MILWAUKEE, Dec 11, 2014 -- ARI Network Services, Inc., an award-winning provider of data-driven software tools and marketing services that help dealers, distributors and manufacturers Sell More Stuff!™, reported financial results today for its fiscal 2015 first quarter ended October 31, 2014.
Highlights for the fiscal first quarter included:
- The
company completed its acquisition of Tire Company Solutions, LLC
("TCS Technologies") on September 30, 2014, further
consolidating its position as the leader in eCommerce-enabled websites and
digital marketing services in the automotive tire and wheel industry.
- Total
revenues for the first quarter of fiscal year 2015 were $9.1 million,
which compares with $8.2 million for the same period last year and $8.5
million in 4Q14.
- Operating
income was $0.3 million for the first quarter of fiscal 2015, compared
with operating income of $0.2 million for the same period last year and
$0.4 million in 4Q14.
- Net
income was $104,000 or $0.01 per diluted share for the first quarter of
fiscal 2015, compared with net income of $25,000 or $0.00 per share for
the same period last year and $174,000 or $0.01 per share in 4Q14.
- EBITDA,
a non-GAAP measure, adjusted for non-cash charges, was $1.2 million or
13.2% of revenue in the first quarter of fiscal year 2015. This compares
with EBITDA of $1.0 million or 11.8% of revenue in the same period last
year and $1.4 million or 16.1% of revenue in 4Q14.
- Cash generated from operations was $1.6 million for the first quarter of fiscal 2015, compared with ($26,000) for the same period last year and $1.3 million in 4Q14.
Fiscal Year 2015 First Quarter Financials
ARI experienced 11.7% revenue
growth as it reported revenues of $9.1 million for the first quarter of fiscal
year 2015 compared with $8.2 million for the same period last year. Recurring revenues
for the first quarter of fiscal year 2015 were $8.2 million versus $7.7 million
in the same period last year. Recurring revenue comprised 89.5% of total
revenue for the first quarter versus 94.7% for the same period last year.
Gross margin for the first
quarter of fiscal year 2015 was 80.8% versus 80.9% last year.
Operating income was $283,000
for the first quarter of fiscal year 2015, compared with operating income of
$167,000 for the same period last year, a 69.5% increase. The increase in results
from operations is attributed to cost efficiencies and reductions made in
fiscal year 2014, partially offset by incremental costs in the quarter related
to the acquisition of TCS Technologies.
The company reported net income
of $104,000 or $0.01 per diluted share for the quarter, compared with a net
income of $25,000 or $0.00 per share last year.
Management Discussion
Roy W. Olivier, President and
Chief Executive Officer of ARI, commented, "With our first quarter
results, we are off to a great start for our fiscal year. We closed the TCS
Technologies acquisition on September 30, 2014, and with the incremental
revenue they contributed for the quarter, ARI revenue topped $9.0 million in
quarterly revenue for the first time. In addition to the revenue growth, we
were able to improve upon both our profit and EBITDA performance from the prior
year."
William Nurthen, Chief
Financial Officer, commented, "Our profit and EBITDA performance in the
quarter was strong given we experienced more than $200,000 in charges related
to the TCS Technologies acquisition in the quarter. In addition, we posted our
largest quarterly cash flow from operations performance ever at $1.6 million.
We are pacing well ahead of last year as this result represents more cash flow
than we generated in the first three quarters of fiscal 2014."
About
ARI
ARI Network Services, Inc. offers an award-winning suite of
data-driven software tools and marketing services to help dealers, equipment
manufacturers and distributors in selected vertical markets Sell More Stuff!™ –
online and in-store. Our innovative products are powered by a proprietary data
repository of enriched original equipment and aftermarket electronic content
spanning more than 17 million active part and accessory SKUs and 750,000
equipment models. Business is complicated, but we believe our customers'
technology tools don't have to be. We remove the complexity of selling and
servicing new and used vehicle inventory, parts, garments and accessories
(PG&A) for customers in the automotive tire and wheel aftermarket, power
sports, outdoor power equipment, marine, home medical equipment, recreational
vehicles and appliance industries. More than 23,500 equipment dealers, 195
distributors and 3,360 brands worldwide leverage our web and eCatalog platforms
to Sell More Stuff!™
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