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CrossOff Incorporated Announces First Quarter Results
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Location: Blogs News |
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| Posted by: ITNovaScotia Admin |
Wednesday, May 10, 2006 |
HALIFAX, May 10 /CNW/ - CrossOff Incorporated (TSX:OFF) today reported
the first quarter financial results for the three months ended March 31, 2006.
"We are pleased with our financial results for the first quarter" says
Colleen Moorehead, President & Chief Executive Officer. "We have made
significant progress in capitalizing on the synergies available through the
acquisition of CDI in November 2005. In the coming months we will continue to
focus our efforts on executing our growth strategy and realizing on the
potential that is now achievable."
<<
First Quarter Financial Highlights
----------------------------------
- Revenues increased by 113% to $16,623,785 as compared to $7,809,453
in 2005.
- Gross Margin decreased to 61.1% as compared to 61.6% in 2005.
- EBITDA(*) increased to $1,680,061 as compared to $1,157,434 in 2005.
- Earnings before income taxes from continuing operations were
$124,900 as compared to $345,683 in 2005.
- Net earnings were $23,705 as compared to net earnings of $373,801 in
2005.
Financial Data Three months ended March 31st
Unaudited
2006 2005
Revenues $16,623,785 $7,809,453
EBITDA(*) (Earnings Before Interest,
Taxes, Depreciation and Amortization) $1,680,061 $1,157,434
Net Earnings Before Income Tax,
Cont. Operations $124,900 $345,683
Income Tax Expense (Recovery) $2,211 ($68,874)
Earnings, Cont. Operations $122,689 $414,557
Loss, Disc. Operations ($98,984) ($40,756)
Net Earnings $23,705 $373,801
Earnings (Loss) Per Share,
Cont. Operations $0.005 $0.018
Earnings (Loss) Per Share,
Disc. Operations ($0.004) ($0.002)
Earnings Per Share $0.001 $0.016
(*) EBITDA - Earnings before interest, taxes, depreciation and
amortization does not have a standardized meaning under GAAP. However,
management believes that this is a useful performance measure as it
approximates cash generated from operations. It should be noted that
EBITDA excludes gain on sale of intangibles.
First Quarter Financial Overview
--------------------------------
For the first quarter ended March 31, 2006 revenues were $16,623,785 as
compared to $7,809,453 for the same period in 2005. EBITDA increased to
$1,680,061 from $1,157,434 for the same period in 2005. Net earnings for the
first quarter were $23,705 or $0.001 per common share as compared to net
earnings of $373,801 or $0.016 per common share for the same period in 2005.
Net earnings for the quarter were positively impacted by a $450,722 gain on
the sale of certain intellectual property rights.
First Quarter Highlights
------------------------
- Effective February 4, 2006 CrossOff completed an Intellectual
Property Asset Purchase Agreement with ESI International, a Virginia
corporation, whereby ESI acquired from CrossOff the ownership of
various Business Analyst programs and materials in exchange for a
cash payment of US$2.5 million (approximately Cdn $2.9 million).
CrossOff retains a perpetual, royalty-free license to these programs
and materials in Canada.
- On April 17, 2006 CrossOff announced that it has agreed to sell its
subsidiary, CrossOff.com Ltd. to Mammoth Communications Inc., a
Nova Scotia based company. CrossOff.com operates an anti-
counterfeiting and brand protection business under the name DNA
Technologies. Under the terms of the proposed transaction, Mammoth
will deliver 3,000,000 common shares in the capital stock of
CrossOff Incorporated to CrossOff Incorporated for cancellation. The
transaction is subject to regulatory approval, approval of
CrossOff.com lenders and due diligence.
- On April 25, 2006 CrossOff announced the appointment of Colleen
Moorehead as President and Chief Executive Officer. Most recently
Ms. Moorehead was former President E(*)TRADE Canada and Past Vice
President and General Manager E(*)Trade Financial Global Corporate
Services.
About CrossOff
CrossOff Incorporated is a Canadian based services company operating
primarily in the area of corporate training and consulting. CrossOff is traded
on the Toronto Stock Exchange as OFF. More information is available on the
company's website at www.crossoff.com.
Forward Looking Statements
This press release may contain forward-looking statements regarding,
among other things, anticipated revenues, earnings and profitability for
2006 and beyond. Such statements involve known and unknown risks,
uncertainties, and other factors outside management's control that could
cause actual results to differ materially from those expressed in the
forward-looking statements. The statements are not a guarantee of future
performance and readers are cautioned not to place undue reliance on
forward-looking statements. The Company does not assume responsibility
for the accuracy and completeness of the forward-looking statements.
>>
%SEDAR: 00002373E
For further information: please contact: Murray Ryan, CMA,
CrossOff Incorporated, (902) 567-1146, mryan@crossoff.com |
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