VillageEDOCS Announces 2009 Results --- 2009 Revenues Up 5% Over 2008
SANTA ANA, CA - April 21, 2010 - VillageEDOCS, Inc. (OCTBB: VEDO), a Solution as a Service company, today announced its financial results for 2009.
2009 Highlights
- Consolidated net revenue from continuing operations for 2009 increased by 5% over 2008;
- Operating expenses from continuing operations increased by 7% compared to 2008 and represented 84% of sales from continuing operations compared to 82% of sales from continuing operations in 2008;
- The most significant factor in the increase is the addition of the operating expenses from continuing operations of QSI for all twelve months of 2009, compared to five months during 2008;
- Operating expenses decreased at Corporate (-16%) and MVI (-18%);
- Net income increased 76% at MVI and net loss decreased 24% at Corporate; however, these improvements were offset by a net loss of $655,320 at QSI and a net income decrease of $378,440 (-33%) at GSI;
- Net loss for 2009 was $2,036,645, a 230% change from the net loss of $616,642 reported for 2008;
- We retired approximately $1,351,000 in notes payable to related parties and $65,000 in convertible notes payable to related parties using proceeds from the sale of TBS;
- We retired approximately $184,000 in accrued expenses that existed as of December 31, 2008;
- Our net payments on our lines of credit were approximately $760,000 during 2009 because we repaid more debt than we incurred; and
- Adjusted earnings for 2009 decreased to $28,170 from $411,755 for 2008 (see reconciliation below).
About VillageEDOCS, Inc.
VillageEDOCS (VEDO) provides the MessageVision Platform (MVP). The MessageVision Platform is a SaaS offering that ships business information electronically and manages it by capturing, forming and delivering information using business process management and communication. MVP is a combination of unified communications and business process management solutions blended into a single, scalable platform; eliminating the need for capital expenditures, operational costs and broad technology risks. MVP provides a single source for a wide range of business information management and communication applications on a pay-as-you-go financial model. For further information about VillageEDOCS, visit our website at www.villageedocs.com.
Forward-Looking Statements
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include the risk factors discussed in the Company’s filings with the Securities and Exchange Commission. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Trading in the Company's common stock is limited, and marketability of the stock is restricted by penny stock regulations and the fact that the common stock is traded on the OTCBB. The Company does not presently qualify, and may never qualify, to be listed or quoted on any exchange or other market.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Earnings
(unaudited)
| Year Ended December 31, | ||||
| 2009 | 2008 | |||
| GAAP Net Loss | $(2,036,645) | $(616,242) | ||
| Depreciation and amortization, including amortization of intangible assets | 828,738 | 743,627 | ||
| Non-cash stock option vesting expense | 251,614 | 298,593 | ||
| Interest expense, net of interest income | 144,579 | 268,927 | ||
| Other (income) expense, net | (42,291) | (129,815) | ||
| (Benefit) provision for income taxes | (63,000) | (80,000) | ||
| Loss (income) from discontinued operations, | 708,745 | (377,741) | ||
| Non recurring termination charges in workforce restructuring | 97,610 | 146,087 | ||
| Estimated fair value of common stock and warrants issued for services | 138,820 | 158,319 | ||
| Adjusted Earnings | $28,170 | $411,755 | ||
Non-GAAP Financial Measure: Adjusted Earnings
We believe "Adjusted Earnings," which is a non-GAAP financial measure, provides useful information to investors and management by excluding certain income, expenses, and gains and losses that may not be indicative of our core operating and financial results. We believe that "Adjusted Earnings" is a useful performance measure because certain items included in the calculation of net income (loss) may either mask or exaggerate trends in our ongoing operating performance. We expect to use "Adjusted Earnings" on an ongoing basis to track and assess our financial performance. You, however, should not consider "Adjusted Earnings" in isolation or as a substitute for net income (loss) or any other measure for determining our operating performance that is calculated in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP," "GAAP"). "Adjusted Earnings" is not necessarily comparable to similarly titled measures employed by other companies. We expect future Adjusted Earnings to vary significantly from anticipated future net income (loss) due to depreciation, amortization, interest, tax, equity compensation, and stock option vesting expenses during 2009 and 2008.
| Year Ended | Year Ended | Variance | |||
|---|---|---|---|---|---|
| December 31, 2009 | December 31, 2008 | Amount | Percent | ||
| Net revenue from external customers: | |||||
| Electronic document delivery services (MVI) | $2,576,842 | $2,761,147 | $(184,305) | -7% | |
| Electronic content management (QSI) | 2,157,280 | 979,553 | 1,177,727 | 120% | |
| Integrated communications (GSI) | 5,557,130 | 6,059,154 | (502,024) | -8% | |
| Corporate | - | - | - | ||
| Total net revenue from external customers | $10,291,252 | $9,799,854 | $491,398 | 5% |
| Year Ended | Year Ended | Variance | |||
|---|---|---|---|---|---|
| December 31, 2009 | December 31, 2008 | Amount | Percent | ||
| Net revenue from external customers: | |||||
| Electronic document delivery services (MVI) | $498,464 | $283,906 | $214,558 | 76% | |
| Electronic content management (QSI) | (655,320) | 16,695 | (672,015) | * | |
| Integrated communications (GSI) | 755,576 | 1,134,016 | (378,440) | -33% | |
| Corporate | (1,926,620) | (2,542,391) | 615,771 | 24% | |
| Discontinued operations | (708,745) | 491,532 | (1,200,277) | * | |
| Total net loss | $(2,036,645) | $(616,242) | $(1,420,403) | -230% | |
| * calculation is not meaningful |
| VillageEDOCS, Inc. and subsidiaries | ||||
|---|---|---|---|---|
| Consolidated Statements of Operations | ||||
| Year Ended December 31, | ||||
| 2009 | 2008 | |||
| Net sales | $10,291,252 | $9,799,854 | ||
| Cost of sales | 2,942,089 | 2,691,875 | ||
| Gross profit | 7,349,163 | 7,107,979 | ||
| Operating expenses: | ||||
| Product and technology development | 1,851,477 | 1,535,265 | ||
| Sales and marketing | 1,967,083 | 1,624,005 | ||
| General and administrative | 3,993,577 | 4,139,953 | ||
| Depreciation and amortization | 828,738 | 743,627 | ||
| Total operating expenses | 8,640,875 | 8,042,850 | ||
| Loss from continuing operations | (1,291,712) | (934,871) | ||
| Change in fair value of derivative liability | 3,100 | - | ||
| Interest expense, net of interest income | (144,579) | (268,927) | ||
| Other income, net | 42,291 | 129,815 | ||
| Loss from continuing operations before provision for income taxes | (1,390,900) | (1,073,983) | ||
| Provision for income taxes | (63,000) | (1,327,900) | ||
| Loss from continuing operations | (80,000) | (993,983) | ||
| (Loss) income from discontinued operations (net of income tax provision of $303,000 and $92,000, respectively) | (708,745) | 377,741 | ||
| Net loss | $(2,036,645) | $(616,242) | ||
| Net income (loss) available to common shareholders | ||||
| Basic | $(2,036,645) | $(616,242) | ||
| Diluted | $(2,036,645) | $(616,242) | ||
| Basic earnings (loss) per share: | ||||
| Loss from continuing operations | $(0.01) | $- | ||
| (Loss) income from discontinued operations | $- | $- | ||
| Net loss per share, basic | $(0.01) | $- | ||
| Diluted earnings (loss) per share: | ||||
| Loss from continuing operations | $(0.01) | $- | ||
| (Loss) income from discontinued operations | $- | $- | ||
| Net loss per share, diluted | $(0.01) | $- | ||
| Weighted average shares outstanding - | ||||
| Basic | 190,350,672 | 162,595,571 | ||
| Diluted | 190,350,672 | 197,497,477 | ||
| See accompanying notes to consolidated financial statements. | ||||
