24% Revenue Increase Projected for Fourth Quarter
OMAHA, Neb., Nov. 9 /PRNewswire-FirstCall/ iSECUREtrac(TM) Corp. (OTC Bulletin Board: ISEC), an industry leader in offender monitoring solutions utilizing global positioning systems (GPS) and wireless technologies, reported third quarter 2005 revenues of $1.37 million, a 6% increase over the third quarter of 2004. Recurring revenues from the leasing and hosting of monitoring systems were $1.18 million for the third quarter, an increase of 24% over the comparable period last year. Year to date, total revenues were $3.83 million, a 13% increase over the same period a year ago. The Company reported net loss of $1.02 million and $3.05 million, respectively, for the three and nine months ending September 30, 2005, compared to net losses of $1.61 and $7.78 million for the same periods last year.
"The successful completion in June of our strategic initiative has allowed us to concentrate efforts on growing our recurring revenue stream. It is paying off as evidenced by October billings in excess of $500,000," said David Vana, CFO of iSECUREtrac. "This growth is continuing at an accelerated pace and we expect $1.7 million of revenues for the 4th quarter, a 24% increase over the 3rd quarter. For the year, we project revenues in excess of $5.5 million primarily on the strength of offender monitoring devices in the field under lease agreements which should top out at over 3,800 units by December 31st."
"We are proud to be taking over the leading role of offender monitoring in the USA," said Tom Wharton, CEO of iSECUREtrac. "As the demand for GPS monitoring continues to grow from sex offender monitoring legislation, domestic violence programs, methamphetamine user supervision programs, and critical federal and state offender re-entry initiatives, specialized community supervision programs are developing that require our state of the art GPS monitoring systems,"
"We are pleased to have recently won contracts with the most sophisticated EM users in the country, each requiring GPS systems that demand the critical features that our system has to offer. Market momentum continues to build, and state legislation for sex offender monitoring will produce a record number of GPS monitoring requirements for years to come," continued Wharton.
The company will discuss the third quarter 2005 results today. The details for the call are as follows:
Date: Wednesday, November 9, 2005
Time: 3:30 PM Central (4:30 PM Eastern)
Dial-in number: 1-800-936-9754
International: 1-973-935-2048
Dial in 5-10 minutes prior to the start time. An operator will request your name and organization and ask you to wait until the call begins. If you have any difficulty connecting, please call the Liolios Group at (949) 574- 3860.
A replay of the conference call will be available until November 16, 2005
Replay number: 1-877-519-4471
International Replay number: 1-973-341-3080
Replay Pin Number: 6679099
About iSECUREtrac
iSECUREtrac Corp is a technology and information services company providing advanced GPS tracking solutions for the remote tracking and monitoring of individuals, including real time data collection, secure remote reporting, and data warehousing. iSECUREtrac is currently focused in the area of Pretrial, Corrections, Probation and Parole, and Homeland Security for monitoring offenders in community release programs, such as sex offenders and other persons requiring community supervision. iSECUREtrac's GPS monitoring systems are designed to improve public safety, enhance the management of monitoring information, provide the fastest analysis and response, and reduce the financial cost of incarceration. Further information on iSECUREtrac Corp can be found on the company's Web site at www.isecuretrac.com.
Safe Harbor
This press release contains forward-looking statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to iSECUREtrac Corp. and its business. The predictions embodied in these statements will involve risks and uncertainties and accordingly, iSECUREtrac's actual results may differ significantly from the results discussed or implied in such forward-looking statements.
iSECUREtrac Corp. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
September 30, December 31,
2005 2004
ASSETS
Current Assets
Cash $2,531,571 $44,997
Cash - restricted -- 700,000
Investments 3,391,836 --
Accounts receivable, net of
allowance for doubtful
accounts of $62,000
in 2005 and $13,869 in 2004 1,182,266 1,049,654
Inventories 152,038 140,938
Prepaid expenses and other 127,879 75,734
Total current assets 7,385,590 2,011,323
Equipment, net of accumulated
depreciation of $637,254
in 2005 and $582,243 in 2004 224,609 222,834
Leasehold Improvements, net of
accumulated depreciation of
$1,817 in 2005 and $177 in 2004 14,669 10,434
Monitoring Equipment, net of
accumulated depreciation of
$3,105,904 in 2005 and
$3,249,971 in 2004 2,666,637 2,496,657
Product Development Costs, net
of accumulated amortization of
$971,054 in 2005 and $907,233
in 2004 18,907 82,728
Intangibles, net of accumulated
amortization of $643,328
in 2005 and $548,639 in 2004 268,194 362,883
Goodwill 2,302,179 2,302,179
Other assets 146,630 173,651
Total assets $13,027,415 $7,662,689
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current Liabilities
Notes payable $-- $215,654
Current maturities of long-
term debt 780,434 1,410,647
Accounts payable and accrued
expenses 780,807 1,823,401
Deferred gain on sale-
leaseback transaction 557,825 870,383
Accrued interest payable 7,462 142,406
Total current liabilities 2,126,528 4,462,491
Long-term debt, less current
maturities 1,422,584 5,428,548
Redeemable convertible Series C
preferred stock 9,313,461 --
Stockholders' Equity (Deficit)
Series B convertible
preferred stock -- 295,000
Common stock 10,636 88,651
Additional paid-in capital 54,643,987 48,594,197
Accumulated deficit (54,489,781) (51,206,198)
Total stockholders' equity
(deficit) 164,842 (2,228,350)
Total liabilities and
stockholders' equity
(deficit) $13,027,415 $7,662,689
See Notes to Consolidated Financial Statements.
iSECUREtrac Corp. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Revenues:
Equipment sales $4,306 $126,729 $24,792 $278,520
Equipment leasing
& hosting 1,181,548 949,386 3,204,607 2,587,360
Gain on sale-
leaseback
transactions
Related party 172,759 162,184 549,701 390,618
Other -- 7,051 -- 18,685
Service 10,065 49,018 50,584 99,544
Total revenues 1,368,678 1,294,368 3,829,684 3,374,727
Operating expenses:
Cost of revenues 672,833 738,397 2,006,840 3,507,055
Research and
development 200,849 162,850 612,335 519,322
Sales, general and
administrative 1,454,829 1,048,626 3,767,588 4,536,504
Total
operating
expenses 2,328,511 1,949,873 6,386,763 8,562,881
Operating loss (959,833) (655,505) (2,557,079) (5,188,154)
Other income
(expense):
Interest income 27,759 23 29,725 32
Interest expense (91,618) (958,968) (559,025) (2,571,373)
Financing fees -- -- -- 21,598)
Other, net -- -- 31,837 --
Total other
income (expense) (63,859) (958,945) (497,463) (2,592,939)
Loss before
provision for
income taxes (1,023,692) (1,614,450) (3,054,542) (7,781,093)
Provision for
income taxes -- -- -- --
Net loss $(1,023,692) $(1,614,450) $(3,054,542) $(7,781,093)
Preferred stock
dividends and
accretion (270,937) (234,470) (278,170) (682,338)
Net loss available
to common
stockholders $(1,294,629) $(1,848,920) $(3,332,712) $(8,463,431)
Basic and diluted
loss per common
share $(0.12) $(0.32) $(0.35) $(1.62)
Weighted average
shares of common
stock outstanding 10,635,864 5,772,115 9,656,142 5,213,212
See Notes to Condensed Consolidated Financial Statements.
CONTACT: Tom Wharton,
Email Contact, or David Vana,
Email Contact, both of iSECUREtrac Corp., +1-402-537-0022; or
Investors, Ron Both of the Liolios Group Inc, +1-949-574-3860,
Email Contact, for iSECUREtrac Corp.
Web site: http://www.isecuretrac.com/