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8-K - EMTEC INC/NJ | v181973_8k.htm |
EXHIBIT
99.1
NEWS
Contact:
John P.
Howlett
Vice
Chairman Emeritus
Emtec,
Inc.
Telephone
908-338-0043
Email
johnhowlett@emtecinc.com
Web site
www.emtecinc.com
Emtec,
Inc. Announces Second Quarter Results
Marlton,
NJ, April 22, 2010 – Emtec, Inc. (OCTCBB: ETEC) (“Emtec,” or the “Company”)
announced today that for the quarter ended February 28, 2010, earnings before
interest, taxes, depreciation and amortization expenses (“EBITDA”) loss of
$696,000 compared to EBITDA profit of $216,000 for the quarter ended February
28, 2009. EBITDA for the six months ended February 28, 2010 was $2.42 million,
compared with $2.68 million for the six months ended February 28, 2009. Adjusted
EBITDA, which is defined by management as net income before interest, taxes,
depreciation, amortization, retention bonuses, non-essential overhead, stock
based compensation, executive recruiting fees, severance, temporary wage
reductions, discretionary bonuses, merger related professional fees and the
recovery of prior year expenses (“Adjusted EBITDA”) for the six months ended
February 28, 2010 was $3.19 million, compared to $3.23 million for the same six
months of the prior year. Net income for the six months ended February 28, 2010
decreased slightly from $621,000 to $558,000 compared to the same six months in
the prior fiscal year. The decreases in EBITDA, Net Income, and Adjusted EBITDA
are primarily attributable to a longer than anticipated economic downturn in our
commercial, state and local business; the after effect of a year long reduction
in billing rates by commercial customers, and; investments made in
new management to position the company to take advantage of services growth as
the economy recovers. A reconciliation of EBITDA and Adjusted EBITDA to net
income (loss) is attached to this press release.
EBITDA
and Adjusted EBITDA are key financial metrics used by the Company’s board of
directors and management to evaluate and measure the Company’s operating
performance. These metrics are not in conformity with generally accepted
accounting principles in the United States of America
(“GAAP”). Management’s calculation of EBITDA eliminates the effect of
charges primarily associated with financing decisions, tax regulations and
capital investments. Adjusted EBITDA also eliminates certain non-recurring or
unusual costs, reflects certain changes made by management during the quarter
and makes adjustments which in the opinion of management are necessary to
reflect the underlying ongoing operations of the business going forward. Net
income (loss) is the most comparable GAAP measure of the Company’s operating
results presented in the Company’s consolidated financial
statements. We have made a reconciliation of these non-GAAP measures
to net income (loss), the most closely comparable GAAP measure, for the three
and six months ended February 28, 2010 and 2009 and discussed these adjustments
below. EBITDA and Adjusted EBITDA should not be considered as an
alternative to net income (loss) or any other GAAP measure of performance or
liquidity, and may not be comparable to other similarly titled measures of other
companies. Management believes that the presentation of EBITDA and
Adjusted EBITDA is important to investors because Adjusted EBITDA is used by
management to evaluate financial performance and continuing operations and to
determine resource allocation for each of our business segments.
For the Emtec Infrastructure Services
(“EIS”) division there was
an Adjusted EBITDA loss of $363,000 for the quarter ended February
28, 2010, compared to an Adjusted EBITDA loss
of $84,000 for the quarter
ended February
28, 2009. Revenue and profits for the second
quarter are typically seasonal for EIS. The Federal and Education
business typically have less revenue during this quarter. In the past
the commercial business has been able to absorb some of this cyclicality, but
because of the longer term economic slowdown our commercial business could not
absorb as much of the loss as we have seen in past. We have taken steps to alleviate
this seasonality in the Federal and Education business by engaging in longer term
projects with a higher percentage of consulting and managed services revenues.
In addition, as part of this shift into consulting and managed services, we have
taken steps to change the nature of our commercial
business. In 2009 and 2010, we
invested in strengthening
our executive management team, marketing
initiatives and in April 2010, management analyzed the
profitability of the
commercial business, and in particular the procurement services
business. As a
result management initiated
new cost containment measures which will reduce and redirect
certain expenses
away from our commercial
procurement business, which was underperforming to our consulting services in the
commercial sector. Management estimates that up to $2 million in annualized costs will be
reduced as a result of this restructuring and that the costs associated with the
restructuring are estimated to be up to $150,000, primarily related to severance
costs. Management will
continue to invest in attracting talent to the higher gross margin consulting practices
in the commercial sector.
Adjusted EBITDA for Emtec Infrastructure
Services (“EIS”) division increased to $2.63 million for the six months ended
February 28, 2010 from $1.79 million comparable to the prior year. Except for retention bonuses, all adjustments included in the
calculation of Adjusted EBITDA set forth in the reconciliation table below were
for this division.
Adjusted
EBITDA for the Emtec Global Services (“EGS”) division was $135,000 for the
quarter ended February 28, 2010, compared with $498,000 for the quarter ended
February 28, 2009. Adjusted EBITDA for the EGS division decreased
from $1.44 million for the six months ended February 28, 2009 to $558,000 for
the six months ended February 28, 2010. This decline was caused by a
13.2% decrease in hours billed and a 8.0% decrease in the average hourly billing
rate during the three months ended February 28, 2010 compared with the
corresponding period in 2009. Hours billed for the six months ended February 28,
2010 decreased 18.0% and the average hourly billing rate decreased 7.6% compared
to the prior year. Billable hours decreased primarily due to
decreases in our Business Analysis and Quality Assurance practices. Most of the
clients EGS serves are commercial clients and we believe that this decrease in
commercial business is primarily attributed to the current economic downturn.
While the overall revenue for the quarter declined on a year over year basis, in
the month of February 2010, we began to see an increase in hours billed and an
increase in billable rates per hour. We expect this trend to continue, however,
we can make no assurance for future trends. The EGS adjustment included in the
calculation of Adjusted EBITDA includes retention bonuses paid during the six
months ended February 28, 2010.
2
“We are excited about the continued
success in our Federal and Education business which continue to show bottom line
increases over last year. In addition, our Infrastructure consulting practice
has continued to make new gains, and we have started to see a return to growth
for our EGS business. While the results for the quarter were not unexpected, we
were disappointed with the performance of our commercial infrastructure
practice. We have made investments in transforming the business and
we expect results to fluctuate during the periods of these
investments. We will continue to look for the best ways to build
fundamental value, investing in areas of growth and higher margins, and finding
ways to shift costs away from lower margin businesses. We are
increasingly pleased that seasoned services industry executives are attracted to
the Emtec story and we are very excited about our recent offshore delivery
acquisition,” said Dinesh
Desai, Chairman and Chief Executive Officer of Emtec. He added “we ask for all our
stakeholders to have patience in our transformation as we look to build a world
class differentiated systems integrator.”
About
Emtec:
Emtec,
Inc. a Delaware corporation (the “Company”) established in 1964, is a systems
integrator providing information technology (“IT”) services and products to the
federal, state, local, education and commercial markets. Emtec helps clients
identify and prioritize areas for improvement and then implement process,
technology and business application improvements that reduce cost, improve
service and align the delivery of IT with the needs of their organization.
The Company’s value-based management methods, coupled with IT technology,
consulting and development services, allow us to address a wide range of
specific client needs, as well as support broader IT transformation
initiatives. The Company’s client base is comprised of departments of
federal, state and local governments in the United States and Canada, schools
and commercial businesses throughout the United States and Canada.
Certain statements in this document
constitute “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors, which may
cause the actual results, performance or achievements of the Company or industry
results, to be materially different from any future results, performance, or
achievements expressed or implied by such forward-looking statements. The
Company’s future operating results are dependent upon many factors, including
but not limited to the Company’s ability to: (i) obtain sufficient capital or a
strategic business arrangement to fund its plan of operations when needed; (ii)
build the management and human resources and infrastructure necessary to support
the growth of its business; (iii) competitive factors and developments beyond
the Company’s control; and (iv) other risk factors discussed in the Company’s
periodic filings with the Securities and Exchange Commission which are available
for review at www.sec.gov under “Search for Company
Filings.” We undertake no obligation to publicly update or revise
any forward-looking statements to reflect changed assumptions, the occurrence of
anticipated or unanticipated events, or changes to future results over
time.
3
EMTEC,
INC.
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(In
thousands)
|
Three Months Ended February
28,
|
Six Months Ended February
28,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues
|
||||||||||||||||
Procurement
services
|
$ | 23,275 | $ | 29,414 | $ | 82,657 | $ | 85,773 | ||||||||
Service and
consulting
|
12,828 | 12,547 | 27,023 | 26,207 | ||||||||||||
Total
Revenues
|
36,103 | 41,961 | 109,680 | 111,980 | ||||||||||||
Cost
of Sales
|
||||||||||||||||
Cost of procurement
services
|
21,036 | 26,371 | 74,209 | 76,763 | ||||||||||||
Service and
consulting
|
9,165 | 9,464 | 19,025 | 20,297 | ||||||||||||
Total
Cost of Sales
|
30,201 | 35,835 | 93,234 | 97,060 | ||||||||||||
Gross
Profit
|
||||||||||||||||
Procurement
services
|
2,239 | 3,043 | 8,448 | 9,009 | ||||||||||||
Procurement services
%
|
9.6 | % | 10.3 | % | 10.2 | % | 10.5 | % | ||||||||
Service and
consulting
|
3,663 | 3,083 | 7,998 | 5,911 | ||||||||||||
Service and consulting
%
|
28.6 | % | 24.6 | % | 29.6 | % | 22.6 | % | ||||||||
Total
Gross Profit
|
5,902 | 6,126 | 16,446 | 14,920 | ||||||||||||
Total
Gross Profit %
|
16.3 | % | 14.6 | % | 15.0 | % | 13.3 | % | ||||||||
Operating
expenses:
|
||||||||||||||||
Selling, general, and
administrative expenses
|
6,441 | 5,758 | 13,719 | 11,936 | ||||||||||||
Rent expense – related
party
|
157 | 152 | 311 | 304 | ||||||||||||
Depreciation and
amortization
|
571 | 568 | 1,167 | 1,102 | ||||||||||||
Total operating
expenses
|
7,169 | 6,478 | 15,197 | 13,342 | ||||||||||||
Percent of
revenues
|
19.9 | % | 15.4 | % | 13.9 | % | 11.9 | % | ||||||||
Operating income
(loss)
|
(1,267 | ) | (352 | ) | 1,249 | 1,578 | ||||||||||
Percent of
revenues
|
-3.5 | % | -0.8 | % | 1.1 | % | 1.4 | % | ||||||||
Other expense
(income):
|
||||||||||||||||
Interest income –
other
|
(5 | ) | (6 | ) | (16 | ) | (11 | ) | ||||||||
Interest
expense
|
159 | 270 | 303 | 524 | ||||||||||||
Other
|
(2 | ) | - | (9 | ) | 4 | ||||||||||
Income (loss) before income
taxes
|
(1,419 | ) | (616 | ) | 971 | 1,061 | ||||||||||
Provision (benefit) for income
taxes
|
(569 | ) | (231 | ) | 413 | 440 | ||||||||||
Net income
(loss)
|
$ | (850 | ) | $ | (385 | ) | $ | 558 | $ | 621 |
4
EMTEC,
INC.
|
RECONCILIATION OF NET INCOME
(LOSS) TO EBITDA AND ADJUSTED EBITDA
|
(In
thousands)
|
Three Months Ended February
28,
|
Six Months Ended February
28,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net income
(loss)
|
$ | (850 | ) | $ | (385 | ) | $ | 558 | $ | 621 | ||||||
Interest and other expense
(income):
|
152 | 264 | 278 | 517 | ||||||||||||
Provision (benefit) for income
taxes
|
(569 | ) | (231 | ) | 413 | 440 | ||||||||||
Depreciation and
amortization
|
571 | 568 | 1,167 | 1,102 | ||||||||||||
EBITDA
|
(696 | ) | 216 | 2,416 | 2,681 | |||||||||||
Retention bonuses
(1)
|
- | - | 90 | - | ||||||||||||
Elimination of non-essential
overhead (2)
|
- | 175 | - | 714 | ||||||||||||
Stock based
compensation
|
189 | 42 | 274 | 84 | ||||||||||||
Executive recruiting
(3)
|
2 | 15 | 101 | 29 | ||||||||||||
Severance
|
2 | 82 | 33 | 105 | ||||||||||||
Temporary wage reductions-
reinstated (4)
|
- | (116 | ) | - | (116 | ) | ||||||||||
Discretionary Bonus
(5)
|
181 | - | 181 | - | ||||||||||||
Merger Related Professional
Fees
|
94 | - | 94 | - | ||||||||||||
Recovery of prior year expenses
(6)
|
- | - | - | (270 | ) | |||||||||||
Total Adjustments
(7)
|
468 | 198 | 773 | 546 | ||||||||||||
Adjusted
EBITDA
|
$ | (228 | ) | $ | 414 | $ | 3,189 | $ | 3,227 |
1) Expenses associated with
retention bonuses which were agreed to in connection with the closing of the
Company's acquisition of Luceo.
2) Elimination of
non-essential overhead includes expenses incurred, which were eliminated by
management during the three and six months ended February 28, 2009 and will not
recur on an ongoing basis. These charges included $36,000 paid to the former
owners of Westwood under contracts that were not renewed (net of ongoing
consulting costs paid to an owner), $39,000 paid to a senior executive under a
contract that was not renewed and paid to other at-will employees whose
positions were terminated and $100,000 in sales compensation changes implemented
during the three months ended February 28, 2009. For the six months
ended February 28, 2009, these charges included $114,000 paid to the former
owners of Westwood under contracts that were not renewed (net of ongoing
consulting costs paid to an owner), $400,000 paid to a senior executive under a
contract that was not renewed and paid to other at-will employees whose
positions were terminated and $200,000 in sales compensation
changes.
3) Reflects executive recruiting fees
incurred in connection with a management launched search for a senior executive
in 2009. Management made a one-time decision to invest in the business by hiring
new senior executives to grow the business in 2010 and
thereafter.
4) Due to the uncertain economic
situation in late calendar 2008, management reduced wages by $116,000 during the
three months ended February 28, 2009 and later reinstated full wages at the end
of the year, resulting in a one-time cost savings of
$116,000.
5) Discretionary bonuses paid to the
executive management team in December 2009.
6) Offset from recovered professional fees
which the Company previously recorded as an expense that were associated with
defending the Company's tax positions during the IRS' 2003 and 2004 tax audit
and appeal process.
7) While management has made additional
cost cuts in its commercial infrastructure business, it has not included these
amounts as adjustments to EBITDA because the Company may invest these amounts in
future periods in its consulting services business.
5
EMTEC INFRASTRUCTURE
SERVICES
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(In
thousands)
|
Three Months Ended February
28,
|
Six Months Ended February
28,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues
|
||||||||||||||||
Procurement
services
|
$ | 23,275 | $ | 29,414 | $ | 82,657 | $ | 85,773 | ||||||||
Service and
consulting
|
5,904 | 3,883 | 12,352 | 6,830 | ||||||||||||
Total
Revenues
|
29,179 | 33,297 | 95,009 | 92,603 | ||||||||||||
Cost
of Sales
|
||||||||||||||||
Cost of procurement
services
|
21,036 | 26,371 | 74,209 | 76,763 | ||||||||||||
Service and
consulting
|
3,435 | 2,414 | 6,918 | 4,641 | ||||||||||||
Total
Cost of Sales
|
24,471 | 28,785 | 81,127 | 81,404 | ||||||||||||
Gross
Profit
|
||||||||||||||||
Procurement
services
|
2,239 | 3,043 | 8,448 | 9,010 | ||||||||||||
Procurement services
%
|
9.6 | % | 10.3 | % | 10.2 | % | 10.5 | % | ||||||||
Service and
consulting
|
2,469 | 1,469 | 5,434 | 2,189 | ||||||||||||
Service and consulting
%
|
41.8 | % | 37.8 | % | 44.0 | % | 32.0 | % | ||||||||
Total
Gross Profit
|
4,708 | 4,512 | 13,882 | 11,199 | ||||||||||||
Total Gross Profit
%
|
16.1 | % | 13.6 | % | 14.6 | % | 12.1 | % | ||||||||
Operating
expenses:
|
||||||||||||||||
Selling, general, and
administrative expenses
|
5,437 | 4,702 | 11,731 | 9,772 | ||||||||||||
Rent expense – related
party
|
102 | 92 | 203 | 184 | ||||||||||||
Depreciation and
amortization
|
342 | 350 | 711 | 675 | ||||||||||||
Total operating
expenses
|
5,881 | 5,144 | 12,645 | 10,631 | ||||||||||||
Percent of
revenues
|
20.2 | % | 15.4 | % | 13.3 | % | 11.5 | % | ||||||||
Operating income
(loss)
|
(1,173 | ) | (632 | ) | 1,237 | 568 | ||||||||||
Percent of
revenues
|
(4.0 | )% | (1.9 | )% | 1.3 | % | 0.6 | % | ||||||||
Other expense
(income):
|
||||||||||||||||
Interest income –
other
|
(5 | ) | (6 | ) | (16 | ) | (10 | ) | ||||||||
Interest
expense
|
104 | 162 | 191 | 300 | ||||||||||||
Other
|
- | - | (5 | ) | - | |||||||||||
Income (loss) before income
taxes
|
(1,272 | ) | (788 | ) | 1,067 | 278 | ||||||||||
Provision (benefit) for income
taxes
|
(523 | ) | (309 | ) | 435 | 107 | ||||||||||
Net income
(loss)
|
$ | (749 | ) | $ | (479 | ) | $ | 632 | $ | 171 |
6
EMTEC INFRASTRUCTURE
SERVICES
|
RECONCILIATION OF NET INCOME
(LOSS) TO EBITDA AND ADJUSTED EBITDA
|
(In
thousands)
|
Three Months Ended February
28,
|
Six Months Ended February
28,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net income
(loss)
|
$ | (749 | ) | $ | (479 | ) | $ | 632 | $ | 171 | ||||||
Interest and other expense
(income):
|
99 | 156 | 170 | 290 | ||||||||||||
Provision (benefit) for income
taxes
|
(523 | ) | (309 | ) | 435 | 107 | ||||||||||
Depreciation and
amortization
|
342 | 350 | 711 | 675 | ||||||||||||
EBITDA
|
(831 | ) | (282 | ) | 1,948 | 1,243 | ||||||||||
Elimination of non-essential
overhead (1)
|
- | 175 | - | 714 | ||||||||||||
Stock based
compensation
|
189 | 42 | 274 | 84 | ||||||||||||
Executive recruiting
(2)
|
2 | 15 | 101 | 29 | ||||||||||||
Severance
|
2 | 82 | 33 | 105 | ||||||||||||
Temporary wage reductions-
reinstated (3)
|
- | (116 | ) | - | (116 | ) | ||||||||||
Discretionary Bonus
(4)
|
181 | - | 181 | - | ||||||||||||
Merger Related Professional
Fees
|
94 | - | 94 | - | ||||||||||||
Recovery of prior year expenses
(5)
|
- | - | - | (270 | ) | |||||||||||
Total Adjustments
(6)
|
468 | 198 | 683 | 546 | ||||||||||||
Adjusted
EBITDA
|
$ | (363 | ) | $ | (84 | ) | $ | 2,631 | $ | 1,789 |
1) Elimination of non-essential overhead includes expenses incurred, which were eliminated by management during the three and six months ended February 28, 2009 and will not recur on an ongoing basis. These charges included $36,000 paid to the former owners of Westwood under contracts that were not renewed (net of ongoing consulting costs paid to an owner), $39,000 paid to a senior executive under a contract that was not renewed and paid to other at-will employees whose positions were terminated and $100,000 in sales compensation changes implemented during the three months ended February 28, 2009. For the six months ended February 28, 2009, these charges included $114,000 paid to the former owners of Westwood under contracts that were not renewed (net of ongoing consulting costs paid to an owner), $400,000 paid to a senior executive under a contract that was not renewed and paid to other at-will employees whose positions were terminated and $200,000 in sales compensation changes.
2) Reflects executive recruiting fees
incurred in connection with a management launched search for a senior executive
in 2009. Management made a one-time decision to invest in the business by hiring
new senior executives to grow the business in 2010 and
thereafter.
3) Due to the uncertain economic
situation in late calendar 2008, management reduced wages by $116,000 during the
three months ended February 28, 2009 and later reinstated full wages at the end
of the year, resulting in a one-time cost savings of
$116,000.
4) Discretionary bonuses paid to the
executive management team in December 2009.
5) Offset from recovered professional fees
which the Company previously recorded as an expense that were associated with
defending the Company's tax positions during the IRS' 2003 and 2004 tax audit
and appeal process.
6) While management has made additional
cost cuts in its commercial infrastructure business, it has not included these
amounts as adjustments to EBITDA because the Company may invest these amounts in
future periods in its consulting services business.
7
EMTEC GLOBAL
SERVICES
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(In
thousands)
|
Three Months Ended February
28,
|
Six Months Ended February
28,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues
|
||||||||||||||||
Service and
consulting
|
$ | 6,924 | $ | 8,664 | $ | 14,671 | $ | 19,378 | ||||||||
Total
Revenues
|
6,924 | 8,664 | 14,671 | 19,378 | ||||||||||||
Cost
of Sales
|
||||||||||||||||
Service and
consulting
|
5,730 | 7,050 | 12,107 | 15,656 | ||||||||||||
Total
Cost of Sales
|
5,730 | 7,050 | 12,107 | 15,656 | ||||||||||||
Gross
Profit
|
||||||||||||||||
Service and
consulting
|
1,194 | 1,614 | 2,564 | 3,722 | ||||||||||||
Service and consulting
%
|
17.2 | % | 18.6 | % | 17.5 | % | 19.2 | % | ||||||||
Total
Gross Profit
|
1,194 | 1,614 | 2,564 | 3,722 | ||||||||||||
Total
Gross Profit %
|
17.2 | % | 18.6 | % | 17.5 | % | 19.2 | % | ||||||||
Operating
expenses:
|
||||||||||||||||
Selling, general, and
administrative expenses
|
1,004 | 1,056 | 1,988 | 2,164 | ||||||||||||
Rent expense – related
party
|
55 | 60 | 108 | 121 | ||||||||||||
Depreciation and
amortization
|
229 | 218 | 456 | 427 | ||||||||||||
Total operating
expenses
|
1,288 | 1,334 | 2,552 | 2,712 | ||||||||||||
Percent of
revenues
|
18.6 | % | 15.4 | % | 17.4 | % | 14.0 | % | ||||||||
Operating income
(loss)
|
(94 | ) | 280 | 12 | 1,010 | |||||||||||
Percent of
revenues
|
(1.4 | )% | 3.2 | % | 0.1 | % | 5.2 | % | ||||||||
Other expense
(income):
|
||||||||||||||||
Interest income –
other
|
- | - | - | (1 | ) | |||||||||||
Interest
expense
|
55 | 108 | 112 | 224 | ||||||||||||
Other
|
(2 | ) | - | (4 | ) | 4 | ||||||||||
Income (loss) before income
taxes
|
(147 | ) | 172 | (96 | ) | 783 | ||||||||||
Provision (benefit) for income
taxes
|
(46 | ) | 78 | (22 | ) | 333 | ||||||||||
Net income
(loss)
|
$ | (101 | ) | $ | 94 | $ | (74 | ) | $ | 450 |
8
EMTEC GLOBAL
SERVICES
|
RECONCILIATION OF NET INCOME
(LOSS) TO EBITDA AND ADJUSTED EBITDA
|
(In
thousands)
|
Three Months Ended February
28,
|
Six Months Ended February
28,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net income
(loss)
|
$ | (101 | ) | $ | 94 | $ | (74 | ) | $ | 450 | ||||||
Interest and other expense
(income):
|
53 | 108 | 108 | 227 | ||||||||||||
Provision (benefit) for income
taxes
|
(46 | ) | 78 | (22 | ) | 333 | ||||||||||
Depreciation and
amortization
|
229 | 218 | 456 | 427 | ||||||||||||
EBITDA
|
135 | 498 | 468 | 1,437 | ||||||||||||
Retention bonuses
(1)
|
- | - | 90 | - | ||||||||||||
Total
Adjustments
|
- | - | 90 | - | ||||||||||||
Adjusted
EBITDA
|
$ | 135 | $ | 498 | $ | 558 | $ | 1,437 |
1) Expenses associated with retention bonuses which were agreed to in connection with the closing of the Company's acquisition of Luceo.
9