Auto Data Network Reports Third Quarter Financial Results; Company Generates 7% Sequential Organic Growth and Delivers Nine Quarters of Consecutive Net Earnings
NEW YORK & TUNBRIDGE WELLS, England--Jan. 2, 20050, 2005--Auto Data Network Inc. (OTC BB: ADNW), a provider of software and real-time data services to the worldwide automotive industry, today announced financial results for its fiscal third quarter and nine month period ended November 30, 2004.For the third quarter, the Company reported revenues of $19.3 million, an increase of $13.1 million (over 200 percent) compared to revenues of $6.2 million for the corresponding quarter in fiscal year 2004, and an increase of $2.5 million or 15 percent compared to the current fiscal year second quarter revenue of $16.8 million.
Auto Data Network reported net income for the third quarter of $1.9 million, compared to net income of $829,000 in the third quarter of fiscal 2004 and $1.2 million in the second quarter of the current fiscal year.
For the nine month period, the Company reported revenues of $52.2 million, an increase of $37.1 million or 245 percent compared to revenues of $15.1 million for the corresponding period in fiscal year 2004. Gross profit margins for the first nine months were 47.0 percent compared to margins of 73.1 percent for the first nine months of fiscal 2004. ADN reported net income for the nine months of $4.2 million or $0.15 per share, compared to net income of $2.0 million or $0.14 per share, for the first nine months of fiscal 2004. Total operating expenses for the nine months increased to $18.5 million from $8.1 million for the first nine months of fiscal 2004.
"Our results for the quarter are in line with our expectations and reflect the additional revenues from integration of existing products" commented Chris Glover, Auto Data Network's Chairman.
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 OPERATIONS
FOR THE NINE MONTHS ENDED NOVEMBER 30, 2004
(UNAUDITED)
Nine Months Three Months
Ended Ended
November 30, November 30,
2004 2003 2004 2003
REVENUES $ 52,196,570 $ 15,095,548 $ 19,304,259 $ 6,218,593
COSTS OF REVENUES 27,630,019 4,062,729 10,047,377 1,359,507
------------ ------------ ------------ -----------
GROSS MARGIN 24,566,551 11,032,819 9,256,882 4,859,086
------------ ------------ ------------ -----------
OPERATING EXPENSES
Personnel 10,535,388 3,772,629 4,041,252 1,986,895
Sales and
marketing 1,069,025 159,477 409,848 16,252
General and
administration 5,224,865 3,831,989 1,685,983 1,533,481
Depreciation and
amortization 657,265 337,188 299,035 118,939
Rent 1,033,338 - 467,851 -
------------ ------------ ------------ -----------
TOTAL OPERATING
EXPENSES 18,519,881 8,101,283 6,903,969 3,655,567
------------ ------------ ------------ -----------
NET OPERATING
PROFIT 6,046,670 2,931,536 2,352,913 1,203,519
INTEREST AND
FINANCE CHARGES (296,033) (73,213) (83,896) (18,635)
FOREIGN EXCHANGE
GAIN/(LOSS) 87,598 - 33,245 -
INTEREST INCOME 122,779 - 418 -
------------ ------------ ------------ -----------
NET PROFIT BEFORE
TAXATION 5,961,014 2,858,323 2,302,680 1,184,884
PROVISION FOR
TAXATION 790,392 857,497 318,534 355,465
SHARE OF LOSS IN
ASSOCIATE COMPANY 487,403 - 252,996 -
DIVIDEND TO
PREFERENCE
STOCKHOLDERS 691,734 - 179,125 -
------------ ------------ ------------ -----------
NET PROFIT
ATTRIBUTABLE
TO COMMON
STOCKHOLDERS 3,991,485 2,000,826 1,552,025 829,419
OTHER COMPREHEN-
SIVE INCOME/
(LOSS):
Foreign currency
translation adj. 200,104 (107,606) 315,941 40,846
------------ ------------ ------------ ------------
TOTAL COMPREHEN-
SIVE INCOME $ 4,191,589 $ 1,893,220 $ 1,867,966 $ 870,265
============ ============ ============ ============
NET PROFIT PER
COMMON SHARE,
BASIC AND DILUTED 0.15 0.14 0.05 0.06
============ ============ ============ ============
WEIGHTED AVERAGE
SHARES OUTSTANDING 28,403,385 14,614,850 26,324,194 14,389,850
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