CARY, N.C., May 4, 2010 (GLOBE NEWSWIRE) -- Issuer Direct Corporation (OTCBB:ISDR), a market leader and innovator of unified regulatory, disclosure and compliance solutions, today announced the financial results for the quarter ended March 31, 2010. Additionally, the company anticipates filing its quarterly report including its financials in eXtensible Business Reporting Language (xBRL) with the Securities and Exchange Commission before market close today.
Revenues for the quarter ended March 31, 2010 increased 28% to $605,081 compared to $472,538 in the same period in fiscal 2009. The increase in revenue was primarily due to an increase in transfer agent services of $118,356 and an increase in software licensing of $50,329. Gross profit for the quarter ended March 31, 2010 increased 57% to $405,826 compared to $258,537 in the same period in fiscal 2009. Wes Pollard, Chief Financial Officer of Issuer Direct said, "The increase in revenue along with the improvement in gross profit during the first quarter of 2010 as compared to the same period of 2009 further validates the company's ability to expand the business while strategically shifting resources and revenue to our higher margin services."
Net income for the quarter ended March 31, 2010 was $134,664, or $0.01 per share, including non-cash interest charges of $35,179 incurred upon the conversion of notes payable into shares of the company; as compared to $91,345, or $0.01 per share, in the comparable period of 2010.
Mr. Pollard went on to say, "We are very encouraged by the first quarter results. We achieved significant revenue from all of our service offerings, which is consistent with our mission to provide a complete set of solutions for corporate issuers."
Highlights for the first quarter of 2010:
- Increased revenue by 28% as compared to the same period of fiscal 2009
- Gross margin increased to 67% as compared to 55% in the same period of fiscal 2009
- Net income was $134,664 compared to $91,345 in the same period of 2009
- Working capital improved to $426,233 at March 31, 2010 compared to $138,505 at December 31, 2009
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. To learn more visit www.issuerdirect.com
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, 2009, including but not limited to the discussion under "Risk Factors" therein, filed with the SEC, which you may view at http://www.sec.gov
| ISSUER DIRECT CORPORATION | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (UNAUDITED) | ||
|
March 31, 2010 |
December 31, 2009 |
|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $315,380 | $146,043 |
| Accounts receivable, (net of allowance for doubtful accounts of $48,210 and $16,785, respectively) | 197,591 | 152,069 |
| Security deposits | 6,242 | 6,242 |
| Other current assets | 19,008 | 19,201 |
| Total current assets | 538,221 | 323,555 |
| Furniture, equipment and improvements, (net of accumulated depreciation of $20,620 and $18,316, respectively) | 23,480 | 21,087 |
| Intangible assets, (net of accumulated amortization and impairment of $74,667 and $67,833, respectively) | 113,529 | 120,363 |
| Total assets | $675,230 | $465,005 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $61,542 | $51,715 |
| Accrued expenses | 50,446 | 59,810 |
| Note payable – related party | — | 73,525 |
| Total liabilities | 111,988 | 185,050 |
| Stockholders' equity: | ||
| Preferred stock, $1.00 par value, 10,000,000 shares authorized – Series A, 60 shares designated, 31 and 5 shares issued and outstanding as of March 31, 2010 and December 31, 2009, respectively, Series B, 476,200 shares designated; no shares issued and outstanding | 31 | 5 |
| Common stock $.001 par value, 100,000,000 shares authorized,17,435,312 and 16,826,342 shares issued and outstanding as of March 31, 2010 and December 31, 2009, respectively. | 17,435 | 16,826 |
| Additional paid-in capital | 1,611,685 | 1,463,697 |
| Accumulated deficit | (1,065,909) | (1,200,573) |
| Total stockholders' equity | 563,242 | 279,955 |
| Total liabilities and stockholders' equity | $675,230 | $465,005 |
| ISSUER DIRECT CORPORATION | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (UNAUDITED) | ||
| Three Months Ended | ||
| March 31, | ||
| 2010 | 2009 | |
| Revenues | ||
| Compliance and reporting services | $163,196 | $195,859 |
| Printing and financial communication | 114,108 | 105,086 |
| Fulfillment and distribution | 127,604 | 140,105 |
| Software licensing | 67,767 | 17,438 |
| Transfer agent services | 132,406 | 14,050 |
| Total | 605,081 | 472,538 |
| Cost of services | 199,255 | 214,001 |
| Gross profit | 405,826 | 258,537 |
| Operating costs and expenses | ||
| General and administrative | 160,301 | 101,600 |
| Sales and marketing expenses | 64,192 | 54,990 |
| Depreciation and amortization | 11,399 | 9,331 |
| Total operating costs and expenses | 235,892 | 165,921 |
| Net operating income (loss) | 169,934 | 92,616 |
| Other income (expense): | ||
| Interest expense | (35,270) | (1,271) |
| Total other income (expense) | (35,270) | (1,271) |
| Net income (loss) before taxes | $134,664 | $91,345 |
| Income tax expense (benefit) | — | — |
| Net income (loss) | $134,664 | $91,345 |
| Income (loss) per share – basic | $0.01 | $0.01 |
| Income (loss) per share - diluted | $0.01 | $0.01 |
| Weighted average number of common shares outstanding - basic | 16,843,108 | 17,631,384 |
| Weighted average number of common shares outstanding - diluted | 16,887,181 | 17,676,941 |
| ISSUER DIRECT CORPORATION | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (UNAUDITED) | ||
| Three months ended | ||
| March 31, | ||
| 2010 | 2009 | |
| Cash flows from operating activities: | ||
| Net income (loss) | $134,664 | $91,345 |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
| Depreciation and amortization | 11,399 | 9,331 |
| Bad debt | 32,111 | 10,344 |
| Non-cash interest expense | 34,179 | –– |
| Stock-based compensation | 27,000 | –– |
| Changes in operating assets and liabilities: | ||
| Decrease (increase) in accounts receivable | (77,633) | 27,362 |
| Decrease (increase) in deposits and prepaids | 193 | (3,878) |
| Increase (decrease in accounts payable | 9,827 | (11,586) |
| Increase (decrease) in accrued expenses | 4,555 | (18,261) |
| Net cash provided by (used in) operating activities | 176,295 | 104,657 |
| Investing activities | ||
| Purchase of property and equipment | (6,958) | (1,974) |
| Net cash used by investing activities | (6,958) | (1,974) |
| Financing activities | ||
| Repurchase of common stock | –– | (6,750) |
| Repayments of notes payable | –– | (37,430) |
| Net cash provided by (used in) financing activities | –– | (44,180) |
| Net change in cash | 169,337 | 58,503 |
| Cash - beginning | 146,043 | 50,367 |
| Cash - ending | $315,380 | $108,870 |
| Supplemental disclosure for non-cash investing | ||
| and financing activities: | ||
| Cash paid for interest | $–– | $579 |
| Cash paid for income taxes | $–– | $–– |
| Non-cash activities: | ||
| Accrued expenses settled by issuance of common shares | $–– | $25,000 |
| Related party notes payable and accrued interest converted to common shares | $59,666 | $–– |
| Related party notes payable and accrued interest converted to preferred shares | 27,780 | –– |
CONTACT: Issuer Direct Corporation
Brian R. Balbirnie
919-481-4000
brian.balbirnie@issuerdirect.com
