Completes Strategic Business Transactions and Achieves Operating
Profitability HACKENSACK, N.J., May 15 /PRNewswire-FirstCall/ --
GoAmerica, Inc. (NASDAQ:GOAM), a provider of relay and wireless
communications and professional interpreter services for deaf,
hard-of-hearing, and speech-disabled persons, today announced
unaudited results for the quarter ended March 31, 2008. The
Company's Quarterly Report on Form 10-Q is on file with the
Securities and Exchange Commission ("SEC"). During the first
quarter, the Company closed its purchase of the telecommunications
relay services business of Verizon and its merger with Hands On
Video Relay(R) Services, Inc. In addition, the Company generated
operating profitability for the first time in its history. Total
revenue for the three months ended March 31, 2008 was $29.1
million, compared to $4.3 million for the three months ended March
31, 2007. The revenue growth is primarily attributable to the
transactions noted above as well as organic growth in the Company's
relay services business. Income from operations for the three
months ended March 31, 2008 was approximately $2.1 million compared
with a loss from operations of $638,000 for the three months ended
March 31, 2007. Net income for the three months ended March 31,
2008 was approximately $365,000 compared with a net loss $765,000
for the three months ended March 31, 2007. Net loss available to
common stockholders, when taking into account $714,000 of accrued
preferred stock dividends, was $349,000, or $0.04 per common share,
for the three months ended March 31, 2008 compared with a net loss
$765,000, or $0.35 per common share, for the three months ended
March 31, 2007. Income from operations, when adjusting for
approximately $2.1 million of employee stock compensation charges
and integration costs related to the January 10th acquisitions, was
$4.2 million for the three months ended March 31, 2008. This
adjusted income from operations include non-cash expenses of $0.2
million of depreciation and $1.4 million of amortization, primarily
attributable to the transactions noted within. Cash provided from
operations, when adjusting for the effects of the transactions, was
$2.4 million, principally resulting from income from operations.
Capital expenditures for Q1 2008 were $1.3 million, used primarily
to fund capacity expansion and call center operations. As of March
31, 2008, GoAmerica had approximately $25.3 million in unrestricted
cash and cash equivalents as well as $0.5 million in restricted
cash. Furthermore, the Company has $15.0 million of borrowing
capacity under its revolving line of credit. "The Company performed
well following the closing of our transactions and we're delighted
to have achieved operating profitability for the first quarter,"
said Dan Luis, CEO of GoAmerica. "Through these transactions and
the operational efforts of our team, we have strengthened the
Company's position as an industry leader and have established a new
foundation to support our growth." Summary of Recent Activities On
January 10, 2008, the Company announced that it had closed its
acquisition of Verizon's telecommunications relay services ("TRS")
division for $46 million in cash and up to an additional $8 million
in contingent cash consideration, and that it closed its merger
with Hands On Video Relay Services, Inc. for $35 million in cash
and 6.7 million shares of the Company's common stock for total
consideration of approximately $69 million. The foregoing
transactions were financed through a $40 million first lien credit
facility provided by Churchill Financial LLC and Ableco Finance
LLC, and a $30 million second lien credit facility provided by an
affiliate Clearlake Capital Group, and by the sale of $40.0 million
of GoAmerica's Series A Preferred Stock to Clearlake and related
entities. On March 20, 2008, the Company entered into new
employment agreements with Daniel R. Luis, its Chief Executive
Officer, and with Edmond Routhier, its President and Vice Chairman
of the Board (collectively, the "Executives"). On March 24, 2008,
the Company announced the appointment of Chris Gibbons to its Board
of Directors. Chris is an experienced technologist having held
multiple executive positions at Microsoft, including Chief
Information Officer (CIO). Most recently, Chris was the Chief
Technology Officer (CTO) and a board member of eStara Corp, an
e-commerce optimization provider. On April 1, 2008, the Company
announced the appointment of John Ferron to the dual positions of
CFO and COO. Mr. Ferron immediately commenced his COO
responsibilities on a part-time basis until June 2, 2008 at which
time he will assume both the CFO and COO responsibilities on a
full-time basis. In addition, the Company also hired Mike
Pendergast as General Counsel. Mr. Pendergast was part-time during
the month of April and assumed a full-time role with the Company
beginning May 1, 2008. "As we continue with our integration
efforts, we also have several strategic initiatives underway
including product innovations and the roll-out of a new software
platform for our video relay business that, among other things,
will enable increased efficiency in our communication centers,"
said Ed Routhier, President of GoAmerica. "We look forward to
expanding our range of offerings to our growing and loyal customer
base." About GoAmerica As a result of its acquisitions, GoAmerica
is the nation's largest and second largest provider of text relay
and video relay services, respectively, and provides an array of
communications and interpreting services tailored to the needs of
people who are deaf, hard-of-hearing, or speech-disabled. The
Company's vision is to improve the quality of life of its customers
by being their premier provider of high quality, innovative
communication services that break down communications barriers. For
more information on the Company or its services, visit
http://www.goamerica.com/ or contact GoAmerica directly at TTY
201-527-1520, voice 201-996-1717, Internet Relay by visiting
http://www.i711.com/, or video phone by connecting to hovrs.tv.
Safe Harbor The statements contained in this news release that are
not based on historical fact -- including statements regarding the
anticipated results of the transactions described in this press
release -- constitute "forward- looking statements" that are made
in reliance upon the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of forward-looking
terminology such as "may", "will", "expect", "estimate",
"anticipate", "continue", or similar terms, variations of such
terms or the negative of those terms. Such forward- looking
statements involve risks and uncertainties, including, but not
limited to: (i) our ability to integrate the businesses and
technologies we have acquired; (ii) our ability to respond to the
rapid technological change of the wireless data industry and offer
new services; (iii) our dependence on wireless carrier networks;
(iv) our ability to respond to increased competition in the
wireless data industry; (v) our ability to generate revenue growth;
(vi) our ability to increase or maintain gross margins,
profitability, liquidity and capital resources; and (vii)
difficulties inherent in predicting the outcome of regulatory
processes. Such risks and others are more fully described in the
Risk Factors set forth in our filings with the Securities and
Exchange Commission. Our actual results could differ materially
from the results expressed in, or implied by, such forward-looking
statements. GoAmerica is not obligated to update and does not
undertake to update any of its forward looking statements made in
this press release. Each reference in this news release to
"GoAmerica", the "Company" or "We", or any variation thereof, is a
reference to GoAmerica, Inc. and its subsidiaries. "GoAmerica", the
"GoAmerica" logo, "i711", and the "i711.com" logo, and "Relay and
Beyond" are registered trademarks of GoAmerica. "i711.com" and
"i711 Wireless" are trademarks and service marks of GoAmerica.
Other names may be trademarks of their respective owners. CONTACTS:
John Ferron COO GoAmerica 707-658-4690 Laura Kowalcyk CJP
Communications 212-279-3115 x209 GOAMERICA, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands) March 31, December 31,
2008 2007 Assets Current assets: Cash and cash equivalents. $
25,277 $ 2,368 Accounts receivable, net. 11,876 1,960 Merchandise
inventories, net. 128 206 Prepaid expenses and other current assets
1,730 220 Total current assets 39,011 4,754 Goodwill 71,834 6,000
Identifiable intangible assets, net 48,487 - Other assets 6,011
7,544 Total assets $165,343 $ 18,298 Liabilities and stockholders'
equity Current liabilities: Accounts payable $3,087 $1,285 Accrued
expenses 10,982 3,623 Deferred revenue 41 94 Loan payable - 3,532
Current portion of long term debt 400 - Other current liabilities
216 88 Total current liabilities 14,726 8,622 Long term debt less
current portion, net of discount of $2,261 at March 31, 2008 67,239
- Other liabilities 1,027 124 Stockholders' equity 82,351 9,552
$165,343 $ 18,298 GOAMERICA, INC. CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (In thousands, except share and per share data)
(Unaudited) Three Months Ended March 31, 2008 2007 Revenues: Relay
services $27,843 $3,660 Interpreting 621 - Other 588 647 29,052
4,307 Costs and expenses: Cost of relay services 14,392 2,405 Cost
of interpreting 339 - Cost of other 653 473 Sales and marketing
2,400 524 General and administrative 6,775 1,356 Research and
development 799 114 Depreciation and amortization 203 73
Amortization of intangible assets 1,429 - 26,990 4,945 Income
(loss) from operations 2,062 (638) Other income (expense):
Settlement losses - (162) Other expense (32) - Interest income
(expense), net (1,665) 35 Total other income (expense), net (1,697)
(127) Income (loss) before income taxes 365 (765) Income tax
provision - - Net income (loss) 365 (765) Preferred dividends 714 -
Net loss applicable to common stockholders $(349) $(765) Loss per
common share: Basic $(0.04) $(0.35) Diluted $(0.04) $(0.35)
Weighted average shares outstanding Basic and Diluted 9,145,335
2,185,458 DATASOURCE: GoAmerica, Inc. CONTACT: John Ferron, COO,
GoAmerica, , +1-707-658-4690; or Laura Kowalcyk, CJP
Communications, , +1-212-279-3115 x209 Web site:
http://www.goamerica.com/
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