posted
I expected a little more than that with that announcement:
-For the six months ended June 30, 2006, RG America achieved revenues of $17,497,019; an increase of over 249% compared to revenues of $5,019,518 for the first 6 months of 2005.
-Net income for the same quarter increased approximately 766% to $315,088 compared to $36,386 of net income in the second quarter of 2005.
I mean it's still in the green ok... but I think it could get a little more attention.
Here's the complete PR:
Press Release Source: RG America, Inc.
RG America Announces Record Second Quarter and Six Months Financial Results Wednesday August 16, 7:00 am ET
Net Income Increases 766% Over 2nd Quarter 2005
DALLAS, TX--(MARKET WIRE)--Aug 16, 2006 -- RG America, Inc. ("RG America") (OTC BB:RGMI.OB - News), a Dallas-based insurance restoration company specializing in recovery, remediation, roofing and re-construction of insurance losses, announced record financial results for its second quarter and six months year-to-date, ending June 30, 2006. The Company achieved revenues for the second quarter of $8,224,183; an increase of over 295% compared to revenues of $2,084,952 in the second quarter of 2005. Net income for the same quarter increased approximately 766% to $315,088 compared to $36,386 of net income in the second quarter of 2005. This resulted in approximately $0.01 of basic earnings per share, compared to $0.00 per share in the same period 2005. ADVERTISEMENT
For the six months ended June 30, 2006, RG America achieved revenues of $17,497,019; an increase of over 249% compared to revenues of $5,019,518 for the first 6 months of 2005. This resulted in approximately $0.04 of basic earnings per share, compared to $0.00 per share in the same period 2005. For further information, see the Company's Form 10-QSB filing for the period ended June 30, 2006.
"RG America has shown strong growth through the first half of fiscal 2006 and continues to generate solid revenues with its ongoing operations from Texas to the Atlantic Coast," stated Bruce A. Hall, CEO for RG America, Inc. "The Company continues to build on its fundamental business plan, providing insurance restoration services for commercial buildings after catastrophic losses and assisting our customers in getting back to pre-loss condition in a timely manner," added Mr. Hall.
"Our team has been working very hard, sometimes under incredibly adverse conditions, to bring our customers' properties back online," commented James Rea, COO for RG America, Inc. "We are proud of our staff, both in the field and at our Operations Center, as we prepare for the remainder of 2006 and continue working on projects resulting from major commercial insurance losses," he continued.
RG America's significant increase in revenues is mainly a result of the Company's transition from a regional company to a national insurance restoration platform, allowing it to capture more business across the nation. RG America, Inc. is currently working on projects ranging from Texas to the Atlantic Coast and will strive to achieve continued growth and expansion in its market sector.
RG AMERICA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, 2006 2005 2006 2005 ------------ ------------ ------------ ------------
Operating expenses: Selling, general and administrative 707,744 258,487 1,319,483 587,662 Compensation, payroll taxes and benefits 784,165 174,847 1,844,807 754,789 Stock compensation 209,488 3,250 308,824 314,838 Consulting and contract labor 244,759 60,429 451,244 121,779 Professional 42,676 91,275 241,247 131,305 Recovery of impairment - - - (116,669) Rent 150,512 82,078 310,498 152,339 Depreciation 77,265 23,524 150,737 40,443 ------------ ------------ ------------ ------------ Total operating expenses 2,216,609 693,890 4,626,840 1,986,486 ------------ ------------ ------------ ------------
Income from operations 722,514 58,983 2,044,033 187,064
Other expense:
Other income (expense), net 70,940 (9,248) 70,940 2,096 Interest and financing cost, net (478,366) (13,349) (934,264) (131,389) ------------ ------------ ------------ ------------
Total other expense (407,426) (22,597) (863,324) (129,293) ------------ ------------ ------------ ------------
Net income $ 315,088 $ 36,386 $ 1,180,709 $ 57,771 ============ ============ ============ ============
Net income per share - basic $ 0.01 $ 0.00 $ 0.04 $ 0.00 ============ ============ ============ ============ Net income per share - diluted $ 0.01 $ 0.00 $ 0.03 $ 0.00
Basic weighted average outstanding shares 31,873,661 24,593,351 31,240,934 24,524,432 Diluted weighted average outstanding shares 49,293,576 25,726,304 44,496,913 26,399,187
RG AMERICA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June 30, 2006 2005 ----------- ----------- Operating Activities: Net income $ 1,180,709 $ 57,771 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 150,737 40,443 Write off of investment in limited partnership Provision for doubtful accounts 424,219 - Amortization of deferred compensation 100,400 5,487 Non-cash interest expense 493,202 - Stock options issued for consulting services - 309,351 Stock warrants issued for consulting services 82,604 - Stock options issued for employee services 106,320 - Stock issued for professional services 18,250 - Stock issued for employee compensation 1,250 - Stock cancelled related to acquisition (50,000) (116,669) Stock warrant issued for debt services - 27,357 Changes in operating assets and liabilities: Contracts receivable (8,136,312) (228,956) Unbilled revenue and deferred revenue, net (2,317,738) 420,775 Prepaid expenses (187,375) (58,822) Other receivables (99,300) (116,395) Increase in note receivables - Other non current assets (40,600) - Bank overdraft 24,314 13,610 Accounts payable - trade 1,473,880 106,733 Accrued expenses 763,773 (544,133) Withholding taxes payable 4,837 (38,554) ----------- ----------- Net cash used in operating activities (6,006,830) (122,002)
Investing Activities: Investment in certificate of deposit (740) (179,728) Purchases of property and equipment (135,449) (211,603) ----------- ----------- Net cash used in investing activities (136,189) (391,331)
Financing Activities: Repayments of notes payable - related party (3,862) - Repayments of notes payable (6,874,220) (19,529) Repayments of bank line of credit - (195,015) Proceeds from issuance of notes payable 12,337,755 17,000 Proceeds from issuance of convertible debenture notes - 400,000 Proceeds from bank line of credit - 209,582 ----------- ----------- Net cash provided by financing activities 5,459,673 412,038
Net decrease in cash and cash equivalents (683,346) (101,295) Cash and cash equivalents at beginning of period 683,346 111,345 ----------- ----------- Cash and cash equivalents at end of period $ - $ 10,050 =========== ===========
Cash paid during the period for interest $ 895,331 $ 9,264 =========== ===========
Supplemental Disclosure of Non-cash Transactions: Stock issued for conversion of accounts payable $ - $ 24,467 Stock issued for conversion of accrued expense $ 283,833 $ 111,834 Note payable related party issued for conversion of accrued expense $ - $ 11,666 Note payable issued for purchase of property and equipment $ 29,000 $ - Stock issued for conversion of notes payable $ 535,413 $ 2,500 Receivable for deferred revenue $ 437,500 $ - Stock issued for other non current asset $ - $ 30,000 Warrant issued for credit facility $ 877,596 $ -
RG AMERICA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited)
ASSETS June 30, June 30, 2006 2005 ------------ ------------ Current assets: Cash and cash equivalents $ - $ 10,050 Investment in certificate of deposit 140,740 179,728 Contracts receivable, net of allowance for doubtful Accounts 17,141,583 2,038,734 Unbilled revenue 5,449,852 255,171 Prepaid expenses - net of accumulated amortization 1,319,296 60,991 Other receivables 1,050,416 152,979 Notes receivable 351,000 - ------------ ------------ Total current assets 25,452,887 2,697,653
Property and equipment, net of accumulated depreciation 1,056,227 441,774 Other non-current assets 99,450 35,000 ------------ ------------
Total assets $ 26,608,564 $ 3,174,427 ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
LIABILITIES June 30, June 30, 2006 2005 ------------ ------------ Current liabilities: Bank overdraft $ 24,314 $ 13,610 Accounts payable, trade 6,597,209 1,872,157 Accrued expenses 2,695,656 775,784 Withholding taxes payable 96,557 231,140 Deferred revenue 588,993 562,484 Bank line-of-credit 140,000 179,582 Notes payable - related parties 52,368 33,038 Notes payable, net of debt discount 9,439,229 261,530 Convertible debenture notes - 400,000 ------------ ------------ Total current liabilities 19,634,326 4,329,325
Long-term debt - related party 3,973 4,710 ------------ ------------ Total liabilities 19,638,299 4,334,035
Commitments and contingencies - -
STOCKHOLDERS' EQUITY (DEFICIT)
Stockholders' equity (deficit) Preferred stock, $.001 par value, 35,000,000 shares authorized, none issued and outstanding - - Common stock, $.001 par value, 300,000,000 shares Authorized 29,193 20,559 Common stock subscribed (82,948) (271,507) Additional paid in capital 8,930,213 5,898,013 Common stock warrants 2,570,529 157,357
Total stockholders' equity (deficit) 6,970,265 (1,159,608) ------------ ------------
Total liabilities and stockholders' equity $ 26,608,564 $ 3,174,427 ============ ============
About RG America, Inc.
RG America is a family of companies delivering both insurance restoration services and targeted insurance services/products. Its restoration subsidiaries specialize in remediation, insurance recovery, roofing, reconstruction and management for insurance losses. The company focuses primarily on multi-family and commercial real estate properties that have experienced catastrophic losses caused by hurricane, flood, fire, wind or hail.
A number of statements in this press release are forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of products and technologies, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors described in the Company's filings with the SEC. The actual results that the Company may achieve may differ materially from any forward-looking statements due to such risks and uncertainties.
Contact: Contact:
Tim Clemensen Rubenstein Investor Relations 212-843-9337 Email Contact
Kevin L. Dahlberg RG America Inc. 972 919-4774 ext. 224 Email Contact
-------------------------------------------------------------------------------- Source: RG America, Inc.
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