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Numerex Revises Full Year 2012 and Fourth Quarter Financial Results



     Numerex Revises Full Year 2012 and Fourth Quarter Financial Results

Non-Cash Charge Does Not Affect Previously Reported Revenues or Operating
Earnings

PR Newswire

ATLANTA, April 2, 2013

ATLANTA, April 2, 2013 /PRNewswire/ -- Numerex Corp (NASDAQ:NMRX), a leading
provider of on-demand and interactive machine-to-machine (M2M) enterprise
solutions, today announced revised financial results for its fourth quarter
and full year ended December 31, 2012. The adjustment does not affect prior
reporting periods or require an accounting restatement.

This revision is a one-time, non-cash adjustment of $338,000, after tax, and
has no impact on the Company's operations and does not affect either
historical Operating Earnings or any expectations of future performance. The
Company re-iterates 2013 guidance of subscription base growth in the range of
27% to 32% which is expected to deliver an 18% to 23% growth rate in
subscription-based recurring revenue.

Adjusted Earnings before Interest, Tax, Depreciation, Amortization, stock
compensation and non-recurring charges (Adjusted EBITDA) following the
revision, remains unchanged at $2.3 million for the quarter ended December 31,
2012 and $8.0 million for the full year, 2012, compared to $2.0 million in the
quarter ended December 31, 2011 and $6.7 million for 2011. A reconciliation of
GAAP to these non-GAAP results follows:

 

Reconciliation of Non-GAAP
Results
                                 Three Months Ended      Twelve Months Ended
                                 December 31, 2012       December 31, 2012
                                 As                      As
                                 Previously    Revised   Previously Revised
                                 Reported                Reported
                                 (unaudited)             (unaudited)
Net income                       $         948 $         $    7,503 $    7,165
                                               610
Depreciation and amortization    956           956       3,370      3,370
Net Interest Expense & Other     118           118       322        322
One time Financing Fees          -             513       -          513
Income tax                       (94)          (269)     (4,634)    (4,809)
EBITDA                           $      1,928  $         $    6,561 $    6,561
                                                1,928
Non-cash compensation            305           305       1,388      1,388
One time Acquisition Costs       90            90        100        100
Adjusted EBITDA                  $      2,323  $         $    8,049 $    8,049
                                                2,323

                       

With regard to the revision, the Company wrote off $0.5 million that it paid
to a financing company to renew an outstanding lease after it had determined
that this payment was more appropriately classified as a charge to earnings
rather than an asset. Therefore, during the fourth quarter of 2012, the
Company was required to increase Other Non-Operating Expenses by $0.5 million
with an offsetting tax benefit of $0.2 million.

As a result of this revision, net income for the full year 2012, was $7.2
million compared to previously reported net income of $7.5 million. For the
fourth quarter of 2012, net income was $0.6 million compared to net income of
$0.9 million as previously reported.

About Numerex
Numerex Corp (NASDAQ: NMRX) is a leading provider of interactive and on-demand
machine-to-machine (M2M) technology and service, offered on a subscription
basis, used in the development and support of M2M solutions for the enterprise
and government markets worldwide. The Company offers Numerex DNA® that may
include hardware and smart Devices, cellular and satellite Network services,
and software Applications that are delivered through Numerex FAST® (Foundation
Application Software Technology). In addition, business services are offered
to enable the development of efficient, reliable, and secure solutions while
accelerating deployment. Numerex is ISO 27001 information security-certified,
highlighting the Company's focus on M2M data security, service reliability,
and round-the-clock support of its customers' M2M solutions. For additional
information, please visit www.numerex.com.

This press release contains, and other statements may contain, forward-looking
statements with respect to Numerex future financial or business performance,
conditions or strategies and other financial and business matters, including
expectations regarding growth trends and activities. Forward-looking
statements are typically identified by words or phrases such as "believe,"
"expect," "anticipate," "intend," "estimate," "assume," "strategy," "plan,"
"outlook," "outcome," "continue," "remain," "trend," and variations of such
words and similar expressions, or future or conditional verbs such as "will,"
"would," "should," "could," "may," or similar expressions. Numerex cautions
that these forward-looking statements are subject to numerous assumptions,
risks and uncertainties, which change over time. These forward-looking
statements speak only as of the date of this press release, and Numerex
assumes no duty to update forward-looking statements. Actual results could
differ materially from those anticipated in these forward-looking statements
and future results could differ materially from historical performance.

The following factors, among others, could cause actual results to differ
materially from forward-looking statements or historical performance: our
inability to reposition our platform to capture greater recurring service
revenues; the risks that a substantial portion of our revenues are derived
from contracts that may be terminated at any time; the risks that our
strategic suppliers materially change or disrupt flow of products and/or
services; variations in quarterly operating results; delays in the
development, introduction, integration and marketing of new machine-to-machine
(M2M) products and services; customer acceptance of services; economic
conditions resulting in decreased demand for our products and services; the
risk that our strategic alliances and partnerships and/or wireless network
operators will not yield substantial revenues; changes in financial and
capital markets, and the inability to raise growth capital; the inability to
attain revenue and earnings growth in our data business; changes in interest
rates; inflation; the introduction, withdrawal, success and timing of business
initiatives and strategies; competitive conditions; the inability to realize
revenue enhancements; and extent and timing of technological changes. Numerex
SEC reports identify additional factors that can affect forward-looking
statements.

Numerex Corp. Contact:
Alan Catherall
770 485-2527

Investor Relations Contact:
Seth Potter
646 277-1230

 

         

SOURCE Numerex Corp

Website: http://www.numerex.com
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