Attached files
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| 8-K - FORM 8-K - Helios & Matheson Analytics Inc. | hmny20140131_8k.htm |
Exhibit 99.1
Helios and Matheson reports results for the fourth quarter and the year ending December 31, 2013
NEW YORK, New York, January 31, 2014 — Helios and Matheson Analytics Inc. (the “Company”) (NASDAQ: HMNY), a 30 year old organization focused on the banking, financial services, insurance and healthcare sectors, is providing the following preliminary (unaudited) information regarding the results of its operations for the fourth quarter of the year ended December 31, 2013:
Revenue for Q4-2013 is expected to be approximately $3.2 million compared to $3.3 million for Q4-2012. Net income during Q4-2013 is expected to be $70,000 as compared to $164,000 during Q4-2012. Revenue for the twelve months ending December 31, 2013 is expected to be approximately $13.3 million as compared to $12.3 million for the twelve months ending December 31, 2012, which is approximately a 7% increase. Net income is expected to be approximately $383,000 or $0.16 per basic and diluted share (EPS) for the twelve months ending December 31, 2013 as compared to $422,000 or $0.18 per basic and diluted share (EPS) for the twelve months ending December 31, 2012. For the first three quarters of 2013, quarterly net income was approximately $100,000 and for the fourth the quarter net income is expected to be approximately $70,000. During the second half of the year, the Company has made investments in furthering its analytics business.
The Company continues to be debt free. The Company expects to close the fourth quarter of 2013 with total assets of $5.2 million and total liabilities of $831,000. Below is the summary of selected financial data:
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Three Months Ended |
Year Ended |
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(In 000s except per share amounts) |
12/31/13 |
12/31/12 |
12/31/13 |
12/31/12 |
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(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
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Revenue |
$ | 3,232 | $ | 3,325 | $ | 13,291 | $ | 12,369 | ||||||||
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Gross Profit |
$ | 601 | $ | 695 | $ | 2,733 | $ | 2,787 | ||||||||
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Income from operations |
$ | 68 | $ | 156 | $ | 375 | $ | 506 | ||||||||
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Net Income |
$ | 70 | $ | 164 | $ | 383 | $ | 422 | ||||||||
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Earnings per basic and diluted share |
$ | 0.03 | $ | 0.07 | $ | 0.16 | $ | 0.18 | ||||||||
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Dividend Per share |
$ | 0.00 | $ | 0.00 | $ | 0.09 | $ | 0.00 | ||||||||
Gross margin was 19% for the fourth quarter of 2013 as compared to 21% for the fourth quarter of 2012. Revenue from high margin RPO (recruitment process outsourcing) was lower during the fourth quarter of 2013 resulting in the lower gross margin. The Company continues to keep a tight control over Selling, General and Administration (SGA) expenses resulting in slightly lower SGA expenses which were approximately of $533,000 for the fourth quarter of 2013 as compared to $540,000 during the fourth quarter of 2012.
About Helios and Matheson Analytics Inc.
Helios and Matheson Analytics Inc. is a 30 year old organization focused on the banking, financial services, insurance and healthcare sectors. Its common stock is traded on the Nasdaq Global Market under the ticker symbol “HMNY”.
Forward Looking Statements
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in the Helios and Matheson Analytics Inc. Annual Report on Form 10-K for the year ended December 31, 2012 and more recent reports filed with the SEC. Helios and Matheson Analytics Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter such forward-looking statements, whether as a result of new information, future events or otherwise.
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Contact: |
Umesh Ahuja |
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703 691 0400 Ext 1046 |
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uahuja@hmny.com |
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HELIOS AND MATHESON ANALYTICS INC. | ||||
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CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
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Year Ended December 31, |
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2013 |
2012 |
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(unaudited) |
(audited) |
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Revenues |
$ | 13,291,095 | $ | 12,368,920 | ||||
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Cost of revenues |
10,558,446 | 9,582,191 | ||||||
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Gross profit |
2,732,649 | 2,786,729 | ||||||
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Operating expenses: |
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Selling, general and administrative |
2,346,926 | 2,266,666 | ||||||
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Depreciation and amortization |
10,595 | 14,092 | ||||||
| 2,357,521 | 2,280,758 | |||||||
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Income from operations |
375,128 | 505,971 | ||||||
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Other income(expense): |
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Early lease termination fee |
- | (82,548 | ) | |||||
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Interest income |
6,437 | 9,425 | ||||||
| 6,437 | (73,123 | ) | ||||||
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Income before income taxes |
$ | 381,565 | $ | 432,848 | ||||
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Provision for income taxes |
(1,446 | ) | 11,155 | |||||
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Net Income |
383,011 | 421,693 | ||||||
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Other comprehensive (loss)/income - foreign currency adjustment |
(30,123 | ) | (20,978 | ) | ||||
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Comprehensive Income |
$ | 352,888 | $ | 400,715 | ||||
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Basic and diluted profit per share |
$ | 0.16 | $ | 0.18 | ||||
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Dividend Per share |
$ | 0.09 | $ | - | ||||
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HELIOS AND MATHESON ANALYTICS INC. | |||||
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CONSOLIDATED BALANCE SHEETS |
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December 31, |
December 31, |
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2013 |
2012 |
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(unaudited) |
(audited) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
$ | 660,278 | $ | 2,861,733 | |||||
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Accounts receivable- less allowance for doubtful accounts of $28,213 at December 31, 2013, and $32,421 at December 31, 2012 |
2,147,436 | 1,257,488 | |||||||
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Unbilled receivables |
143,126 | 21,490 | |||||||
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Prepaid expenses and other current assets |
147,448 | 130,571 | |||||||
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Total current assets |
3,098,288 | 4,271,282 | |||||||
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Property and equipment, net |
50,071 | 52,717 | |||||||
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Security Deposit |
2,000,000 | 1,000,000 | |||||||
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Deposits and other assets |
78,520 | 100,032 | |||||||
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Total assets |
$ | 5,226,879 | $ | 5,424,031 | |||||
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current Liabilities: |
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Accounts payable and accrued expenses |
$ | 830,948 | $ | 1,171,249 | |||||
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Total current liabilities |
830,948 | 1,171,249 | |||||||
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Shareholders' equity: |
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Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued and outstanding as of December 31, 2013, and December 31, 2012 |
- | - | |||||||
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Common stock, $.01 par value; 30,000,000 shares authorized; 2,330,438 issued and outstanding as of December 31, 2013 and as of December 31, 2012 |
23,304 | 23,304 | |||||||
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Paid-in capital |
37,855,740 | 37,855,740 | |||||||
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Accumulated other comprehensive (loss)/income - foreign currency translation |
(77,032 | ) | (46,910 | ) | |||||
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Accumulated deficit |
(33,406,081 | ) | (33,579,352 | ) | |||||
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Total shareholders' equity |
4,395,931 | 4,252,782 | |||||||
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Total liabilities and shareholders' equity |
$ | 5,226,879 | $ | 5,424,031 | |||||
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HELIOS AND MATHESON ANALYTICS INC. |
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CONSOLIDATED STATEMENT OF CASH FLOWS |
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Year Ended December 31, |
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2013 |
2012 |
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(unaudited) |
(audited) |
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Cash flows from operating activities: |
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Net income |
$ | 383,011 | $ | 421,693 | ||||
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Adjustments to reconcile net income to net cash provided/(used) in operating activities: |
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Depreciation and amortization |
10,595 | 14,092 | ||||||
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Provision for doubtful accounts |
(4,208 | ) | (45,169 | ) | ||||
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Gain on sale of Fixed Asset |
(250 | ) | (2,488 | ) | ||||
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Changes in operating assets and liabilities: |
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Accounts receivable |
(885,740 | ) | 453,234 | |||||
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Unbilled receivables |
(121,636 | ) | 24,918 | |||||
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Prepaid expenses and other assets |
(16,877 | ) | (47,245 | ) | ||||
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Accounts payable and accrued expenses |
(340,301 | ) | 66,513 | |||||
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Security Deposits |
(1,000,000 | ) | - | |||||
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Deposits |
21,512 | 42,641 | ||||||
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Net cash (used in)/provided by operating activities |
(1,953,894 | ) | 928,189 | |||||
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Cash flows from investing activities: |
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Purchase of property and equipment |
(7,699 | ) | (43,636 | ) | ||||
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Net cash used in investing activities |
(7,699 | ) | (43,636 | ) | ||||
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Cash flows from financing activities: |
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Dividend Paid |
(209,739 | ) | - | |||||
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Net cash used in financing activities |
(209,739 | ) | - | |||||
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Effect of foreign currency exchange rate changes on cash and cash equivalents |
(30,123 | ) | (20,978 | ) | ||||
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Net (decrease)/increase in cash and cash equivalents |
(2,201,455 | ) | 863,575 | |||||
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Cash and cash equivalents at beginning of period |
2,861,733 | 1,998,158 | ||||||
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Cash and cash equivalents at end of period |
$ | 660,278 | $ | 2,861,733 | ||||
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Supplemental disclosure of cash flow information: |
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Cash paid during the period for income taxes - net of refunds |
$ | 5,701 | $ | 5,936 | ||||