ROCHESTER, N.Y., March 30, 2015 /PRNewswire/ -- Document
Security Systems, Inc. (NYSE MKT: DSS), (DSS), a leader
in anti-counterfeiting and authentication solutions, reported
results for the fourth quarter and for the full-year of 2014.
"In 2014, DSS made significant progress towards some of its key
goals, including growth and increased profitability in its Printed
Products groups, continued development of AuthentiGuard, its brand
protection product line, and an evaluation of its operations that
should position the company for continued profitability
improvement. At the same time, the company faced significant
headwinds in its technology management business due to changes in
US patent law that resulted in adverse rulings and ultimately
significant impairments to our assets." said Jeff Ronaldi, CEO of Document Security Systems.
"In Q4, we recorded significant impairments following an adverse
ruling in our Bascom Research case against Facebook and LinkedIn,
which was delivered on January 5,
2015. Investing in intellectual property presents the
opportunity for significant returns but comes with significant
risks. We continue to believe that our remaining IP assets
are strong and should be less impacted by the recent patent trends,
which focus principally on software patents. Furthermore, our
investment model of sharing risks with co-investors and our legal
teams has helped us to weather this storm without significant cash
losses while still retaining significant upside potential in our
investments. However, we recognize that the current
climate in the IP investment space is significantly different that
it was in 2013 and first half of 2014 and that we will need to
continually adjust our approach to our IP investments."
Mr. Ronaldi continued: "Our brand protection business continued
to strengthen in 2014, and was anchored by the strength of our
printed products groups which generated positive adjusted EBITDA of
$1.8 million, a 15% increase over
2013. Also, our Digital group invested heavily in the
development of our AuthentiGuard product line. On the
operations front, during the first quarter of 2014 the company
completed a combination of its security printing and packaging
operations into one facility, resulting in ongoing savings, and
during the fourth quarter the Company instituted a broad cost
reduction program that aims to eliminate up to $1.0 million in expenses during 2015 through a
reduction to executive salaries, reduced head count, and the
discontinuation of any non-essential corporate expenses.
Unfortunately, these achievements were overshadowed by
the volatility of our IP business and the resulting impact on our
stock price. However, we continue to believe that our
IP business offers a risk/return profile that complements our
traditional operating divisions, with the ultimate goal to deliver
a valuable return to our shareholders over the long-term."
Q4 2014 Financial Highlights
Revenue for the fourth
quarter of 2014 decreased 7% to $4.8
million from $5.2 million in
the same year-ago quarter. During the quarter, printed
products revenue decreased 5% while technology sales, services and
licensing decreased 21%.
Costs and expenses totaled $32.4
million, an increase of 319% from $7.7 million in the same year-ago period. The
increase was primarily due to the non-recurring and non-cash
$25.3 million of net impairment
charges for the write-down of certain of the Company's IP assets
and goodwill. Absent the impairment charges, costs and
expenses for the fourth quarter of 2014 totaled $7.2 million, which was an 8% decrease from the
same year-ago period. The decrease was primarily driven
by reductions in compensation costs and professional fees.
Net loss to common shareholders totaled $27.7 million or $(0.66) per basic and diluted share, as compared
to net loss to common shareholders of $800,000 or ($0.02)
per basic and diluted share in the fourth quarter of 2014. The
increased net loss was primarily due to the $25.3 million net impairment charge recognized in
the fourth quarter of 2014 along with the impact of a $1.8 million deferred tax benefit recognized in
the fourth quarter of 2013.
Adjusted EBITDA loss, a non-GAAP metric defined as earnings
before interest, taxes, depreciation, amortization, and stock-based
compensation, and asset impairments as well as other non-recurring
items, totaled $737,000 compared to
an adjusted EBITDA loss of $846,000
in the same year-ago period (see further discussion about the use
of adjusted EBITDA, below). The improvement reflected the benefit
of cost control initiatives made by the Company that reduced
compensation costs and professional fees.
Full Year 2014 Financial Highlights
Revenue in 2014
increased 5% to $18.3 million from
$17.5 million in 2013. During
the year, printed products revenue increased 7% while technology
sales, services and licensing decreased 11%.
Costs and expenses totaled $64.7
million, an increase of 153% from $25.6 million in 2013. The increase was primarily
due to a non-recurring and non-cash impairment charges in the
aggregate of $37 million recognized
by the Company during 2014. Absent the impairment
charges, costs and expenses 2014 totaled $27.7 million, compared to $25.1 million in 2013, an 11% increase.
Net loss to common shareholders totaled $41.2 million or $(0.98) per basic and diluted share, as compared
to net income to common shareholders of $2.6 million or $0.08 per basic and diluted share in the fourth
quarter of 2014. The variance was primarily due to the $32.4 million of net impairment charges
recognized in 2014 along with the impact of deferred tax benefits
of 10.9 million recognized in 2013.
Adjusted EBITDA loss, a non-GAAP metric defined as earnings
before interest, taxes, depreciation, amortization, and stock-based
compensation, and asset impairments as well as other non-recurring
items, totaled $2.8 million in 2014
compared to an adjusted EBITDA loss of $2.0
million in 2013. (see further discussion about the use of
adjusted EBITDA, below).
Balance Sheet
In December of 2014, the Company
received approximately $1.3 million
in net proceeds from the sale of equity and completed the year with
approximately $2.3 million of
unrestricted cash. As of December 31, 2014, the Company had net working
capital position of approximately $2.3
million. Total assets of $27.8 million reflect the decrease in assets as a
result of the aggregate write-downs of approximately $37 million of assets made by the Company
during the year.
Changes to our Investor Relations Function
As part of
the effort to reduce corporate expenses, the Company has brought
its investor relations function in-house and has discontinued
quarterly conference calls for the foreseeable future. Going
forward the company will issue press releases reporting quarterly
and annual earnings but will not hold investor conference
calls.
Investors can contact DSS investor relations directly at
corporate headquarters in Rochester on 1 (866) 981-7675. Investors
can also email investor relations at ir@dsssecure.com.
About Document Security Systems
Document Security
Systems, Inc.'s (NYSE MKT: DSS) products and solutions are used by
governments, corporations and financial institutions to defeat
fraud and to protect brands and digital information from the
expanding world-wide counterfeiting problem. DSS technologies help
ensure the authenticity of both digital and physical financial
instruments, identification documents, sensitive publications,
brand packaging and websites.
DSS continually invests in research and development to meet the
ever-changing security needs of its clients and offers licensing of
its patented technologies through its subsidiary, DSS Technology
Management, Inc.
For more information on the AuthentiGuard Suite, please visit
www.authentiguard.com. For more information on DSS and its
subsidiaries, please visit www.DSSsecure.com. To follow DSS on
Facebook, click here.
For More Information
Investor Relations
Document Security Systems
(585) 325-3610
Email: ir@documentsecurity.com
Forward-Looking Statements
Forward-looking statements
that may be contained in this press release, including, without
limitation, statements related to the Company's plans, strategies,
objectives, expectations, potential value, intentions and adequacy
of resources, are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act and contain words such
as "believes," "anticipates," "expects," "plans," "intends" and
similar words and phrases. These forward-looking statements are
subject to risks and uncertainties that could cause actual results
to differ materially from the results projected in any
forward-looking statement. In addition to the factors specifically
noted in the forward-looking statements, other important factors,
risks and uncertainties that could result in those differences
include, but are not limited to, those disclosed in the "Risk
Factors" section of the Company's Annual Report on Form 10-K for
the year ended December 31, 2014,
filed with the Securities and Exchange Commission.
Forward-looking statements that may be contained in this press
release are being made as of the date of its release, and the
Company assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
DOCUMENT SECURITY
SYSTEMS, INC. AND SUBSIDIARIES
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
|
Three
Months
Ended
December
31,
2014
|
Three
Months
Ended
December
31,
2013
|
%
change
|
|
Year
Ended
December
31,
2014
|
Year
Ended
December
31,
2013
|
%
change
|
Revenue
|
|
|
|
|
|
|
|
|
|
Printed
products
|
|
|
$
4,418,000
|
$
4,653,000
|
-5%
|
|
$ 16,478,000
|
$ 15,426,000
|
7%
|
Technology sales,
services and licensing
|
|
|
394,000
|
501,000
|
-21%
|
|
1,809,000
|
$ 2,027,000
|
-11%
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
$
4,812,000
|
$
5,154,000
|
-7%
|
|
$ 18,287,000
|
$ 17,453,000
|
5%
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
Cost of revenue,
exclusive of depreciation and amortization
|
|
|
$
3,184,000
|
$
3,193,000
|
0%
|
|
$ 11,690,000
|
$ 10,458,000
|
12%
|
Sales, general and
administrative compensation
|
|
|
1,064,000
|
1,371,000
|
-22%
|
|
4,677,000
|
4,931,000
|
-5%
|
Depreciation and
amortization
|
|
|
1,351,000
|
1,305,000
|
4%
|
|
5,274,000
|
2,966,000
|
78%
|
Professional
fees
|
|
|
343,000
|
935,000
|
-63%
|
|
1,773,000
|
2,549,000
|
-30%
|
Stock based
compensation
|
|
|
250,000
|
315,000
|
-21%
|
|
1,355,000
|
1,895,000
|
-28%
|
Sales and
marketing
|
|
|
106,000
|
113,000
|
-6%
|
|
531,000
|
443,000
|
20%
|
Rent and
utilities
|
|
|
242,000
|
201,000
|
20%
|
|
809,000
|
688,000
|
18%
|
Other operating
expenses
|
|
|
492,000
|
226,000
|
118%
|
|
1,158,000
|
906,000
|
28%
|
Research and
development
|
|
|
118,000
|
78,000
|
51%
|
|
462,000
|
254,000
|
82%
|
Impairment of
goodwill
|
|
|
3,000,000
|
-
|
100%
|
|
3,000,000
|
239,000
|
1155%
|
Impairment of
intangible assets and investments
|
|
|
22,285,000
|
-
|
100%
|
|
34,035,000
|
278,000
|
12143%
|
|
|
|
|
|
|
|
|
|
|
Total
costs and expenses
|
|
|
$
32,435,000
|
$
7,737,000
|
319%
|
|
$ 64,764,000
|
$ 25,607,000
|
153%
|
exclusive of
impairments
|
|
|
$
7,150,000
|
$
7,737,000
|
-8%
|
|
$ 21,100,000
|
$ 20,229,000
|
4%
|
Operating
loss
|
|
|
(27,623,000)
|
(2,583,000)
|
969%
|
|
(46,477,000)
|
(8,154,000)
|
470%
|
|
|
|
|
|
|
|
|
|
|
Other
expenses
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
$
(65,000)
|
$
(87,000)
|
-25%
|
|
$
(317,000)
|
$
(246,000)
|
29%
|
Gain on sale of fixed
assets
|
|
|
-
|
117,000
|
-100%
|
|
-
|
117,000
|
-100%
|
Amortization of note
discount and loss on debt extinguishment
|
|
|
-
|
-
|
0%
|
|
(52,000)
|
(72,000)
|
-28%
|
Foreign currency
translation gain
|
|
|
-
|
-
|
0%
|
|
-
|
-
|
100%
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
|
|
$
(65,000)
|
$
30,000
|
-317%
|
|
$
(369,000)
|
$
(201,000)
|
84%
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
(27,688,000)
|
(2,553,000)
|
985%
|
|
(46,846,000)
|
(8,355,000)
|
461%
|
|
|
|
|
|
|
|
|
|
|
Deferred tax
provision (benefit)
|
|
|
1,000
|
(1,753,000)
|
-100%
|
|
$
(989,000)
|
$ (10,949,000)
|
-91%
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
(27,689,000)
|
(800,000)
|
3361%
|
|
(45,857,000)
|
2,594,000
|
-1868%
|
|
|
|
|
|
|
|
|
|
|
Less: loss
attributable to noncontrolling interest
|
|
|
-
|
-
|
0%
|
|
4,700,000
|
-
|
0%
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
to common shareholders
|
|
|
$ (27,689,000)
|
$
(800,000)
|
3361%
|
|
$ (41,157,000)
|
$ 2,594,000
|
-1687%
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share to common stockholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
(0.66)
|
$
(0.02)
|
3200%
|
|
$
(0.98)
|
$
0.08
|
-1325%
|
Diluted
|
|
|
$
(0.66)
|
$
(0.02)
|
3200%
|
|
$
(0.98)
|
$
0.08
|
-1325%
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing (loss) earnings per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
42,243,446
|
41,911,569
|
1%
|
|
42,105,619
|
31,838,593
|
32%
|
Diluted
|
|
|
42,243,446
|
41,911,569
|
1%
|
|
42,105,619
|
31,884,957
|
32%
|
DOCUMENT SECURITY
SYSTEMS, INC. AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
|
As of December
31,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
2,343,675
|
|
|
$
|
1,977,031
|
|
|
Restricted
cash
|
|
|
355,793
|
|
|
|
500,000
|
|
|
Accounts receivable,
net
|
|
|
2,097,671
|
|
|
|
2,149,123
|
|
|
Inventory
|
|
|
869,262
|
|
|
|
834,979
|
|
|
Prepaid expenses and
other current assets
|
|
|
425,671
|
|
|
|
403,107
|
|
|
Deferred tax asset,
net
|
|
|
2,499
|
|
|
|
223,323
|
|
Total current
assets
|
|
|
6,094,571
|
|
|
|
6,087,563
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
5,016,539
|
|
|
|
5,157,852
|
|
Investments and other
assets
|
|
|
686,912
|
|
|
|
11,448,008
|
|
Goodwill
|
|
|
12,046,197
|
|
|
|
15,046,197
|
|
Other intangible
assets, net
|
|
|
3,908,399
|
|
|
|
29,602,591
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
27,752,618
|
|
|
$
|
67,342,211
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,037,359
|
|
|
$
|
1,421,765
|
|
|
Accrued expenses and
other current liabilities
|
|
|
1,997,241
|
|
|
|
1,455,629
|
|
|
Revolving lines of
credit
|
|
|
-
|
|
|
|
158,087
|
|
|
Short-term
debt
|
|
|
-
|
|
|
|
824,857
|
|
|
Current portion of
long-term debt, net
|
|
|
754,745
|
|
|
|
613,488
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
3,789,345
|
|
|
|
4,473,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt,
net
|
|
|
7,439,036
|
|
|
|
3,087,358
|
|
Other long-term
liabilities
|
|
|
520,180
|
|
|
|
27,566
|
|
Deferred tax
liability, net
|
|
|
148,258
|
|
|
|
1,364,447
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
|
Common stock, $.02
par value; 200,000,000 shares
authorized,
46,172,404 shares issued and outstanding
|
|
|
|
|
|
|
|
|
|
(49,411,486 on
December 31, 2013)
|
|
|
923,448
|
|
|
|
988,230
|
|
|
Additional paid-in
capital
|
|
|
101,012,659
|
|
|
|
97,790,426
|
|
|
Accumulated other
comprehensive loss
|
|
|
(61,180)
|
|
|
|
(27,566)
|
|
|
Accumulated
deficit
|
|
|
(86,019,128)
|
|
|
|
(44,862,076)
|
|
|
Non-controlling
interest in subsidiary
|
|
|
-
|
|
|
|
4,500,000
|
|
|
Total stockholders'
equity
|
|
|
15,855,799
|
|
|
|
58,389,014
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and stockholders' equity
|
|
$
|
27,752,618
|
|
|
$
|
67,342,211
|
|
DOCUMENT SECURITY
SYSTEMS, INC. AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
For the Years
Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income including
noncontrolling interest
|
|
$
|
(45,857,052)
|
|
$
|
2,593,530
|
|
|
Adjustments to reconcile net
(loss) income to net cash used by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
5,274,323
|
|
|
2,966,368
|
|
|
Stock based
compensation
|
|
|
1,355,430
|
|
|
1,894,719
|
|
|
Paid in-kind
interest
|
|
|
48,000
|
|
|
-
|
|
|
Amortization of note
discount and premium
|
|
|
22,707
|
|
|
45,266
|
|
|
Loss on
extinguishment of debt
|
|
|
-
|
|
|
26,252
|
|
|
Gain on sale of fixed
assets
|
|
|
-
|
|
|
(116,569)
|
|
|
Impairment of
goodwill
|
|
|
3,000,000
|
|
|
238,926
|
|
|
Impairment of
intangible assets and investments inclusive of noncontrolling
interest
|
|
|
34,034,862
|
|
|
277,800
|
|
|
Deferred tax
benefit
|
|
|
(988,630)
|
|
|
(10,948,875)
|
|
|
Foreign currency
translation gain
|
|
|
(2,305)
|
|
|
-
|
|
|
Decrease (increase)
in assets:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
51,452
|
|
|
(26,104)
|
|
|
Inventory
|
|
|
(34,283)
|
|
|
(17,294)
|
|
|
Prepaid expenses and
other assets
|
|
|
30,081
|
|
|
(184,956)
|
|
|
Restricted
cash
|
|
|
144,207
|
|
|
(500,000)
|
|
|
Increase (decrease)
in liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
(384,406)
|
|
|
159,948
|
|
|
Accrued expenses and
other liabilities
|
|
|
915,376
|
|
|
(58,250)
|
|
|
Net cash used by
operating activities
|
|
|
(2,390,238)
|
|
|
(3,649,239)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of equipment
and building improvements
|
|
|
(280,902)
|
|
|
(378,587)
|
|
|
Proceeds from sale of
equipment
|
|
|
-
|
|
|
753,000
|
|
|
Acquisition of
business
|
|
|
-
|
|
|
6,568,112
|
|
|
Purchase of
investments
|
|
|
(750,000)
|
|
|
(250,000)
|
|
|
Purchase of
intangible assets
|
|
|
(1,243,714)
|
|
|
(2,593,495)
|
|
|
Net cash (used)
provided by investing activities
|
|
|
(2,274,616)
|
|
|
4,099,030
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Net payments on
revolving lines of credit
|
|
|
(158,087)
|
|
|
(80,153)
|
|
|
Payments of long-term
debt
|
|
|
(616,393)
|
|
|
(353,192)
|
|
|
Borrowings of
long-term debt
|
|
|
4,041,000
|
|
|
-
|
|
|
Issuances of common
stock, net of issuance costs
|
|
|
1,764,978
|
|
|
73,422
|
|
|
Net cash provided
(used) by financing activities
|
|
|
5,031,498
|
|
|
(359,923)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash
|
|
|
366,644
|
|
|
89,868
|
|
|
Cash beginning of
year
|
|
|
1,977,031
|
|
|
1,887,163
|
|
|
|
|
|
|
|
|
|
|
|
Cash end of
year
|
|
$
|
2,343,675
|
|
$
|
1,977,031
|
|
|
|
|
|
|
|
|
|
|
|
About the Presentation of Adjusted EBITDA
The Company
uses Adjusted EBITDA as a non-GAAP financial performance
measurement. Adjusted EBITDA is calculated by the Company by adding
back to net income (loss) interest, income taxes, depreciation and
amortization expense, and impairment charges as further adjusted to
add back stock-based compensation expense and non-recurring items,
such as costs related to the Company's merger with Lexington
Technology Group, and impairments of investments and intangible
assets. Adjusted EBITDA is provided to investors to supplement the
results of operations reported in accordance with GAAP. Management
believes that Adjusted EBITDA provides an additional tool for
investors to use in comparing its financial results with other
companies in the industry, many of which also use Adjusted EBITDA
in their communications to investors. By excluding non-cash charges
such as amortization, depreciation, stock-based compensation and
impairment charges, as well as non-operating charges for interest
and income taxes, investors can evaluate the Company's operations
and its ability to generate cash flows from operations and can
compare its results on a more consistent basis to the results of
other companies in the industry. Management also uses Adjusted
EBITDA to evaluate potential acquisitions, establish internal
budgets and goals, and evaluate performance of its business units
and management. The Company considers Adjusted EBITDA to be an
important indicator of the Company's operational strength and
performance of its business and a useful measure of the Company's
historical and prospective operating trends. However, there are
significant limitations to the use of Adjusted EBITDA since it
excludes interest income and expense and income taxes and
non-recurring items such as costs related to the Company's merger
with Lexington Technology Group, all of which impact the Company's
profitability and operating cash flows, as well as depreciation,
amortization, impairment charges and stock-based compensation. The
Company believes that these limitations are compensated by clearly
identifying the difference between the two measures. Consequently,
Adjusted EBITDA should not be considered in isolation or as a
substitute for net income and loss presented in accordance with
GAAP. Adjusted EBITDA as defined by the Company may not be
comparable with similarly named measures provided by other
entities. The following is a reconciliation of net loss to Adjusted
EBITDA loss:
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
2014
|
2013
|
%
change
|
|
|
2014
|
2013
|
%
change
|
|
|
(unaudited)
|
(unaudited)
|
|
|
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss to common
stockholders
|
|
$ (27,689,000)
|
$ (800,000)
|
3361%
|
|
|
$ (41,157,000)
|
$ 2,594,000
|
-1687%
|
Add back:
|
|
|
|
|
|
|
|
|
|
Depreciation
& Amortization
|
|
1,351,000
|
1,305,000
|
4%
|
|
|
5,274,000
|
2,966,000
|
78%
|
Stock based
compensation
|
|
250,000
|
315,000
|
-21%
|
|
|
1,355,000
|
1,895,000
|
-28%
|
Interest
expense
|
|
65,000
|
87,000
|
-25%
|
|
|
317,000
|
246,000
|
29%
|
Amortization of note
discount and loss on debt extinguishment
|
|
-
|
-
|
0%
|
|
|
52,000
|
72,000
|
-28%
|
Income
Taxes
|
|
1,000
|
(1,753,000)
|
-100%
|
|
|
(989,000)
|
(10,949,000)
|
-91%
|
Impairment of
intangible assets, goodwill and investments, net of noncontrolling
interests
|
|
25,285,000
|
-
|
100%
|
|
|
32,335,000
|
517,000
|
6154%
|
Professional fees and
other costs incurred in conjunction with the Merger with Lexington
Technology Group
|
|
-
|
-
|
0%
|
|
|
-
|
677,000
|
-100%
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
(737,000)
|
(846,000)
|
13%
|
|
|
(2,813,000)
|
(1,982,000)
|
-42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA, by
group (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Printed
Products
|
|
$ 490,000
|
$ 597,000
|
-18%
|
|
|
$ 1,845,000
|
$ 1,604,000
|
15%
|
Technology
Management
|
|
(534,000)
|
(602,000)
|
-11%
|
|
|
(1,877,000)
|
(1,213,000)
|
55%
|
Corporate, less
Merger costs in 2013 periods
|
|
(693,000)
|
(841,000)
|
-18%
|
|
|
(2,781,000)
|
(2,373,000)
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
(737,000)
|
(846,000)
|
13%
|
|
|
(2,813,000)
|
(1,982,000)
|
-42%
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/document-security-systems-inc-announces-2014-fourth-quarter-and-full-year-financial-results-300057748.html
SOURCE Document Security Systems, Inc.