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May 15, 2014 | Framingham, Ma
Rand Worldwide, Inc. (OTCBB: RWWI), a global provider of technology solutions to organizations with engineering design and information technology requirements, announces its financial results for the three and nine months ended March 31, 2014.
For the three months ended March 31, 2014, Rand Worldwide, Inc. reported total revenues of $25.3 million as compared with $24.1 million in the same quarter for the prior fiscal year. The Company’s overall gross margin percentage for the current quarter was 52.7%, down slightly from the 53.5% reported for the quarter ended March 31, 2013. Total selling, general and administrative expenses as a percentage of total revenues were 36% for the current quarter, down from 39% in the same quarter for the prior fiscal year. As a result, the Company reported net income of $2,228,000, or $0.04 per fully diluted share, compared to $1,775,000, or $0.03 per share, for the same period in the prior year. Adjusted EBITDA (as defined) was $4,238,000 in the third quarter of fiscal 2014, a 20% increase from adjusted EBITDA of $3,528,000 in the prior year period.
For the nine months ended March 31, 2014, total reported revenues were $68.3 million as compared with $63.6 million in the prior year, an increase of almost 8%. Year to date net income was $3,140,000, or $0.05 per fully diluted share, as compared with net income of $2,847,000, or $0.05 per share, reported for the same period in the prior year. Year-to-date Adjusted EBITDA (as defined) was $7.5 million for the nine months ended March 31, 2014, as compared with Adjusted EBITDA of $6.7 million in the same period in the prior fiscal year.
“These results were particularly satisfying since our total revenues and net income increased over those reported for the quarter ended December 31, 2013, a period where we realized the largest single sale in our history,” said Lawrence Rychlak, president and chief financial officer at Rand Worldwide. “Aided by strong customer demand as a result of a price increase that was announced by Autodesk to be effective March 28, 2014, we realized a very good revenue mix and increases in our product sales and commission revenues which helped us close out a great quarter.”
“In addition to the noteworthy performance of our IMAGINiT group, during the quarter we also drove strong results across each of our other business units including our Facilities Management, Rand 3D and Rand Secure Data groups,” added Marc Dulude, chief executive officer at Rand Worldwide. “This strong sales performance has positioned all of Rand’s divisions for continued year over year improvements in the coming periods.”
This press release contains forward-looking statements about the expectations, beliefs, plans, intentions, and strategies of Rand Worldwide, Inc. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Statements that are not historical in nature, including those that include the words “goal,” “expect,” “anticipate,” “estimate,” “should,” “believe,” “intend,” and similar expressions, are based on current expectations, estimates and projections about, among other things, the industry and the markets in which Rand Worldwide operates, and they are not guarantees of future performance. Whether actual results will conform to expectations and predictions is subject to known and unknown risks and uncertainties, including risks and uncertainties discussed in this report; general economic, market, or business conditions; changes in interest rates, and demand for our products and services; changes in our competitive position or competitive actions by other companies; the ability to manage growth; changes in laws or regulations or policies of federal and state regulators and agencies; and other circumstances beyond our control. Consequently, all of the forward-looking statements made in this document are qualified by these cautionary statements, and there can be no assurance that the actual results anticipated will be realized, or, if substantially realized, will have the expected consequences on our business or operations.
Note Regarding Use of Non-GAAP Financial Measure
This news release contains the non-GAAP measure Adjusted EBITDA. Adjusted EBITDA represents earnings from continuing operations before interest, income taxes, depreciation and amortization, and stock-based compensation expense.
Adjusted EBITDA is used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry, as the calculation of EBITDA as adjusted eliminates the effect of financing, income taxes, stock-based compensation costs, the accounting effects of capital spending and certain other merger related expenses, which items may vary from different companies for reasons unrelated to overall operating performance.
The Company believes this non-GAAP measure provides useful information to both management and investors by excluding certain expenses that may not be indicative of its core operating results. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measure included in this press release has been reconciled to the GAAP results in the accompanying table.
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