Cover-All Business Update
July 15 2014 - 8:00AM
Business Wire
Cover-All Technologies Inc. (NYSE MKT:COVR) today provided
important business updates for the quarter ended June 30, 2014.
Preliminary results for the 2014 second quarter include:
- Total revenues were approximately $5.0
million, compared to $4.0 million for the 2013 second quarter.
- Net income was approximately $0.3
million, or $0.01 per diluted share, compared to a loss of $1.2
million, or $(0.04) per share, in the same period of 2013.
- Earnings before interest, taxes,
depreciation and amortization (“EBITDA”), a non-GAAP metric, was
over $0.8 million, or $0.03 per diluted share, compared to $0.2
million, or $0.01 per diluted share, in the same period of
2013.
“Our preliminary 2014 second quarter results demonstrate strong
year-over-year improvements in profitability and revenues,” said
Manish Shah, CEO and President of Cover-All. “These results reflect
the business strategies and investments we made last year and we
are seeing encouraging trends developing in the market as we enter
the second half of the year.”
The Company is also experiencing higher than expected demand for
professional services and is working to scale the organization for
meeting this increasing demand. As a result, management expects
revenues from professional services to be $8.5 ‒ $9.5 million in
2014, up from its previous expectation of $7.5 – $8.5 million.
Additionally, the Company is assessing M&A prospects
including a transformative opportunity which will help accelerate
Cover-All’s growth and leadership in the marketplace. These
opportunities are in various stages and it is premature to project
their timeline and whether any of them will materialize.
“As I hope you can see from this release, we are working hard to
grow and appreciate your patience while we transform our company. I
am excited about Cover-All’s vast potential to grow organically and
through acquisitions. We are confident successful implementations
will create future revenue opportunities later in the year. I
appreciate your continued support and look forward to updating you
in more detail in our second quarter financial release and
conference call,” concluded Mr. Shah.
A reconciliation of the Company's anticipated GAAP and non-GAAP
earnings is provided in the following table:
Cover-All Technologies Inc. and Subsidiaries
EBITDA RECONCILIATION TO U.S. GAAP NET
INCOME
(UNAUDITED)
Three Months Ended
June 30,
2014
2013 Net Income $ 0.3 million $ (1.2)
million Interest Expense, Net 0.1 million 0.1 million Depreciation
0.0 million 0.1 million Amortization 0.4 million 1.2 million EBITDA
$ 0.8 million $ 0.2 million
FORWARD-LOOKING STATEMENTS
Statements in this press release, other than statements of
historical information, are forward-looking statements that are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks which may cause the
Company’s actual results in future periods to differ materially
from expected results. Those risks include, among others, risks
associated with increased competition, customer decisions, the
successful completion of continuing development of new products,
the successful negotiations, execution and implementation of
anticipated new software contracts, the successful implementation
of our acquisition strategies and our ability to complete or
integrate acquisitions, the successful addition of personnel in the
marketing and technical areas, our ability to complete development
and sell and license our products at prices which result in
sufficient revenues to realize profits and other business factors
beyond the Company’s control. Those and other risks are described
in the Company’s filings with the Securities and Exchange
Commission (“SEC”) over the last 12 months, including but not
limited to the Company’s Annual Report on Form 10-K for the year
ended December 31, 2013, filed with the SEC on March 28, 2014,
copies of which are available from the SEC or may be obtained upon
request from the Company.
ABOUT NON-GAAP FINANCIAL MEASURES
In evaluating its business, Cover-All considers and uses EBITDA
as a supplemental measure of its operating performance. The Company
defines EBITDA as earnings before interest, taxes, depreciation and
amortization. The Company presents EBITDA because it believes it is
frequently used by securities analysts, investors and other
interested parties as a measure of financial performance.
The term EBITDA is not defined under U.S. generally accepted
accounting principles (“U.S. GAAP”) and is not a measure of
operating income, operating performance or liquidity presented in
accordance with U.S. GAAP. EBITDA has limitations as an analytical
tool, and when assessing the Company’s operating performance,
investors should not consider EBITDA in isolation or as a
substitute for net income (loss) or other consolidated income
statement data prepared in accordance with U.S. GAAP. Among other
things, EBITDA does not reflect the Company’s actual cash
expenditures. Other companies may calculate similar measures
differently than Cover-All, limiting their usefulness as
comparative tools. Cover-All compensates for these limitations by
relying on its U.S. GAAP results and using EBITDA only
supplementally.
ABOUT COVER-ALL TECHNOLOGIES INC.
Cover-All provides property and casualty insurance professionals
a robust state-of-the-art, browser-based family of Policy, Business
Intelligence, and Claims solutions designed to deliver products to
market faster, enhance quality, ensure compliance, and reduce
costs. With offices in Morristown, NJ and Honolulu, HI, Cover-All
continues its tradition of developing technology solutions designed
to revolutionize the way property and casualty insurance business
is conducted. Additional information is available online at
www.cover-all.com.
Cover-All®, My Insurance Center™ (MIC) NexGen, Insurance Policy
Database™ (IPD) and PipelineClaims™ are trademarks or registered
trademarks of Cover-All Technologies Inc. All other company and
product names mentioned are trademarks or registered trademarks of
their respective holders.
CorporateCover-All Technologies Inc.Ann Massey,
973-461-5190Chief Financial
Officeramassey@cover-all.comorInvestor & MediaSM Berger
& CoAndrew Berger, 216-464-6400andrew@smberger.com