2014

Research Solutions Reports Third Consecutive Quarter of Positive Adjusted EBITDA for Fiscal Year 2013 Third Quarter Fiscal Year 2013 Results Include: Adjusted EBITDA of $66,000; $10.6 Million in Revenue, a Seven Percent Increase over Prior Year; Reaffirms Guidance of $1M Adjusted EBITDA from US Operations for Fiscal Year 2013

ENCINO, Calif., May 15, 2013 /PRNewswire/ -- Research Solutions, Inc. (OTC:RSSS), a leader in information logistics solutions and a pioneer in facilitating the flow of information from content publishers to enterprise customers in life science and other research intensive industries, today reported financial and operating results for the third quarter of its fiscal year 2013 (quarter ended March 31, 2013).

Third Quarter Fiscal Year 2013 Highlights:

  • Adjusted EBITDA of $66,000; year to date adjusted EBITDA of $709,000
  • $10.6M in revenue, a 7% increase over Q3 FY2012; $34.2M in year to date revenue, up 7% over prior year
  • $7.9M in revenue from US operations, a 5% increase over Q3 FY2012, $26.5M in year to date revenue from US Operations, up 14% over prior year
  • Reaffirm guidance of $1M in adjusted EBITDA from US Operations for FY2013

Management Commentary

"We are quite excited about the developments at the Company in our third quarter.  We generated a positive Adjusted EBITDA for a third quarter in a row despite it being a seasonally slow quarter.  This is a further sign that we have achieved the scale required to operate as a profitable company.  Revenue continues to grow as does our customer acquisition.  We had quite a few customer wins in Q3, and we look forward to doing a great job for these customers as we wind up fiscal 2013 and embark on our fiscal 2014.  Our ability to improve gross margins and generate positive Adjusted EBITDA allowed us to improve our cash position while at the same time bring the balance down to zero on our credit line with Silicon Valley Bank.  During the quarter, we also changed our parent company's name from Derycz Scientific to Research Solutions to better reflect the mission and nature of our business and the business of our customers.  These developments, paired with tremendous improvements to our Products, Services and Operations, will allow us to continue focusing on making our customers happy, growing our business and continuing to delivery profitable quarters going forward.  We couldn't be more excited; it's been a great year for us," said Research Solutions President and CEO Peter Derycz.

Alan Urban, Chief Financial Officer, added "Despite a seasonally slow quarter for us, we managed to produce adjusted EBITDA of $66,000, bringing our year to date adjusted EBITDA to $709,000.  In addition, compared to last year we experienced a 14% increase in year to date revenue, and a nearly 4 point increase year to date gross profit as a percentage of revenue."  Mr. Urban continued, "We reaffirm our guidance of $1M in adjusted EBITDA from US operations for the fiscal year."

Conference Call

Research Solutions management will host an investment-community conference call on Friday, May 17, 2013 beginning at 4:15 p.m. Eastern time (1:15 p.m. Pacific time) to discuss these results and answer questions. To participate in the call please dial (866) 516-3002 for domestic callers or +1 (253) 237-1159 for international callers, and enter passcode 70877254 when prompted.

The webcast will also be available from the Company's website at www.researchsolutions.com. Listening to the webcast requires Internet access and the Windows Media Player or other compatible streaming media player. A recorded replay will be available on the researchsolutions.com website for 60 days following the conclusion of the call.

Results at a Glance

The following financial information should be read in conjunction with the unaudited financial statements and accompanying notes thereto filed by the Company with the Securities and Exchange Commission on May 15, 2013 in its Quarterly Report on Form 10-Q for the period ended March 31, 2013. The Quarterly Report can be viewed at www.sec.gov.


(Table amounts in 000's)



Quarter Ended
March 31, 2013


Quarter Ended
March 31, 2012


% Change

US OPERATIONS








   Revenue

$

7,878


$

7,537


5%

   Gross profit

$

1,164


$

1,358


(14)%

Net income (loss) from operations

$

(505)


$

(508)


1%

Adjusted EBITDA

$

(62)


$

350


(118)%









TAAG (FRANCE)








   Revenue

$

2,769


$

2,450


13%

   Gross profit

$

1,096


$

884


24%

Net income (loss) from operations

$

36


$

(1,936)


102%

Adjusted EBITDA

$

128


$

(84)


252%









CONSOLIDATED








   Revenue

$

10,647


$

9,987


7%

   Gross profit

$

2,259


$

2,243


1%

Net income (loss) from operations

$

(469)


$

(2,444)


81%

Adjusted EBITDA

$

66


$

266


(75)%



Nine Months
Ended

March 31, 2013


Nine Months
Ended

March 31, 2012


% Change

US OPERATIONS








   Revenue

$

26,525


$

23,301


14%

   Gross profit

$

4,125


$

2,092


97%

Net income (loss) from operations

$

(46)


$

(3,278)


99%

Adjusted EBITDA

$

(667)


$

(2,100)


132%









TAAG (FRANCE)








   Revenue

$

7,645


$

8,637


(11)%

   Gross profit

$

3,050


$

3,403


(10)%

Net income (loss) from operations

$

(235)


$

(2,512)


91%

Adjusted EBITDA

$

42


$

137


(69)%









CONSOLIDATED








   Revenue

$

34,171


$

31,938


7%

   Gross profit

$

7,175


$

5,495


31%

Net income (loss) from operations

$

(280)


$

(5,789)


95%

Adjusted EBITDA

$

709


$

(1,963)


136%

Use of Non-GAAP Measure – Adjusted EBITDA

Research Solutions management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the Company's operating results.  The attached tables provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure.

Adjusted EBITDA is defined as net income (loss) from operations before interest, income taxes, depreciation and amortization expenses, excluding, when applicable, stock-based compensation, impairment of acquired intangibles and goodwill, and loss on facility sublease.



Reconciliation of Adjusted EBITDA to Income (Loss) from Operations


(Table amounts in 000's)


US

Operations
Quarter Ended
March 31, 2013


TAAG

(France)

Quarter Ended
March 31, 2013


Total

Quarter Ended

March 31, 2013







Income (loss) from operations

$

(505)


$

36


$

(469)

  Add:









    Depreciation and amortization


53



92



145

    Stock-based compensation


157






157

    Loss on facility sublease


233



-



233

Adjusted EBITDA

$

(62)


$

128


$

66








US

Operations

 Nine Months Ended

March 31, 2013


TAAG

(France)

Nine Months Ended

March 31, 2013


Total

Nine Months Ended

March 31, 2013







Income (loss) from operations

$

(46)


$

(234)


$

(280)

  Add:









    Depreciation and amortization


212



276



488

    Stock-based compensation


268






268

   Loss on facility sublease


233



-



233

Adjusted EBITDA

$

667


$

42


$

709

About Research Solutions®

Research Solutions, Inc. is an information logistics company. The company and its subsidiaries develop products, services and systems to facilitate the re-use of published content in a manner that helps organizations achieve their marketing, communication and research goals effectively and in compliance with copyright law and regulatory rules.  Subsidiary companies include Reprints Desk, Inc., and Techniques Appliquees aux Arts Graphiques, S.p.A. (TAAG).  For more information, please visit www.researchsolutions.com.

Forward-Looking Statements

Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in obtaining new customers; the Company's success in technology and product development; the Company's ability to execute its business model and strategic plans; the Company's success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including the financial statements and related information contained in the Company's Annual Report on Form 10-K and interim Quarterly Reports on Form 10-Q.  Examples of forward-looking statements in this release include statements related to new products, anticipated revenue and profitability.  The Company assumes no obligation to update the cautionary information in this release.

SOURCE Research Solutions, Inc.



RELATED LINKS
http://www.researchsolutions.com
http://www.deryczscientific.com

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