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 quarter ended March 31, 2015.
For the three months ended March 31, 2015, Rand Worldwide, Inc. reported total revenues of $23,474,000 and operating income of $3,677,000. The Company’s overall gross margin percentage was 51.8% which was slightly lower than the same quarter in the prior year due to the revenue mix. Total selling, general and administrative expenses were 5.2% lower in the current quarter compared with the same period of the prior fiscal year as a result of decreased commission expense and reduced occupancy costs. As a result, the Company reported income from continuing operations of $1,857,000, or $0.06 per diluted share for the quarter ended March 31, 2015, compared with $2,756,000, or $0.05 per diluted share, for the quarter ended March 31, 2014.
For the nine months ended March 31, 2015, the Company reported total revenues of $66,671,000, and operating income of $5,614,000. Revenues for the same period in the prior fiscal year included a single large sale of $3.2 million, thus excluding this one-time large sale, revenues increased from the prior year by $3,065,000 or 4.8%. Total selling, general and administrative expenses were higher by 7.0% for the nine months ended March 31, 2015 compared with the same period of the prior fiscal year as a result of costs associated with the Company’s tender offer which closed during the second fiscal quarter. When these expenses are excluded from the calculation, operating expenses decreased slightly over the comparable prior year period. As a result, the Company reported income from continuing operations of $3,225,000, or $0.07 per diluted share for the nine months ended March 31, 2015, compared with $5,034,000, or $0.09 per diluted share, for the same period of the prior fiscal year.
“We achieved another quarter of strong earnings which generated sufficient cash from operations to allow us to fund $1.5 million in prepayments against our term loan,” commented John Kuta, chief financial officer of Rand Worldwide. “Excluding the one-time costs related to the November 2014 tender offer and the sale of our data archiving business, our revenues and earnings continued to grow, highlighting our position as a premier engineering and design solutions provider.”
“As evidenced by our year to-date results, our businesses are doing well and our revenues and profits continue to grow,” stated Lawrence Rychlak, president and chief executive officer at Rand Worldwide. “We continue to invest in the future growth of our Company as well as in preparation for the anticipated changes in the Autodesk marketplace. Due to the competitive advantages that our size and our breadth of sales and technical talent across North America provide for us, we are very well positioned to prosper as Autodesk moves through its business transformation over the next few years.”
Forward-looking Statements
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.
View PDF for Tables.
About Rand Worldwide
Rand Worldwide is one of the world’s leading professional services and technology companies for the engineering community, targeting organizations in the building, infrastructure, and manufacturing industries. The company advances the way organizations design, develop, and manage building, infrastructure, and manufacturing projects. Fortune 500 and Engineering News Record’s Top 100 companies work with Rand Worldwide to gain a competitive advantage through technology consulting, implementation, training, and support services. One of the world’s largest integrators of Autodesk software, the company also provides facilities management software from ARCHIBUS, CAD and PLM courseware through their ASCENT division and provides training and support solutions on Dassault Systèmes and PTC products. For more information, visit
rand.com