Ascendant Solutions, Inc. Reports First Quarter 2014 Earnings

DALLAS, June 4, 2014 /PRNewswire/ -- Ascendant Solutions, Inc. (Pink Sheets: ASDS) ("Ascendant" or the "Company") today announced its results for the first quarter of fiscal 2014.  The Company reported consolidated net income of $65,000, or less than $0.01 per share, for the quarter ended March 31, 2014, compared to net income of $573,000, or $0.02 per share, for the same period of 2013.  First quarter 2013 results included a one-time $432,000 gain related to the exit of one of Ascendant's portfolio companies. Common shares outstanding for the quarter ended March 31, 2014 and 2013 were 21,571,510 and 24,447,931, respectively. 

For the first quarter ended March 31, 2014, the Company reported Consolidated Earnings (Loss) before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $163,000 compared to consolidated EBITDA of $694,000 in 2013.  EBITDA from last year's first quarter benefitted from the $423,000 gain mentioned above.

Healthcare

The Company's subsidiary, Dougherty's Holding, Inc. ("DHI"), which owns and operates multiple Dougherty's Pharmacies, reported EBITDA of $306,000 for the first quarter ended March 31, 2014, compared to $374,000 in 2013. 

Other

Real estate investments reported EBITDA of $10,000 for the first quarter ended March 31, 2014, compared to $67,000 in 2013.  The Company's corporate overhead division reported negative EBITDA of ($153,000) for the first quarter of 2014 compared to ($133,000) in 2013.  EBITDA from discontinued operations was zero for the first quarter ended March 31, 2014 as compared to $386,000 in 2013.

Management Comments

"Overall, our first quarter 2014 results came in close to our expectations, while prior year first quarter 2013 results included a significant gain in our real estate and other division due to the successful exit of one of our portfolio companies," said Jim Leslie, Chairman of Ascendant.  "We remain focused on building our healthcare division, as we aggressively pursue growth opportunities through our Dougherty's Holding subsidiary.  Through investments in strategic acquisitions and organic expansion, we expect to deliver enhanced shareholder value over time through well-planned growth, solid performance and operational excellence."

Mark Heil, CFO, added, "While the gain in last year's first quarter makes comparative results difficult, we are pleased that our healthcare division continued to produce solid results for the 2014 first quarter.  In addition, our Company's balance sheet showed steady improvement with further debt reductions, stockholders' equity rose slightly, and our book value per share remained strong.  Looking at the business today, we believe Ascendant is well-positioned for stronger second quarter results, and we look forward to adding further value to our business."

EBITDA is calculated as net income (loss) before deducting interest, taxes, depreciation and amortization.  Although EBITDA is not a measure of actual cash flow because it does not consider changes in assets and liabilities that may impact cash balances, the Company's management reviews these non-GAAP financial measures internally to evaluate the Company's performance and manage the operations.  Additionally, the Company believes it is a useful metric to evaluate operating performance and has therefore included such measures in the reporting of operating results.

About Ascendant Solutions, Inc.

Ascendant Solutions, Inc. is a value-oriented investment firm focused on successfully acquiring, managing and growing community-based pharmacies in the Southwest Region. Ascendant currently has approximately $43 million in net operating loss carryforwards which can be used to shelter future income, thus enhancing free cash flow or debt service capabilities. Interested investors can access financials and stock trading information for Ascendant at OTCMarkets.com or at www.ascendantsolutions.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations, projections, estimates and assumptions. These forward-looking statements may be identified by words such as "expects," "believes," "anticipates" and similar expressions.  Forward-looking statements involve risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements.  The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.

SOURCE Ascendant Solutions, Inc.