Adstar Wts 12/16/2004 (MM) (NASDAQ:ADSTW)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Adstar Wts 12/16/2004 (MM) Charts. Click Here for more Adstar Wts 12/16/2004 (MM) Charts.](/p.php?pid=staticchart&s=N%5EADSTW&p=8&t=15)
AdStar Reports 77 Percent Increase in First Quarter Revenues
Gross Profits Rise 144 Percent to Record $630,000
MARINA DEL REY, Calif., May 17 /PRNewswire-FirstCall/ -- AdStar, Inc. , a
leading applications service provider of e-commerce transaction technology for
the advertising and publishing industries, today reported operating results for
the first quarter of 2004.
Revenue for the three months ended March 31, 2004 increased 77 percent to $1.05
million, compared with $593,000 in the first quarter of 2003. The increase in
revenue resulted primarily from the acquisition of Edgil Associates and a 23
percent increase in the company's ASP revenues. Gross profit margins for the
quarter increased from 44 percent to 60 percent of net revenues, with gross
profits rising 144 percent to $630,000, versus $258,000 in the prior-year
quarter. For the quarter, AdStar reported a net loss of $542,000 or $0.04 per
share, compared with a net loss of $445,000 or $0.05 per share, in the first
quarter of 2003.
"With Edgil Associates now fully integrated into the AdStar family, we are
beginning to see the benefits from last year's acquisition," said Leslie
Bernhard, president and chief executive officer of AdStar, Inc. "We are also
pleased with the continued growth in ASP revenues and record gross profits for
the quarter, and we are confident that our business model will continue to
produce positive results over the next several quarters. We continue to
anticipate positive operating cash flows in the second quarter and
profitability by the end of the year."
Primarily as a result of the Edgil acquisition, AdStar reported increases in
the first quarter of 2004 for general and administrative expenses, selling and
marketing expenses, and maintenance and development costs. General and
administrative expenses increased 52 percent from $289,000 in the first quarter
of 2003 to $438,000 in the most recent quarter. Selling and marketing expenses
increased to $328,000 from $161,000, and maintenance and development costs
increased to $376,000 from $253,000. The total number of ad transactions
increased more than 13 percent, and ad transaction value rose by more than 16
percent to $19.2 million, compared with $16.5 million in the first quarter of
2003. For the quarter ended March 31, 2004, AdStar processed more than 102,000
classified advertisements using its licensed and ASP technology infrastructure.
"We have clearly shown that our technology and ASP business model can empower
publishers to efficiently and affordably integrate their online and print
advertising strategies," continued Bernhard. "As we move forward in 2004, we
will continue to aggressively develop and implement our strategic marketing
plan, while building upon our solid relationships with Tribune Company,
Knight-Ridder, CareerBuilder, Manheim Interactive, and other potential
strategic partners. Shortly after the end of the first quarter, we announced
the completion of a private placement that raised an additional $1.5 million in
equity capital and the signing of an expanded technology contract with The
Atlanta Journal-Constitution. We are currently working on several new
contracts and anticipate the addition of several new customers as the year
progresses."
About AdStar, Inc.
AdStar, Inc. (NASDAQ:ADSTNASDAQ:ADSTW) is the leading provider of e-commerce
transaction software and services for the advertising and publishing
industries. AdStar's proprietary suite of e-commerce services includes remote
ad entry software, and web-based ad transaction services, as well as payment
processing and content processing solutions provided through AdStar subsidiary,
Edgil Associates, the industry's largest supplier of automated payment
processing. Today, AdStar's ad transaction infrastructure powers classified ad
sales for more than 40 of the largest newspapers in the United States, the
Newspaper Association of America's bonafideclassifieds.com, CareerBuilder, and
a growing number of other online and print media companies. EdgCapture, Edgil's
automated payment process solution, is currently employed by call centers in
more than 100 of the nation's leading newspaper and magazines. AdStar is
headquartered in Marina del Rey, Calif., and its Edgil office is in North
Chelmsford, Mass.
Forward Looking Statements
This release contains forward-looking statements concerning the business and
products of the company. Actual results may differ from those projected or
implied by such forward-looking statements depending on a number of risks and
uncertainties including, but not limited to, the following: historical business
has already matured, new online business is unproven and may not generate
expected revenues, and Internet security risks. Other risks inherent in the
business of the company are described in Securities and Exchange Commission
filings, including the company's annual report on Form 10-KSB. The company
undertakes no obligation to revise or update any forward-looking statements to
reflect events or circumstances after the date of this release.
For further information, please contact Jeff Baudo of AdStar, +1-310-577-8255,
; or media, Kevin Wilson, +1-513-885-5520, , or brokers, RJ Falkner & Company,
Inc., +1-800-377-9893, , both for AdStar.
AdStar, Inc. and Subsidiary
Consolidated Balance Sheet
As of March 31, 2004
Assets
Current assets:
Cash and cash equivalents $1,882,774
Accounts receivable, net of allowance for
doubtful accounts of $84,470 294,645
Notes receivable from officers - current portion 7,695
Prepaid and other current assets 195,668
Total current assets 2,380,782
Notes receivable from officers, net of current
portion 230,391
Property and equipment, net 130,684
Capitalized and purchased software, net 1,926,759
Intangible assets, net 1,465,671
Goodwill 2,246,454
Security Deposits 37,656
Total assets $8,418,397
Liabilities and Equity
Current liabilities:
Due to publications $1,453,970
Accounts payable and accrued expenses 1,003,708
Deferred revenue and customer deposits -
current portion 270,259
Loans from Shareholders, current portion 21,000
Capital lease obligations - current portion 31,658
Total current liabilities 2,780,595
Deferred revenue, net of current portion 52,772
Capital lease obligations, net of current portion 10,086
Loans from shareholders, net of current portion 42,000
Total liabilities 2,885,453
Stockholder's equity $5,532,944
Total liabilities and stockholder's equity $8,418,397
AdStar, Inc. and Subsidiary
Consolidated Statements of Operations
For the Quarters ended March 31, 2003 and 2004
2003 2004
ASP, net $322,259 $395,672
Licensing and software 215,702 547,989
Customization and other 55,132 103,825
Net Revenues 593,093 1,047,486
Cost of revenues, including depreciation
and amortization of $144,417 and $186,188 334,911 417,321
Gross profit 258,182 630,165
General and administrative expense 288,990 437,859
Selling and marketing expense 161,138 327,618
Maintenance and development costs 252,841 375,658
Amortization of customer list -- 22,116
Loss from operations (444,787) (533,086)
Interest income, net 935 (1,153)
Loss before taxes (443,852) (534,239)
Provision for income taxes (963) (7,620)
Net loss $(444,815) $(541,859)
Loss per share - basic and diluted $(0.05) $(0.04)
Weighted average number of shares - basic
and diluted 8,197,324 12,772,767
AdStar, Inc.
Statements of Cash Flows
For the Quarters ended March 31, 2004 (unaudited)
2003 2004
Cash flows from operating activities:
Net Loss $(444,815) $(541,859)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 180,519 208,304
Stock based vendor payments 53,751 17,175
Changes in assets and liabilities:
Accounts receivable 1,111 45,227
Prepaids and other assets (16,032) (73,931)
Due to publications 426,513 369,997
Accounts payable and accrued expenses (299,089) (189,718)
Deferred revenue and customer deposits 28,727 133,258
Net cash used in operating activities (69,315) (31,546)
Cash flows from investing activities:
Purchase of Edgil Associates, Inc. -- (85,000)
Purchase of property and equipment (19,891) (9,044)
Additions to Capitalized and Purchased
Software (230,436) (157,516)
Additions to intangible assets -- (4,000)
Principal repayments of shareholder notes
receivable 1,758 1,859
Net cash used in investing activities (248,569) (253,701)
Cash flows from financing activities:
Proceeds from issuance of note payable 200,000 --
Repayment of note payable (200,000) --
Proceeds from issuance of Series B
preferred stock 534,578 --
Proceeds from exercises of options and
warrants -- 83,801
Principal repayments on capital leases (6,344) (8,256)
Net cash provided by financing
activities 528,234 75,545
Net increase (decrease) in cash
and cash equivalents 210,350 (209,703)
Cash and cash equivalents at beginning
of period 940,378 2,092,477
Cash and cash equivalents at end of period $1,150,728 $1,882,774
DATASOURCE: AdStar
CONTACT: Jeff Baudo of AdStar, +1-310-577-8255, ; or
media, Kevin Wilson, +1-513-885-5520, , or brokers,
RJ Falkner & Company, Inc., +1-800-377-9893, , both for
AdStar