Auto Data Network Reports Revenue of $25 million and $0.19 EPS For 2004 Fiscal Year
NEW YORK--June 4, 2004--Auto Data Network, Inc. (OTCBB:ADNW), a provider of software and real-time data services to the worldwide automotive industry, today announced financial results for its fourth fiscal quarter and fiscal year ended February 29, 2004.The company reported revenues of $25.0 million for its 2004 fiscal year, compared to revenues of $1.8 million for its fiscal year 2003. Net income for the year was $3.7 million or $0.19 per share. This compares to net income of $515,000 or $0.045 per share for the fiscal year 2003.
Gross margins during the year averaged 68 percent compared to 67 percent for the previous fiscal year. Total operating expenses increased over the previous fiscal year to $12.8 million from $1.1 million, however, as a percentage of revenue, expenses decreased to 50 percent in the 2004 fiscal year from 61 percent in the 2003 fiscal year.
"Broad-based demand and solid execution across all our businesses drove results for the year," said Chris Glover, Chairman of Auto Data Network, Inc. "All of our businesses met or exceeded our expectations. With overall corporate IT spending continuing to improve, we expect to see healthy demand as we move into the next fiscal year."
Chris Glover continued, "Auto Data Network possesses the strongest solution portfolio for the automotive dealership industry, and in the course of the year we have firmly established our position. As our focus moves towards execution, we are moving quickly to deliver our combined suite of enterprise-class services within an integrated, intelligent, information empowered framework. We will deliver significant competitive advantage to our customers who will be able to access new revenue opportunities, operate on a lower cost base and respond rapidly to market changes."
On March 15, 2004, the Company acquired a one-third equity interest in DCS Automotive Holdings Limited for $11 million and the right to purchase the remaining two-thirds equity interest. DCS is the leading provider of DMS systems in France, Germany and Switzerland with in excess of 11,000 clients - this client base is in the same range as U.S. market leaders Reynolds and Reynolds and ADP Automotive . The Company intends to overlay its 'DMS Plus' product range to DCS' significant client base.
The Company is projecting revenues of $62 million with earnings per share ranging from $0.24 to $0.26 for fiscal year 2005, excluding the anticipated acquisition of DCS. With the DCS acquisition, which is expected to be completed during the second quarter, guidance is expected to increase to revenues of $117 million and an EPS range of $0.34 to $0.36 for fiscal 2005.
"Building value for our shareholders has been a top priority for Auto Data Network during the past twelve months," added Chris Glover. "Our entire organization is keenly focused on expanding our role to the company leading the transformation of business software in the automotive industry."
Auto Data Network will conduct a conference call today at 10:00 a.m. (EDT) to present its fiscal fourth quarter and full year financial results and to respond to investor questions. Interested shareholders may participate in the call by dialling 800-686-8478 (U.S.) or 212-346-6544 (outside of the U.S.) and providing the following reservation number: 21196929. It is recommended that participants call 10 minutes before the conference call is scheduled to begin. The conference call can also be accessed over the Internet through Vcall at www.vcall.com. A replay of the call will be available approximately one hour after the completion of the conference call through Vcall and for 24 hours by dialling 800-633-8284 or 402-977-9140 and entering the reservation number listed above.
About Auto Data Network
Auto Data Network is a group of established companies that provide real time data and transactional services and software products to the automotive industry. The company's main customer base is the auto dealership marketplace, which consists of approximately 78,000 dealers in North America and 92,000 dealers in Europe. Auto Data's objective is to create the most comprehensive, online database for the European and U.S. automotive sectors to improve efficiency, competitiveness and cultivate communications between dealers, suppliers, OEMs and customers to reduce costs and increase clients' profitability.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations through either acquisitions or internal growth, to attract and retain qualified professionals, and to expand commercial relationships; technological obsolescence; general economic conditions; and other risks detailed time to time in the Company's filings with the Securities and Exchange Commission (SEC).
Auto Data Network, Inc.
Consolidated Statements of Financial Condition
As of As of
February 29, February 28,
2004 2003
(Unaudited) (Unaudited)
ASSETS
Current Assets
Cash and equivalents $ 6,282,465 $ 722,961
Accounts receivable 12,398,307 867,106
Other accounts receivable 892,435 -
Prepaid expenses 335,066 1,194
Inventories 2,419,465 -
----------- ----------
Total Current Assets 22,327,738 1,591,261
Fixed Assets less accumulated depreciation 2,344,988 54,159
Intangibles 16,942,003 7,498,181
Other Assets 4,716,354 -
----------- ----------
TOTAL ASSETS $46,331,083 $9,143,601
============ ===========
LIABILITIES
Current Liabilities
Accounts payable $ 7,025,766 $1,451,366
Accrued expenses and sundry accounts
payable 659,334 279,683
Loans Payable 8,293 22,583
Taxation payable 1,776,491 488,000
Bank Overdraft 1,109,226 289,744
Deferred Revenue 990,108 --
Other current liabilities 1,566,189 --
----------- ----------
Total Current Liabilities 13,135,407 2,531,376
Long-term liabilities and deferred income 2,486,444 --
----------- ----------
Total Liabilities 15,621,851 2,531,376
----------- ----------
SHAREHOLDERS' EQUITY
Common stock ($.001 par value); authorized
50,000,000 shares; issued and outstanding
23,602,000 23,602 11,590
Preferred stock ($.001 par value)25,000,000
shares authorized; 2,866,000 issued and
outstanding 2,866 --
Additional paid in capital 28,049,231 7,214,749
Currency value changes (318,703) 61,827
Pre-acquisition reserve 83,612 --
Accumulated surplus/(deficit) 3,649,527 (675,941)
Retained earnings B/Fwd (780,903) --
----------- ----------
Total Shareholders' Equity 30,709,232 6,612,225
----------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $46,331,083 $9,143,601
============ ===========
Auto Data Network, Inc.
Consolidated Statements of Operations
(Unaudited)
Twelve Months Ended
------------------------
2-29-2004 2-28-2003
----------- ----------
Revenue $25,330,056 $1,772,996
Cost of Revenue 8,057,903 890,193
----------- ----------
Gross Margin 17,272,153 1,182,803
----------- ----------
Operating Expenses
Personnel 6,329,438 313,528
Total Operating Expenses 12,839,838 1,081,617
----------- ----------
Total Operating Profit/(Loss) 4,432,315 101,186
Interest Expense (138,754) 22,564
----------- ----------
Net Profit/(Loss) before Tax 4,293,561 846,711
Provision for Taxation 644,034 332,063
----------- ----------
Net Profit after Tax $ 3,649,527 $ 514,648
=========== ==========
Net Profit per Share $ 0.19 $ 0.045