Emtec Inc. Reports Consolidated Earnings Results for the Third Quarter and Nine Months Ended May 31, 2012
July 16, 2012 at 01:34 pm EDT
Emtec Inc. reported consolidated earnings results for the third quarter and nine months ended May 31, 2012. For the quarter ended May 31, 2012, consulting and outsourcing revenue increased to $26.8 million from $20.2 million in the quarter ended May 31, 2011, an increase of $6.6 million or 32.5%. Overall revenue increased from $44.9 million for the three months ended May 31, 2011 to $50.7 million for the three months ended May 31, 2012. Adjusted EBITDA, which is defined by management as net income before interest, taxes, depreciation, amortization, retention bonuses, stock-based compensation, executive recruiting fees, severance, earnout liability adjustments and stock warrant expense, was approximately $1.5 million for the quarter ended May 31, 2012 versus an Adjusted EBITDA loss of approximately $36,000 for the quarter ended May 31, 2011. Operating loss was $422,000, Loss before income tax benefit was $1,207,000 against $1,169,000 and $1,344,000 respectively a year ago. Net loss was $926,000 against $812,000 a year ago.
For the nine months ended May 31, 2012, consulting and outsourcing revenue increased to $77.6 million from $54.5 million in nine months ended May 31, 2011, an increase of $23.1 million or 42.4%. Overall revenue increased from $167.9 million for the nine months ended May 31, 2011 to $170.5 million for the nine months ended May 31, 2012. Procurement services revenues declined by $20.5 million from $113.4 million for the nine months ended May 31, 2011 to $92.9 million for the nine months ended May 31, 2012. The decline in procurement revenue was due to purchasing decision delays by education clients through April 2012 and a delay in software sales to certain of the company's Canadian clients due to a new release of software in 2012. Adjusted EBITDA increased by approximately $1.8 million or 80.2% to $4.1 million for the nine months ended May 31, 2012 versus $2.3 million the nine months ended May 31, 2011. Year-to-date capital expenditures continue to track at lower levels than in the prior year, with the company only spending about $700,000 over the first nine months of fiscal 2012 versus approximately $2.3 million 2011. Operating loss was $2,064,000, Loss before income tax benefit was $4,402,000 against $347,000 and $868,000 respectively a year ago. Net loss was $3,210,000 against $513,000 a year ago.