EX-99.1 3 c27764_ex99-1.txt EXHIBIT 99.1 FOR IMMEDIATE RELEASE Contact: Stacy Roth Director, Corporate Communications (212) 463-6350 FIND/SVP REPORTS FOURTH QUARTER AND YEAR END OPERATING RESULTS -- COMPANY ACHIEVES OPERATING PROFITS AND REVENUE INCREASES IN FOURTH QUARTER -- New York, NY--April 4, 2003--FIND/SVP, Inc. (OTCBB:FSVP), a leader in business advisory, research and consulting services, today announced operating results for the fourth quarter and year ended December 31, 2002. For the three months ended December 31, 2002, the Company had operating profits (profits before severance costs, asset impairment recognition, taxes, and other non-recurring charges) of $44,000. These results compare to an operating loss of $438,000 in the fourth quarter of 2001, and an operating loss of $14,000 in the third quarter of 2002. After giving effect to certain severance costs, asset impairment recognition, taxes, and other non-recurring charges, the reported loss for the fourth quarter of 2002 was $520,000, or $(.05) per share. In the fourth quarter of the prior year, (also after giving effect to non-recurring charges) the reported loss was $607,000, or $(.08) per share. The Company reported net income of $55,000 or $.01 per share, in the third quarter of 2002. Adjusted EBITDA* for the three month period was $349,000, as compared to $273,000 in the third quarter of 2002, and a loss of $130,000 in the fourth quarter of the prior year. Revenues for the quarter were $5,349,000, a 7.9 percent increase over the prior year's fourth quarter. For the twelve months ended December 31, 2002, FIND/SVP had an operating loss of $703,000, a significant improvement as compared to an operating loss of $883,000 one year earlier. The reported net loss for the year was $1,124,000, or $.11 per share, compared to the reported loss of $945,000, or $.12 per share, in the prior year. Adjusted EBITDA* for the year was $625,000, as compared to $525,000 one year earlier. Revenues declined 6.2 percent to $20,828,000. Commenting on the results, David Walke, Chief Executive Officer, said, "FIND/SVP made outstanding strategic, operational and financial progress in 2002, particularly in the second half of the year. Operating in a highly challenging business environment, we were able to achieve many of our objectives, and position the Company for an exciting and successful future." "From a strategic standpoint, we are transforming the Company into an innovative provider of knowledge services, through the internal development of a complementary, diverse and value-added suite of services and products which optimally exploit our Company's core assets and provide decision-makers at corporations of all sizes and interests with the tools they need to maximize their business potential," Mr. Walke continued. "Operationally, we have reorganized and rationalized our Sales efforts to more efficiently address new sales and retention efforts." he said. "Indeed, I am pleased to report that in 2002 our average annual retainer increased five percent, retainer rates on new sales increased almost 12 percent, and client retention increased by 16 percent. We have also created a team specifically devoted to Corporate Sales, which is focused on providing value-added knowledge service solutions to larger existing and prospective clients." "Lastly, from a financial perspective, we implemented several intelligent pricing programs, and continued our aggressive cost control efforts, which contributed to our ability to report strong operating progress, including a return to operating profitability in the second half of the year." Earlier this week, FIND/SVP announced the acquisition of Guideline Research Corporation, one of the nation's leading providers of custom market research. Founded in 1969, Guideline provides a broad spectrum of market research services to some of the nation's leading Fortune 1000 companies, advertising agencies and law firms. In 2002, Guideline achieved revenue of approximately $8 million and was significantly profitable. Looking forward, Mr.Walke said, "Despite the difficult business environment, we believe that FIND/SVP has built the foundation for 2003 to represent a dynamic and successful year. 2002 was devoted to stabilizing the operating performance, while simultaneously developing and implementing services and products to expand our relevance and value. We have made substantial progress in this transformation, and while we are always exploring additional opportunities, we view the current year as one of execution." "We're highly confident in our platform and approach, and expect continued strong progress in the coming year." * Adjusted EBITDA is defined as net income (loss) excluding interest, taxes, depreciation and amortization and non-recurring charges. Although Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles ("GAAP"), we believe it is useful to investors because it is a widely used financial measure that provides relevant and useful information for evaluating financial performance. Adjusted EBITDA should not be considered an alternative to measures of operating performance under GAAP. FORWARD-LOOKING STATEMENTS In this release, and from time to time, we may make or publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, and similar matters. Such statements are necessarily estimates reflecting management's best judgment based on current information. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Such statements are usually identified by the use of words or phrases such as "believes," "anticipates," "expects," "estimates," "planned," "outlook," and "goal." Because forward-looking statements involve risks and uncertainties, our actual results could differ materially. In order to comply with the terms of the safe harbor, we note that a variety of factors could cause our actual results and experience to differ materially from the anticipated results or other expectations expressed in forward-looking statements. FIND/SVP COMPARATIVE STATEMENT OF INCOME (LOSS) Three Months Ended December 31 ------------------------------ 2002 2001 ---- ---- Revenue $ 5,349,000 $4,958,000 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, and other non-recurring charges 349,000 (130,000) Loss Before Income Taxes (600,000) (855,000) Net Loss (A) $(520,000) $ (607,000) Loss Per Share - Basic $(0.05) $(0.08) Loss Per Share - Diluted $(0.05) $(0.08) Weighted Average Shares Outstanding - Basic 10,188,447 7,879,744 Weighted Average Shares Outstanding - Diluted 10,188,447 7,879,744 (A) Included in the Net Loss for the three months ended December 31, 2002 and December 31, 2001, are non-recurring charges of $496,000 and $292,000, respectively, net of tax effect FIND/SVP COMPARATIVE STATEMENT OF INCOME (LOSS) Twelve Months Ended December 31 ------------------------------- 2002 2001 ---- ---- Revenue $20,828,000 $22,215,000 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, and other non-recurring charges 625,000 525,000 Loss Before Income Taxes (1,463,000) (1,345,000) Net Loss (A) $(1,124,000) $(945,000) Loss Per Share - Basic $(0.11) $(0.12) Loss Per Share - Diluted $(0.11) $(0.12) Weighted Average Shares Outstanding - Basic 10,138,703 7,879,744 Weighted Average Shares Outstanding - Diluted 10,138,703 7,879,744 (A) Included in the Net Loss for the twelve months ended December 31, 2002 and December 31, 2001, are non-recurring charges of $585,000 and $323,000, respectively, net of tax effect FIND/SVP, INC. AND SUBSIDIARIES Consolidated Balance Sheets December 31 (in thousands, except share and per share data)
ASSETS 2002 2001 Current assets: Cash and cash equivalents $ 968 $ 1,951 Accounts receivable, less allowance for doubtful accounts of $150 and $126 in 2002 and 2001, respectively 1,953 1,415 Note receivable -- 138 Deferred tax assets 272 194 Prepaid expenses and other current assets 948 828 --------- -------- Total current assets 4,141 4,526 Equipment, software development and leasehold improvements, at cost, less accumulated depreciation and amortization 2,334 2,892 Other assets: Deferred tax assets 1,324 1,063 Rental Asset 575 580 Cash surrender value of life insurance 418 747 Non-marketable equity securities 185 500 Other assets 561 384 --------- -------- $ 9,538 $ 10,692 ========= ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current maturities of notes payable $ 606 $ 924 Trade accounts payable 353 469 Accrued expenses and other 1,749 1,781 --------- -------- Total current liabilities 2,708 3,174 --------- -------- Unearned retainer income 1,476 1,753 Notes payable 1,200 895 Deferred Compensation 441 380 Commitments and contingencies Shareholders' equity: Preferred stock, $.0001 par value. Authorized 2,000,000 shares; zero issued and outstanding in both 2002 and 2001 -- -- Common stock, $.0001 par value. Authorized 100,000,000 shares; issued and outstanding 10,214,102 shares in 2002; issued and outstanding 10,043,443 shares in 2001 1 1 Capital in excess of par value 7,332 6,985 Accumulated deficit (3,620) (2,496) --------- -------- Total shareholders' equity 3,713 4,490 --------- -------- $ 9,538 $ 10,692 ========= ========