ALJ Regional Holdings Reports First Quarter Results

11 Feb, 2015, 14:08 ET from ALJ Regional Holdings

NEW YORK, Feb. 11, 2015 /PRNewswire/ -- ALJ Regional Holdings, Inc. (OTC Markets: ALJJ) announced results for its first quarter ended December 31, 2014.

ALJ acquired Faneuil, Inc. ("Faneuil") in October 2013 and Floors-N-More, LLC, dba Carpets N' More ("Carpets") in April 2014.  Our financial statements reflect the full operations of Faneuil from October 18, 2013 through December 31, 2014 and Carpets from April 1, 2014 through December 31, 2014. 

Investment Highlights:

  • ALJJ recognized consolidated revenue of $49.9 million for the three months ended December 31, 2014 compared to $44.0 million for the three months ended September 30, 2014 and $25.8 million compared to the three months ended December 31, 2013.
  • ALJJ recognized EBITDA of $4.9 million for the three months ended December 31, 2014 compared to $3.9 million for the three months ended September 30, 2014 and $2.5 million compared to the three months ended December 31, 2013.
  • Faneuil recognized revenue of $40.7 million for three months ended December 31, 2014 compared to $35.6 million for the three months ended September 30, 2014 and $25.8 million compared to the three months ended December 31, 2013.
  • Faneuil recognized EBITDA of $5.4 million for three months ended December 31, 2014 compared to $5.0 million for the three months ended September 30, 2014 and $2.7 million compared to the three months ended December 31, 2013.
  • Faneuil estimates its revenue for the three months ending March 31, 2015 to be in the range of $38 million to $42 million.
  • ALJ's Executive Chairman exercised stock options to purchase 2,000,000 shares at $.40 per share.

Three months ended:

December 31,

2014

September 30,

2014

December 31,

2013

ALJ Revenue

$49.9

$44.0

$25.8

ALJ EBITDA

$4.9

$3.9

$2.5

ALJ Deferred Tax Benefit

$0.0

$5.2

$0.0

ALJ Earnings

$2.9

    $6.9*

$1.5

ALJ EPS – Fully Diluted

$.08

    $.20*

$.05





Faneuil Revenue

$40.7

$35.6

$25.8

Faneuil EBITDA

$5.4

$5.0

$2.7

(amounts in thousands except for ALJ EPS)




 * Amounts include a deferred tax benefit of $5.2 million, or $0.15 per share.  ALJ Earnings minus the deferred tax benefit for the three months ended September 30, 2014 was $1.6 million, or $0.05 per share on a fully diluted basis.

Jess Ravich, ALJ's Executive Chairman stated, "We had another great quarter with a significant contribution from Faneuil."  Additionally, he went on to say, "Carpets is close to turning the corner and we expect positive results moving forward."  Anna Van Buren, Faneuil's CEO said, "Our business has continued to grow for both the top line and bottom line.  Our Healthcare Division has grown rapidly over the last 12 months and is now one of the largest sectors of our business."

Non-GAAP Financial Measures:

In this release, ALJ presents certain adjusted financial measures that are not calculated according to generally accepted accounting principles in the United States ("GAAP"). These non-GAAP financial measures are designed to complement the GAAP financial information presented in this release because management believes they present information regarding ALJ that management believes is useful to investors. The non-GAAP financial measures presented should not be considered in isolation from or as a substitute for the comparable GAAP financial measure.

EBITDA represents net income before interest income and expense, income taxes, non-cash stock based compensation, depreciation and amortization. ALJ presents EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in ALJ.  EBITDA measures are not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure for comparison.  A reconciliation of ALJ EBITDA to operating income, the most directly comparable GAAP measure, can be obtained by subtracting depreciation and amortization and non-cash stock based compensation from ALJ EBITDA.  A reconciliation of Faneuil EBITDA to operating income, the most directly comparable GAAP measure, can be obtained by subtracting depreciation and amortization and non-cash stock based compensation from Faneuil EBITDA.  All of this information is included in ALJ's quarterly report for the quarter ended December 31, 2014.  

About ALJ Regional Holdings, Inc.

ALJ Regional Holdings, Inc.  is the parent company of Faneuil, Inc., a leading provider of outsourcing and co-sourced services to both commercial and government entities in the healthcare, utility, toll and transportation industries and Floors-N-More, LLC, dba Carpets N' More, one of the largest floor covering retailers in Las Vegas and a provider of multiple finishing products for commercial, retail and home builder markets including all types of flooring, countertops, cabinets, window coverings and garage/closet organizers, with 5 retail locations.

This press release contains forward-looking statements. Such statements include information regarding ALJ Regional Holdings, Inc.'s expectations, goals or intentions regarding the future, including but not limited to statements regarding expectations for Carpets' future positive results and statements including the words "will" and "expect" and similar expressions. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Factors that could cause actual results to differ materially are discussed in ALJ's Annual Report for the fiscal year ended September 30, 2014, ALJ's Quarterly Report for the quarter ended December 31, 2014 and in its other periodic reports issued through the OTC Markets News Service and available at www.otcmarkets.com. All forward-looking statements in this release are made as of the date hereof and ALJ assumes no obligation to update any forward-looking statement.

 

SOURCE ALJ Regional Holdings