Ascendant Solutions, Inc. Reports Fourth Quarter and Year End 2014 Earnings

DALLAS, March 6, 2015 /PRNewswire/ -- Ascendant Solutions, Inc. (Pink Sheets: ASDS) ("Ascendant" or the "Company") today announced its results for the fourth quarter and year ended December 31, 2014. The Company reported consolidated net income of $105,000, or less than $0.01 per share, on revenues of $8,018,000 for the quarter ended December 31, 2014.  This compares with net income of $195,000, or $0.01 per share, on revenues of $6,551,000 for the fourth quarter of 2013. The substantial increase in fourth quarter 2014 revenue was a result of the successful acquisitions of multiple pharmacies by the Company's Dougherty's Holdings subsidiary during the second half of the year. Common shares outstanding at December 31, 2014 and 2013 were 21,817,596 and 21,571,510, respectively. 

Twelve months ended December 31, 2014, consolidated net income was $452,000, or $0.02 per share, on revenues of $28,479,000 compared to net income of $1,241,000, or $0.06 per share, on revenues of $25,194,000 for the year ended 2013.  This decrease of $0.04 per share was primarily attributable to the Company's Other subsidiary which reported a decline of $531,000 or approximately $0.03 per share due to reductions in 2014 dividend income of $159,000 as well as 2013 one-time gains of $372,000 from the successful sales of its wholly owned subsidiary, FPG Partners, LLC, and Ascendant's 80 percent interest in CRESA Capital Markets Group, L.P.

The Company reported consolidated earnings before interest, taxes, depreciation and amortization ("EBITDA") of $238,000 for the fourth quarter of 2014 compared to consolidated EBITDA of $326,000 for the fourth quarter of 2013.  EBITDA for the twelve months ended December 31, 2014, was $887,000 compared to EBITDA of $1,736,000 for the same period of 2013.  The decrease in 2014 EBITDA was related to the decline in dividends and one-time gains mentioned above totaling $531,000 and higher operating expenses associated with the previously mentioned pharmacy acquisitions.

Healthcare

The Company's healthcare subsidiary, Dougherty's Holdings, Inc. ("DHI"), which owns and operates multiple Dougherty's Pharmacies, reported EBITDA of $428,000 for the fourth quarter ended December 31, 2014, compared to $521,000 in the 2013 fourth quarter.  EBITDA for the twelve months ended December 31, 2014, was $1,546,000 compared to $1,718,000 for the same period of 2013. Dougherty's accounted for 100% of Ascendant's fourth quarter 2014 revenue of $8,018,000, which improved 22.4 percent over the same period of 2013. As mentioned above, operating expenses related to multiple Dougherty's pharmacy acquisitions in 2014 accounted for the year-over-year decrease in EBITDA reported in the fourth quarter of 2014.

Other

The Company's other subsidiaries reported negative EBITDA of ($190,000) for the fourth quarter ended December 31, 2014, compared to ($195,000) in 2013.  Negative EBITDA for the twelve months ended December 31, 2014, was ($659,000) compared to EBITDA of $18,000 for the same period of 2013.  The majority of the decline in EBITDA in these subsidiaries was due to a reduction in 2014 dividend income of $159,000 as well as 2013 one-time gains of $372,000 from the sale of certain subsidiaries.

Management Commentary

"We are pleased with our year-end results and the acquisitions of several new Dougherty's pharmacies during 2014," said Jim Leslie, Chairman of Ascendant.  "We expected and achieved 2014 revenue growth in our healthcare segment, through both strategic acquisitions as well as organic expansion.  Our goal is to deliver enhanced shareholder value over time through planned acquisitions of well-run independent pharmacies along with solid financial performance and operational excellence."

Mark Heil, President and CFO, added, "During the latter part of 2014 and early 2015, we were successful in acquiring three pharmacies under our Dougherty's subsidiary.  These acquisitions will provide rapid revenue growth for Ascendant and have a positive impact on our balance sheet.  We anticipate that these initial acquisitions will add approximately $10 million in additional annual revenues for 2015.

"We continue to focus on enhancing value for our shareholders. In December, the board of directors approved a special 1 percent common stock dividend, which was paid on December 10, 2014.  During 2014, shareholder's equity increased by $465,000, and our book value per share increased 5 percent to $0.41 per share. With three successful pharmacy acquisitions under our belt, Ascendant will continue to take advantage of synergistic growth opportunities in 2015 and add 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 $42 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 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.

Related Links

http://www.ascendantsolutions.com