Private Business (NASDAQ:PBIZ)
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Private Business, Inc. (NASDAQ:PBIZ), a leading provider
of financial technology to community financial institutions and
middle-market businesses, today announced its operating results for
the third quarter and first nine months of 2005.
Revenues for the three months ended September 30, 2005, totaled
$9.5 million, compared with $10.0 million in the third quarter of the
previous year. Operating income was $1.2 million for the third quarter
of 2005 compared with operating income of $1.2 million for the third
quarter of 2004. Net income available to common shareholders totaled
$137,000, or $0.01 per diluted share, in the third quarter of 2005,
versus $1.1 million, or $0.07 per diluted share, in the year-earlier
quarter.
For the nine months ended September 30, 2005, revenues totaled
$28.2 million, compared with $30.0 million in the corresponding period
of the prior year. Operating income for the nine months ended
September 30, 2005, was $3.0 million, versus $1.4 million in the first
nine months of 2004. Net income available to common shareholders
totaled $101,000, or $0.01 per diluted share in the first nine months
of 2005, compared with $231,000, or $0.02 in the year-earlier period.
As previously reported, the Company's operating results for the
first nine months of 2004 reflected two one-time charges, consisting
of a write-off of unamortized deferred financing costs related to the
1998 Credit Agreement and a one-time expense for directors' and
officers' insurance premiums, totaling $1.7 million. Additionally, the
third quarter results for 2004 include the reversal of $972,000 of
income tax contingency.
Operating income for the first nine months of 2005 and 2004,
excluding the one-time charges described above, would have been $3.0
million and $3.1 million, respectively, and net income, which excludes
preferred stock dividends and the one-time gain related to recovery of
non-trade receivables and the income tax contingency reversal, would
have been $1.7 million and $1.6 million, respectively. Diluted
earnings per share for the nine months ended September 30, 2005 and
2004, excluding the one-time charges, would have been $0.01 and $0.01,
respectively.
Revenues for the third quarter ended September 30, 2005, totaled
$9.5 million compared with $9.5 million for the second quarter of
2005. Operating expenses for the third quarter ended September 30,
2005, totaled $8.3 million compared with $8.3 million for the second
quarter of 2005. Operating income for the third quarter ended
September 30, 2005, totaled $1.2 million compared with $1.2 million
for the second quarter of 2005. Net income available to common
shareholders for the third quarter ended September 30, 2005, totaled
$137,000 or $0.01 per diluted share compared with net income of
$125,000 or $0.01 per diluted share for the second quarter of 2005.
Commenting on the third quarter and first nine months of 2005
results, Henry M. Baroco, Private Business' Chief Executive Officer
and Board member, stated, "While I am not satisfied with the third
quarter results, I am encouraged by the comparison of the third
quarter results with those achieved in the second quarter of this
year. Third quarter total revenues, operating income and net income
were essentially equal with the second quarter of 2005, which
demonstrates stabilization compared with the prior two years of
decreases."
"The Captiva merger, announced on October 21, 2005, is a
significant step forward in the evolution of PBiz," Baroco continued.
"This merger, which is expected to close on November 30, 2005, brings
a new focus to the combined company while helping our efforts to
increase revenues in the existing PBiz business. As we have discussed
in prior press releases and SEC filings, we are committed to
evaluating and pursuing strategic acquisitions. With the Captiva
merger, we will have completed two such transactions in less than six
months."
"We will continue to explore other acquisitions that provide
opportunities to leverage our existing market position and customer
base," Baroco concluded.
About PBiz
Private Business, Inc. (PBiz) is a leading supplier of financial
technology to community financial institutions and middle-market
businesses. The Company is headquartered in Brentwood, Tennessee, and
its common stock trades on The Nasdaq Stock Market under the symbol
PBIZ.
PBiz provides information related to non-GAAP financial
measurements from time to time that adjust for certain items outside
of the ordinary course of its business. Such non-GAAP financial
measures are not determined in accordance with generally accepted
accounting principles and are susceptible to varying calculations.
Accordingly, non-GAAP financial measures, as presented, may not be
comparable to other similarly titled measures of other companies. To
enable interested parties to reconcile non-GAAP measures to the
Company's GAAP financials, the Company clearly defines and quantifies
all adjustments to GAAP measurements. The Company provides non-GAAP
financial measurements that adjust for certain items outside of the
ordinary course of business in order to assist in comparing the
Company's current operating performance to its historical performance.
These adjustments typically reflect non-recurring items but sometimes
reflect items, such as dispositions of assets that are not technically
non-recurring but are outside of the ordinary course of operations.
Investors are encouraged to use this information in connection with
the information contained in the Company's GAAP financial statements.
Certain statements made in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on management's current expectations and include
known and unknown risks, uncertainties and other factors, many of
which the company is unable to predict or control, that may cause the
company's actual results or performance to materially differ from any
future results or performance expressed or implied by such
forward-looking statements. These statements involve risks and
uncertainties, including, without limitation, risks and uncertainties
associated with the company's ability to achieve its growth plans and
to identify or complete acquisitions. These risks and uncertainties
are in addition to other factors detailed from time to time in the
company's filings with the Securities and Exchange Commission. The
company cautions investors that any forward-looking statements made by
the company are not necessarily indicative of future performance. The
company is not responsible for updating the information contained in
this press release beyond the published date, or for changes made to
this document by wire services or Internet services.
*T
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PRIVATE BUSINESS, INC.
Consolidated Financial Highlights
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Operating Highlights:
Revenue:
Participation Fees $ 5,776 $ 6,394 $ 17,257 $ 19,232
Software license 56 50 292 163
Retail planning
services 2,176 2,272 6,571 6,736
Maintenance and other 1,484 1,282 4,072 3,866
--------- --------- --------- ---------
9,492 9,998 28,192 29,997
Operating costs and expenses:
General and
administrative 3,510 3,884 10,866 12,290
Selling and marketing 4,508 4,558 13,454 13,387
Research and
development 49 58 167 292
Amortization 247 263 657 879
Other operating
expense, net (11) 19 8 1,740
--------- --------- --------- ---------
8,303 8,782 25,152 28,588
Operating income 1,189 1,216 3,040 1,409
Other income -- -- -- 265
Interest expense, net (79) (93) (219) (382)
--------- --------- --------- ---------
Income before income
taxes 1,110 1,123 2,821 1,292
Income tax provision
(benefit) 433 (531) 1,100 (462)
--------- --------- --------- ---------
Net income 677 1,654 1,721 1,754
Preferred stock
dividends 540 540 1,620 1,523
--------- --------- --------- ---------
Net income available
to common
shareholders $ 137 $ 1,114 $ 101 $ 231
========= ========= ========= =========
Earnings per share:
Basic $ 0.01 $ 0.08 $ 0.01 $ 0.02
========= ========= ========= =========
Diluted $ 0.01 $ 0.07 $ 0.01 $ 0.01
========= ========= ========= =========
Weighted average shares outstanding:
Basic 14,756 14,303 14,664 14,193
========= ========= ========= =========
Diluted 15,011 14,795 14,996 14,675
========= ========= ========= =========
As of
---------------------
Sept. 30, Dec. 31,
2005 2004
--------- ---------
Balance Sheet Highlights:
Cash and Cash equivalents $ 144 $ 7
Working capital (deficit) 154 (158)
Total assets 30,050 21,336
Long-term debt, net of current portion 417 1,666
Stockholders' equity 13,943 13,396
PRIVATE BUSINESS, INC.
Reconciliation of Non-GAAP Financial Measurements
to GAAP Financial Statements
(in thousands, except per share amounts)
Nine Months Ended
September 30,
---------------------
2005 2004
--------- ---------
Operating income as reported $ 3,040 $ 1,409
Add: Write-off unamortized deferred
financing costs related to
1998 Credit Agreement -- 780
Add: Directors and officers insurance
premiums related to periods
prior to Lightyear transaction closing -- 896
--------- ---------
Adjusted operating income 3,040 3,085
Interest expense, net (219) (382)
--------- ---------
Adjusted income before income taxes (1) 2,821 2,703
Adjusted income tax provision (2) 1,100 1,054
--------- ---------
Adjusted net income 1,721 1,649
Preferred stock dividends (1,620) (1,523)
--------- ---------
Adjusted net income available to common
shareholders $ 101 $ 126
========= =========
Adjusted diluted earnings per share $ 0.01 $ 0.01
========= =========
Diluted weighted average shares outstanding 14,996 14,675
========= =========
Notes:
(1) In addition to the adjustments described above, adjusted income
before income taxes for the nine months ended September 30, 2004
excludes a $265,000 gain related to recovery of non-trade
receivables, which has been included as other income in the
operating highlights.
(2) The adjusted income tax provision for the nine months ended
September 30, 2004 was calculated using the Company's effective
tax rate of 39% and excludes the $972,000 reversal of income tax
contingency recorded during the period.
*T
Additional information on this Company can be found on the World
Wide Web: http://www.pbizinc.com
For further information, please contact: Michael Berman at (615)
565-7379