-- Net revenue for the third quarter was $4.8 million compared with
$2.1 million in the same period of 2009, an increase of 123.8%;
-- Net revenue for the first nine months of 2010 were $11.6 million
compared with $6.6 million in first 9 months of 2009, an increase of
75.6%;
-- Ongoing successful consolidation of acquisitions including
PeopleSource, Inc; Intronics Solutions, LLC; and Q5Group;
Mark Elliott, President of Premier, said, "We are pleased by the third quarter
results which reflect the successful integration of our acquisitions this year.
As we continue to grow and attract specialized expertise, we are increasingly
recognized as a value add partner for existing and new customers in critically
important areas. We believe our growing revenue is a reflection of our strategic
vision and our highly qualified employees."
Results of Operations Highlights
Net revenue for the three months ended September 30, 2010 was $4,779,000, an
increase of 123.8%, compared to $2,135,000 for the same period in 2009. For the
2010 year-to-date period revenue was $11,626,000 compared to $6,621,000 for the
2009 year-to-date period, an increase of 75.6%. The increase also reflects the
addition of two months of revenue from the PeopleSource acquisition, three months
of revenues from the ISG acquisition, and one month of revenues from the Q5Group
acquisition, as compared to last year.
Cost of revenues, defined as all costs for billable staff were $3,582,000 or
74.9% of revenue for the three months ended September 30, 2010, as compared to
$1,539,000 or 72.1% of revenue for the same period in 2009. For the 2010
year-to-date period costs were 76.9% of revenue, and for the 2009 year-to-date
period costs were 73.2% of revenue.
General and administrative (G&A) expenses were $1,059,000 or 22.1% of revenue
for the three months ended in September 30, 2010, as compared to $511,000 or
23.9% for the same period in 2009. For the 2010 year-to-date period it was 21.6%
as compared to 23.5% for the 2009 year-to-date period mostly reflected because
of the increase in revenues attributed to the acquisitions.
Operating income for the three months ended in September 30, 2010, was $137,000
as compared to income of $84,000 for the same period in 2009. For the 2010
year-to-date period, the operating income was $168,233 compared to income of
$215,000 for the 2009 year-to-date period. The decrease in operating income is
attributed to one time merger costs associated with the ISG and Q5Group
acquisitions: including legal, accounting, funding, and consulting costs
exceeding $230,000 through September 30, 2010.
Net income for the three months ended in September 30, 2010, was $85,213 or $.01
per diluted share, compared with net income of $107,149 for the same period in
2009, or $.02 per diluted share. For the 2010 year-to-date period net income
was $32,729 or $.00 per diluted share, compared to net income of $201,206 or
$.03 for the 2009 year-to-date period.
As of September 30, 2010, Premier had cash and cash equivalents of $505,168
representing an increase of $505,168 from September 30, 2009. Net working capital
at September 30, 2010, was $584,000 as compared to $342,000 on September 30,
2009. Current assets at September 30, 2010 were $3,170,253. We had long-term
debt of $158,482. Shareholders' equity as of September 30, 2010 was $4,631,233,
which represented 63% of total assets.
Mr. Elliott concluded, "Our top priority going forward is to continue to broaden
the range of services and capabilities we offer by building 'areas of
knowledge-based business expertise' and at the same time building a more
geographically diverse client base. In this way we can take advantage of
opportunities as they arise to strategically assist our customers and deepen
our relationships."
PREMIER ALLIANCE GROUP, INC.
STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
(Unaudited)
Three Three Nine Nine
months months months months
Ended ended ended ended
Sept 30, Sept 30, Sept 30, Sept 30,
2010 2009 2010 2009
----------- ----------- ----------- ----------
NET REVENUE $ 4,779,321 $ 2,134,719 $11,626,607 $6,620,738
----------- ----------- ----------- ----------
OPERATING EXPENSES:
Cost of revenues 3,582,664 1,538,907 8,941,687 4,850,285
Selling, general and
administrative 1,055,785 510,668 2,510,489 1,550,749
Depreciation 3,188 1,104 6,198 4,232
----------- ----------- ----------- ----------
Total operating
expenses 4,641,637 2,050,679 11,458,374 6,405,266
----------- ----------- ----------- ----------
INCOME FROM OPERATIONS 137,684 84,040 168,233 215,472
----------- ----------- ----------- ----------
OTHER (EXPENSE) INCOME:
Interest expense, net (72,889) (996) (110,802) (7,232)
Gain (loss) on
marketable securities (1,185) 40 (2,593) 11,932
Officers' life
insurance 36,497 57,646 1,395 65,990
Equity in net (loss)
income of
equity-method
investee (498) (1,774) (8,665) 346
Other income 2,400 0 4,875 2,400
----------- ----------- ----------- ----------
Total other (expense)
income (35,675) 54,916 (115,790) 73,436
----------- ----------- ----------- ----------
NET INCOME (LOSS) BEFORE
INCOME TAXES 102,009 138,956 52,443 288,908
INCOME TAX EXPENSE (16,796) (31,807) (19,714) (87,702)
----------- ----------- ----------- ----------
NET INCOME (LOSS) 85,213 107,149 32,729 201,206
PREFERRED STOCK
DIVIDENDS EARNED - - - -
----------- ----------- ----------- ----------
NET INCOME (LOSS)
AVAILABLE TO COMMON
STOCKHOLDERS $ 85,213 $ 107,149 $ 32,729 $ 201,206
=========== =========== =========== ==========
Net income (loss) income
per share
Basic $ 0.01 $ 0.02 $ 0.01 $ 0.03
Diluted $ 0.01 $ 0.02 $ 0.01 $ 0.03
=========== =========== =========== ==========
Weighted average number
of shares
Basic 6,949,359 5,897,836 7,579,984 5,878,018
Diluted 8,162,408 6,458,582 8,746,120 6,438,764
=========== =========== =========== ==========
About Premier Alliance Group, Inc.
Premier Alliance Group, Inc. provides business consulting services and human
capital solutions to customers with a focus on core areas of business processes
used throughout the corporate world including project management, business
analysis, business consulting and strategic consulting. Typical initiatives in
which Premier provides services include compliance and regulatory, merger and
acquisition, and business process reengineering efforts. Clients are serviced
with Knowledge-Based expertise from Premier's Business Performance & Technology,
Governance, Risk & Compliance (GRC), and Finance and Accounting practice areas.
For more information go to: www.premieralliance.com.
Safe Harbor Statement
Certain information contained in this press release may be forward-looking.
Actual results might differ materially from any forward-looking statements
contained in this press release. Such forward-looking statements involve known
and unknown risks, uncertainties and other unknown factors that could cause the
actual results of Premier Alliance Group to be materially different from any
future results expressed or implied by such forward-looking statements. In
addition to statements which explicitly describe such risks and uncertainties,
readers are urged to consider statements labeled with the terms "believes,"
"belief," "expects," "intends," "anticipates" or "plans" to be uncertain and
forward-looking.
Contact Information: Contact: Kathy Aviles 800-521-8077 investor@premieralliance.com