Remote Dynamics (OTCBB: RMTD) (www.remotedynamics.com), a leading
provider of GPS vehicle tracking solutions, reported its financial
results for 2008.
Gary Hallgren, Chief Executive Officer of Remote Dynamics, said,
"Despite the challenging economic conditions of 2008, the Company
built upon the momentum of 2007 by growing revenue and subscribers
in 2008 while controlling expenses and maintaining margins. We were
pleased with our recent results and look forward to 2009 as we
continue to implement the turnaround plan that we started in late
2006."
Highlights for 2008 include:
-- Increased REDIview units in service by 17% to 11,210 at year-end
-- Revenue increased 13% to $5.3 million compared to $4.7 million in 2007
-- Adjusted EBITDA (a non-GAAP financial measure) improved in 2008 to
$186,000 compared to negative $146,000 for 2007
-- Gross profit margin was 62.4%, in line with 2007's 62.7%
-- Transformed sales team with an increased emphasis on providing
solutions to customers and delivering new revenue to the company
-- Enhanced REDIview by launching satellite communications allowing our
customers to track assets in very remote parts of the United States and in
70 additional countries
Non-GAAP Financial Measures
See Adjusted EBITDA Presentation below for a definition of
Adjusted EBITDA and reconciliation to the most comparable GAAP
financial measure.
Status of Secured Convertible Notes and Liquidity
The Company is not in compliance with its obligations relating
to its secured convertible notes. The failure to comply with the
obligations relating to these securities exposes the Company to
demands for immediate repayment (in some cases, at a premium to
outstanding principal) as well as default interest and liquidated
damages claims by the security holders.
Mr. Hallgren said: "Our liquidity situation remains challenging.
We plan to continue to explore alternatives to restructure or
otherwise satisfy our obligations to our note holders. However, we
do not currently have the cash on hand to repay amounts due under
the notes if the holders elect to exercise their remedies."
We issued a significant number of shares of our common stock in
payment of amounts due under our secured convertible notes during
2008 and expect to continue to do so in 2009 and thereafter. Under
the terms of the notes, we have issued the shares at a discount to
the trading price of our common stock. In general, the shares
issued are available for immediate resale by the holders in
accordance with Rule 144 under the Securities Act of 1933, as
amended.
In 2008, and through March 25, 2009, we issued 3,067,407,599
shares of common stock as partial principal payments on the Series
A Notes in satisfaction of $1,150,000 of obligations due under the
notes. Additionally, we issued 1,065,811,416 shares of common stock
as partial payments on the Series B Notes in satisfaction of
$450,000 of obligations due under the notes.
About Remote Dynamics, Inc.: Remote Dynamics, Inc. markets,
sells and supports a state-of-the-art asset tracking and fleet
management solution that contributes to higher customer revenues,
enhanced operator efficiency and improved cost control. Combining
the technologies of the global positioning system (GPS) and
wireless communications, the company's solution improves our
customers' operating efficiencies through real-time status
information, exception-based reporting, and historical analysis.
The company is based in Plano, Texas. More information about Remote
Dynamics is available online at www.remotedynamics.com.
Safe Harbor Statement
Some of the information in this letter may contain projections
or other forward-looking statements regarding future events or the
future financial performance of the Company. We wish to caution you
that these statements involve risks and uncertainties and actual
events or results may differ materially. Among the important
factors which could cause actual results to differ materially from
those in the forward-looking statements are general market
conditions, unfavorable economic conditions, our ability to execute
our business strategy, the effectiveness of our sales team and
approach, our ability to target, analyze and forecast the revenue
to be derived from a client and the costs associated with providing
services to that client, the date during the course of a calendar
year that a new client is acquired, the length of the integration
cycle for new clients and the timing of revenues and costs
associated therewith, potential competition in the marketplace, the
ability to attract and retain employees, our ability to maintain
our existing technology platform and to deploy new technology, our
ability to sign new clients and control expenses, and other factors
detailed in the Company's filings with the Securities and Exchange
Commission, including our recent filings on Forms 10-K and
10-Q.
--Financial Tables Follow--
REMOTE DYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Year ended
December 31,
2008 2007
------------ ------------
Revenues
Service $ 3,474 $ 3,176
Ratable product 1,567 1,385
Product 217 160
------------ ------------
Total revenues 5,258 4,721
------------ ------------
Cost of revenues
Service 1,301 1,245
Ratable product 575 330
Product 99 186
------------ ------------
Total cost of revenues 1,975 1,761
------------ ------------
Gross profit 3,283 2,960
------------ ------------
Expenses:
General and administrative 1,619 1,766
Sales and marketing 681 774
Engineering 796 719
Depreciation and amortization 809 949
------------ ------------
Total expenses 3,905 4,208
------------ ------------
Operating loss (622) (1,248)
Other income (expenses):
Interest income 42 105
Interest expense (2,102) (4,757)
Other income (1) 383
Loss on extinguishment of debt - (341)
Loss on extinguishment of redeemable
preferred stock - (363)
------------ ------------
Total other income (expenses) (2,061) (4,973)
------------ ------------
Loss before income taxes (2,683) (6,221)
Income tax benefit - -
------------ ------------
Net loss (2,683) (6,221)
------------ ------------
Preferred stock dividend - -
Loss on redemption of preferred stock - -
------------ ------------
Net loss attributable to common
stockholders $ (2,683) $ (6,221)
------------ ------------
Net loss per common share - basic and diluted $ (0.19) $ (2,074)
============ ============
Weighted average number of common shares
outstanding:
Basic and diluted 14,474 3
============ ============
REMOTE DYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December 31, December 31,
2008 2007
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ - $ 228
Accounts receivable, net of allowance for
doubtful accounts of $85 and $54,
respectively 803 526
Due from related parties - 71
Inventories, net of reserve for obsolescence
of $7 and $7, respectively 153 158
Deferred product costs - current portion 580 352
Lease receivables and other current
assets, net 246 466
------------ ------------
Total current assets 1,782 1,801
Property and equipment, net of accumulated
depreciation and amortization of $212 and
$154, respectively 102 157
Deferred product costs - non-current portion 352 336
Goodwill 616 616
Customer Lists, net 1,610 2,162
Software, net 502 674
Tradenames, net 44 59
Deferred financing fees, net 135 191
Lease receivables and other assets, net 22 135
------------ ------------
Total assets $ 5,165 $ 6,131
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 1,363 $ 1,530
Accounts payable - related parties 110 75
Deferred product revenues - current portion 952 1,197
Series A convertible notes payable (net of
discount of $0 and $392, respectively) 3,646 3,801
Series B convertible notes payable (net of
discount of $1,301 and $1,543, respectively) 5,834 5,007
Note payable - related parties 250 250
Accrued expenses and other current
liabilities 2,392 1,770
Accrued expenses and other current
liabilities - related parties 106 60
------------ ------------
Total current liabilities 14,653 13,690
Deferred product revenues - non-current portion 588 590
Other non-current liabilities 34 110
------------ ------------
Total liabilities 15,275 14,390
------------ ------------
Commitments and contingencies
Redeemable Preferred Stock - Series B
(3% when declared, $10,000 stated value,
650 shares authorized, 522 shares issued
and outstanding at December 31, 2008 and
December 31, 2007, respectively
(redeemable in liquidation at an aggregate
of $5,220,000 at December 31, 2008)) 134 134
Redeemable Preferred Stock - Series C
(8% cumulative, $1,000 stated value,
10,000 shares authorized, 5,274 and 5,202
shares issued and outstanding at
December 31, 2008 and December 31, 2007,
respectively (redeemable in liquidation
at an aggregate of $5,274,000 at
December 31, 2008)) - -
Stockholders' deficit:
Common stock, $0.0001 par value,
5,000,000,000 shares authorized,
677,858,548 shares issued and 677,858,501
outstanding at December 31, 2008;
750,000,000 shares authorized, 3,483
shares issued and 3,437 outstanding at
December 31, 2007, retroactively restated 68 14
Treasury stock, 47 shares at December 31,
2008 and December 31, 2007, respectively,
at cost, retroactively restated - -
Additional paid-in capital 1,675 897
Accumulated deficit (11,987) (9,304)
------------ ------------
Total stockholders' deficit (10,244) (8,393)
------------ ------------
Total liabilities and stockholders'
deficit $ 5,165 $ 6,131
============ ============
Adjusted EBITDA Presentation
EBITDA represents net income (loss) before interest, taxes,
depreciation and amortization, and in the case of Adjusted EBITDA,
before goodwill impairment, gains or losses on the extinguishment
of debt and preferred stock, restructuring charges and other
non-operating costs. EBITDA is not a measurement of financial
performance under GAAP. However, we have included data with respect
to EBITDA because we evaluate and project the performance of our
business using several measures, including EBITDA. The computations
of Adjusted EBITDA for the year ended December 31, 2008 and 2007
are as follows.
Year Ended
December 31,
2008 2007
------------ ------------
Net loss $ (2,683) $ (6,221)
Add non-EBITDA items included in net results:
Depreciation and amortization 809 949
Interest expense, net 2,060 4,652
Non-recurring reversal of legal accrual - (230)
Loss on debt extinguishment - 341
Loss on redeemable preferred stock
extinguishment - 363
------------ ------------
Adjusted EBITDA $ 186 $ (146)
------------ ------------
The company considers adjusted EBITDA to be an important
supplemental indicator of its operating performance, particularly
as compared to the operating performance of its competitors,
because this measure eliminates many differences among companies in
financial, capitalization and tax structures, capital investment
cycles and ages of related assets, as well as certain recurring
non-cash and non-operating items. It believes that consideration of
EBITDA should be supplemental, because EBITDA has limitations as an
analytical financial measure. These limitations include the
following: EBITDA does not reflect its cash expenditures, or future
requirements for capital expenditures or contractual commitments;
EBITDA does not reflect the interest expense, or the cash
requirements necessary to service interest or principal payments,
on its indebtedness; although depreciation and amortization are
non-cash charges, the assets being depreciated and amortized will
often have to be replaced in the future, and EBITDA does not
reflect any cash requirements for such replacements; EBITDA does
not reflect the effect of earnings or charges resulting from
matters it considers not to be indicative of its ongoing
operations; and not all of the companies in its industry may
calculate EBITDA in the same manner in which it calculates EBITDA,
which limits its usefulness as a comparative measure.
Management compensates for these limitations by relying
primarily on its GAAP results to evaluate its operating performance
and by considering independently the economic effects of the
foregoing items that are not reflected in EBITDA. As a result of
these limitations, EBITDA should not be considered as an
alternative to net income (loss), as calculated in accordance with
generally accepted accounting principles, as a measure of operating
performance, nor should it be considered as an alternative to cash
flows as a measure of liquidity.
Contact: Gary Hallgren Chief Executive Officer 214-440-5202
Email Contact www.remotedynamics.com
Remote Dynamics (CE) (USOTC:RMTD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Remote Dynamics (CE) (USOTC:RMTD)
Historical Stock Chart
From Jul 2023 to Jul 2024