Intellicheck Mobilisa Announces 2012 Fourth Quarter and Year End Financial Results

Intellicheck Mobilisa Announces 2012 Fourth Quarter and Year End Financial Results

Conference Call Scheduled for Today, Wednesday, March 27, at 1:00 pm ET/10:00 am PT

PORT TOWNSEND, Wash.--(BUSINESS WIRE)-- Intellicheck Mobilisa, Inc. (NYSE MKT: IDN), a global leader in identity solutions and wireless security systems, has released its financial results for the fourth quarter and year ended December 31, 2012.


Revenues for the quarter ended December 31, 2012 were $528,000 compared to $2,868,000 in the same period of the previous year. Included in the revenue for the current quarter is an adjustment of ($671,000) relating to the uncertainty of the collection of certain accounts receivable regarding a contract with the U.S. Navy, which the company learned about during the fourth quarter of 2012. The Company believes this is a valid receivable, and is pursuing its collection. Although this revenue had been recognized in prior periods, the Company believes this is the proper accounting treatment, given that new information was received during the fourth quarter.

Adjusted EBITDA was ($1,681,000) for the fourth quarter of 2012 compared to $284,000 for the fourth quarter of 2011. Net loss for the three months ended December 31, 2012 was ($1,955,000) or ($0.07) per diluted share compared to a net loss of ($14,000) or ($0.00) per diluted share for the three months ended December 31, 2011. The Company's backlog, which presents non-cancelable sales orders for products not yet shipped and services to be performed, was approximately $1.2 million at December 31, 2012, compared to $2.8 million at December 31, 2011.

For the year ended December 31, 2012, revenues were $8,803,000 compared to revenues of $12,484,000 reported in the same period of the prior year. Included in the 2012 revenue is the aforementioned adjustment of ($671,000) relating to the uncertainty of an accounts receivable. Adjusted EBITDA for 2012 was ($1,114,000) compared to $875,000 in 2011. Net loss was ($2,260,000) or ($0.08) per diluted share for the year ended December 31, 2012, compared to a net loss of ($291,000) or ($0.01) per diluted share for the year ended December 31, 2011.

Nelson Ludlow, Ph.D., President and CEO of Intellicheck Mobilisa, stated, "As I anticipated in my letter to shareholders issued on November 30, our financial results for the fourth quarter and year 2012 were not strong. I detailed in that letter, we are reviving innovation and new product development, providing stronger customer service, completing partnership agreements and increasing emphasis on closing sales. The changes we are making are beginning to positively impact revenue, and I am pleased to note that we are forecasting Q1 2013 revenues to be significantly better than Q4 2012, but under Q1 revenue from 2012. We have more work to do, but we believe that we are on the right track."

Q4 2012 and Recent Highlights:

  • Nelson Ludlow, Ph.D. appointed President and CEO; Michael D. Malone, Vice Admiral, U.S. Navy, Retired, appointed Chairman of Board of Directors;
  • Mark Armstrong hired as Senior VP of Sales, a new position for the Company;
  • Mobilisa, Inc. subsidiary awarded wireless contract worth $671,962 from Jefferson County Public Utility District and Northwest Open Access Network (NoaNet);
  • Mobilisa, Inc. subsidiary awarded wireless contract worth $283,948 from NoaNet to provide broadband to schools and libraries in Spokane area and Whitman County;
  • Intellicheck Mobilisa awarded software license agreement by major U.S. luxury retailer to deploy ID-Check® verification software in retailer's stores nationwide;
  • Intellicheck Mobilisa partners with Vanguards of Enterprise Ltd. of Trinidad & Tobago to help market, sell, distribute and install wireless, maritime security and intelligent buoy monitoring solutions to Caribbean countries.

Conference Call Information

IDN will host a conference call for members of the investment community today at 1:00 p.m. Eastern / 10:00 a.m. Pacific Time. To listen to the conference call, please dial (877) 407-8037 approximately 10 minutes before the scheduled beginning. For callers outside the U.S., please dial (201) 689-8037. A webcast of the call may be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=170676. For those unable to participate in the live conference, a recording will be available for 48 hours after the call. The rebroadcast can be accessed by dialing (877) 660-6853 and (201) 612-7415 for international callers. The conference replay ID is 410895. After the 48-hour window, please visit the investor relations portion of our website at www.icmobil.com for rebroadcast.

About Intellicheck Mobilisa

Intellicheck Mobilisa is a leading technology company providing wireless technology and identity systems for various applications, including mobile and handheld access control and security systems for the government, military and commercial markets. Products include the Fugitive Finder system, an advanced ID card access control product currently protecting military bases and secure federal locations; ID Check, a patented technology that instantly reads, analyzes, and verifies encoded data in magnetic stripes and barcodes on government-issued IDs, designed to improve the Customer Experience for the financial, hospitality and retail sectors; and Aegeus, a wireless security buoy system for the government, military and oil industry. For more information on Intellicheck Mobilisa, please visit www.icmobil.com.

Safe Harbor Statement

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. When used in this press release, words such as "will," "believe," "expect," "anticipate," "encouraged," and similar expressions, as they relate to the company or its management, as well as assumptions made by and information currently available to the company's management identify forward-looking statements, including, without limitation, any forecasts with respect to quarterly revenues or earnings (loss) per share. Actual results may differ materially from the information presented here. Additional information concerning forward-looking statements is contained under the heading of risk factors listed from time to time in the company's filings with the SEC. We do not assume any obligation to update the forward-looking information.

Adjusted EBITDA

Intellicheck Mobilisa uses Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adding back to net income (loss) interest, income taxes, impairments of long-lived assets and goodwill, depreciation, amortization and stock-based compensation expense. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing Intellicheck Mobilisa financial results with other companies that also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as impairments of long-lived assets and goodwill, amortization, depreciation and stock-based compensation, as well as non-operating charges for interest and income taxes, investors can evaluate the Company's operations and can compare its results on a more consistent basis to the results of other companies. In addition, adjusted EBITDA is one of the primary measures management uses to monitor and evaluate financial and operating results.

Intellicheck Mobilisa considers Adjusted EBITDA to be an important indicator of the Company's operational strength and performance of its business and a useful measure of the Company's historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes interest income and expense, impairments of long lived assets and goodwill, stock based compensation expense, all of which impact the Company's profitability, as well as depreciation and amortization related to the use of long term assets which benefit multiple periods. Intellicheck Mobilisa believes that these limitations are compensated by providing Adjusted EBITDA only with GAAP net income (loss) and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) presented in accordance with GAAP. Adjusted EBITDA as defined by the Company may not be comparable with similarly named measures provided by other entities. A reconciliation of Adjusted EBITDA to GAAP net income or loss is included in the enclosed schedule.

 

INTELLICHECK MOBILISA, INC.

 

CONSOLIDATED BALANCE SHEETS
(Unaudited)

 

ASSETS

     

2012

     

2011

 
CURRENT ASSETS:
Cash and cash equivalents $ 1,685,879 $ 1,394,148
Accounts receivable, net of allowance of $1,613 and $4,884, respectively 869,747 3,058,788
Inventory 337,559 11,894
Other current assets   105,881     108,770  
Total current assets 2,999,066 4,573,600
 
PROPERTY AND EQUIPMENT, net 449,438 439,736
GOODWILL 12,308,661 12,308,661
INTANGIBLE ASSETS, net 4,631,577 5,551,149
OTHER ASSETS   72,006     72,006  
 
Total assets $ 20,460,748   $ 22,945,152  
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 
CURRENT LIABILITIES:
Accounts payable $ 247,289 $ 221,019
Accrued expenses 556,814 675,907
Deferred revenue, current portion   1,450,923     1,692,881  
Total current liabilities 2,255,026 2,589,807
 
OTHER LIABILITIES
Deferred revenues, long-term portion 341,948 405,190
Deferred rent   185,339     194,759  
 
Total liabilities 2,782,313 3,189,756
 
COMMITMENTS AND CONTINGENCIES (Notes 11 and 12)
 
STOCKHOLDERS' EQUITY:
Common stock - $.001 par value; 40,000,000 shares authorized; 27,724,267 and
27,462,504 shares issued and outstanding as of 2012 and 2011, respectively 27,724 27,462
Additional paid-in capital 100,882,019 100,699,156
Accumulated deficit   (83,231,308 )   (80,971,222 )
Total stockholders' equity   17,678,435     19,755,396  
 
Total liabilities and stockholders' equity $ 20,460,748   $ 22,945,152  
 
           

INTELLICHECK MOBILISA, INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 

Three Months Ended December 31,

Year Ended December 31,

           

2012

2011

2012

2011

 
REVENUES $ 528,376 $ 2,868,031 $ 8,803,217 $ 12,484,331
COST OF REVENUES   (482,244 )   (927,466 )     (3,001,997 )     (4,339,772 )
Gross profit 46,132 1,940,565 5,801,220 8,144,559
 
OPERATING EXPENSES
Selling 382,253 430,569 1,613,819 1,896,747
General and administrative 1,129,161 872,418 4,209,385 3,922,024
Research and development   490,414     651,488       2,239,011       2,608,020  
Total operating expenses   2,001,828     1,954,475       8,062,215       8,426,791  
 
Income (loss) from operations (1,955,696 ) (13,910 ) (2,260,995 ) (282,232 )
 
OTHER INCOME (EXPENSE)
Interest income 909 3 909 40
Interest expense   -     -       -       (8,667 )
  909     3       909       (8,627 )
 
Net (loss) income $ (1,954,787 ) $ (13,907 ) $   (2,260,086 ) $   (290,859 )
 
PER SHARE INFORMATION
Net (loss) income per common share -
Basic $ (0.07 ) $ 0.00   $   (0.08 ) $   (0.01 )
Diluted $ (0.07 ) $ 0.00   $   (0.08 ) $   (0.01 )
 
Weighted average common shares used
in computing per share amounts -
Basic   27,724,267     27,462,504       27,724,267       27,247,558  
Diluted   27,724,267     27,462,504       27,724,267       27,247,558  
 
             

INTELLICHECK MOBILISA, INC.

 

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
For the years ended December 31, 2011 and 2012
(Unaudited)

 
Additional

Common Stock

Paid-in Accumulated    

Shares

   

Amount

Capital

Deficit

Total

 
BALANCE, January 1, 2012 27,462,504 $ 27,462 $

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