Ascendant Solutions, Inc. Reports Second Quarter 2014 Earnings

DALLAS, Aug. 20, 2014 /PRNewswire/ -- Ascendant Solutions, Inc. (Pink Sheets: ASDS) ("Ascendant" or the "Company") today announced its results for the second quarter of fiscal 2014.  The Company reported consolidated net income of $157,000, or $0.01 per share, for the quarter ended June 30, 2014, compared to net income of $271,000, or $0.01 per share, for the same period of 2013.  Consolidated net income for the six months ended June 30, 2014 was $222,000, compared to $844,000 for the first six months of 2013, resulting in net income per share of $0.01 compared to $0.03.  The 2013 six-month results included one-time gains of $454,000 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.

Common shares outstanding for the quarter ended June 30, 2014 and 2013 were 21,571,510 and 24,447,931, respectively.  In September 2013, the Board of Directors approved the cancellation of Ascendant's 2008 Incentive Plan, reducing the Company's common stock outstanding from 24,447,931 to 21,571,510 shares.

For the second quarter ended June 30, 2014, the Company reported Consolidated Earnings (Loss) before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $251,000 compared to consolidated EBITDA of $388,000 in 2013.  EBITDA for the six months ended June 30, 2014, was $414,000 compared to $1,082,000 for the same period of 2013.  EBITDA from last year's first quarter benefited from the one-time gains mentioned above.

Healthcare

The Company's subsidiary, Dougherty's Holding, Inc. ("DHI"), which owns and operates multiple Dougherty's Pharmacies, reported EBITDA of $418,000 for the second quarter ended June 30, 2014, compared to $460,000 in 2013.  EBITDA for the six months ended June 30, 2014, was $724,000 compared to $834,000 for the same period of 2013.  Healthcare expenses were higher in the second quarter ended June 30, 2014 due to additional rent expense at both Dougherty's locations as well as planned expenses related to acquisition activity.

Other

Real estate investments reported EBITDA of $12,000 for the second quarter ended June 30, 2014, compared to $13,000 in 2013.  Real estate investments EBITDA for the six months ended June 30, 2014, was $22,000 compared to $80,000 in 2013. 

The Company's corporate overhead division reported negative EBITDA of ($179,000) for the second quarter of 2014 compared to ($155,000) in 2013.  Corporate overhead EBITDA for the six months ended June 30, 2014, was ($332,000) compared to ($288,000) in 2013. 

One-time gains in the first and second quarter ended June 30, 2013 were $384,000 and $70,000, respectively.

Management Comments

"Earlier this month, we were pleased to announce our first community pharmacy acquisition through our Dougherty's Holdings subsidiary," said Jim Leslie, Chairman of Ascendant.  "Family Pharmacy, located in Lewisville, Texas, has now been combined with our Dougherty's Pharmacy location at Forest Park Medical Center.  We continue to pursue additional acquisitions of well-run independent pharmacies in the Southwest, and we believe this targeted growth strategy will strengthen our operations and result in enhanced shareholder value over time."

Mark Heil, President and CFO, added, "The Family acquisition represents the first step in our previously announced growth strategy to build our community pharmacy business. We expect the Family Pharmacy acquisition to add approximately $4 million in annual revenues to Ascendant's results.  We're also pleased to be able to offer Family's unique multi-dose compliance packaging system as an alternative for Dougherty's existing customers.  We look forward to continuing to enhance the Dougherty's brand with the addition of other well-run independent pharmacy operations."

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.