compliance and
reporting services $ 198,160 $ 185,610 $ 394,020 $ 367,074
Printing and financial
communication 189,520 169,898 294,607 239,661
Fulfillment and
distribution 144,935 80,391 285,039 114,614
Software licensing 63,487 14,900 80,919 22,800
Transfer agent services 169,706 -- 183,756 --
---------- ---------- ---------- ----------
Total 765,808 450,799 1,238,341 744,149
---------- ---------- ---------- ----------
Cost of services 271,041 284,195 485,041 421,917
---------- ---------- ---------- ----------
Gross profit 494,767 166,604 753,300 322,232
---------- ---------- ---------- ----------
Operating costs and
expenses
General and
administrative 138,527 403,881 240,125 864,756
Sales and marketing
expenses 77,391 112,768 132,381 163,543
Depreciation and
amortization 9,932 4,831 19,264 9,674
---------- ---------- ---------- ----------
Total operating costs
and expenses 225,850 521,480 391,770 1,037,973
---------- ---------- ---------- ----------
Net operating income
(loss) 268,917 (354,876) 361,530 (715,741)
---------- ---------- ---------- ----------
Other income (expense):
Interest income
(expense), net (65) 22,051 (1,336) (5,624)
---------- ---------- ---------- ----------
Total other income
(expense) (65) 22,051 (1,336) (5,624)
---------- ---------- ---------- ----------
Net income (loss) $ 268,852 $ (332,826)$ 360,194 $ (721,365)
========== ========== ========== ==========
Income (loss) per
share - basic $ 0.02 $ (0.02)$ 0.02 $ (0.04)
========== ========== ========== ==========
Income (loss) per
share - fully diluted $ 0.02 $ (0.02)$ 0.02 $ (0.04)
========== ========== ========== ==========
Weighted average number
of common shares
outstanding - basic 6,748,783 17,243,658 16,187,857 17,028,250
========== ========== ========== ==========
Weighted average number
of common shares
outstanding - fully
diluted 16,751,905 17,243,658 16,191,362 17,028,250
========== ========== ========== ==========
Issuer Direct Corporation
Unaudited Consolidated Balance Sheets
June 30, December 31,
2009 2008
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 185,380 $ 50,367
Accounts receivable, (net of allowance
for doubtful accounts of $45,586
and $43,764, respectively) 261,281 165,681
Security deposits 6,242 6,242
Other current assets 26,766 2,855
----------- -----------
Total current assets 479,669 225,145
Furniture, equipment and improvements,
(net of accumulated depreciation
of $12,699 and $43,201, respectively) 22,051 15,987
Other long term assets -- 2,000
Intangible assets, (net of accumulated
amortization and impairment of $184,167
and $170,500, respectively) 134,029 147,695
----------- -----------
Total assets $ 635,749 $ 390,827
=========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 80,255 $ 143,560
Accrued expenses 97,663 128,050
Note payable - related party 73,525 73,525
Notes payable - other 25,000 64,828
----------- -----------
Total liabilities 276,443 409,963
----------- -----------
Stockholders' equity (deficit):
Preferred stock, $1.00 par value,
10,000,000 shares authorized 5 7
Series A, 60 shares designated, 5 and 7
shares issued and outstanding as
June 30, 2009 and December 31, 2009
Series B, 476,200 shares designated; no
shares issued and outstanding
Common stock $.01 par value, 100,000,000
shares authorized, 16,754,717 and
18,834,717 shares issued and outstanding
as of June 30, 2009 and December 31, 2008,
respectively. 16,754 18,834
Additional paid-in capital 1,461,338 1,441,006
Treasury stock, at cost, 4,495 shares (4,236) (4,236)
Accumulated deficit (1,114,555) (1,474,747)
----------- -----------
Total stockholders' equity (deficit) 359,306 (19,136)
----------- -----------
Total liabilities and stockholders'
equity (deficit) $ 635,749 $ 390,827
=========== ===========
Issuer Direct Corporation
Unaudited Consolidated Statement of Cash Flows
Six months ended
June 30,
----------------------
2009 2008
--------- ---------
Cash flows from operating activities:
Net income (loss) $ 360,194 $(721,365)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 19,264 9,674
Bad debt expense 26,963 --
Stock-based expenses -- 630,899
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable (122,564) (98,424)
Decrease (increase) in deposits
and prepaids (21,911) (1,076)
Increase (decrease) in accounts payable (63,305) 120,626
Increase (decrease) in accrued expenses (5,389) 18,045
--------- ---------
Net cash provided by (used in) operating
activities 193,252 (41,621)
--------- ---------
Cash flows from investing activities:
Purchase of property and equipment (11,661) --
--------- ---------
Net cash used in investing activities (11,661) --
--------- ---------
Cash flows from financing activities:
Repurchase of common stock (6,750) --
Proceeds from sale of common stock -- 50,000
Repayments of notes payable (39,828) (10,355)
--------- ---------
Net cash provided by (used in) financing
activities (46,578) 39,645
--------- ---------
Net change in cash 135,013 (1,976)
Cash - beginning 50,367 39,318
--------- ---------
Cash - ending $ 185,380 $ 37,342
========= =========
Supplemental disclosure for non-cash
investing and financing
activities:
Cash paid for interest $ 1,192 $ 1,515
========= =========
Cash paid for income taxes $ -- $ --
========= =========
Non-cash activities:
Accrued expenses settled by issuance
of shares $ 25,000 $ 71,000
Common shares issued for preferred shares $ 2 --
========= =========
Contact:
Issuer Direct Corporation
Brian Balbirnie
(919) 481-4000
AI
