Popular Searches: 　AIG 　china 　sunamerica+aig 　LIFE 　financial 　health
  • Share

GlobalOptions Group Announces First Quarter Results

 

Monday, May 11,2009, 10:41:39 PM   Click:

NEW YORK--(BUSINESS WIRE)-- GlobalOptions Group, Inc. (NASDAQ: GLOI), a leading provider of domestic and international risk management services, today announced results for the first quarter ended March 31, 2009.

Revenue for the first quarter was $25.5 million compared to $21.5 million for the same period in 2008. EBITDA (earnings before interest, taxes, depreciation and amortization) for the first quarter of 2009 was $(0.5) million compared to $(3.4) million last year, and EBITDAS (EBITDA before stock based compensation) for the first quarter of 2009 was $0.1 million compared to $(2.3) million last year. Operating income for the quarter was $(1.4) million compared to $(4.4) million for the first quarter of last year. Net loss for the first quarter of 2009 was $1.6 million, or $0.15 per share compared to $4.4 million, or $0.45 per share, for the first quarter of 2008.

GlobalOptions' posted revenue for the first quarter of 2009 grew 19%, versus the first quarter of 2008. "Even within this recessionary economy, demand for our suite of risk mitigation services has remained fairly strong. Insurance companies and third party administrators, under pressure to reduce costs and improve productivity, are continuing to find value in our outsourced solutions. The need to plan for and respond to disasters, whether man-made or natural, is no less urgent today, as we continue to see fairly strong demand for our disaster planning and response work," said Dr. Harvey W. Schiller, Chairman and CEO of GlobalOptions Group.

"As planned, we launched a number of sales and marketing initiatives in the first quarter in our drive toward achieving full year 2009 revenue growth of between 10% and 15%. Chief among these initiatives was our Third Annual Executive Forum, held last February, which drew together over 200 clients and prospects from each of our business units and created opportunities for us to expand existing client relationships and add new clients," added Schiller. "Seeing the forum as the perfect platform for solidifying GlobalOptions' leadership position in the market for risk mitigation services, we increased our investment during the first quarter to approximately $0.5 million for this three-day event. Our investment in the forum has generated qualified leads from both existing and new clients that we believe will result in incremental revenue."

Furthermore, Dr. Schiller adds, "We are committed to continuing new product development to help us more fully meet industry needs. In the spirit of this continuing innovation, we are about to launch exciting investigation related product extensions and additional features for GlobalTrak 2.0â„¢, our proprietary risk management platform, both of which will help us to more fully meet the needs of our fraud and special investigation unit clients."

Financial Measures

In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, in this press release, the Company presents EBITDA and EBITDAS which are non-GAAP measures. EBITDA is determined by taking the net loss and adding back amortization of intangible assets, depreciation and amortization of property and equipment and interest expense (income), net. EBITDAS is determined by taking EBITDA and then adding back stock based compensation expense. The Company believes that these non-GAAP measures, viewed in addition to and not in lieu of the Company's reported GAAP results, provides useful information to investors because these metrics provide a more focused measure of operating results. These metrics are an integral part of the Company's internal reporting to measure operations of the Company and the performance of senior management. A reconciliation to comparable GAAP measures is available in the accompanying schedule. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies.

Conference Call

GlobalOptions Group will host an earnings conference call at 10:00 a.m. Eastern on May 11, 2009 for the first quarter ended March 31, 2009. During the call, Dr. Harvey Schiller, Chairman and Chief Executive Officer, and Jeff Nyweide, Chief Financial Officer, will discuss the Company's quarterly performance and financial results. The telephone number for the conference call is 888-634-9408. A live webcast of the call will also be available on the Company's website, www.GlobalOptions.com.

The webcast will be archived on the site, and investors will be able to access an encore recording of the conference call for one week by calling 800-642-1687, conference ID# 95763366. The encore recording will be available two hours after the conference call has concluded.

GlobalOptions Group

GlobalOptions, with headquarters in New York City and offices in 16 cities, is an integrated provider of risk mitigation and management services to government entities, FORTUNE 1000 corporations and high net-worth and high-profile individuals throughout the world. We enable clients to identify, assess and prevent natural and man-made threats to the well-being of individuals and the operations of governments and corporations. In addition, we assist our clients in recovering from the damages or losses resulting from the occurrence of acts of terror, natural disasters, fraud and other risks. We deliver risk mitigation and management services through four business units: Preparedness Services; Fraud and Special Investigations Unit Services; Security Consulting and Investigations; and International Strategies. Additional information can be found at www.globaloptions.com.

Statements in this press release regarding the Company's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. The Company wishes to caution readers not to place undue reliance on such forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1995, and as such, speak only as of the date made. To the extent the content of this press release includes forward-looking statements, they involve various risks and uncertainties, including the successful integration of acquired businesses, projected financial information and the continued successful implementation of the Company's business strategy.

Certain of these risks and uncertainties will be described in greater detail in GlobalOptions Group's filings with the Securities and Exchange Commission. GlobalOptions Group is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

GLOBALOPTIONS GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(dollars in thousands, except per share amount)
             
             
ASSETS   March 31,   December 31,
    2009     2008  
    (unaudited)        
Current assets:            
Cash and cash equivalents   $ 2,418     $ 5,276  
Accounts receivable, net     31,762       27,485  
Inventories, net     3,052       2,522  
Prepaid expenses and other current assets     692       862  
             
Total current assets     37,924       36,145  
             
             
Property and equipment, net     5,877       5,834  
Intangible assets, net     5,370       5,981  
Goodwill     19,968       19,968  
Security deposits and other assets     548       553  
             
Total assets   $ 69,687     $ 68,481  
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
Current liabilities:            
Line of credit   $ 7,521     $ 7,093  
Notes payable     250       400  
Accounts payable     6,776       6,199  
Deferred revenues     519       585  
Accrued compensation and related benefits     4,431       3,155  
Other current liabilities     2,145       1,966  
             
Total current liabilities     21,642       19,398  

 

 

    

 

     

 

 
Other long-term obligations     829       838  
Total liabilities     22,471       20,236  
             
Commitments and contingencies            
             
Stockholders' equity:            

Preferred stock, $0.001 par value, 14,900,000 shares authorized,

           

no shares issued or outstanding

           
Series D convertible preferred stock, non-voting, $0.001 par value, 100,000 shares authorized,    

 

     

 

 
dividends do not accrue, no anti-dilution protection, 13,129.84 and 55,388.37 shares issued and            
outstanding, convertible into 875,317 and 3,692,743 shares of common stock, liquidation            
preference of $0.001 per share or $0.  

-

   

-

 
Common stock, $0.001 par value; 100,000,000 shares authorized;    

 

     

 

 
13,320,431 shares issued and 13,213,364 shares outstanding at March 31, 2009, and            
10,486,935 shares issued and 10,379,868 shares outstanding at December 31, 2008  

13

   

10

 
Additional paid-in capital     109,592       108,989  
Accumulated deficit     (62,181 )     (60,546 )
Treasury stock; at cost, 107,067 shares     (208 )     (208 )
Total stockholders' equity     47,216       48,245  
Total liabilities and stockholders' equity   $ 69,687     $ 68,481  
GLOBALOPTIONS GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(dollars in thousands, except per share amounts)
(unaudited)
         
         
    For the Three Months Ended

March 31,

    2009   2008
         
Revenues   $ 25,514     $ 21,499  
         
Cost of revenues     14,755       12,366  
Gross profit     10,759       9,133  
         
Operating expenses:        
         
Selling and marketing     3,056       2,502  
         
General and administrative     9,148       10,996  
         
Total operating expenses     12,204       13,498  
         
Loss from operations     (1,445 )     (4,365 )
         
Other income (expense):        
         
Interest income     1       16  
         

Interest (expense)


    (191 )     (24 )
         

Other (expense), net

    (190 )

 

  (8 )
         
Net loss   $ (1,635 )   $ (4,373 )
         
Basic and diluted net loss per share   $ (0.15 )   $ (0.45 )
         
Weighted average number of common shares        
outstanding - basic and diluted     11,110,969       9,641,684  
GLOBALOPTIONS GROUP, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Information
(dollars in thousands)
(unaudited)
         
         
    For the Three Months Ended

March 31,

    2009   2008
         
EBITDA, EBITDAS        
         
Net Loss (GAAP)   $ (1,635 )   $ (4,373 )
Add back the items:        

Depreciation and amortization of property


and equipment

    370       333  

Amortization of intangible assets

    617       681  
Interest (income) expense, net     190       8  
EBITDA   $ (458 )   $ (3,351 )
Add back:        
Stock-based compensation expense     586       1,092  
EBITDAS   $ 128     $ (2,259 )




Lippert/Heilshorn & Associates

PR:

Jules Abraham, 212-838-3777

jabraham@lhai.com

or

IR:

Jody Burfening, 212-838-3777

jburfening@lhai.com

Source: GlobalOptions Group, Inc.

  • Share
  • Print

You may also be interested in:

Discuss this news

Click Here to see all comments
Please aware of self to obey the Internet related policy laws and strictly forbid to release porn, violence.
Appraisal:

Name:

Email:

Content:

Featured

The dramatic rescue of an American marine Somali pirates by the U.S. Navy this weekend will probably marine insurance more expensive, especially since the murder of three hijackers could lead to an

U.S. action against Somali pirates May Increase the

The dramatic rescue of an American marine Somali pirates by the U.S. Navy this

Newport Beachs Pacific Life Insurance Co. has been on a wild ride with its investments in the past year but its mainstay life insurance business appears to be holding up. Parent company Pacific

Insurer Pacific Life Sees AIG Hangover, Policy Sales

Newport Beachs Pacific Life Insurance Co. has been on a wild ride with its

Copyright: Unknown Source: Market Wire Wordcount: DAYTONA BEACH, FL and TAMPA, FL - (MARKET WIRE) - 04/10/09 - Kenneth D. Kirk, Regional President of Brown Brown, Inc. (NYSE: BRO), and Michael A.

Brown & Brown, Inc. announces the acquisition of

Copyright: Unknown Source: Market Wire Wordcount: DAYTONA BEACH, FL and TAMPA,

Copyright: M2 COMMUNICATIONS LTD Source: M2 Presswire Wordcount: Dublin - Research and Markets (http://www.researchandmarkets.com/research/00ea17/latin_america_nor) has announced the addition of

Latin America, North America and the Caribbean -

Copyright: M2 COMMUNICATIONS LTD Source: M2 Presswire Wordcount: Dublin -

For over sixty years, insurance companies have enjoyed a significant competitive advantage - an exemption from federal anti-trust laws. During that time, they've managed to gain outright control of

ENDING INSURANCE COMPANIES' CONTROL OF THE MARKET

For over sixty years, insurance companies have enjoyed a significant

Copyright: PR Newswire Source: PR Newswire Wordcount: 1307 Metro Atlanta school children to write about the benefits of exploitation; top essayists honored at Friday luncheon before the ING Georgia

ING Names Winners of "ING Run For Something

Copyright: PR Newswire Source: PR Newswire Wordcount: 1307 Metro Atlanta school

Deutsche Bank's Asset Management division today announced that Kaj Ahlmann has joined the firm as a Managing Director and Global Head of Strategic Business Development in Deutsche Insurance Asset

Deutsche Insurance Division Kaj as Global Strategic

Deutsche Bank's Asset Management division today announced that Kaj Ahlmann has

MOST POPULAR