Today, shortly after the closing bell, Beacon Enterprises Solutions Group announced its fiscal first quarter financial results for the period ended December 31, 2011. Significant improvements were noted across the board, and the company's cash position more than doubled compared to the previous year's first quarter.
Financial highlights include:
• 51% increase in first quarter net sales to $6 million from $4 million in the year-ago first quarter;
• 97% increase in first quarter gross profit to $2.3 million from $1.2 million in the year-ago first quarter;
• Gross profit margins improved 900 basis points to 39% from 30% in last year's first quarter;
• Total operating expenses for the quarter decreased by 12% to $2.2 million from $2.6 million in the year-ago first quarter;
• Net sales per employee increased by 52% over last year's first quarter (annualized);
• Salaries and benefits, as a percentage of net sales, improved to 24% from 42% in the year-ago first quarter;
• Income from operations for the quarter increased to $71,000 from a loss of ($1.4) million in the year-ago first quarter;
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) improved by over $1.4 million during the most recent quarter to positive $183,000 from negative ($1.3 million) in the year-ago first quarter; and
• The company's cash position at the end of the quarter increased by 142% to $2.1 million from $861,000 at end of the year-ago first quarter.
Tomorrow at 10:00am EST, Beacon's management team will discuss the company's first quarter 2012 financial results. Those who wish to join the teleconference should call 888-495-3916 and enter conference ID # 43328861 15 minutes prior to the beginning of the call. Participants outside of the U.S. and Canada can dial in by calling 706-634-7530 and entering the same conference ID. Beacon will also simultaneously webcast the call on its website under the "Investor Relations" tab. A digital recording of the conference call will be available for replay two hours after the end of the call's completion by calling 404-537-3406 and entering conference ID # 43328861.
Chairman and CEO of Beacon Enterprise Solutions, Bruce Widener, commented, "Fiscal 2012 is shaping up to be another year of significant growth for Beacon. We're reporting another quarter of double-digit sales growth, improved and stable gross profit margins and positive income from operations. Although we have been impacted by the current challenges in the global economy, having seen some large infrastructure projects delayed and experienced longer than usual sales cycles, we have continued to grow our business, strengthen our customer relationships and expand our capabilities despite these challenges. We are currently on track to achieve a minimum of 50% annual sales growth in 2012, without the benefit of pending large infrastructure projects, and expect to achieve sustainable profitability. Our sales pipeline remains robust and continues to expand. We are also continuing to pursue a number of large project opportunities that could have a significant, positive impact on our growth and profitability in 2012."
"In the fiscal first quarter we continued the upward trends that began last year and worked to further solidify our position as a leading global ITS provider," commented Jerry Bowman, President and COO of Beacon. "Our implementation of NetSuite has enabled our global sales force and customer base to work within one system architecture in multiple languages and currencies. We have increased our efforts to win more Fortune 100 clients and are actively engaged with over 25 different potential qualified client targets. We have demonstrated with our existing marquee clients the ability to win significant new business that results in multi-year, multi-million dollar contracts. Our recent announcement of $2 million dollars in new contract awards with Fortune 100 clients is a great example of these initiatives in action."
"We are extremely pleased with the increase in corporate productivity that we achieved this quarter, and with the strong contributions from our employees," added Victor Agruso, Chief Administrative Officer. "We achieved 50%+ increases (annualized) in both net revenue and operating income per employee, which reflects our staff's commitment to provide the highest level of professional services in a cost-efficient manner."
"Gross profit margin improved to 39%, compared with 30% in last year's first quarter. This amount is comparable to the amount we recorded in the fourth quarter of fiscal 2011, and is also in line with management's expectations," said S. Scott Fitzpatrick, Vice President Corporate Controller and Treasurer. "We expect to see consistent gross margin performance throughout 2012, with variances depending on the mix of higher margin professional services work and the relative delivery stage of our larger projects and programs."
For additional information, visit the company's website at AskBeacon.com
Please see disclaimer on the QualityStocks website: disclaimer.qualitystocks.net