EX-99 3 ex99_1.txt PRESS RELEASE AND FINANCIAL TABLES FOR IMMEDIATE RELEASE Contacts: Paul Rosenbaum Investors Rentrak Corporation PondelWilkinson Parham Chairman & CEO Ron Parham 503-284-7581 503-924-1186 exitpoll@aol.com rparham@pondel.com RENTRAK REPORTS FISCAL 2004 SECOND QUARTER RESULTS --Anticipated Revenues From New Business Intelligence Services and PPT Customers Set Stage for Return to Profitability in Second Half of Fiscal Year-- PORTLAND, Ore. (November 13, 2003)--Rentrak Corp. (Nasdaq:RENT) today announced financial results for its second fiscal quarter ended September 30, 2003. Consolidated revenues from continuing operations totaled $14.3 million, compared with revenues from continuing operations of $20.8 million for the same period one year ago. Revenues from the company's continuing entertainment operations totaled $13.8 million. Revenue from the company's PPT(R) revenue-sharing business declined 32.2 percent from last year's comparable period, to $12.2 million from $18.0 million. Lower VHS wholesale prices implemented by studios prompted studios to adopt new, competitively structured DVD/VHS revenue-sharing agreements. In these new agreements, studios agreed to reduce or eliminate their share of upfront processing fees and also allowed retailers to retain a greater portion of the transactional revenue-sharing income. The new agreements do not call for a reduction in the percentage of the transactional revenue-sharing income that is retained by Rentrak and recorded as revenue. However, because Rentrak also recognizes as revenue each studio's portion of upfront processing fees and transactional revenue-sharing income, along with an equal, offsetting cost of sale, the transition to the lower studio upfront fees and revenue-sharing splits caused a comparable year-over-year decline in Rentrak's PPT revenue but had little impact on the company's PPT gross margins. Rentrak's transactional PPT revenues were lower due to a weaker assortment of available VHS revenue-sharing titles during the quarter. Total unit shipments to independent retailers in North America increased 15 percent over last year's second fiscal quarter, reflecting a 309 percent increase in DVD and videogame shipments, partially offset by a 19 percent decline in VHS shipments. Due in part to the company's new combined VHS/DVD revenue-sharing program with Warner Home Video, announced in August 2003, management expects PPT shipments for the second half of the fiscal year to increase 1 substantially and lead to a revenue increase of between 35 and 40 percent, compared with the first half of the fiscal year. The company used the cash generated from its PPT operations to make continued investments in new services totaling approximately $300,000 after tax, resulting in a net loss from continuing entertainment operations of $247,056, or $(0.03) per share in the second quarter of fiscal 2004. Revenues from continuing entertainment operations in the prior year period totaled $18.9 million and generated net income of $0.9 million, or $0.09 per share. The company's former fulfillment subsidiary, 3PF, Inc., contributed revenues of $504,616 in the second quarter, representing services provided to one of its customers through July 31 under terms of a continuing service contract following Rentrak's July 1, 2003 sale of substantially all of 3PF's assets. 3PF generated an after-tax net loss of approximately $1.1 million, or $(0.11) per share, primarily due to reserves totaling approximately $1 million after tax, or $(0.10) per share, related to the estimated cost of terminating a warehouse lease and a customer's defaulted account receivable. In the comparable period last year, 3PF reported revenues of $2.4 million and a net loss of $689,603, or $(0.07) per diluted share. Consolidated net loss for the second quarter of fiscal 2004 totaled $1.3 million, or $(0.14) per share. In the year-ago quarter, the company reported consolidated net income from continuing operations of $173,115, or $0.02 per share, and a consolidated net loss of $103,101, or $(0.01) per share. Management believes this quarter fully accounts for the conclusion of the company's involvement in 3PF's operations and that future results will not suffer any further negative impact. Rentrak Chairman and Chief Executive Officer Paul Rosenbaum commented, "We've positioned Rentrak extremely well heading into the second half of fiscal 2004. Our PPT business continued to contribute positively to the company's overall results despite extremely challenging circumstances which are now largely behind us. Our new combined VHS/DVD revenue-sharing program with Warner Home Video should lead to renewed PPT shipment and revenue growth beginning in the third quarter, and the possibility remains that additional studios will begin to offer DVD revenue-sharing." "Most significantly, the investments we continue to make in our expanding portfolio of business intelligence services are allowing us to win new customers. Through the first half of fiscal 2004, Box Office Essentials(TM) achieved a majority share of the major studio domestic market and is now operating at a profitable level. Supply Chain Essentials(TM) secured its first major customer during the first half and in mid-October we announced Borders, Inc. as our first Calendar Essentials(TM) customer. Combined, these new services now represent incremental annualized 2 revenues of approximately $4.3 million. We are increasingly optimistic of our ability to secure additional customers in the months ahead for these and other new services still under development." "We've demonstrated Rentrak's ability to deliver superior services in existing markets against much larger competitors, as well as our ability to develop and quickly implement entirely new services to address the unmet business intelligence needs of a wide array of companies comprising the entertainment industry." "Today, Rentrak is the only company in the world capturing and reporting hourly North American box office performance data with the ability to combine it with over 15 years of detailed North American movie rental and sales data. Over the next few years, Video-on-Demand, and other technologies that deliver media and entertainment to consumers electronically, are expected to move from early adoption to mass availability. Our IT and new business development teams have worked to rapidly evolve our proprietary technologies, making it possible in the future for cable operators to track transactional data on a census basis for all forms of content offered on-demand. This includes Hollywood movies, network programming and on-demand advertising." "With the significant investment in our IT programming completed, we are ready to invest in dedicated sales forces to pursue customers for each new service and develop customer service operations to support each. We estimate these operations will require additional investments of approximately $1.6 million that will be expensed over the next two quarters, and which we intend to fund with the cash flow expected from our PPT business. In addition, as of September 30, our balance sheet contained approximately $10 million in cash and zero debt." "We believe more strongly than ever that Rentrak is in perfect position to become the largest independent 3rd-party aggregator of consumption data spanning the full life cycle of entertainment media and the provider of related business intelligence services for the entire entertainment industry. Our most exciting opportunities for revenue and earnings growth are yet ahead of us." Business Outlook ---------------- The company continues to experience great change, pursuing rapid expansion of recently launched new services and investing in the development and launch of several new services. In addition, a number of dynamics currently at play in the movie rental industry could have a direct impact, favorable or unfavorable, on the company's core PPT business. The timing and magnitude of the impacts from these dynamics, together with the timing of the launch and pace of expansion in the company's new business initiatives, are difficult to predict, but management believes there is significant promise in the new markets it has preliminarily sized. 3 Based on current customer agreements and titles scheduled for release under revenue-sharing terms, the company expects fiscal second-half PPT revenues to grow by between 35 and 40 percent compared with the first half of the fiscal year, and to produce the necessary cash flow to enable the company to continue investing in new business intelligence services. Management currently expects fiscal 2003 second-half earnings of between approximately $1.0 and 1.2 million, or $0.10 and 0.12 per share. Conference Call --------------- Rentrak has scheduled a conference call for 2 p.m. (PST), November 13, 2003 to discuss the company's financial performance. Shareowners, members of the media and other interested parties may participate in the call by dialing 1-800-299-9086, or 1-617-786-2903 for international callers and entering passcode 61358692. This call is being webcast by CCBN and can be accessed at Rentrak's web site at www.rentrak.com where it will be archived through February 13, 2004. The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com). A telephone replay of the call will be available through November 20, 2003 by dialing 888-286-8010 from the U.S. and Canada, or 617-801-6888 from international locations and entering passcode 55108971. About Rentrak Corporation ------------------------- Rentrak Corporation, based in Portland, Oregon, is the developer of the Essentials(TM) suite of web-based information management and business intelligence products used by clients in the media, entertainment, retail and manufacturing industries. Vertical market editions of Essentials(TM) applications are customizable to the needs of each licensee, allowing marketers to collect, manage, analyze and make critical business decisions based on detailed, real-time point-of-sale and supply chain data. The Essentials(TM) suite of services offers competitive advantages to executives by providing timely and actionable insight into their own company's performance in tandem with valuable perspective against aggregated industry-wide data. For further information, please visit Rentrak's corporate Web site at http://www.rentrak.com. -- more-- Safe Harbor Statement --------------------- When used in this discussion, the words "anticipates," "expects," "intends" and similar expressions are intended to identify forward-looking statements. Such statements relate to, among other things, the revenues and 4 results of operations for the company's PPT(R) and business intelligence services and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could affect Rentrak's financial results include customer and consumer demand for movies in various media formats subject to company guarantees, the company's ability to attract new revenue-sharing customers, the company's ability to successfully develop and market new services to create new revenue streams, and Rentrak's customers continuing to comply with the terms of their agreements. Additional factors that could affect Rentrak's financial results are described in Rentrak's March 31, 2003 annual report on Form 10-K and subsequent quarterly reports, filed with the Securities and Exchange Commission. Results of operations in any past period should not be considered indicative of the results to be expected for future periods. Business outlook statements are based on current expectations. These statements are forward-looking, subject to risks and uncertainties, and actual results may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The inclusion of any statement in this release does not constitute a suggestion by the company or any other person that the events or circumstances described in such statements are material. The company does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied in this release will not be realized. # # # (Financial Tables Follow) 5 RENTRAK CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS
(UNAUDITED) September 30, March 31, 2003 2003(1) --------------------------------------------------- CURRENT ASSETS: Cash and cash equivalents $ 9,818,471 $ 10,063,541 Accounts receivable, net of allowance for doubtful accounts of $737,937 and $748,139 6,514,227 9,910,532 Advances to program suppliers 1,315,648 418,101 Assets held for sale - - Income tax receivable 141,495 81,085 Deferred tax asset 3,681,323 2,796,908 Other current assets 1,298,307 2,226,287 Current assets of discontinued operations - - --------------------------------------------------- Total current assets 22,769,471 25,496,454 PROPERTY AND EQUIPMENT, net 2,292,534 2,404,763 DEFERRED TAX ASSET 919,392 894,083 OTHER ASSETS 1,354,862 1,931,133 --------------------------------------------------- TOTAL ASSETS $ 27,336,259 $ 30,726,433 =================================================== (1) Derived from Rentrak's audited consolidated financial statement as of March 31,2003
6 RENTRAK CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY
(UNAUDITED) September 30, March 31, 2003 2003(1) ------------------------------------------------- CURRENT LIABILITIES: Accounts payable $ 10,061,911 $ 12,710,999 Accrued liabilities 1,322,474 1,143,785 Accrued compensation 461,247 610,022 Deferred revenue 141,054 156,692 ------------------------------------------------- Total current liabilities 11,986,686 14,621,498 ------------------------------------------------- LONG-TERM LIABILITIES: Lease obligations, deferred gain and customer deposits 548,778 668,039 ------------------------------------------------- Total long-term liabilities 548,778 668,039 ------------------------------------------------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock, $.001 par value; Authorized: 10,000,000 shares, none issued - - Common stock, $.001 par value; Authorized: 30,000,000 shares Issued and outstanding: 9,600,590 shares at September 30, 2003 and 9,471,612 at March 31, 2003 9,601 9,472 Capital in excess of par value 40,285,908 39,655,212 Notes receivable - - Accumulated other comprehensive income 180,879 180,879 Accumulated deficit (25,675,593) (24,408,667) ------------------------------------------------- 14,800,795 15,436,896 ------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 27,336,259 $ 30,726,433 ================================================= (1) Derived from Rentrak's audited consolidated financial statement as of March 31,2003
7 RENTRAK CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) Three Months Ended September 30, 2003 2002 ---------------------------------------------------------- REVENUES: PPT $ 12,184,103 $ 17,976,338 Other 2,076,780 2,798,144 ---------------------------------------------------------- 14,260,883 20,774,482 ---------------------------------------------------------- OPERATING COSTS AND EXPENSES: Cost of sales 12,182,187 17,010,953 Selling, general, and administrative 4,283,319 3,555,807 ---------------------------------------------------------- 16,465,506 20,566,760 ---------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS (2,204,623) 207,722 ---------------------------------------------------------- OTHER INCOME (EXPENSE): Interest income 67,428 71,500 Interest expense (1,776) - ---------------------------------------------------------- 65,652 71,500 ---------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX PROVISION (BENEFIT) (2,138,971) 279,222 INCOME TAX PROVISION (BENEFIT) (812,369) 106,107 ---------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS (1,326,602) 173,115 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT OF $0 AND $169,293 - (276,216) ---------------------------------------------------------- NET LOSS $ (1,326,602) $ (103,101) ========================================================== NET INCOME (LOSS) PER SHARE: Basic: Continuing operations $ (0.14) $ 0.02 Discontinued operations - (0.03) ---------------------------------------------------------- Total $ (0.14) $ (0.01) ========================================================== Diluted: Continuing operations $ (0.14) $ 0.02 Discontinued operations - (0.03) ---------------------------------------------------------- Total $ (0.14) $ (0.01) ==========================================================
8 RENTRAK CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) Six Months Ended September 30, 2003 2002 ------------------------------------------------------- REVENUES: PPT $ 25,236,794 $ 35,842,448 Other 7,722,513 7,359,475 ------------------------------------------------------- 32,959,307 43,201,923 ------------------------------------------------------- OPERATING COSTS AND EXPENSES: Cost of sales 26,363,100 35,300,572 Selling, general, and administrative 8,753,968 7,556,255 Net gain from litigation settlement - (361,847) ------------------------------------------------------- 35,117,068 42,494,980 ------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS (2,157,761) 706,943 ------------------------------------------------------- OTHER INCOME (EXPENSE): Interest income 122,867 71,500 Interest expense (7,825) - ------------------------------------------------------- 115,042 71,500 ------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX PROVISION (BENEFIT) (2,042,719) 778,443 INCOME TAX PROVISION (BENEFIT) (775,793) 295,811 ------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS (1,266,926) 482,632 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT OF $0 AND $258,174 - (421,230) ------------------------------------------------------- NET INCOME (LOSS) $ (1,266,926) $ 61,402 ======================================================= NET INCOME (LOSS) PER SHARE: Basic: Continuing operations $ (0.13) $ 0.05 Discontinued operations - (0.04) ------------------------------------------------------- Total $ (0.13) $ 0.01 ======================================================= Diluted: Continuing operations $ (0.13) $ 0.05 Discontinued operations - (0.04) ------------------------------------------------------- Total $ (0.13) $ 0.01 =======================================================
9 RENTRAK CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) Three Months Ended September 30, 2003 ENTERTAINMENT FULFILLMENT TOTAL ---------------------------- ------------------------ ----------------------- REVENUES: PPT $ 12,184,103 $ - $ 12,184,103 Other 1,572,164 504,616 2,076,780 ---------------------------- ------------------------ ----------------------- 13,756,267 504,616 14,260,883 ---------------------------- ------------------------ ----------------------- OPERATING COSTS AND EXPENSES: Cost of sales 10,160,901 2,021,286 12,182,187 Selling, general, and administrative 4,012,726 270,593 4,283,319 ---------------------------- ------------------------ ----------------------- 14,173,627 2,291,879 16,465,506 ---------------------------- ------------------------ ----------------------- LOSS FROM OPERATIONS (417,360) (1,787,263) (2,204,623) ---------------------------- ------------------------ ----------------------- OTHER INCOME (EXPENSE): Interest income 20,658 46,770 67,428 Interest expense (1,776) - (1,776) ---------------------------- ------------------------ ----------------------- 18,882 46,770 65,652 ---------------------------- ------------------------ ----------------------- LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX BENEFIT (398,478) (1,740,493) (2,138,971) INCOME TAX BENEFIT (151,422) (660,947) (812,369) ---------------------------- ------------------------ ----------------------- LOSS FROM CONTINUING OPERATIONS (247,056) (1,079,546) (1,326,602) LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT OF $0 - - - ---------------------------- ------------------------ ----------------------- NET LOSS $ (247,056) $ (1,079,546) $ (1,326,602) ============================ ======================== ======================= NET LOSS PER SHARE: Basic: Continuing operations $ (0.03) $ (0.11) $ (0.14) Discontinued operations - - - ---------------------------- ------------------------ ----------------------- Total $ (0.03) $ (0.11) $ (0.14) ============================ ======================== ======================= Diluted: Continuing operations $ (0.03) $ (0.11) $ (0.14) Discontinued operations - - - ---------------------------- ------------------------ --------------------- Total $ (0.03) $ (0.11) $ (0.14) ============================ ======================== =======================
10 RENTRAK CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) Three Months Ended September 30, 2002 ENTERTAINMENT FULFILLMENT TOTAL ----------------------------- ------------------------- ----------------------- REVENUES: PPT $ 17,976,338 $ - $ 17,976,338 Other 919,787 2,401,318 (1) 2,798,144 ----------------------------- ------------------------- ----------------------- 18,896,125 2,401,318 20,774,482 ----------------------------- ------------------------- ----------------------- OPERATING COSTS AND EXPENSES: Cost of sales 14,602,950(1) 2,930,964 17,010,953 Selling, general, and administrative 2,973,189 582,618 3,555,807 ----------------------------- ------------------------- ----------------------- 17,576,139 3,513,582 20,566,760 ----------------------------- ------------------------- ----------------------- INCOME (LOSS) FROM OPERATIONS 1,319,986 (1,112,264) 207,722 ----------------------------- ------------------------- ----------------------- OTHER INCOME (EXPENSE): Interest income 71,500 - 71,500 Interest expense - - - ----------------------------- ------------------------- ----------------------- 71,500 - 71,500 ----------------------------- ------------------------- ----------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX PROVISION (BENEFIT) 1,391,486 (1,112,264) 279,222 INCOME TAX PROVISION (BENEFIT) 528,768 (422,661) 106,107 ----------------------------- ------------------------- ----------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS 862,718 (689,603) 173,115 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT OF $169,293 (276,216) - (276,216) ----------------------------- ------------------------- ----------------------- NET INCOME (LOSS) $ 586,502 $ (689,603) $ (103,101) ============================= ========================= ======================= NET INCOME (LOSS) PER SHARE: Basic: Continuing operations $ 0.09 $ (0.07) $ 0.02 Discontinued operations (0.03) - (0.03) ----------------------------- ------------------------- ----------------------- Total $ 0.06 $ (0.07) $ (0.01) ============================= ========================= ======================= Diluted: Continuing operations $ 0.09 $ (0.07) $ 0.02 Discontinued operations (0.03) - (0.03) ----------------------------- ------------------------- ----------------------- Total $ 0.06 $ (0.07) $ (0.01) ============================= ========================= ======================= (1) - Includes Intercompany transactions of $522,961, which are eliminated in consolidated total amounts.
11 RENTRAK CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) Six Months Ended September 30, 2003 ENTERTAINMENT FULFILLMENT TOTAL ---------------------------- ------------------------- ---------------------- REVENUES: PPT $ 25,236,794 $ - $ 25,236,794 Other 3,098,214 5,154,443(1) 7,722,513 ---------------------------- ------------------------- ---------------------- 28,335,008 5,154,443 32,959,307 ---------------------------- ------------------------- ---------------------- OPERATING COSTS AND EXPENSES: Cost of sales 20,640,211(1) 6,253,033 26,363,100 Selling, general, and administrative 8,013,373 740,595 8,753,968 ---------------------------- ------------------------- ---------------------- 28,653,584 6,993,628 35,117,068 ---------------------------- ------------------------- ---------------------- LOSS FROM OPERATIONS (318,576) (1,839,185) (2,157,761) ---------------------------- ------------------------- ---------------------- OTHER INCOME (EXPENSE): Interest income 51,703 71,164 122,867 Interest expense (3,429) (4,396) (7,825) ---------------------------- ------------------------- ---------------------- 48,274 66,768 115,042 ---------------------------- ------------------------- ---------------------- LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX BENEFIT (270,302) (1,772,417) (2,042,719) INCOME TAX BENEFIT (102,715) (673,078) (775,793) ---------------------------- ------------------------- ---------------------- LOSS FROM CONTINUING OPERATIONS (167,587) (1,099,339) (1,266,926) LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT OF $0 - - - ---------------------------- ------------------------- ---------------------- NET LOSS $ (167,587) $ (1,099,339) $ (1,266,926) ============================ ========================= ====================== NET LOSS PER SHARE: Basic: Continuing operations $ (0.02) $ (0.11) $ (0.13) Discontinued operations - - - ---------------------------- ------------------------- ---------------------- Total $ (0.02) $ (0.11) $ (0.13) ============================ ========================= ====================== Diluted: Continuing operations $ (0.02) $ (0.11) $ (0.13) Discontinued operations - - - ---------------------------- ------------------------- ----------------------- Total $ (0.02) $ (0.11) $ (0.13) ============================ ========================= ====================== (1)- Includes Intercompany transactions of $530,144, which are eliminated in consolidated total amounts.
12 RENTRAK CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) Six Months Ended September 30, 2002 ENTERTAINMENT FULFILLMENT TOTAL ---------------------------- ------------------------- ------------------------- REVENUES: PPT $ 35,842,448 $ - $ 35,842,448 Other 1,974,257 6,471,228(1) 7,359,475 ---------------------------- ------------------------- ------------------------- 37,816,705 6,471,228 43,201,923 ---------------------------- ------------------------- ------------------------- OPERATING COSTS AND EXPENSES: Cost of sales 29,326,372(1) 7,060,210 35,300,572 Selling, general, and administrative 6,237,572 1,318,683 7,556,255 Net gain from litigation settlement (361,847) - (361,847) ---------------------------- ------------------------- ------------------------- 35,202,097 8,378,893 42,494,980 ---------------------------- ------------------------- ------------------------- INCOME (LOSS) FROM OPERATIONS 2,614,608 (1,907,665) 706,943 ---------------------------- ------------------------- ------------------------- OTHER INCOME (EXPENSE): Interest income 71,500 - 71,500 Interest expense - - - ---------------------------- ------------------------- ------------------------- 71,500 - 71,500 ---------------------------- ------------------------- ------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX PROVISION (BENEFIT) 2,686,108 (1,907,665) 778,443 INCOME TAX PROVISION (BENEFIT) 1,020,724 (724,913) 295,811 ---------------------------- ------------------------- ------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS 1,665,384 (1,182,752) 482,632 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT OF $258,174 (421,230) - (421,230) ---------------------------- ------------------------- ------------------------- NET INCOME (LOSS) $ 1,244,154 $ (1,182,752) $ 61,402 ============================ ========================= ========================= NET INCOME (LOSS) PER SHARE: Basic: Continuing operations $ 0.17 $ (0.12) $ 0.05 Discontinued operations $ (0.04) $ - $ (0.04) ---------------------------- ------------------------- ------------------------- Total $ 0.13 $ (0.12) $ 0.01 ============================ ========================= ========================= Diluted: Continuing operations $ 0.16 $ (0.12) $ 0.05 Discontinued operations $ (0.04) $ - $ (0.04) ---------------------------- ------------------------- ------------------------- Total $ 0.12 $ (0.12) $ 0.01 ============================ ========================= ========================= (1) - Includes Intercompany transactions of $1,086,010, which are eliminated in consolidated total amounts.
13