EX-99.1 3 c29109_ex99-1.txt Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: --------------------- Stacy Roth Director, Corporate Communications (212) 463-6350 FIND/SVP REPORTS CONTINUED STRONG PROGRESS IN SECOND QUARTER AND FIRST HALF OF 2003 New York, N.Y., August 18, 2003--FIND/SVP, Inc. (OTCBB:FSVP), a leading provider of business advisory, research and consulting services, today announced continued strong operational and financial progress for the second quarter and six months ended June 30, 2003. In the second quarter of 2003, FIND/SVP reported revenues of $7,063,000, a 35.2% improvement compared to revenues of $5,226,000 in the same period in the prior year. The net loss in the second quarter was $104,000 versus a net loss of $186,000, or $.02 per share, one year earlier. For the three months ended June 30, 2003, the reported net loss attributable to common shareholders' was $251,000 or $.02 per share. This is the result of the accretion on redeemable common shares of $147,000 for the three months ended June 30, 2003. Adjusted EBITDA* in the recently completed quarter was $468,000, substantially improved relative to adjusted EBITDA* of $105,000 for the same period in 2002. For the six month period, the Company reported revenues of $12,165,000, representing an 18.5% improvement compared to $10,270,000 in the same period in the prior year. The net loss for the period was $59,000 versus a net loss of $659,000, or $.07 per share, in the same period last year. For the six months ended June 30, 2003, the reported net loss attributable to common shareholders' was $206,000 or $.02 per share. This is the result of the accretion on redeemable common shares of $147,000 for the six months ended June 30, 2003. Adjusted EBITDA* for the period was $905,000, compared to ($4,000) in the first half of 2002. The reported results for the three and six month periods ended June 30, 2003 include the effect of the April 1, 2003 acquisition of Guideline Research Corporation, one of the nation's leading providers of custom market research. "The first half of 2003 was a very eventful period for our Company," stated David M. Walke, Chief Executive Officer of FIND/SVP. "It was highlighted by the successful integration of Guideline Research, as well as the further development of additional value-added services and products designed to offer existing and prospective clients with a diversified and complementary suite of knowledge services under one roof." Mr. Walke noted that "the substantial reduction in net loss and growth in adjusted EBITDA in the first six months was a consequence of the cost control initiatives put into place in the second half of 2002, which have yielded outstanding improvement in gross margin and operating expense ratios at the FIND/SVP level in the year to date, as well as the important contribution from Guideline." Specifically, gross margins improved to 62.6% from 58.3%, and operating expenses declined to 59% of revenues from 61%. "Therefore, in a challenging business environment which continues to impact our top line, we have been very successful in managing our costs, while simultaneously making the requisite investments in staffing and other areas to optimally position the Company as our integrated sales initiatives gain traction." "In addition, the recent acquisition of Teltech, a leading provider of custom research and information services principally designed for Research and Development and Engineering departments of larger corporations, greatly expands our services and market opportunities," Mr. Walke said. The company also reported consolidated financial results for the second quarter and first half of 2003, giving effect to the consolidation of Guideline Research Corporation and Teltech as if each had been acquired on January 1, 2003. Internal pro forma estimates reflect revenues for the first six months of the year of approximately $18,000,000, a net loss of approximately $475,000, and adjusted EBITDA* of approximately $1,442,000. For the second quarter ended June 30, 2003, internal pro forma estimates reflect revenues of approximately $9,000,000, a net loss of approximately $230,000 and adjusted EBITDA* of approximately $692,000. FIND/SVP will be filing a Form 8-KA on or before September 15, 2003, which will contain pro forma financial information related to its acquisition of Teltech. "As I stated previously," Mr. Walke continued, "we have succeeded in transforming ourselves from a company largely dependent on its legacy quick consulting services to a dynamic organization offering a superior suite of value added business intelligence services." "We have accomplished this transition by thoughtful execution of our strategic business plan," he said. "Furthermore, we have increased our revenue base by almost 80% and dramatically expanded our EBITDA performance." "We are now focusing all of our attention on applying the necessary strategies and tactics to optimize the potential of the `new' FIND/SVP. We remain committed to the operating model and approach we developed when we started this program almost twenty months ago, and firmly believe that we are building an organization which will provide exceptional returns to our shareholders," Mr. Walke concluded. *Adjusted EBITDA is defined as net income (loss) excluding interest, taxes, depreciation and amortization, compensation expense from option grants, other income, and other 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 The discussion of forward-looking information requires management of the Company to make certain estimates and assumptions regarding the Company's strategic direction and the effect of such plans on the Company's financial results. The Company's actual results and the implementation of its plans and operations may differ materially from forward-looking statements made by the Company. The Company encourages readers of forward-looking information concerning the Company to refer to its prior filings with the Securities and Exchange Commission that set forth-certain risks and uncertainties that may have an impact on future results and direction of the Company. The Company does not report on its progress during a quarter until after the quarter has been completed and appropriately disclosed its results. ABOUT FIND/SVP FIND/SVP, Inc. (HTTP://WWW.FINDSVP.COM) is a knowledge services company that offers a full suite of custom business intelligence, advisory, and consulting solutions to address clients' critical business issues. FIND/SVP helps executives enhance their business performance and profit from opportunities through targeted research and advisory work, providing its nearly 2,000 member clients with a competitive business advantage. Founded in 1969, FIND/SVP is the second largest member of the global SVP Group, which serves more than 75,000 executives in 11,000 companies worldwide. FIND/SVP COMPARATIVE STATEMENT OF INCOME (LOSS) THREE MONTHS ENDED JUNE 30 ---------------------------- 2003 2002 ----------- ----------- Revenue $ 7,063,000 $ 5,226,000 EBITDA $ 300,000 $ 29,000 Adjusted EBITDA(1,2) $ 468,000 $ 105,000 Loss Before Income Taxes $ (150,000) $ (267,000) Net Loss(3) $ (104,000) $ (186,000) Net Loss attributable to common shareholders' $ (251,000) $ (186,000) Earnings Per Share - Basic $ (0.02) $ (0.02) Earnings Per Share - Diluted $ (0.02) $ (0.02) Weighted Average Shares Outstanding - Basic 10,792,443 10,134,611 Weighted Average Shares Outstanding - Diluted 10,792,443 10,134,611 (1) ADJUSTED EBITDA (000'S OMITTED) FOR THE THREE MONTHS ENDED JUNE 30, 2003 IS AS FOLLOWS: Net loss $ (104) Tax benefit (46) Depreciation and amortization 262 Interest Expense 188 Stock compensation expense 27 Non recurring severance accrual 46 Guideline acquisition related legal expenses 15 Other 80 ------- ADJUSTED EBITDA $ 468 (2) ADJUSTED EBITDA (000'S OMITTED) FOR THE THREE MONTHS ENDED JUNE 30, 2002 IS AS FOLLOWS: Net loss $ (186) Tax benefit (81) Depreciation and amortization 263 Interest Expense 33 Stock compensation expense 77 Other (1) ------- Adjusted EBITDA $ 105 (3) Net loss for the three months ended June 30, 2003 of $104,000 was further reduced by accretion on redeemable common shares of $147,000, resulting in net loss attributable to common shareholders of $251,000. FIND/SVP COMPARATIVE STATEMENT OF INCOME (LOSS) SIX MONTHS ENDED JUNE 30 ---------------------------- 2003 2002 ----------- ----------- Revenue $12,165,000 $10,270,000 EBITDA $ 643,000 ($350,000) Adjusted EBITDA(1,2) $ 905,000 $ (4,000) Loss Before Income Taxes $ (85,000) $ (941,000) Net Loss(3) $ (59,000) $ (659,000) Net Loss attributable to common shareholders' $ (206,000) $ (659,000) Loss Per Share - Basic $ (0.02) $ (0.07) Loss Per Share - Diluted $ (0.02) $ (0.07) Weighted Average Shares Outstanding - Basic 10,505,680 10,098,193 Weighted Average Shares Outstanding - Diluted 10,505,680 10,098,193 (1) ADJUSTED EBITDA (000'S OMITTED) FOR THE SIX MONTHS ENDED JUNE 30, 2003 IS AS FOLLOWS: Net loss $ (59) Tax benefit (26) Depreciation and amortization 511 Interest Expense 217 Stock compensation expense 54 Non recurring severance accrual 46 Guideline acquisition related legal expenses 169 Non recurring limited partnership distribution (87) Other 80 ----- ADJUSTED EBITDA $ 905 (2) ADJUSTED EBITDA (000'S OMITTED) FOR THE SIX MONTHS ENDED JUNE 30, 2002 IS AS FOLLOWS: Net loss $(659) Tax benefit (282) Depreciation and amortization 524 Net Interest Expense 67 Stock compensation expense 132 Non recurring severance accrual 209 Other 5 ----- ADJUSTED EBITDA $ (4) (3) Net loss for the six months ended June 30, 2003 of $59,000 was further reduced by accretion on redeemable common shares of $147,000, resulting in net loss attributable to common shareholders of $206,000. FIND/SVP ESTIMATED PRO FORMA FINANCIAL DATA THREE MONTHS ENDED JUNE 30 ------------- 2003 ---------- Revenue $9,000,000 Net loss $ (230,000) EBITDA $ 347,000 Adjusted EBITDA(1) $ 692,000 (1) PRO FORMA ADJUSTED EBITDA (000'S OMITTED) FOR THE THREE MONTHS ENDED JUNE 30, 2003 IS AS FOLLOWS: Pro forma net loss $(230) Tax benefit (46) Depreciation and amortization 435 Interest Expense 188 Content and integration synergies resulting from acquisitions 223 Stock compensation expense 27 Non recurring severance accrual 46 Guideline acquisition related legal expenses 15 Other 34 ----- ADJUSTED EBITDA $ 692 FIND/SVP ESTIMATED PRO FORMA FINANCIAL DATA SIX MONTHS ENDED JUNE 30 2003 ----------- Revenue $18,000,000 Net loss $ (475,000) EBITDA $ 618,000 Adjusted EBITDA(1) $ 1,442,000 (1) PRO FORMA ADJUSTED EBITDA (000'S OMITTED) FOR THE SIX MONTHS ENDED JUNE 30, 2003 IS AS FOLLOWS: Pro forma net loss $(475) Tax benefit (26) Depreciation and amortization 893 Interest Expense 226 Content and integration synergies resulting from acquisitions 580 Stock compensation expense 54 Normalization of business and payroll taxes 53 Non recurring severance accrual 46 Guideline acquisition related legal expenses 169 Non recurring bad debt reserve adj. (29) Non recurring limited partnership distribution (87) Other 38 ----- ADJUSTED EBITDA $1,442 FIND/SVP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) JUNE 30 DECEMBER 31 2003(1) 2002(1) ----------- ---------- ASSETS Cash and cash equivalents $ 485,000 $ 968,000 Accounts receivable, net 3,910,000 1,953,000 Deferred tax assets 312,000 272,000 Prepaid expenses and other current assets 989,000 948,000 ----------- ---------- Total Current Assets 5,696,000 4,141,000 ----------- ---------- Property, Plant & Equipment - Net 2,181,000 2,334,000 Goodwill, net 5,074,000 75,000 Deferred tax assets 1,362,000 1,324,000 Rental asset 455,000 575,000 Cash surrender value of life insurance 237,000 418,000 Non-marketable equity securities 185,000 185,000 Other assets 851,000 486,000 ----------- ---------- Total assets $16,041,000 $9,538,000 =========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current maturities of notes payable $ 577,000 $ 606,000 Trade accounts payable 1,280,000 353,000 Accrued expenses and other 2,351,000 1,749,000 Unearned retainer income 2,524,000 1,476,000 ----------- ---------- Total current liabilities 6,732,000 4,184,000 ----------- ---------- Notes payable 2,919,000 1,200,000 Deferred compensation 469,000 441,000 Redeemable, convertible, preferred stock 500,000 -- Redeemable common stock 874,000 -- Shareholders' Equity 4,547,000 3,713,000 ----------- ---------- Total Liabilities and Shareholders' Equity $16,041,000 $9,538,000 =========== ========== (1) Reflects the reclassification of unearned retainer income as a current liability.