August 15, 2008
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| ProLink Holdings Corp. Reports 2008 Record Second Quarter Results Company Records Best Quarterly Results in its History Revenue Increases 22%; 23% Increase in Gross Margin Percentage; Adjusted EBITDA of $394,859, an improvement of $1.75 Million CHANDLER, Ariz., Aug. 14 /PRNewswire-FirstCall/ -- ProLink Holdings Corp. (OTC Bulletin Board: PLKH), the world's largest provider of digital advertising screens for the golf course market and Global Positioning golf course management systems, today announced financial results for its second quarter ended June 30, 2008. Some of the highlights of the second quarter include: Record Operating Results -- The Company generated EBITDA plus adjustment for non-cash 123R compensation of $394,859 (a non-GAAP measure) which compares favorably to a Loss before Interest, Taxes, Depreciation and Amortization plus adjustment for non-cash stock-based compensation of negative ($1.3 million) in the 2007 second quarter. -- Total revenue for the 2008 second quarter of $6.7 million increased 22.1% compared to $5.5 million in the 2007 second quarter. -- Record revenue from Domestic System sales and Refinances -- 71.0% increase to $5.2 million, as compared to $3.1 million in the year-earlier period. -- Service Revenue continued to grow, increasing 16.4% to $775,000 versus $666,000 for the 2007 second quarter. -- Gross Margin improved by $1.1 million increasing to $3.3 million in the 2008 second quarter, from $2.2 million in the year-earlier period. -- Operating expenses declined $733,000 or 17.9% to $3.4 million (including $250,000 of litigation expense related to the collection efforts of a Company receivable and actions to protect patents) from $4.1 million in the 2007 second quarter. "The Company's second quarter results demonstrate the continued momentum we are generating in the domestic market, as reflected by another quarter of strong domestic sales," said Danny Lam, President of ProLink Solutions. "Despite a challenging economic environment, customers in the United States continue to recognize the value that the ProLink System provides, as reflected by Domestic new system sales growth of 30%. This follows a strong 2008 first quarter. Refinances grew at an impressive 185%, continuing to demonstrate our customers' commitment to our systems as a key revenue center at the golf course. We have begun to work with our new international distributors generating approximately $600,000 in sales outside of the U.S. market sales during the second quarter and we believe that we will begin to see an increase in international revenue during the second half of the year as our organizations gain more time and momentum working together. Our cost reduction program launched in mid-2007 has begun to show results with an 18% reduction in operating expenses for the 2008 second quarter which has helped to reduce operating loss by $1.8 million. Second quarter operating expenses declined to 50.6% of revenue from 75.2% during the 2007 second quarter. We continue to seek ways to further reduce costs through operating efficiencies." "While we are pleased by the strength in our domestic operations, we continue to focus on several additional areas that have the potential to bring the Company to profitability," said Lawrence Bain, ProLink's Chief Executive Officer. "We continue to seek new distributors in other international markets that will grow sales and support our customer base in foreign countries. We also have in place the people and relationships to drive advertising revenue. While we are disappointed the economic downturn has adversely impacted advertisers in several of our key target markets, we are still on track with our long-term business strategy. The migration of media spending to new and more effective digital platforms like ProLink's remains intact, although growth will not happen in a linear manner. We have taken important steps to expand and improve the quality and quantity of our digital network and have created new relationships with new clients. This is evidenced by the recent announcement that one of the world's largest telecommunications companies, AT&T, has elected to advertise in the ProLink Network Research Program as part of a category exclusive three-month advertising campaign. Advertisers like this one are key building blocks of a successful future for our Company as new digital mediums like the ProLink Network becomes an increasingly important part of the media marketplace. With interest in these Programs high, we expect advertising to become an increasingly significant component of revenue in the coming quarters." The Company reported second quarter revenue of $6.7 million compared to $5.5 million in the second quarter of 2007. Second quarter revenue from New Domestic System sales and refinancing of $5.2 million compared to $3.1 million in the 2007 second quarter, a 71% increase. International System Revenue declined from $1.6 million to $0.6 million, as a result of the termination by the Company of its largest international distributor during the fourth quarter of 2007. Advertising revenue remained relatively flat at $0.1 million when compared to the year earlier period. Service revenue increased from $0.7 million to $0.8 million. Gross margin for the 2008 second quarter was approximately 49.4%, compared to 40.1% in the 2007 second quarter. For the 2008 second quarter, operating expenses were $3.4 million, compared to the 2007 second quarter of $4.1 million. Sales and Marketing expenses were $0.7 million, compared to $0.9 million in the three months ended June 30, 2007. General and Administrative costs were $1.9 million compared to the year-earlier period of $2.2 million. The 2008 second quarter results also include approximately $250,000 in legal expense related to the Company's lawsuit against two competitors alleging patent infringement, and collection litigation against one of the Company's former distributors. Net Income (Loss) -- Second Quarter The net income (loss) applicable to common stockholders for the three months ended June 30, 2008 was $(0.5) million or $(0.01) per share, compared to $(1.9) million or $(0.05) per share in the same period in 2007. For the six months ended June 30, 2008, ProLink had revenue of $12.4 million compared to $12.2 million in the six months ended June 30, 2007. Domestic System sales during the first half of 2008 were $9.7 million, a 74% growth over the first six months of 2007. Gross margins as a percentage of revenues for this period were 47.2% which represented a 5% growth over the first half of 2007. Operating Expenses fell, from 2007 levels by 17% to $7.0 million. ProLink had a loss before depreciation, amortization, interest expense and stock-based compensation of $(0.4) million, compared to a loss of $(2.2) million in the year earlier period. ProLink had a net loss of $(2.1) million, or $(0.04) per share for the six months ended June 30, 2008, compared to $(7.7) million or $(0.20) per share in the six months ended June 30, 2007. Litigation expense was approximately $400,000 year to date. (dollars in 000's) For the Three Months Ended June 30, June 30, Change 2008 2007 $ % REVENUES: New System Installation Revenue $5,456 $4,658 $797 17.1% Service Revenue 776 666 109 16.4% Finance Revenue, net 316 - 316 n/a Advertising Revenue 117 134 (17) -12.9% Total Revenue 6,664 5,459 1,205 22.1% Cost of Revenue 3,369 3,269 99 3.0% Gross Margin 3,295 2,190 1,106 50.5% Gross Margin Percentage 49.4% 40.1% 91.8% Operating Expenses 3,372 4,105 (733) -17.9% Income (Loss) from Operations (77) (1,915) 1,838 -96.0% Other (Income) Expense 469 196 273 139.0% Net Loss (546) (2,112) 1,565 -74.1% Dividends on Series C Preferred Shares - 180 (180) Net Loss Applicable to Common Shareholders $(546) $(1,932) $1,386 -71.7% Basic Loss per Common Share $(0.01) $(0.05) $0.04 Diluted Loss per Common Share $(0.01) $(0.05) $0.04 For the Six Months Ended June 30, June 30, Change 2008 2007 $ % REVENUES: New System Installation Revenue $10,335 $9,860 $474 4.8% Service Revenue 1,365 1,197 168 14.0% Finance Revenue, net 530 982 (452) -46.0% Advertising Revenue 173 154 19 12.6% Total Revenue 12,402 12,193 209 1.7% Cost of Revenue 6,544 7,040 (495) -7.0% Gross Margin 5,858 5,153 705 13.7% Gross Margin Percentage 47.2% 42.3% 336.5% Operating Expenses 7,026 8,486 (1,460) -17.2% Income (Loss) from Operations (1,168) (3,333) 2,165 -64.9% Other (Income) Expense 964 653 311 47.6% Net Loss (2,132) (3,986) 1,854 -46.5% Dividends on Series C Preferred Shares - (3,721) 3,721 Net Loss Applicable to Common Shareholders $(2,132) $(7,707) $5,575 -72.3% Basic Loss per Common Share $(0.04) $(0.20) $0.16 Diluted Loss per Common Share $(0.04) $(0.20) $0.16 Consolidated Balance Sheets (dollars in 000's) As of 06/30/08 12/31/07 Cash and cash equivalents $2,450 $2,829 Other current assets 8,011 8,390 Total current assets 10,461 11,220 Other assets 12,034 10,118 Total assets $22,496 $21,338 Total current liabilities 13,017 12,842 Long-term liabilities 6,284 4,632 Stockholders' equity 3,195 3,864 Total liabilities and stockholders' equity $22,496 $21,338 For the Three For the Six (dollars in 000's) Months Ended Months Ended June 30, June 30, June 30, June 30, Adjusted EBITDA calculation: 2008 2007 2008 2007 Net Loss $(546) $(2,112) $(2,132) $(3,986) Deduct: Interest Expense (341) (319) (660) (325) Interest Expense - Warrant Expense (184) (181) (365) (360) Depr & Amort (214) (210) (425) (369) EBITDA 193 (1,402) (682) (2,931) FAS 123R (202) (214) (483) (701) Adjusted EBITDA $395 $(1,188) $(199) $(2,229) EBITDA and Adjusted EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization, (EBITDA), Adjusted EDITDA and Adjusted EBITDA margin are not financial measures calculated in accordance with generally accepted accounting principles (GAAP) in the United States. EBITDA represents NET income (loss) before depreciation and amortization expense, Interest expense depreciation and amortization. Adjusted EBITDA excludes from EBITDA other non-cash expenses that may appear from time to time, share based payment costs and deferred stock compensation. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenue. These non-GAAP financial measures are used by management to evaluate operating performance and to forecast future results. The Company believes these are important supplemental measures of operating performance because they eliminate items that have less bearing on its operating performance and so highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of these measures is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company's management, helps improve their ability to understand the Company's operating performance and makes it easier to compare the Company's results with other companies that may have different depreciation and amortization policies, non-cash share based compensation programs, net interest or tax rates. A limitation of these measures, however, is that they exclude depreciation and amortization, which represent the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's business. In addition, Adjusted EBITDA has the limitation of not reflecting the effect of the Company's non-cash expenses, share based payment costs and deferred stock compensation. EBITDA or Adjusted EBITDA should not be regarded as an alternative to operating income, net income or as indicators of operating performance, nor should they be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that operating income is the most directly comparable GAAP financial measure to EBITDA and Adjusted EBITDA. Because not all companies use identical calculations, these presentations may not be comparable to other similarly titled measures of other companies. Conference Call The conference call will take place at 4:30 p.m. eastern time today. Interested participants may dial (800) 289-0496 or (913) 312-0417. Please use passcode 7594724. The call will also be webcast and may be accessed at http://www.goprolink.com/investors. A telephonic replay will also be available for 30 days by dialing (888) 203-1112 or (719) 457-0820. Please use passcode 7594724. Safe Harbor This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about ProLink Holdings Corp. (ProLink). Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of ProLink's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements which are set forth in greater detail in the Company's filings with the Securities and Exchange Commission from time to time. The information set forth herein should be read in light of such risks. ProLink does not assume any obligation to update the information contained in this press release. For more information about ProLink, visit http://www.goprolink.com/, call 480.753.2337 or email info@goprolink.com. CONTACT: Daniel Mitchell Buffalo Communications 253.312.4536 dmitchell@billycaspergolf.com Investor Relations Contact: CEOcast, Inc. Gary Nash 212.732.4300 gnash@ceocast.com ProLink Holdings Corp. Reports 2008 Record Second Quarter Results Company Records Best Quarterly Results in its History Revenue Increases 22%; 23% Increase in Gross Margin Percentage; Adjusted EBITDA of $394,859, an improvement of $1.75 Million CHANDLER, Ariz., Aug. 14 /PRNewswire-FirstCall/ -- ProLink Holdings Corp. (OTC Bulletin Board: PLKH), the world's largest provider of digital advertising screens for the golf course market and Global Positioning golf course management systems, today announced financial results for its second quarter ended June 30, 2008. Some of the highlights of the second quarter include: Record Operating Results -- The Company generated EBITDA plus adjustment for non-cash 123R compensation of $394,859 (a non-GAAP measure) which compares favorably to a Loss before Interest, Taxes, Depreciation and Amortization plus adjustment for non-cash stock-based compensation of negative ($1.3 million) in the 2007 second quarter. -- Total revenue for the 2008 second quarter of $6.7 million increased 22.1% compared to $5.5 million in the 2007 second quarter. -- Record revenue from Domestic System sales and Refinances -- 71.0% increase to $5.2 million, as compared to $3.1 million in the year-earlier period. -- Service Revenue continued to grow, increasing 16.4% to $775,000 versus $666,000 for the 2007 second quarter. -- Gross Margin improved by $1.1 million increasing to $3.3 million in the 2008 second quarter, from $2.2 million in the year-earlier period. -- Operating expenses declined $733,000 or 17.9% to $3.4 million (including $250,000 of litigation expense related to the collection efforts of a Company receivable and actions to protect patents) from $4.1 million in the 2007 second quarter. "The Company's second quarter results demonstrate the continued momentum we are generating in the domestic market, as reflected by another quarter of strong domestic sales," said Danny Lam, President of ProLink Solutions. "Despite a challenging economic environment, customers in the United States continue to recognize the value that the ProLink System provides, as reflected by Domestic new system sales growth of 30%. This follows a strong 2008 first quarter. Refinances grew at an impressive 185%, continuing to demonstrate our customers' commitment to our systems as a key revenue center at the golf course. We have begun to work with our new international distributors generating approximately $600,000 in sales outside of the U.S. market sales during the second quarter and we believe that we will begin to see an increase in international revenue during the second half of the year as our organizations gain more time and momentum working together. Our cost reduction program launched in mid-2007 has begun to show results with an 18% reduction in operating expenses for the 2008 second quarter which has helped to reduce operating loss by $1.8 million. Second quarter operating expenses declined to 50.6% of revenue from 75.2% during the 2007 second quarter. We continue to seek ways to further reduce costs through operating efficiencies." "While we are pleased by the strength in our domestic operations, we continue to focus on several additional areas that have the potential to bring the Company to profitability," said Lawrence Bain, ProLink's Chief Executive Officer. "We continue to seek new distributors in other international markets that will grow sales and support our customer base in foreign countries. We also have in place the people and relationships to drive advertising revenue. While we are disappointed the economic downturn has adversely impacted advertisers in several of our key target markets, we are still on track with our long-term business strategy. The migration of media spending to new and more effective digital platforms like ProLink's remains intact, although growth will not happen in a linear manner. We have taken important steps to expand and improve the quality and quantity of our digital network and have created new relationships with new clients. This is evidenced by the recent announcement that one of the world's largest telecommunications companies, AT&T, has elected to advertise in the ProLink Network Research Program as part of a category exclusive three-month advertising campaign. Advertisers like this one are key building blocks of a successful future for our Company as new digital mediums like the ProLink Network becomes an increasingly important part of the media marketplace. With interest in these Programs high, we expect advertising to become an increasingly significant component of revenue in the coming quarters." The Company reported second quarter revenue of $6.7 million compared to $5.5 million in the second quarter of 2007. Second quarter revenue from New Domestic System sales and refinancing of $5.2 million compared to $3.1 million in the 2007 second quarter, a 71% increase. International System Revenue declined from $1.6 million to $0.6 million, as a result of the termination by the Company of its largest international distributor during the fourth quarter of 2007. Advertising revenue remained relatively flat at $0.1 million when compared to the year earlier period. Service revenue increased from $0.7 million to $0.8 million. Gross margin for the 2008 second quarter was approximately 49.4%, compared to 40.1% in the 2007 second quarter. For the 2008 second quarter, operating expenses were $3.4 million, compared to the 2007 second quarter of $4.1 million. Sales and Marketing expenses were $0.7 million, compared to $0.9 million in the three months ended June 30, 2007. General and Administrative costs were $1.9 million compared to the year-earlier period of $2.2 million. The 2008 second quarter results also include approximately $250,000 in legal expense related to the Company's lawsuit against two competitors alleging patent infringement, and collection litigation against one of the Company's former distributors. Net Income (Loss) -- Second Quarter The net income (loss) applicable to common stockholders for the three months ended June 30, 2008 was $(0.5) million or $(0.01) per share, compared to $(1.9) million or $(0.05) per share in the same period in 2007. For the six months ended June 30, 2008, ProLink had revenue of $12.4 million compared to $12.2 million in the six months ended June 30, 2007. Domestic System sales during the first half of 2008 were $9.7 million, a 74% growth over the first six months of 2007. Gross margins as a percentage of revenues for this period were 47.2% which represented a 5% growth over the first half of 2007. Operating Expenses fell, from 2007 levels by 17% to $7.0 million. ProLink had a loss before depreciation, amortization, interest expense and stock-based compensation of $(0.4) million, compared to a loss of $(2.2) million in the year earlier period. ProLink had a net loss of $(2.1) million, or $(0.04) per share for the six months ended June 30, 2008, compared to $(7.7) million or $(0.20) per share in the six months ended June 30, 2007. Litigation expense was approximately $400,000 year to date. (dollars in 000's) For the Three Months Ended June 30, June 30, Change 2008 2007 $ % REVENUES: New System Installation Revenue $5,456 $4,658 $797 17.1% Service Revenue 776 666 109 16.4% Finance Revenue, net 316 - 316 n/a Advertising Revenue 117 134 (17) -12.9% Total Revenue 6,664 5,459 1,205 22.1% Cost of Revenue 3,369 3,269 99 3.0% Gross Margin 3,295 2,190 1,106 50.5% Gross Margin Percentage 49.4% 40.1% 91.8% Operating Expenses 3,372 4,105 (733) -17.9% Income (Loss) from Operations (77) (1,915) 1,838 -96.0% Other (Income) Expense 469 196 273 139.0% Net Loss (546) (2,112) 1,565 -74.1% Dividends on Series C Preferred Shares - 180 (180) Net Loss Applicable to Common Shareholders $(546) $(1,932) $1,386 -71.7% Basic Loss per Common Share $(0.01) $(0.05) $0.04 Diluted Loss per Common Share $(0.01) $(0.05) $0.04 For the Six Months Ended June 30, June 30, Change 2008 2007 $ % REVENUES: New System Installation Revenue $10,335 $9,860 $474 4.8% Service Revenue 1,365 1,197 168 14.0% Finance Revenue, net 530 982 (452) -46.0% Advertising Revenue 173 154 19 12.6% Total Revenue 12,402 12,193 209 1.7% Cost of Revenue 6,544 7,040 (495) -7.0% Gross Margin 5,858 5,153 705 13.7% Gross Margin Percentage 47.2% 42.3% 336.5% Operating Expenses 7,026 8,486 (1,460) -17.2% Income (Loss) from Operations (1,168) (3,333) 2,165 -64.9% Other (Income) Expense 964 653 311 47.6% Net Loss (2,132) (3,986) 1,854 -46.5% Dividends on Series C Preferred Shares - (3,721) 3,721 Net Loss Applicable to Common Shareholders $(2,132) $(7,707) $5,575 -72.3% Basic Loss per Common Share $(0.04) $(0.20) $0.16 Diluted Loss per Common Share $(0.04) $(0.20) $0.16 Consolidated Balance Sheets (dollars in 000's) As of 06/30/08 12/31/07 Cash and cash equivalents $2,450 $2,829 Other current assets 8,011 8,390 Total current assets 10,461 11,220 Other assets 12,034 10,118 Total assets $22,496 $21,338 Total current liabilities 13,017 12,842 Long-term liabilities 6,284 4,632 Stockholders' equity 3,195 3,864 Total liabilities and stockholders' equity $22,496 $21,338 For the Three For the Six (dollars in 000's) Months Ended Months Ended June 30, June 30, June 30, June 30, Adjusted EBITDA calculation: 2008 2007 2008 2007 Net Loss $(546) $(2,112) $(2,132) $(3,986) Deduct: Interest Expense (341) (319) (660) (325) Interest Expense - Warrant Expense (184) (181) (365) (360) Depr & Amort (214) (210) (425) (369) EBITDA 193 (1,402) (682) (2,931) FAS 123R (202) (214) (483) (701) Adjusted EBITDA $395 $(1,188) $(199) $(2,229) EBITDA and Adjusted EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization, (EBITDA), Adjusted EDITDA and Adjusted EBITDA margin are not financial measures calculated in accordance with generally accepted accounting principles (GAAP) in the United States. EBITDA represents NET income (loss) before depreciation and amortization expense, Interest expense depreciation and amortization. Adjusted EBITDA excludes from EBITDA other non-cash expenses that may appear from time to time, share based payment costs and deferred stock compensation. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenue. These non-GAAP financial measures are used by management to evaluate operating performance and to forecast future results. The Company believes these are important supplemental measures of operating performance because they eliminate items that have less bearing on its operating performance and so highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of these measures is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company's management, helps improve their ability to understand the Company's operating performance and makes it easier to compare the Company's results with other companies that may have different depreciation and amortization policies, non-cash share based compensation programs, net interest or tax rates. A limitation of these measures, however, is that they exclude depreciation and amortization, which represent the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's business. In addition, Adjusted EBITDA has the limitation of not reflecting the effect of the Company's non-cash expenses, share based payment costs and deferred stock compensation. EBITDA or Adjusted EBITDA should not be regarded as an alternative to operating income, net income or as indicators of operating performance, nor should they be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that operating income is the most directly comparable GAAP financial measure to EBITDA and Adjusted EBITDA. Because not all companies use identical calculations, these presentations may not be comparable to other similarly titled measures of other companies. Conference Call The conference call will take place at 4:30 p.m. eastern time today. Interested participants may dial (800) 289-0496 or (913) 312-0417. Please use passcode 7594724. The call will also be webcast and may be accessed at http://www.goprolink.com/investors. A telephonic replay will also be available for 30 days by dialing (888) 203-1112 or (719) 457-0820. Please use passcode 7594724. Safe Harbor This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about ProLink Holdings Corp. (ProLink). Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of ProLink's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements which are set forth in greater detail in the Company's filings with the Securities and Exchange Commission from time to time. The information set forth herein should be read in light of such risks. ProLink does not assume any obligation to update the information contained in this press release. For more information about ProLink, visit http://www.goprolink.com/, call 480.753.2337 or email info@goprolink.com. CONTACT: Daniel Mitchell Buffalo Communications 253.312.4536 dmitchell@billycaspergolf.com Investor Relations Contact: CEOcast, Inc. Gary Nash 212.732.4300 gnash@ceocast.com |
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