NEW YORK, Nov. 5, 2012 (GLOBE NEWSWIRE) -- Helios and Matheson Information Technology Inc (the "Company") HMNY, a 30 year old IT services organization focused on the banking, financial services and insurance sectors, reported a net income of $143,000 or $0.06 per diluted share (EPS) for the third quarter of 2012 compared to net income of $64,000 or $0.03 per diluted share for Q3 2011, an increase of 123% in Net Income and 100% in EPS.
Net Income during the third quarter grew by 42% while EPS increased by 50% Q on Q. The Company reported revenue of $3.4 million for the third quarter, as compared to $3 million in the second quarter, an increase of 15% Q on Q.
Management believes that the operations of the Company are gathering momentum and that the Company is continuing to gain financial strength, both of which are reflected in the increases in revenue and profit. The Company closed the third quarter of 2012 with cash of approximately $2 million, up from $1.8 million at the end of the third quarter of 2011. The Company continues to be debt free. The Company closed the third quarter of 2012 with current assets and security deposits at about $5.3 million.
| Three Months Ended | Nine Months Ended | |||||||||
| (In 000s except per share amounts) | 09/30/12 | 09/30/11 | 6/31/2012 | 09/30/12 | 09/30/11 | |||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||
| Revenue | $ 3,404 | $ 3,135 | $ 2,960 | $ 9,044 | $ 9,374 | |||||
| Gross Profit | $ 750 | $ 629 | $ 701 | $ 2,091 | $ 1,795 | |||||
| Income/(loss) from operations | $ 146 | $ 66 | $ 102 | $ 350 | $ (24) | |||||
| Net Income/(loss) | $ 143 | $ 64 | $ 101 | $ 258 | $ (36) | |||||
| EPS per basic share | $ 0.06 | $ 0.03 | $ 0.04 | $ 0.11 | $ (0.02) | |||||
| EPS per diluted share | $ 0.06 | $ 0.03 | $ 0.04 | $ 0.11 | $ (0.02) | |||||
About Helios and Matheson Information Technology Inc
Helios and Matheson Information Technology Inc is a 30 year old IT services organization focused on the banking, financial services, insurance and healthcare sectors. Its common stock is traded on the Nasdaq Global Market under the ticker symbol "HMNY".
Forward-Looking Statements
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in the Helios and Matheson Information Technology Inc. Annual Report on Form 10-K for the year ended December 31, 2012 and more recent reports and registration statements filed with the SEC. Helios and Matheson Information Technology Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter such forward-looking statements, whether as a result of new information, future events or otherwise.
| HELIOS AND MATHESON INFORMATION TECHNOLOGY INC. | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| Nine Months Ended | Three Months Ended | |||
| September 30, | September 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
| Revenues | $ 9,043,693 | $ 9,374,390 | $ 3,404,099 | $ 3,135,315 |
| Cost of revenues | 6,952,427 | 7,579,402 | 2,654,423 | 2,506,027 |
| Gross profit | 2,091,266 | 1,794,988 | 749,676 | 629,288 |
| Operating expenses: | ||||
| Selling, general & administrative | 1,729,155 | 1,800,669 | 600,618 | 557,554 |
| Depreciation & amortization | 12,022 | 18,495 | 2,703 | 5,330 |
| 1,741,177 | 1,819,164 | 603,321 | 562,884 | |
| Income/(loss) from operations | 350,089 | (24,176) | 146,355 | 66,404 |
| Other income(expense): | ||||
| Early lease termination fee | (82,548) | -- | -- | -- |
| Interest income-net | 8,510 | 2,712 | 2,414 | 1,031 |
| (74,038) | 2,712 | 2,414 | 1,031 | |
| Income/(loss) before income taxes | 276,051 | (21,464) | 148,769 | 67,435 |
| Provision for income taxes | 18,000 | 14,500 | 6,000 | 3,000 |
| Net income/(loss) | 258,051 | (35,964) | 142,769 | 64,435 |
| Other comprehensive loss - foreign currency adjustment | (2,264) | (8,563) | 5,526 | (5,051) |
| Comprehensive income/(loss) | $ 255,787 | $ (44,527) | $ 148,295 | $ 59,384 |
| Net income/(loss) per share | ||||
| Basic | $ 0.11 | $ (0.02) | $ 0.06 | $ 0.03 |
| Diluted | $ 0.11 | $ (0.02) | $ 0.06 | $ 0.03 |
| See accompanying notes to consolidated financial statements. | ||||
| HELIOS AND MATHESON INFORMATION TECHNOLOGY INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
|
September 30, 2012 |
December 31, 2011 |
|
| ASSETS | (unaudited) | |
| Current Assets: | ||
| Cash and cash equivalents | $ 2,015,986 | $ 1,998,158 |
| Accounts receivable- less allowance for doubtful accounts of $71,472 at September 30, 2012, and $77,590 at December 31, 2011 | 2,073,162 | 1,665,553 |
| Unbilled receivables | 34,400 | 46,408 |
| Prepaid expenses and other current assets | 173,210 | 83,326 |
| Total current assets | 4,296,758 | 3,793,445 |
| Property and equipment, net | 54,215 | 20,685 |
| Security Deposit | 1,000,000 | 1,000,000 |
| Deposits and other assets | 100,032 | 142,673 |
| Total assets | $ 5,451,005 | $ 4,956,803 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable and accrued expenses | $ 1,343,151 | $ 1,104,736 |
| Total current liabilities | 1,343,151 | 1,104,736 |
| Shareholders' equity: | ||
| Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued and outstanding as of September 30, 2012, and December 31, 2011 | -- | -- |
| Common stock, $.01 par value; 30,000,000 shares authorized; 2,330,438 issued and outstanding as of September 30, 2012, and December 31, 2011 | 23,304 | 23,304 |
| Paid-in capital | 37,855,740 | 37,855,740 |
| Accumulated other comprehensive Loss - foreign currency translation | (28,196) | (25,932) |
| Accumulated deficit | (33,742,994) | (34,001,045) |
| Total shareholders' equity | 4,107,854 | 3,852,067 |
| Total liabilities and shareholders' equity | $ 5,451,005 | $ 4,956,803 |
| See accompanying notes to consolidated financial statements. | ||
| HELIOS AND MATHESON INFORMATION TECHNOLOGY INC. | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| Nine Months Ended September 30, | ||
| 2012 | 2011 | |
| (unaudited) | (unaudited) | |
| Cash flows from operating activities: | ||
| Net profit/(loss) | $ 258,051 | $ (35,964) |
| Adjustments to reconcile net profit/(loss) to net cash provided/(used) in operating activities, net of acquired assets: | ||
| Depreciation and amortization | 12,022 | 18,495 |
| Provision for doubtful accounts | (6,118) | 103,579 |
| Gain on sale of fixed asset | (2,488) | -- |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (401,491) | 383,253 |
| Deposits | 42,641 | |
| Unbilled receivables | 12,008 | (77,713) |
| Prepaid expenses and other current assets | (89,884) | (48,457) |
| Accounts payable and accrued expenses | 238,413 | (130,655) |
| Deferred revenue | -- | (19,504) |
| Net cash provided by operating activities | 63,154 | 193,033 |
| Cash flows from investing activities: | ||
| Net Purchase of property and equipment | (43,062) | |
| Net cash used in investing activities | (43,062) | -- |
| Effect of foreign currency exchange rate changes on cash and cash equivalents | (2,264) | (8,563) |
| Net increase in cash and cash equivalents | 17,828 | 184,470 |
| Cash and cash equivalents at beginning of period | 1,998,158 | 1,656,456 |
| Cash and cash equivalents at end of period | $ 2,015,986 | $ 1,840,926 |
| Supplemental disclosure of cash flow information: | ||
| Cash paid during the period for interest | $ -- | $ -- |
| Cash paid during the period for income taxes - net of refunds | $ 5,936 | $ 8,018 |
| See accompanying notes to consolidated financial statements | ||
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