Business News

American TonerServ Reports Second-Quarter Results, Recent Highlights

Monday 18. August 2008 - Revenue More Than Doubles to $2,762,547 From $1,098,630 in Second Quarter, 2007; Company States Intention to Acquire Operators in Florida, Indiana and California

American TonerServ Corp. (OTCBB: ASVP) (“ATS”), a strategic consolidator in the more than $6.0 billion highly fragmented independent segment of the printer supplies and services industry and a leading recycler of toner cartridges, today announced financial results for the quarter ended June 30, 2008.
Second-Quarter 2008 Financial Results
ATS reported revenue of $2,762,547 for the quarter ended June 30, 2008, compared to $1,098,630 for the quarter ended June 30, 2007, a 151% increase.
ATS reported a net loss from operations for the quarter ended June 30, 2008 of $614,488, compared to a net loss from operations of $836,700 in the quarter ended June 30, 2007. ATS reported a net loss from operations of approximately $0.01 per share for the quarter ended June 30, 2008 compared to a net loss from operations of $0.04 per share in the quarter ended June 30, 2007.
On a GAAP basis, ATS reported a net loss for the quarter ended June 30, 2008 of $1.25 million, compared to a net loss of $876,809 for the quarter ended June 30, 2007. ATS reported a net loss of approximately $0.02 per share for the quarter ended June 30, 2008 compared to $0.04 per share for the quarter ended June 30, 2007.
Earnings before interest, taxes, depreciation, amortization, stock-based compensation expense and other non-cash expenditures (adjusted EBITDA) was a loss of $344,547, or less than $0.01 per share, in the second quarter of 2008, compared to a loss of $581,780, or approximately $0.02 per share, in the second quarter of 2007. This is an improvement of approximately 41 percent year over year.
“We are pleased to report that our top line continues to grow organically and from contributions made by the businesses we have acquired to date. Furthermore, since our last quarterly report, we have announced three additional letters of intent to acquire strong businesses in Florida, Indiana and California,” said Dan Brinker, Chief Executive Officer. “The ATS strategy continues to be finding and consolidating regional operators of toner service and cartridge recycling and providing these operators the leverage and benefits associated with a national brand name.”
Mr. Brinker added, “During the second quarter, we began rolling out the GreenSmart recycling program, which diverts waste from landfills and creates an effortless channel for spent toner cartridges to be re-used and recycled. At ATS we are committed to lowering the staggering number of toner cartridges that go directly into solid waste landfills in the United States. Our customers appreciate the help in minimizing their carbon footprint and we appreciate the opportunity to broaden the portfolio of compatible cartridges we offer at economical prices.”
Recent Highlights
In June, ATS announced that the company had signed a letter of intent to acquire the retail business of Imaging Technology Products (“IT Products”), headquartered in Longwood, Florida. IT Products would function as a satellite for the business of Tonertype in Tampa, which was acquired in January of 2008. The founder of IT Products, Joe Cody, said, “The customer-oriented programs that ATS has pioneered would help us develop business for ATS in our market.”
In July, ATS announced that a letter of intent for acquisition was executed with Mid-America Environmental, LLC, of Evansville, Indiana. Mid-America serves its customers’ printers and copiers, creating broad opportunities for service and product sales.
Additionally during July ATS announced that iPrint Technologies was its next targeted acquisition, executing a letter of intent to acquire certain assets of the business based in Chatsworth and Larkspur, California. iPrint serves Fortune 1000 customers in California and throughout the country, with an emphasis on reducing overall printing costs and minimizing waste and inefficiency.
Due diligence and negotiations of acquisition agreements are underway.
Mr. Brinker addressed the Southern California investment Association on August 9, highlighting the acquisition activities and the growth attained both organically and through acquisitions to date. Later in August, both Mr. Brinker and ATS Senior Vice President Andrew Beaurline will make presentations at the Recharger Magazine World Expo, one of the document printing industry’s leading events.
Outlook
“Our bottom line this quarter demonstrates that we are increasing efficiency and carefully controlling costs even as the organization grows to support higher revenue,” said Mr. Brinker. “Our team remains focused on identifying the most attractive targets for acquisition, while we emphasize organic growth initiatives within the businesses we have on board to date. Our customers benefit from bulk purchasing power, technology solutions, operational expertise and efficiency as well as our recycling programs. The owners of independent businesses we talk to are excited about the opportunity to grow and develop under the umbrella of a national brand,” Mr. Brinker concluded.