MANALAPAN, NJ--(Marketwire - August 14, 2008) - AccountAbilities, Inc. (
OTCBB:
ACBT), a
provider of financial consulting and staffing services, as well as
management consulting services to CPA and other professional firms, today
announced financial results for its fiscal third quarter ended June 30,
2008.
While revenue for the current quarter decreased modestly to $15.9 million
from $16.2 million, net income improved to $5,000 from a loss of ($14,000)
in the third quarter of the prior year. Compared to the previous quarter
ended March 31, 2008 net income improved significantly from a loss of
($903,000). Selling, general and administrative expenses decreased to $2.2
million in the third quarter of this year, from $2.7 million in the second
quarter of this year as the Company sought and accomplished company wide
expense reductions.
Total debt decreased to $3.0 million as of June 30, 2008 versus $5.2
million at year end September 30, 2007 while stockholders equity increased
to $1.1 million from $0.5 million at year end September 30, 2007, as the
Company accomplished various debt restructurings during the current year to
date period. These changes resulted in a greatly improved debt to equity
ratio of 2.8 to 1 as of June 30, 2008 versus 11.6 to 1 at September 30,
2007. Working capital also improved $0.8 million from a deficit of ($3.2)
million at September 30, 2007 to ($2.4) million at June 30, 2008.
"Our results for the quarter demonstrate our ability to manage to the
bottom line in a challenging and uncertain economic environment. Yet we
have continued to make progress in strategic areas, such as the roll out of
our higher margin finance and accounting service offerings, with the launch
in March of our New York area consulting operations and the signing of two
new CPA firms to our Partner on Premise Program in April and May," said
Jeffrey Raymond, Chief Executive Officer of AccountAbilities.
Stephen DelVecchia, Chief Financial Officer of AccountAbilities, added,
"The significant strengthening of our balance sheet provides us with a much
more secure position as we await improvements in the overall economic
environment. We have also demonstrated our ability to act proactively by
aggressively seeking reductions in operating costs throughout the
organization as demonstrated in the reduction of our selling, general and
administrative expenses in the current quarter. We are excited to have
been able to produce these results in our first full quarter as an OTC
Bulletin Board traded company."
About AccountAbilities, Inc.
AccountAbilities provides accounting and finance consulting, staffing and
recruiting services both independently and through co-branded offerings
with some of the largest regional public accounting firms in the United
States. In addition, AccountAbilities provides productivity based
commercial, scientific and IT staffing solutions across a variety of
industries. To learn more, visit
www.aabilities.com.
The statements which are not historical facts contained in this press
release are forward-looking statements that involve certain known and
unknown risks and uncertainties, including but not limited to, changes in
the market for professional staffing services, regulatory and technological
changes, changes in levels of unemployment and other economic factors,
increased competition, the ability to attract and retain customers, the
availability of qualified candidates for placement by the Company and the
possibility of the Company incurring liability for activities of the
employees and contractors that it places with its customers. The Company's
actual results may differ materially from the results discussed in or
implied by any forward-looking statement. The words "intend," "expect,"
"should," "project," "anticipate" and similar expressions identify
forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
date they were made.
ACCOUNTABILITIES, INC.
STATEMENTS OF OPERATIONS
(unaudited)
Three Months Nine Months
Ended Ended
----------------------- ------------------------
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Revenue $15,889,000 $16,241,000 $49,780,000 $40,710,000
Direct cost of services 13,442,000 13,410,000 41,833,000 33,929,000
----------- ----------- ----------- -----------
Gross profit 2,447,000 2,831,000 7,947,000 6,781,000
Selling, general and
administrative
expenses * 2,182,000 2,493,000 7,528,000 6,126,000
Depreciation and
amortization 116,000 106,000 341,000 214,000
----------- ----------- ----------- -----------
Income from operations 149,000 232,000 78,000 441,000
Interest expense 144,000 246,000 687,000 633,000
Loss on goodwill
impairment - - 148,000 -
Net loss on debt
extinguishments - - 100,000 -
----------- ----------- ----------- -----------
Net income (loss) $ 5,000 $ (14,000) $ (857,000) $ (192,000)
=========== =========== =========== ===========
Net income (loss) per
share:
Basic $ 0.00 $ 0.00 $ (0.04) $ (0.01)
=========== =========== =========== ===========
Diluted $ 0.00 $ 0.00 $ (0.04) $ (0.01)
=========== =========== =========== ===========
Weighted average shares
outstanding:
Basic 21,582,000 16,530,000 19,165,000 15,079,000
=========== =========== =========== ===========
Diluted 22,045,000 16,530,000 19,165,000 15,079,000
=========== =========== =========== ===========
* Includes $41,000 and $7,000 for the three months ended June 30, 2008 and
2007, respectively, and $250,000 and $12,000 for the nine months ended June
30, 2008 and 2007, respectively in non-cash charges for stock based
compensation.
ACCOUNTABILITIES, INC.
BALANCE SHEETS
June 30, September 30,
2008 2007
------------ ------------
(unaudited)
ASSETS
Current assets:
Cash $ 89,000 $ 137,000
Accounts receivable - less allowance for
doubtful accounts of $523,000 and $338,000,
respectively 1,105,000 224,000
Due from financial institution 123,000 134,000
Unbilled receivables 212,000 1,182,000
Prepaid expenses 366,000 268,000
Due from related party 76,000 51,000
------------ ------------
Total current assets 1,971,000 1,996,000
Property and equipment, net 344,000 149,000
Other assets 9,000 34,000
Intangible assets, net 1,506,000 2,023,000
Goodwill 3,332,000 4,617,000
------------ ------------
Total assets $ 7,162,000 $ 8,819,000
============ ============
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 1,365,000 $ 1,348,000
Accrued wages and related obligations 1,515,000 1,367,000
Current portion of long-term debt 437,000 691,000
Current portion of related party long-term debt 985,000 1,647,000
Due to related party 61,000 169,000
------------ ------------
Total current liabilities 4,363,000 5,222,000
Long term debt, net of current portion 341,000 450,000
Related party long-term debt, net of current
portion 1,212,000 2,440,000
Acquisition related contingent liability 193,000 257,000
------------ ------------
Total liabilities 6,109,000 8,369,000
Commitments and contingencies
Stockholders equity:
Preferred stock, $0.0001 par value, 5,000,000
shares authorized; zero shares issued and
outstanding - -
Common stock, $0.0001 par value, 95,000,000
shares authorized; 23,857,000 and 17,469,000
shares issued and outstanding as of June 30,
2008 and September 30, 2007, respectively 2,000 2,000
Additional paid-in capital 3,195,000 1,735,000
Accumulated deficit (2,144,000) (1,287,000)
------------ ------------
Total stockholders equity 1,053,000 450,000
------------ ------------
Total liabilities and stockholders equity $ 7,162,000 $ 8,819,000
============ ============
Contact Information: Contact:
Stephen DelVecchia
AccountAbilities, Inc.
Chief Financial Officer
732-333-3622
www.aabilities.com