Research Solutions Inc. Reports $45.5 Million in Revenue and $1.1M in Adjusted EBITDA for Fiscal Year 2013
Fiscal Year 2013 Results Include $45.5 Million in Revenue, Adjusted EBITDA of $1.1 Million, and $364,000 in Net Income from Operations
ENCINO, Calif., Sept. 30, 2013 /PRNewswire/ — Research Solutions, Inc. (RSSS), a pioneer in facilitating the flow of information from the publishers of scientific, technical, and medical content to enterprise customers in life science and other research intensive organizations around the world, today reported financial and operating results for its fiscal year 2013 (year ended June 30, 2013).
Fiscal Year 2013 Highlights:
-- Adjusted EBITDA of $1.1 million ($900,000 from North American operations, and $200,000 from its French subsidiary TAAG) -- $45.5 million in revenue, a 6% increase over prior year; $35.2 million in revenue from North American operations, a 13% increase over prior year; $10.3 million in revenue from TAAG, a 12% decrease over prior year -- $9.6 million in gross profit, a 19% increase over prior year; $5.4 million in gross profit from North American operations, a 59% increase over prior year; $4.2 million in gross profit from TAAG, a 10% decrease over prior year -- Improved information systems and technology infrastructure that have enhanced operational efficiency and strengthened competitive advantages
“Fiscal 2013 was a very good year for us. We turned the ship towards profitability for the first time, while simultaneously continuing to grow and improve our business. Our profitability is due not only to the fact that we have grown in scale, it’s also due to numerous changes and improvements we made to our human capital, cost structure, and gross margins. These improvements have invigorated us now more than ever, and have helped us grow. These same improvements are allowing us to increase our scalability as well as to grow internationally, grow into new verticals, and find new customers around the world every day. We also improved our technology platform quite substantially this year which is allowing us to satisfy a broader array of customers with increasing efficiency. We now have customers in multiple research-based industries such as Pharmaceuticals, Biotechnology, Aerospace, Automotive, Energy, Defense, Semiconductors and Electronics, as well as in the Legal and University sectors. Our technology and services are must-have solutions for research, and hence the name change this year from Derycz Scientific to Research Solutions. We look forward to entering our 2014 fiscal year as a profitable company with a renewed sense of purpose,” said Research Solutions President and CEO Peter Derycz.
Alan Urban, Chief Financial Officer, added “This has certainly been a year of positive change. We managed to produce adjusted EBITDA of $1.1 million for the year, about $3.5 million better than our prior year. In addition, revenue was up 13% and gross profit as a percentage of revenue experienced a two point increase, four points for North American operations.” Mr. Urban continued, “This year we had about $200,000 of GAAP net income, it may not seem like much, but is a striking improvement over last year’s $6.5 million GAAP net loss.”
Research Solutions management will host an investment-community conference call on Tuesday, October 1, 2013 beginning at 4:15 p.m. Eastern Time (1:15 p.m. Pacific Time) to discuss these results and answer questions. To participate in the call please dial +1 (866) 516-3002 for domestic callers or +1 (253) 237-1159 for international callers, and enter passcode 73932980 when prompted.
The webcast will also be available from the Company’s website at www.researchsolutions.com. Listening to the webcast requires Internet access and the Windows Media Player or other compatible streaming media player. A recorded replay will be available at www.researchsolutions.com website for 60 days following the conclusion of the call.
Results at a Glance
The following financial information should be read in conjunction with the unaudited financial statements and accompanying notes thereto filed by the Company with the Securities and Exchange Commission on September 30, 2013 in its Annual Report on Form 10-K for the year ended June 30, 2013. The Annual Report can be viewed at www.sec.gov.
(Table amounts in 000′s)
Year Ended Year Ended June 30, 2013 June 30, 2012 % Change -------------- -------------- -------- NORTH AMERICAN OPERATIONS Revenue $35,198 $31,074 13% Gross profit $5,390 $3,397 59% Income (loss) from operations $29 $(3,603) 101% Adjusted EBITDA $890 $(2,050) 143% TAAG (FRANCE) Revenue $10,301 $11,745 (12)% Gross profit $4,160 $4,644 (10)% Income (loss) from operations $335 $(3,050) 111% Adjusted EBITDA $234 $(356) 166% CONSOLIDATED Revenue $45,499 $42,819 6% Gross profit $9,550 $8,040 19% Income (loss) from operations $364 $(6,653) 105% Adjusted EBITDA $1,124 $(2,405) 147%
Use of Non-GAAP Measure – Adjusted EBITDA
Research Solutions management evaluates and makes operating decisions using various financial metrics. In addition to the Company’s GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the Company’s operating results. The attached tables provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure.
Adjusted EBITDA is defined as net income from operations before interest, income taxes, depreciation and amortization expenses, excluding, when applicable, stock-based compensation, impairment of acquired intangibles and goodwill, loss on facility sublease, and (gain) loss on sale of fixed assets.
Reconciliation of Adjusted EBITDA to Income from Operations
(Table amounts in 000′s)
North American TAAG Total Operations (France) Year Ended Year Ended June 30, 2013 June 30, 2013 Year Ended June 30, 2013 --------- Income from operations $29 $335 $364 Add: Depreciation and amortization 263 355 618 Stock-based compensation 386 - 386 Loss on facility sublease 233 - 233 (Gain) loss on sale of fixed assets (21) (456) (477) --- ---- ---- Adjusted EBITDA $890 $234 $1,124 ==== ==== ======
About Research Solutions®
Research Solutions, Inc. is a pioneer in facilitating the flow of information from the publishers of scientific, technical, and medical content to enterprise customers in life science and other research intensive organizations around the world. We develop products, services and systems to facilitate the re-use of published content in a manner that helps organizations achieve their research, marketing, and communication goals effectively and in compliance with copyright law and regulatory rules. Our subsidiary companies include Reprints Desk, Inc., and Techniques Appliquees aux Arts Graphiques, S.p.A. (TAAG). For more information, please visit www.researchsolutions.com.
Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company’s products in the market; the Company’s success in obtaining new customers; the Company’s success in technology and product development; the Company’s ability to execute its business model and strategic plans; the Company’s success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the financial statements and related information contained in the Company’s Annual Report on Form 10-K and interim Quarterly Reports on Form 10-Q. Examples of forward-looking statements in this release include statements related to new products, anticipated revenue and profitability. The Company assumes no obligation to update the cautionary information in this release.
SOURCE Research Solutions, Inc.