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Derycz Scientific Reports Adjusted EBITDA of $221,000 for First Quarter Fiscal Year 2013
First Quarter Fiscal Year 2013 Results Include: Adjusted EBITDA of $221,000; 8 Point Increase in Gross Profit as a Percentage of Revenue over Prior Year; Reaffirm Guidance of $1M Adjusted EBITDA from US Operations for Fiscal Year 2013
Nov 13, 2012
ENCINO, Calif., Nov. 13, 2012 /PRNewswire/ -- Derycz Scientific, Inc. (OTC:DYSC), a leader in information logistics solutions and a pioneer in facilitating the flow of information from content publishers to enterprise customers in life science and other research intensive industries, today reported financial and operating results for the first quarter of its fiscal year 2013 (quarter ended September 30, 2012).
First Quarter Fiscal Year 2013 Highlights:
"We are very excited to see the beginnings of positive adjusted EBITDA in our US Operations. We had predicted this turn towards the positive at the end of our last quarter, and are happy to be delivering on that today. I reaffirm guidance for the year of $1M in adjusted EBITDA from our US Operations for our fiscal year 2013. Additionally, I am happy to report that we are seeing early signs of stabilization at our European subsidiary TAAG which also managed to create a small, but positive, adjusted EBITDA of $23,000 for the quarter," said Derycz Scientific President and CEO Peter Derycz. "We are currently adding about one new corporate customer every business day, despite a prolonged global economic downturn. This validates our belief that there are literally thousands, if not tens of thousands, of organizations all over the world that should be using our products and services. These products and services continue to evolve and improve as we interact with more customers. These improvements in turn help us bring more happiness to more customers worldwide."
Alan Urban, Chief Financial Officer, added "A 4% increase in revenue from US operations over Q1 FY2012, a staggering 8 point increase in gross profit as a percentage of revenue over Q1 FY2012, and expense reduction work performed in prior quarters allowed us to achieve $221,000 in adjusted EBITDA this quarter. Mr. Urban added, "Our adjusted EBITDA swung $1.5M in the right direction compared to the same quarter last year. We feel comfortable with our guidance of $1M in adjusted EBITDA from US operations for the fiscal year."
Annual Meeting Reminder
Stockholders of Derycz Scientific, Inc. are invited to attend the Annual Meeting to be held on November 15, 2012, at 11:00 a.m. Pacific time, at our corporate headquarters, located at 5435 Balboa Boulevard, Suite 202, Encino, California 91316.
Our Board of Directors has fixed October 15, 2012 as the record date for the determination of stockholders entitled to notice and to vote at the Annual Meeting and any postponement or adjournment thereof, and only stockholders of record at the close of business on that date are entitled to notice and to vote at the Annual Meeting. We hope that you will use this opportunity to take an active part in the affairs of the Company by voting on the business to come before the Annual Meeting, either by Proxy Card or by casting your vote in person at the Annual Meeting.
Derycz Scientific management will host an investment-community conference call on Wednesday, November 14, 2012 beginning at 4:15 p.m. Eastern time (1:15 p.m. Pacific time) to discuss these results and answer questions. To participate in the call please dial (866) 516-3002 for domestic callers or +1 (253) 237-1159 for international callers, and enter passcode 70838050 when prompted.
The webcast will also be available from the Company's website at www.deryczscientific.com. Listening to the webcast requires Internet access and the Windows Media Player or other compatible streaming media player. A recorded replay will be available on the deryczscientific.com website for 60 days following the conclusion of the call.
Quarterly Results at a Glance
The following financial information should be read in conjunction with the unaudited financial statements and accompanying notes thereto filed by the Company with the Securities and Exchange Commission on November 13, 2012 in its Quarterly Report on Form 10-Q for the period ended September 30, 2012. The Quarterly Report can be viewed at www.sec.gov.
(Table amounts in 000's)
Use of Non-GAAP Measure – Adjusted EBITDA
Derycz Scientific management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the Company's operating results. The attached tables provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure.
Adjusted EBITDA is defined as net income (loss) from operations before interest, income taxes, depreciation and amortization expenses, excluding, when applicable, stock-based compensation, and impairment of acquired intangibles and goodwill.
Reconciliation of Adjusted EBITDA to Income (Loss) from Operations
(Table amounts in 000's)
About Derycz Scientific®
SOURCE Derycz Scientific, Inc.