Brentwood, Tennessee – (The Hosting News) – August 17, 2007 – Financial institution web hosting and design technology solutions firm, Goldleaf Financial Solutions, Inc., has reported the financial results for the three and six months ending June 30, 2007.
Revenues for the quarter ended June 30, 2007 totaled $14.7 million, representing a 4.6% increase over the second quarter of 2006. Operating income totaled $305,000 for the second quarter of 2007 compared to $420,000 for the second quarter of 2006. Net income available to common stockholders totaled $101,000, or $0.01 per share, in the second quarter of 2007, versus a net loss available to common stockholders of $868,000, or $(0.27) per share, in the second quarter of 2006.
Revenue for the first six months of 2007 totaled $27.8 million, compared to $27.1 million for the same period of 2006. Operating loss totaled $225,000 for the first six months of 2007 compared to operating income of $783,000 for the first six months of 2006. Net loss available to common stockholders totaled $276,000, or $(0.02) per share, for the first six months of 2007, versus a net loss available to common stockholders of $483,000, or $(0.51) per share, for the first six months of 2006.
Revenues and operating results for the second quarter and first six months of 2007 exclude approximately $394,000 and $533,000, respectively, of deferred revenues of CBS and Datatrade which could not be carried forward on the post acquisition financial statements.
Revenues for the first six months of 2006 include a customer deconversion fee of $880,000, but did not include the revenues from the Goldleaf Technologies division for the month of January 2006 of approximately $1.0 million as the transaction was closed on January 31, 2006. Operating loss for the first six months of 2007 includes a $627,000 charge for severance costs related to the company’s Goldleaf Technologies division and other job eliminations, including $69,000 in the second quarter. Operating income in the first six months of 2006 included an $118,000 write-off of debt issuance costs.
EBITDA is a non-GAAP financial measurement calculated as earnings before interest, taxes, depreciation and amortization. EBITDA totaled $1.6 million and $2.0 million, for the second quarter and first six months of 2007, respectively, as compared to $1.6 million and $2.9 million in the second quarter and first six months of 2006, respectively. Excluding the severance charges of $69,000 and $627,000 incurred in the second quarter and first six months ended June 30, 2007, respectively, EBITDA would have totaled approximately $1.6 million and $2.7 million, respectively, for the three and six months ended June 30, 2007, as compared to adjusted EBITDA of $1.6 million and $3.1 million, respectively, for the three and six months ended June 30, 2006 which excludes the $6,000 and $118,000, respectively, write off of debt issuance costs. See page 6 for a reconciliation of GAAP and non-GAAP results.
Goldleaf’s accomplishments in the first half of 2007 included presenting at three key investor conferences, two acquisitions that broadened its product offering, and the opening of a new item processing center in Georgia.
First Half Highlights and Subsequent Activities include:
- Participated in three May investor conferences: JMP Securities Research Conference, FBR Growth Conference and DA Davidson and Co. Financial Services Conference;
- Acquired DataTrade, a provider of software solutions and conversion services for community financial institutions and corporations;
- Acquired Community Bank Systems, a provider of check imaging and Check 21 solutions to community financial institutions; and
- Opened a new payment processing center in Norcross, Georgia.
Lynn Boggs CEO of Goldleaf remarked, ”Goldleaf operates with the philosophy that success is predicated on providing superior technology coupled with the formation of long-term relationships within the community bank marketplace. Our growth and continued focus enables the company to deepen our customer relations through our offerings. For the second half of 2007 we will focus on continued opportunities to leverage our new acquisitions and provide the highest level of value to our shareholders.”
The following is forward-looking and the actual results may differ materially. The Company’s outlook includes the effect of all acquisitions completed to date. Further, this outlook does not give effect to any additional potential mergers or acquisitions that may be consummated. The Company anticipates achieving pro-forma revenues for the full year 2007 in a range between $61.0 and $63.0 million and pro-forma EBITDAS for the full year 2007 in a range of $9.0 million to $11.0 million.
Goldleaf Financial Solutions, Inc. (GFSI) offers a product suite that provides core data processing, item processing and check imaging, ACH origination and processing, remote check capture and deposit processing, accounts receivable financing solutions, a teller automation system, turn-key leasing solutions, financial institution website design and hosting and retail inventory management services. Goldleaf believes its suite of products and services allows financial institutions and small to medium-sized business customers to compete more effectively in today’s aggressive financial services marketplace, to grow trusted financial relationships and to enhance profitability through the efficient use of technology and an expanded community presence.
To learn more about Goldleaf Financial Solutions, please visit: www.goldleaf.com.