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| 8-K - CURRENT REPORT - InsPro Technologies Corp | v307399_8k.htm |
InsPro Technologies Corporation Announces 2011 Financial Results
Net Income and Significant Revenue Growth
Radnor, PA – March 30, 2012 – InsPro Technologies Corporation (OTC Bulletin Board: ITCC), a leading software innovator and provider of an insurance administration and marketing system, InsPro Enterprise, used by insurance carriers and third party administrators, that supports group and individual business lines and efficiently processes agent, direct market, worksite and web site generated business, today announced its financial results for the year and the quarter ended December 31, 2011.
2011 Full Year Highlights
| · | Revenues from continuing operations increased 49% to $9,057,816 in 2011 as compared to $6,077,358 in 2010. |
| · | Gross profit from continuing operations was $2,108,944 in 2011 compared to a gross loss of $486,484 in 2010. |
| · | Net loss from continuing operations was $2,670,538 in 2011, compared to a net loss of $5,874,292 in 2010. |
| · | Net income was $489,049 in 2011 compared to a net loss of $2,500,446, in 2010. |
Fourth Quarter 2011 Highlights
| · | Revenues from continuing operations increased 119% to $3,421,793 in the fourth quarter of 2011, compared to $1,560,766 in the fourth quarter of 2010 due primarily to license fee revenue pertaining to the completion of our implementation of InsPro Enterprise for a client acquired in 2011. |
| · | Gross profit from continuing operations was $1,508,251 in the fourth quarter of 2011, compared to a gross loss of $84,016 in the fourth quarter of 2010. |
| · | Net income from continuing operations was $394,396 in the fourth quarter of 2011, compared to a net loss of $1,254,741 in the fourth quarter of 2010. |
Anthony R. Verdi, Chief Executive Officer, stated, “We are pleased to report the financial progress of the Company in the form of significant revenue growth in 2011 and markedly improved operating results, achieved while we continued to make substantial investments in our InsPro Enterprise product and our infrastructure. These profitable results for 2011 mark another important milestone in the evolution of our Company. It is equally gratifying to tell you that our partnerships with existing clients remains a core corporate value, we have added new clients and therefore additional partnerships in the first quarter of 2012, the prospect pipeline remains strong and we plan to continue to invest in our product, InsPro Enterprise, and our client service. We are looking forward to reporting to you throughout 2012.”
About InsPro Enterprise
The InsPro Enterprise suite includes Product Configuration Workbench, New Business and Underwriting, Billing and Collections, Policy Administration, Agent Management and Commissions, Claims, Document Management, Web Portals, and Data Analytics. InsPro Enterprise was designed as a single technology solution to manage all insurance processing requirements and built from the ground up to support both group and individual policies. The InsPro Enterprise design provides carriers the option to deploy the solution as an end-to-end straight through processing suite or on a modular componentized basis to address immediate areas of concern.
About InsPro Technologies Corporation
Through its subsidiary, InsPro Technologies, LLC, InsPro Technologies Corporation offers InsPro Enterprise software, an end-to-end; web-based policy administration system used by insurance carriers and third party administrators. By managing the entire product and policy lifecycle on a single integrated platform, customers are afforded opportunities to accelerate new product introductions, lower IT support costs, increase customer retention, and improve operational performance. InsPro’s solutions are offered through standard software licensing, as a hosted solution, or via Software as a Service (SaaS) delivery.
For additional information on InsPro Technologies, LLC and InsPro Enterprise please visit www.inspro.com.
Forward-Looking Statements
In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding the effects of restructuring, existing and new clients, the investments in and potential of our technology platform. Forward-looking statements provide InsPro Technologies Corporation current expectations or forecasts of future events. Moreover, InsPro Technologies Corporation cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from the statements made, including risks described in InsPro Technologies Corporation’s most recent Quarterly Reports on Form 10-Q or Annual Reports on Form 10-K filed with the Securities and Exchange Commission. These documents are available on the Securities and Exchange Commission’s website at www.sec.gov. InsPro Technologies Corporation does not undertake any obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations.
Contact:
Anthony R. Verdi, CEO, CFO and COO
484-654-2200
finance@inspro.com
– financial tables to follow –
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Quarter Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues | $ | 3,421,793 | $ | 1,560,766 | $ | 9,057,816 | $ | 6,077,358 | ||||||||
| Cost of revenues | 1,913,542 | 1,644,782 | 6,948,872 | 6,563,842 | ||||||||||||
| Gross profit (loss) | 1,508,251 | (84,016 | ) | 2,108,944 | (486,484 | ) | ||||||||||
| Selling, general and administrative expenses: | ||||||||||||||||
| Salaries, employee benefits and related taxes | 562,321 | 561,594 | 2,615,602 | 2,765,161 | ||||||||||||
| Advertising and other marketing | 43,887 | 42,184 | 125,130 | 160,903 | ||||||||||||
| Depreciation and amortization | 165,733 | 182,292 | 687,042 | 876,644 | ||||||||||||
| Rent, utilities, telephone and communications | 85,973 | 109,708 | 368,336 | 403,955 | ||||||||||||
| Professional fees | 131,150 | 137,912 | 439,006 | 653,123 | ||||||||||||
| Other general and administrative | 124,791 | 137,035 | 544,366 | 528,022 | ||||||||||||
| 1,113,855 | 1,170,725 | 4,779,482 | 5,387,808 | |||||||||||||
| Gain (loss) from operations | 394,396 | (1,254,741 | ) | (2,670,538 | ) | (5,874,292 | ) | |||||||||
| Gain from discontinued operations | 165,955 | 328,803 | 803,989 | 2,463,675 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Gain on the change of the fair value of warrant liability | 1,426,443 | 2,970,681 | 2,356,114 | 1,136,588 | ||||||||||||
| Interest income | 3,561 | 6,981 | 23,044 | 21,000 | ||||||||||||
| Interest expense | (4,758 | ) | (82,815 | ) | (23,560 | ) | (247,417 | ) | ||||||||
| Total other income (expense) | 1,425,246 | 2,894,847 | 2,355,598 | 910,171 | ||||||||||||
| Net income (loss) | $ | 1,985,597 | $ | 1,968,909 | $ | 489,049 | $ | (2,500,446 | ) | |||||||
| Net income (loss) per common share - basic and diluted | ||||||||||||||||
| Income (loss) from operations | $ | 0.05 | $ | 0.04 | $ | (0.01 | ) | $ | (0.12 | ) | ||||||
| Gain from discontinued operations | 0.00 | 0.01 | 0.02 | 0.06 | ||||||||||||
| Net income (loss) per common share | $ | 0.05 | $ | 0.05 | $ | 0.01 | $ | (0.06 | ) | |||||||
| Weighted average common shares outstanding | 41,543,655 | 41,543,655 | 41,543,655 | 41,543,655 | ||||||||||||
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| December 31, 2011 | December 31, 2010 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 3,702,053 | $ | 4,429,026 | ||||
| Accounts receivable, net | 1,506,234 | 709,503 | ||||||
| Prepaid expenses | 116,649 | 158,245 | ||||||
| Other current assets | 2,905 | 8,211 | ||||||
| Assets of discontinued operations | 104,002 | 63,301 | ||||||
| Total current assets | 5,431,843 | 5,368,286 | ||||||
| Restricted cash | - | 1,152,573 | ||||||
| Property and equipment, net | 496,692 | 613,618 | ||||||
| Intangibles, net | 260,050 | 606,785 | ||||||
| Other assets | 80,608 | 92,558 | ||||||
| Total assets | $ | 6,269,193 | $ | 7,833,820 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Note payable | $ | 8,586 | $ | 17,311 | ||||
| Accounts payable | 644,563 | 918,972 | ||||||
| Accrued expenses | 521,383 | 346,808 | ||||||
| Current portion of capital lease obligations | 109,872 | 158,138 | ||||||
| Due to related parties | - | 8,370 | ||||||
| Deferred revenue | 622,500 | 377,500 | ||||||
| Total current liabilities | 1,906,904 | 1,827,099 | ||||||
| LONG TERM LIABILITIES: | ||||||||
| Warrant liability | 1,674,226 | 4,030,340 | ||||||
| Capital lease obligations | 113,943 | 165,612 | ||||||
| Total long term liabilities | 1,788,169 | 4,195,952 | ||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Preferred stock ($.001 par value; 20,000,000 shares authorized) | ||||||||
| Series A convertible preferred stock; 3,437,500 shares authorized, 1,276,750 | ||||||||
| shares issued and outstanding (liquidation value $12,767,500) | 2,864,104 | 2,864,104 | ||||||
| Series B convertible preferred stock; 5,000,000 shares authorized, 2,797,379 | ||||||||
| shares issued and outstanding (liquidation value $8,392,137) | 5,427,604 | 5,427,604 | ||||||
| Common stock ($.001 par value; 300,000,000 shares authorized, 41,543,655 | ||||||||
| shares issued and outstanding) | 41,543 | 41,543 | ||||||
| Additional paid-in capital | 37,038,318 | 36,764,016 | ||||||
| Accumulated deficit | (42,797,449 | ) | (43,286,498 | ) | ||||
| Total shareholders' equity | 2,574,120 | 1,810,769 | ||||||
| Total liabilities and shareholders' equity | $ | 6,269,193 | $ | 7,833,820 | ||||
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Year Ended December 31, | ||||||||
| 2011 | 2010 | |||||||
| Cash Flows From Operating Activities: | ||||||||
| Net income (loss) | $ | 489,049 | $ | (2,500,446 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 687,042 | 876,644 | ||||||
| Stock-based compensation and consulting | 274,302 | 383,523 | ||||||
| (Gain) on change of fair value of warrant liability | (2,356,114 | ) | (1,136,588 | ) | ||||
| Loss on the disposal of equipment of discontinued operations | - | 6,530 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (796,731 | ) | 305,566 | |||||
| Prepaid expenses | 41,596 | (74,411 | ) | |||||
| Other current assets | 5,306 | (1,802 | ) | |||||
| Other assets | 11,950 | 28,412 | ||||||
| Accounts payable | (274,409 | ) | (330,911 | ) | ||||
| Accrued interest on related secured note from related party | - | 199,876 | ||||||
| Accrued expenses | 174,576 | (469,925 | ) | |||||
| Due to related parties | - | 8,370 | ||||||
| Deferred revenue | 245,000 | 145,000 | ||||||
| Assets of discontinued operations | (40,701 | ) | (2,214,461 | ) | ||||
| Net cash used in operating activities | (1,539,134 | ) | (4,774,623 | ) | ||||
| Cash Flows From Investing Activities: | ||||||||
| Purchase of property and equipment | (223,382 | ) | (239,607 | ) | ||||
| Net cash used in investing activities | (223,382 | ) | (239,607 | ) | ||||
| Cash Flows From Financing Activities: | ||||||||
| Gross proceeds from note payable | 37,540 | 119,875 | ||||||
| Payments on note payable | (46,265 | ) | (110,168 | ) | ||||
| Gross proceeds from secured note from related party | - | 1,000,000 | ||||||
| Payments on secured note from related party | - | (2 | ) | |||||
| Fees paid in connection with secured note from related party | (8,370 | ) | (18,389 | ) | ||||
| Gross proceeds from capital leases | 58,791 | 137,310 | ||||||
| Payments on capital leases | (158,726 | ) | (151,099 | ) | ||||
| Restricted cash in connection with letters of credit | 1,152,573 | 1,471 | ||||||
| Gross proceeds from sales of preferred stock and warrants | - | 7,107,001 | ||||||
| Fees paid in connection with offering | - | (46,396 | ) | |||||
| Net cash provided by financing activities | 1,035,543 | 8,039,603 | ||||||
| Net increase (decrease) in cash | (726,973 | ) | 3,025,373 | |||||
| Cash - beginning of the period | 4,429,026 | 1,403,653 | ||||||
| Cash - end of the period | $ | 3,702,053 | $ | 4,429,026 | ||||