Back to INV
Innovaro, Inc. Reports Financial Results for Three Months Ended March 31, 2012

Innovaro, Inc. (NYSE Amex: INV), today announced that total revenue was $1.3 million for the quarter ended March 31, 2012 as compared to $3.6 million for the quarter ended March 31, 2011 and net loss for the quarter ended March 31, 2012 was ($1.3) million as compared to ($176,000) for the quarter ended March 31, 2011.

First Quarter 2012 Financial Results Summary

  • Total revenue decreased to $1.3 million for the three months ended March 31, 2012 from $3.6 million for the three months ended March 31, 2011.
  • Strategic Services revenue decreased by 75% over first quarter 2011.
  • Technology Services revenue decreased by 11% over first quarter 2011.
  • Total expenses decreased to $2.5 million for the three months ended March 31, 2012 from $3.6 million for the three months ended March 31, 2011.
  • Net loss for the three months ended March 31, 2012 was ($1.3) million and included the following non-cash expenses: $324,000 in non-cash depreciation and amortization, and $98,000 in non-cash stock-based compensation expense related to vesting options. Net loss from operations for the three months ended March 31, 2011 was ($176,000), which included the following non-cash expenses: $374,000 in non-cash depreciation and amortization; and $83,000 in non-cash stock-based compensation expense related to vesting options.

Financial Condition

Our total assets were $20.2 million at March 31, 2012 and $20.8 million at December 31, 2011. As of March 31, 2012 we had $162,000 in cash, $1.0 million in accounts receivable and contracts in progress, $2.9 million in accounts payable and accrued expenses and $5.6 million in total debt outstanding. As of December 31, 2011 we had $268,000 in cash and cash equivalents, $1.3 million in accounts receivable and contracts in progress, $2.5 million in accounts payable and accrued expenses and $5.6 million in total debt outstanding.

Recent Developments

In April 2012, our Board of Directors approved the issuance of 61,876 shares of restricted stock under our equity compensation plan to our non-employee directors in lieu of $49,500 in cash director fees owed to them. The shares of restricted stock vested on May 7, 2012. The number of shares of restricted stock issued to the non-employee directors was based on the closing price of our common stock on the NYSE Amex on April 4, 2012.

Asa Lanum, Innovaro’s CEO stated, “While we understand the reasons for the slowing of revenue we are not satisfied with the results and are working diligently to improve them. As mentioned in our discussion of the 2011 results, the challenging economic situation in Europe and the completion of several existing client assignments made the first quarter of 2012 a difficult one for Innovaro. However, based on results already in hand and on our prospective business pipeline we expect second quarter 2012 results to be substantially improved as we extend existing client relationships further and launch initial assignments with a number of newly-acquired clients. Some of this has been evidenced by the announcements of the new clients and engagements during the second quarter.”

   

Innovaro, Inc.

Consolidated Balance Sheet

 

March 31,

2012

(Unaudited)

December 31,

2011

ASSETS
Current assets:
Cash $162,249 $268,170
Accounts receivable, net 879,358 799,235
Contracts in process 139,242 513,040
Available-for-sale securities 57,193 55,038
Prepaid expenses and other assets 244,151 294,625
Note receivable and accrued interest 1,830,000   1,804,000  
Total current assets 3,312,193 3,734,108
Cost method investments 86,784 86,784
Equity method investments 92,148 92,148
Fixed assets, net 5,582,598 5,632,757
Goodwill 6,175,353 6,130,152
Intangible assets, net 4,904,943   5,090,316  
Total assets $20,154,019   $20,766,265  
 
LIABILITIES
Current liabilities:
Accounts payable $674,469 $549,431
Accrued expenses 899,245 475,348
Accrued bonus pool 1,366,580 1,444,955
Deferred revenue 994,200 856,222
Current maturities of long-term debt 1,598,772   1,644,664  
Total current liabilities 5,533,266 4,970,620
Long-term debt, less current maturities 3,976,241 3,997,775
Deferred tax liability 989,385   990,542  
Total liabilities 10,498,892   9,958,937  
 
EQUITY
Innovaro stockholders’ equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized; none issued and outstanding - -
Common stock, $.01 par value, 29,000,000 shares authorized; 15,159,544 shares issued; 15,064,544 and 15,039,544 shares outstanding at March 31, 2012 and December 31, 2011, respectively 150,646 150,396
Additional paid-in capital 86,918,658 86,820,437
Accumulated deficit (77,758,902 ) (76,453,214 )
Accumulated other comprehensive income 110,841   53,939  
Total Innovaro stockholders’ equity 9,421,243 10,571,558
Noncontrolling interest 233,884   235,770  
Total equity 9,655,127   10,807,328  
Total liabilities and equity $20,154,019   $20,766,265  
 
 

Innovaro, Inc.

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

 
Three Months Ended March 31,
2012   2011
Revenue:
Strategic services $743,671 $3,027,861
Intelligence and Insights services 512,643   574,868  
1,256,314   3,602,729  
Expenses:
Direct costs of revenue – Strategic services 823,818 1,681,562
Direct costs of revenue – Intelligence and Insights services 332,163 333,242
Salaries and wages 378,794 324,508
Professional fees 78,963 88,279
Research and development 100,263 303,577
Sales and marketing 66,206 61,235
General and administrative 477,625 504,686
Depreciation and amortization 291,041   341,088  
2,548,873   3,638,177  
Other (income) and expense:
Other (income) expense (120,920 ) 6,703
Interest expense, net 134,776   141,587  
13,856   148,290  
 
Loss before income taxes (1,306,415 ) (183,738 )
Provision for income tax expense (benefit) 1,159   (7,998 )

Net loss

(1,307,574

)

(175,740

)

 
Net loss attributable to the noncontrolling interest (1,886 ) (2,427 )
 
Net loss attributable to Innovaro stockholders (1,305,688 ) (173,313 )
 
Other comprehensive income 56,902   7,087  
Comprehensive loss $(1,248,786 ) $(166,226 )
 
Net loss attributable to Innovaro stockholders per share: Basic and diluted $(0.09 ) $(0.01 )
 
Weighted average shares outstanding: Basic and diluted 15,064,544 15,022,761
 
 

Innovaro, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

 
Three Months Ended March 31,
2012   2011
Operating Activities:
Net loss attributable to Innovaro stockholders $ (1,305,688 ) $ (173,313 )
Adjustments to reconcile net loss attributable to Innovaro stockholders to net cash flows from operating activities:
Net loss attributable to noncontrolling interest (1,886 ) (2,427 )
Depreciation and amortization 291,041 341,088
Amortization of debt discount from investor warrants 32,944 32,582
Gain (loss) on sale and impairment of available-for-sale securities (12,803 ) 201
Loss (gain) on derivative liabilities - 72,066
Stock-based compensation 98,471 82,578
Deferred income taxes 1,159 (7,998 )
Other 40,660 7,512
Changes in operating assets and liabilities:
Accounts receivable and contracts in process 298,611 (45,140 )
Prepaid expenses and other assets (20,460 ) 97,584
Deferred revenue 137,978 113,157
Accounts payable, accrued expenses and accrued bonus   470,560     174,551  
Net cash flows from operating activities   30,587     692,441  
 
Investing Activities:
Capital expenditures (1,189 ) (22,758 )
Capitalization of software development costs (45,525 ) -
Proceeds from sale of available-for-sale securities   16,236     -  
Net cash flows from investing activities   (30,478 )   (22,758 )
 
Financing Activities:
Payments on long-term debt   (101,032 )   (291,637 )
Net cash flows from financing activities   (101,032 )   (291,637 )
 
Effect of foreign exchange rates on cash   (4,998 )   (5,411 )
 
Increase (decrease) in cash (105,921 ) 372,635
Cash at beginning of period   268,170     262,619  
Cash at end of period $ 162,249   $ 635,254  
 
 
Supplemental Disclosures of Cash Flow Information
 
Cash paid for taxes $ -   $ -  
Cash paid for interest $ 115,731   $ 125,053  
 
Supplemental Disclosures of Non-Cash Investing and Financing Activities
 
Unrealized gain (loss) from available-for-sale securities $ 5,588   $ (49,496 )
 

Conference Call Information

We will host a live conference call at 4:30 p.m. ET today to discuss the results. Investors and analysts are invited to attend the conference call.

Investors and analysts can participate in the call by dialing:

US & Canada: 866-240-5139

UK: 0-800-368-0590

Other International Callers: 713-481-0091

About Innovaro, Inc.

Innovaro is The Innovation Solutions Company. The focus of our business is to help clients innovate and grow. Innovaro offers a comprehensive set of services and software to assure the success of any innovation project, regardless of the size or intent. The Company’s unique combination of consulting services provides innovation expertise, its new LaunchPad software product provides an integrated innovation environment, and Intelligence and Insights services provide businesses the innovation support to drive success. For more information about Innovaro, please visit its website at www.innovaro.com.

Forward-Looking Statements

Certain matters discussed in this press release are “forward-looking statements.” These forward-looking statements can generally be identified as such because the context of the statement will include words such as “expects,” “should,” “believes,” “anticipates” or words of similar import. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements and these factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release is available at www.innovaro.com.

(c) 2014 Business Wire, Inc., All rights reserved. All of the news releases and other content contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire's members, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. Any copying or reproduction (other than for an individual user's personal reference), redistribution, reposting or other transmission or communication is expressly prohibited without prior written permission of Business Wire, Inc
Back to INV
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki