Source: Goldleaf Financial Solutions
Goldleaf Financial Solutions (NASDAQ:GFSI), a provider of integrated technology-based solutions designed to improve the performance of financial institutions, today announced financial results for the three-month and nine-month periods ended September 30, 2007.
Revenue for the third quarter ended September 30, 2007 totaled $14.3 million, a 1% decrease when compared to the year-ago quarter. The slight decline in quarter-over-quarter revenue is principally due to greater scanner equipment sales for the comparable prior year period which resulted from a supplier backlog during the first half of fiscal 2006 that was remedied during the year-ago quarter coupled with continuing decreases from within the Company's financial lending business. These decreases were then offset by growth from the Company's transaction processing offerings which realized a 35% increase as compared to the third quarter of 2006.
Operating income totaled $0.5 million for the third quarter of 2007 compared to $1.1 million for the same period of 2006. Net income available to common stockholders was approximately $0.1 million, or $0.01 per share, for the third quarter of 2007, versus a net loss available to common stockholders of approximately $0.5 million, or $(0.14) per share, for the third quarter of 2006.
For the nine-month period ended September 30, 2007, revenue totaled $42.1 million, as compared to $41.6 million for the same nine-month period of 2006. Revenue for the nine-month period of 2006 included a customer de-conversion fee of $0.9 million, but did not include revenue of approximately $1.0 million from the Goldleaf Technologies division for the month of January 2006 as the transaction closed on January 31, 2006.
Operating income totaled $0.3 million for the nine-month period concluding September 30, 2007 as compared to operating income of $1.9 million for the same period of 2006. Operating income for the nine-month period of 2007 was negatively impacted by approximately $0.7 million of charges related to severance costs while operating income for the nine-month period of 2006 includes a $0.1 million write-off of debt issuance costs and the positive impact of the previously mentioned de-conversion fee. Net loss available to common stockholders totaled approximately $0.2 million, or $(0.01) per share, for the nine-month period of 2007, as compared to a net loss available to common stockholders of approximately $2.1 million, or $(0.65) per share, for the comparable year-ago period which included a charge of approximately $1.7 million related to preferred stock dividends.
Revenue and operating results for the three and nine-month periods ended September 30, 2007 excluded approximately $0.2 million and $0.7 million, respectively, of deferred revenue of CBS and Datatrade which could not be recognized in the post acquisition financial statements.
EBITDAS is a non-GAAP financial measurement calculated as earnings before interest, taxes, depreciation, amortization and non-cash stock based compensation expense. EBITDAS totaled $1.7 million and $3.8 million, for the three-month and nine-month periods of 2007, respectively, which compares to $1.9 million and $4.0 million for the same periods of 2006, respectively.
Commenting on the quarter, Goldleaf Chief Executive Officer, Lynn Boggs, said, "As our results continue to demonstrate sound growth from our transaction processing offerings, our accounts receivable lending business continues to impact consolidated top-line performance. As we continue to address this revenue mix issue, we maintain our belief that increasing opportunities within the transaction processing space, coupled with expense management and a prudent acquisition strategy, will yield long-term benefits and value to Goldleaf and its shareholders."
The following is forward-looking and actual results may differ materially from those defined below. 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 of approximately $60 million and pro-forma EBITDAS for the full year 2007 in a range of $7.0 million to $9.0 million. These full-year proforma estimates assume the acquisition of CBS and Datatrade occurred on December 31, 2006 and with respect to EBITDAS, are adjusted for non-recurring expense items previously recorded in 2007.