CARY, N.C., Aug. 9, 2010 (GLOBE NEWSWIRE) -- Issuer Direct Corporation (OTCBB:ISDR), a market leader and innovator of unified regulatory, disclosure and compliance solutions, today reported financial results for the second quarter ended June 30, 2010. 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.
Highlights of the Second Quarter of 2010 include:
- Increased revenue by 208% as compared to the same period of fiscal 2009.
- Excluding a non-recurring project in 2009, core transfer agent revenue increased 458% compared to the same period in 2009.
- Number of annual meetings / proxy projects more than doubled compared to the same period of 2009.
- iFUND version 2 was released to the marketplace.
Financial Results for Second Quarter 2010 vs. Second Quarter 2009
Revenues for the quarter ended June 30, 2010 increased 208% to $2,359,650 as compared to $765,808 in the same period in fiscal 2009. Revenue for the six months ended June 30, 2010 increased 139% to $2,964,731 as compared to $1,238,341 in the same period of 2009. The increase in revenue is primarily due to a large print and fulfillment project that was successfully executed in the mutual fund market during the second quarter of 2010. Gross profit for the quarter ended June 30, 2010 was $446,549 as compared to $494,767 in the same period of 2009. Gross profit for the six months ended June 30, 2010 was $852,375 as compared to $753,300 in the same period of 2009.
"Higher revenues this quarter illustrate our continued momentum with a majority of our business segments," said Brian R. Balbirnie, Chairman and Chief Executive Officer. "Furthermore, I am excited about the development and progress our product offerings are making – most recently iFUND Direct platform for the mutual fund marketplace and our iR Direct Portal for corporate issuers, we believe this is clear evidence we are making a successful transition from an Edgar only provider to a true leader in compliance solutions."
Net income for the quarter ended June 30, 2010 was $128,843 or $0.01 per share, as compared to $268,852, or $0.02 per share in the same period of 2009. Net income for the six months ended June 30, 2010 was $263,507, or $0.02 per share, as compared to $360,194, or $0.02 per share, in the same period of 2009. Net income during the six months ended June 30, 2010 included non-cash interest charges of $35,179 incurred upon the conversion of notes payable into shares of the company.
The Company also announced it is expanding its offices within the next 60 days to over 16,000 sq. ft. with a planned move to 500 Perimeter Park Drive Suite D Morrisville NC. The Company's new corporate offices will reside just outside of the RTP area and will be able to handle the next growth phase of mutual fund and issuer business. Issuer Direct also anticipates expanding its workforce by adding up to ten positions in sales and marketing, customer service and shareholder services.
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, including, but not limited to, our successful transition from an Edgar only provider to a true leader in compliance solutions. 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 | ||
| June 30, | December 31, | |
| 2010 | 2009 | |
| (unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,623,824 | $ 146,043 |
|
Accounts receivable, (net of allowance for doubtful accounts of $59,789 and $16,785, respectively) |
836,014 | 152,069 |
| Security deposits | 6,242 | 6,242 |
| Other current assets | 33,934 | 19,201 |
| Total current assets | 2,500,014 | 323,555 |
|
Furniture, equipment and improvements (net of accumulated depreciation of $26,227 and $18,316, respectively) |
20,380 | 21,087 |
|
Intangible assets (net of accumulated amortization and impairment of $81,500 and $67,833, respectively) |
106,695 | 120,363 |
| Total assets | $ 2,627,089 | $ 465,005 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 1,721,948 | $ 51,715 |
| Accrued expenses | 195,057 | 59,810 |
| Notes payable – related party | -- | 73,525 |
| Total liabilities | 1,917,005 | 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 June 30, 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, 17,535,312 and 16,826,342 shares issued and outstanding as of June 30, 2010 and December 31, 2009, respectively. |
17,535 | 16,826 |
| Additional paid-in capital | 1,629,584 | 1,463,697 |
| Accumulated deficit | (937,066) | (1,200,573) |
| Total stockholders' equity | 710,084 | 279,955 |
| Total liabilities and stockholders' equity (deficit) | $ 2,627,089 | $ 465,005 |
| ISSUER DIRECT CORPORATION | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (UNAUDITED) | ||||
| For the Three Months Ended | For the Six Months Ended | |||
| June 30 | June 30 | June 30 | June 30 | |
| 2010 | 2009 | 2010 | 2009 | |
| Revenues | $ 2,359,650 | $ 765,808 | $ 2,964,731 | $ 1,238,341 |
| Cost of services | 1,913,101 | 271,041 | 2,112,356 | 485,041 |
| Gross profit | 446,549 | 494,767 | 852,375 | 753,300 |
| Operating costs and expenses | ||||
| General and administrative | 205,678 | 138,527 | 365,979 | 240,125 |
| Sales and marketing expenses | 103,319 | 77,391 | 167,511 | 132,381 |
| Depreciation and amortization | 10,181 | 9,932 | 21,580 | 19,264 |
| Total operating costs and expenses | 319,178 | 225,850 | 555,070 | 391,770 |
| Net operating income | 127,371 | 268,917 | 297,305 | 361,530 |
| Other income (expense): | ||||
| Interest income (expense), net | 1,472 | (65) | (33,798) | (1,336) |
| Total other income (expense) | 1,472 | (65) | (33,798) | (1,336) |
| Net income | $ 128,843 | $ 268,852 | $ 263,507 | $ 360,194 |
| Income per share -- basic | $ 0.01 | $ 0.02 | $ 0.02 | $ 0.02 |
| Income per share -- fully diluted | $ 0.01 | $ 0.02 | $ 0.02 | $ 0.02 |
|
Weighted average number of common shares outstanding -- basic |
17,493,090 | 16,748,783 | 17,169,575 | 16,187,857 |
|
Weighted average number of common shares outstanding -- fully diluted |
17,751,413 | 16,795,573 | 17,321,365 | 16,240,388 |
| ISSUER DIRECT CORPORATION | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (UNAUDITED) | ||
|
Six months ended June 30, |
||
| 2010 | 2009 | |
| Cash flows from operating activities: | ||
| Net income | $ 263,507 | $ 360,194 |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||
| Depreciation and amortization | 21,580 | 19,264 |
| Bad debt expense | 47,780 | 26,963 |
| Non-cash interest expense | 34,178 | -- |
| Stock-based expenses | 45,000 | -- |
| Changes in operating assets and liabilities: | ||
| Decrease (increase) in accounts receivable | (731,725) | (122,564) |
| Decrease (increase) in deposits and prepaids | (14,733) | (21,911) |
| Increase (decrease) in accounts payable | 1,670,233 | (63,305) |
| Increase (decrease) in accrued expenses | 149,166 | (5,389) |
| Net cash provided by operating activities | 1,484,986 | 193,252 |
| Cash flows from investing activities: | ||
| Purchase of property and equipment | (7,205) | (11,661) |
| Net cash used in investing activities | (7,205) | (11,661) |
| Cash flows from financing activities: | ||
| Repurchase of common stock | -- | (6,750) |
| Repayments of notes payable | -- | (39,828) |
| Net cash used in financing activities | -- | (46,578) |
| Net change in cash | 1,477,781 | 135,013 |
| Cash – beginning | 146,043 | 50,367 |
| Cash – ending | $ 1,623,824 | $ 185,380 |
|
Supplemental disclosure for non-cash investing and financing activities: |
||
| Cash paid for interest | $ 518 | $ 1,192 |
| Cash paid for income taxes | $ -- | $ -- |
| Non-cash activities: | ||
| Accrued expenses settled by issuance of 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
