Jagged Peak, Inc. (OTCBB:JGPK):
Net Revenues During the Quarter Increased over 55% to $4.5 Million
Positive Net Income for the Quarter
Over 200,000 Positive EBITDA for the Fourth Quarter
Jagged Peak, Inc. (OTCBB:JGPK), a global provider of enterprise
commerce, demand management, and fulfillment solutions and services,
announced financial results for the Fourth quarter ended December 28,
2007.
Net revenues for the 13-week period ended December 28, 2007 increased
over 55 percent to approximately $4.5 million, compared to approximately
$2.9 million for the 13-week period ended December 29, 2006. The
increase in revenue primarily related to the continued expansion of
services to existing customers, customer growth and new technology
customers. Cost of sales, which consists primarily of labor, software
amortization, technology, facilities and other reimbursable expenses,
increased by approximately 36 percent, to approximately $3.4 million,
compared to approximately $2.5 million for the same period last year. As
a percentage of revenue, cost of sales decreased by over 5 percent
compared to the same period last year. The increased cost of sales and
the decrease as a percentage of revenue resulted primarily from
increased order volume, increased production capacity and technology
enhancements. General and Administrative expenses decreased by
approximately 50 percent to approximately $1 million compared with costs
of approximately $2 million during the same period last year. The
decrease was primarily related to several one time expenses in the
previous year. The Company reported income of approximately $12,300,
compared with a net loss of approximately $1,235,200 for the same period
last year.
Paul Demirdjian, Chief Executive Officer of Jagged Peak, Inc. commented, “We
continue to have record revenues quarter after quarter and see the
success of our growth strategies. We expect to see this pattern continue
as we concentrate on our sales and marketing departments.”
Mr. Demirdjian also commented, “Our positive
net income for the quarter is evidence that our overall business model
is sound and we are excited about our growth opportunity for the coming
years.”
Andrew J. Norstrud, Chief Financial Officer of Jagged Peak, Inc.,
commented, “Our management team has
concentrated on growth strategies that are not capital intensive to
enable Jagged Peak to grow without the need for significant debt or
capital infusions. We have accomplished this while controlling our
general and administrative costs and maintaining our positive EBITDA. We
have grown our warehouse capacity through our software enhancements and
the development of our partnership network throughout North America.”
Mr. Norstrud also commented, “We expect to
continue our growth strategies in 2008 and put a stronger concentration
on creating potential investor awareness, increasing the number of
shares that can trade on the open market and active communication with
our current investors. We will continue our focus on the long term value
of the stock.”
EBITDA for the 52-week period ended December 28, 2007 was approximately
$337,300 compared to approximately $(1,187,700) in the comparable period
of the prior year. The increase in the EBITDA directly relates to (i) a
one-time charge of $303,400 related to the termination of a management
agreement in 2006, (ii) a one-time charge of $468,300 related to the
termination of capital raising efforts in 2006, (iii) $74,000 related to
the early extinguishment of debt in 2006, (iv) increased gross margin in
2007 and (v) increased revenue in 2007. The Company defines EBITDA as
earnings before interest, taxes, depreciation and amortization costs.
The Company also excludes the cumulative effect of a change in
accounting principle, discontinued operations, and the impact of
restructuring and other charges from the computation. The Company
believes EBITDA is a useful measure of operating performance before the
impact of investing and financing transactions, making comparisons
between companies’ earnings power more
meaningful and providing consistent comparisons of the Company’s
performance. In order to provide consistent comparisons of
year-over-year EBITDA, the following reconciliation is provided.
For the period ended
December 28, 2007
December 29, 2006
Net loss as reported
$
(360,000
)
$
(1,379,100
)
Income tax benefit
(158,600
)
(472,000
)
Interest expense
526,900
182,700
Depreciation and amortization
329,000
480,700
EBITDA
$
337,300
$
(1,187,700
)
Use of GAAP and Non-Gaap Measures
In addition to results presented in accordance with generally accepted
accounting principles (“GAAP”),
the Company has included in this report earnings “EBITDA,”
with EBITDA being defined by the Company as earnings before interest,
taxes, depreciation and amortization. The Company also excludes the
cumulative effect of a change in accounting principle, discontinued
operations, and the impact of restructuring and other charges from the
computation of EBITDA. For each non-GAAP financial measure, the Company
has presented the most directly comparable GAAP financial measure and
has reconciled the non-GAAP financial measure with such comparable GAAP
financial measure.
These non-GAAP financial measures provide useful information to
investors to assist in understanding the underlying operational
performance of the Company. Specifically, EBITDA is a useful measure of
operating performance before the impact of investing and financing
transactions, making comparisons between companies’
earnings power more meaningful and providing consistent
period-over-period comparisons of the Company’s
performance. In addition, the Company uses these non-GAAP financial
measures internally to measure its on-going business performance and in
reports to bankers to permit monitoring of the Company’s
ability to pay outstanding liabilities.
About Jagged Peak, Inc.
Jagged Peak, Inc. (OTCBB:JGPK), is a global provider of enterprise
commerce, demand management, and fulfillment logistics solutions and
services. The Company’s flagship product,
EDGE (E-business Dynamic Global Engine), is a completely web-based
software application that enables companies to automate and optimize
order management, inventory and fulfillment business processes across
multiple distribution points, customers, suppliers, and partners in
real-time.
Jagged Peak serves a growing list of global clients in multiple industry
segments including financial services, insurance, pharmaceutical, travel
and tourism, automotive, manufacturing, and consumer goods. Deloitte and
Touche’s Fast 50/Fast 500 program has
recognized Jagged Peak as one of America’s
fastest growing technology companies for four consecutive years
(2000-2004). For more information, visit www.jaggedpeak.com.
Forward-Looking Statements
This report contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve risks and uncertainties. Factors that
could cause actual results to differ materially from those predicted in
any such forward-looking statement include our ability to continue to
lower our costs, our timely development and customers' acceptance of our
products, including acceptance by key customers, pricing pressures,
rapid technological changes in the industry, growth of the market,
increased competition, our ability to attract and retain qualified
personnel, adverse changes in general economic conditions in the U.S.
and internationally, risks associated with foreign operations and
political and economic uncertainties associated with current world
events. These and other risks are detailed from time to time in the
Jagged Peak, Inc. periodic reports filed with the Securities and
Exchange Commission, including, but not limited to, its report on Form
10-KSB for its fiscal year ended December 29, 2006.
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