SOURCE: James River Holdings Corporation

James River Holdings Corporation

November 14, 2013 08:30 ET

James River Holdings Reports Third Quarter 2013 Results

Due Primarily to Development of Commercial Asphalt Paving Company, Total Revenues More Than Tripled for Comparable Three Month Reporting Periods, and Rose 906% When Comparing Nine Month Periods

SPRINGFIELD, MO--(Marketwired - Nov 14, 2013) - James River Holdings Corporation (OTCQB: JRIV), a diversified holding company focused on acquiring high growth, low-tech entrepreneurial businesses and building them into respected market leaders, today announced record third quarter financial results for the three and nine months ended September 30, 2013. 

Financial Highlights for the Three Months Ended September 30, 2013 Compared to the Three Months Ended September 30, 2012:

  • Total revenues more than tripled, rising 359% to $953,422 from $207,645.
    • Revenue contribution from the Company's commercial asphalt paving business, PaveCare, which was launched in the fourth quarter of 2012, totaled $595,463.
    • Revenues generated from rental income and property management fees rose to $357,959, a 72% increase over $207,645 in revenues from rental income posted for the three months ended September 30, 2013.
  • Income from operations rose 102% to $93,840 from a loss from operations of $8,392. Earnings before interest, depreciation and amortization (EBITDA) totaled $268,391 for the three month period in 2013 compared to $55,649 reported for the same three months in 2012.
  • After factoring interest expense relating to the servicing of real estate loans, net loss increased to $101,488, or $0.00 loss per basic and diluted share, compared to a net loss of $121,150, or 0.00 loss per basic and diluted share.

Financial Highlights for the Nine Months Ended September 30, 2013 Compared to the Nine Months Ended September 30, 2012:

  • Total revenues increased to $2,090,273, up 906% from $207,645.
    • Revenues from the commercial asphalt paving business, which was launched by the Company in the final quarter of 2012, totaled $1,006,413, compared to $0. 
    • Revenues from the rental and management of the Company's residential properties, acquired in the third and fourth quarters of 2012, totaled $1,083,860, up 422% from $207,645.
  • On a GAAP reporting basis, income from operations was $12,198, compared to a loss from operations of $132,594. However, before factoring non-cash depreciation and amortization expenses of $555,818 posted for the first nine months of 2013, EBITDA totaled $568,016, which compared to EBITDA of $68,553 for the first nine months of 2012. 
  • The net loss, which included $573,063 in interest expense related to the aforementioned real estate loans, was $560,865, or $0.00 loss per basic and diluted share. This represented a 129% increase over a net loss of $245,352, or $0.01 loss per basic and diluted share, in the prior year.

As of September 30, 2013, the Company had $468,010 in cash and cash equivalents; total assets of $20,166,140; total liabilities of $15,822,549, including $9,993,978 in long term debt; and total stockholders' equity of $4,343,591. For the nine months ended September 30, 2013, net cash provided by operating activities totaled $107,232, which compared to $162,607 used in operating activities in the prior year's same nine month reporting period.

Commenting on the results, J. Barry Watts, Chairman, President and CEO of James River Holdings, stated, "We're very pleased with our Company's strong third quarter financial performance, which serves to validate our decision to focus our acquisition and development activities on low-tech, 'grease under the fingernails' companies that provide essential goods and services purchased with non-discretionary dollars. The launch of our commercial asphalt paving business late last year continues to serve us well, delivering high margin revenue growth and positive strong cash flow. Despite the seasonal nature of the commercial paving business, we are confident that the growth of PaveCare -- both organically and by acquisition -- will continue to contribute measurably to our continued growth and play a material role in creating significant long term value for our shareholders."

For more details on James River's third quarter results, please refer to the Company's 10-Q to be filed with the U.S. Securities Exchange Commission and accessible at www.sec.gov.

   
JAMES RIVER HOLDING CORP.  
CONSOLIDATED BALANCE SHEETS  
(Unaudited)  
   
    September 30, 2013     December 31, 2012  
ASSETS                
Current assets                
  Cash and cash equivalents   $ 468,010     $ 239,796  
  Accounts receivable     35,043       82,711  
  Inventory     15,000       15,000  
    Total current assets     518,053       337,507  
                 
Property and equipment, net of accumulated depreciation     17,198,796       17,430,063  
Goodwill     2,437,250       2,437,250  
Intangible assets, net of accumulated amortization     12,041       48,815  
                 
TOTAL ASSETS   $ 20,166,140     $ 20,253,635  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities                
  Accrued expenses     125,661       133,116  
  Accounts payable     57,381       -  
  Short-term debt, net of unamortized discount     5,645,529       2,324,749  
    Total current liabilities     5,828,571       2,457,865  
                 
Long-term debt     8,231,881       10,647,527  
Long-term debt to related parties     1,762,097       2,243,787  
                 
TOTAL LIABILITIES     15,822,549       15,349,179  
                 
Stockholders' Equity                
  Preferred stock, $.001 par value, 10,000,000 shares authorized, none issued and outstanding     -       -  
  Common stock, $.001 par value, 100,000,000 shares authorized, 53,204,812 issued and outstanding     53,204       53,204  
  Additional paid-in capital     6,985,197       6,985,197  
  Accumulated deficit     (2,694,810 )     (2,133,945 )
TOTAL STOCKHOLDERS' EQUITY     4,343,591       4,904,456  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 20,166,140     $ 20,253,635  
                 
   
   
JAMES RIVER HOLDING CORP.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(Unaudited)  
   
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2013     2012     2013     2012  
          (Restated)           (Restated)  
Revenue                                
  Rental income   $ 354,690     $ 205,588     $ 1,071,507     $ 205,588  
  Property management income     3,269       2,057       12,353       2,057  
  Pavement maintenance income     595,463       -       1,006,413       -  
    Total revenue     953,422       207,645       2,090,273       207,645  
                                 
Cost of revenue     325,024       -       538,016       -  
                                 
Operating expenses                                
  General and administrative     360,007       151,996       984,241       276,198  
  Depreciation expense     165,901       55,495       519,044       55,495  
  Amortization expense     8,650       8,546       36,774       8,546  
    Total operating expenses     534,558       216,037       1,540,059       340,239  
                                 
Income (loss) from operations     93,840       (8,392 )     12,198       (132,594 )
                                 
Other expense                                
  Interest expense     (195,328 )     (112,758 )     (573,063 )     (112,758 )
                                 
Net loss   $ (101,488 )   $ (121,150 )   $ (560,865 )   $ (245,352 )
                                 
Net loss per share - basic and diluted   $ 0.00     $ 0.00     $ (0.01 )   $ (0.01 )
                                 
Weighted average shares outstanding - basic and diluted     53,204,812       41,355,424       53,204,812       34,264,381  
                                 
   

About James River Holdings Corporation
Headquartered in Springfield, Missouri, James River Holdings Corporation is a diversified holding company engaged in acquiring controlling interests in established companies operating high growth, entrepreneurial businesses in mature markets. Current portfolio companies include Springfield Property Management, which owns and manages 217 residential rental properties in Missouri and provides turnkey property management solutions to other commercial and residential property owners; and PaveCare, a company specializing in commercial pavement repair and parking lot maintenance services mainly to big-box retailers. For more information, please visit www.jrholdings.com.  

Safe Harbor Statement
This press release may contain forward-looking statements, including information about management's view of James River Holdings Corporation's (the "Company") future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this press release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of the Company, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on the Company's future results. The forward-looking statements included in this press release are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by James River Holdings Corporation.

Contact Information

  • For More Information, Please Contact:
    HANOVER|ELITE
    Kathy Addison
    Chief Operating Officer
    407-585-1080
    Email Contact