|
| a21
Reports Second Quarter Financial Results Jacksonville, FL—August 11, 2004—a21, Inc. ("a21") (OTCBB: ATWO), a leading online digital content marketplace, today reported financial results for the second quarter and six-months ended June 30, 2004. Gross revenue for the second quarter of 2004 was $2.5 million, compared to $0 for the same period last year. The increase in revenue reflects a21's acquisition of SuperStock, Inc. in February 2004. Prior to the acquisition, SuperStock generated gross revenue of $2.3 million for the second quarter of 2003. Net loss for the second quarter of 2004 was $194,000 or $0.01 per share, versus net loss of $357,000 or $0.02 per share, for the same period in 2003. Earnings per share for the second quarter of 2004 is calculated on the basis of 38.1 million weighted average shares outstanding, compared to 15.2 million weighted average shares outstanding for the same period last year. Gross revenue for the six-months ended June 30, 2004 was $3.3 million, compared to $0 for the same period last year. The increase in revenue reflects four months of sales following a21's acquisition of SuperStock. Had the acquisition of SuperStock occurred at the beginning of fiscal 2004, revenue for the six-months ended June 30, 2004 would have been $4.8 million. Net loss for the first half of 2004 was $794,000 or $0.02 per share, versus net loss of $623,000 or $0.04 per share, for the same period in 2003. Earnings per share for the first half of 2004 is calculated on the basis of 31.9 million weighted average shares outstanding, compared to 14.7 million weighted average shares outstanding for the same period last year. "a21 has emerged as a leading provider of digital content in the highly fragmented, multi-billion-dollar, stock image marketplace," commented Albert H. Pleus, Chairman and Chief Executive Officer of a21. "With the acquisition of SuperStock, a21 is now one of the top-5 image providers in the U.S., with solid brand recognition and an archive exceeding 900,000 images. Since the acquisition, we have taken aggressive steps to improve the business, including streamlining processes, re-engineering technology, adding content, expanding marketing, and driving traffic to our web-sites. During the second quarter of 2004, we completed the $7.68 million sale and leaseback of our Jacksonville, Florida headquarters, reducing existing debt by approximately $5.6 million and providing additional capital for growth and acquisitions." Mr. Pleus continued, "We have also assembled an impressive leadership team to bring an excellent balance of industry, strategic, operational and financial experience to a21. Thomas Butta, a long-time advisor and member of the Board of Directors, was recently named Vice Chairman and Chief Strategic Officer. He brings over 20 years of experience in positioning high growth companies in changing industries. Tom was formerly the Chief Marketing Officer of Red Hat (Nasdaq:RHAT - News) and Chief Marketing Officer and Executive Vice President of Parametric Technology Corporation (Nasdaq:PMTC - News). Additionally, we hired Bruce Haertlein as Vice President, Sales. Bruce brings over 20 years of industry sales experience. Most recently, Bruce served as Vice President of sales at Panurgy, LLC, and spent more than 15 years at AT&T building sales and marketing teams. Finally, we promoted Ian Lishman to Vice President, Visual Content. Ian has over 20 years of creative industry experience, and formerly served as Managing Director of Powerstock--SuperStock's UK subsidiary. We now have a very strong management team in place to lead our new initiatives in sales, product development and marketing to drive growth as we expand to meet the needs of the ever-changing digital imaging world." About a21 a21 (http://www.a21group.com) is a leading digital content marketplace for the professional creative community. Through SuperStock (http://www.superstock.com), a21 provides images distinguished by the quality of their photographers and the attention to the customer experience. Together a21 and SuperStock provide a whole new level of image access to the best photographers, artists, photography agencies and customers in the business, offering a valuable and viable choice in the stock image industry. a21, Inc. and subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
ASSETS
(Unaudited)
June 30, December
2004 31, 2003
------------ -----------
CURRENT ASSETS
Cash $ 2,536,282 $ 702
Accounts receivable, net of allowance for
doubtful accounts of $50,000 1,440,907 -
Prepaid expenses and deposits 174,714 -
------------ -----------
4,151,903 702
------------ -----------
PROPERTY AND EQUIPMENT - net 490,557 14,732
PHOTO COLLECTION - net 2,659,596
OTHER ASSETS
Goodwill 3,256,399 -
Long Term Note Receivables 48,403 -
Advance to shareholder 15,000 15,000
Deposits, non-current 604,694 -
------------ -----------
$ 11,226,552 $ 30,434
============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY / (DEFICIENCY)
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 2,381,471 $ 955,292
Accrued Purchase Price Payable 300,000 -
Unsecured notes payable to affiliates 584,266
Unsecured notes payable to others, net 968,309 -
Income taxes payable 713,000 -
------------ -----------
TOTAL CURRENT LIABILITIES 4,362,780 1,539,558
------------ -----------
LONG TERM LIABILITIES
Convertible subordinated notes payable,
net 994,998
Deferred income taxes 982,132
------------
1,977,130
COMMITMENTS AND CONTINGENCIES
MINORITY INTEREST 2,800,085
SHAREHOLDERS' EQUITY / (DEFICIENCY)
Preferred stock, $.001 par value,
100,000 shares authorized, no shares
issued and outstanding - -
Common stock, $.001 par value,
100,000,000 shares authorized, 41,776,012
shares issued and 38,096,237 outstanding 41,777 22,708
Treasury stock (at cost, 3,679,775 shares) - -
Additional paid-in capital 9,740,992 5,388,384
Accumulated Deficit (7,714,111) (6,920,216)
Accumulated Comprehensive Income 17,899
------------ -----------
TOTAL SHAREHOLDERS' EQUITY / (DEFICIENCY) 2,086,557 (1,509,124)
------------ -----------
$ 11,226,552 $ 30,434
============ ===========
a21, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months Six months ended,
ended, June 30 June 30
-----------------------------------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
REVENUE 2,527,297 - 3,325,165 -
DIRECT COSTS 775,500 - 987,247 -
----------- ----------- ----------- -----------
GROSS PROFIT 1,751,797 - 2,337,918 -
EXPENSES:
General and
administrative $ 1,358,849 $ 308,343 2,345,500 545,724
Depreciation and
amortization 324,890 12,726 423,853 25,451
Interest expenses, net 261,735 35,654 362,461 51,627
----------- ----------- ----------- -----------
TOTAL EXPENSES 1,945,474 356,723 3,131,814 622,802
----------- ----------- ----------- -----------
NET LOSS $ (193,677)$ (356,723)$ (793,896)$ (622,802)
----------- ----------- ----------- -----------
COMPREHENSIVE LOSS
Foreign Currency
Translation Adjustment 16,375 - 17,899 -
----------- ----------- ----------- -----------
TOTAL
COMPREHENSIVE LOSS $ (177,302)$ (356,723)$ (775,997)$ (622,802)
=========== =========== =========== ===========
NET LOSS PER SHARE,
BASIC AND DILUTED $ (0.01)$ (0.02)$ (0.02)$ (0.04)
=========== =========== =========== ===========
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING,
BASIC AND DILUTED 38,095,001 15,213,272 31,910,458 14,652,315
=========== =========== =========== ===========
The statements contained in this press release contain certain forward-looking statements, including statements regarding a21, Inc. expectations, intentions, strategies and beliefs regarding the future. All statements contained herein are based upon information available to a21, Inc. management as of the date hereof and actual results may vary based upon future events, both within and without the control of a21, Inc. management. |
||
  |