Ascendant Solutions, Inc. Reports Third Quarter 2014 Earnings

DALLAS, Nov. 13, 2014 /PRNewswire/ -- Ascendant Solutions, Inc. (Pink Sheets: ASDS) ("Ascendant" or the "Company") today announced its results for the third quarter of fiscal 2014.  The Company reported consolidated net income of $125,000, or $0.01 per share, for the quarter ended September 30, 2014, compared to net income of $202,000, or $0.01 per share, for the same period of 2013.  Consolidated net income for the nine months ended September 30, 2014 was $347,000, compared to $1,046,000 for the first nine months of 2013, resulting in net income per share of $0.02 compared to $0.05.  The 2013 nine-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 September 30, 2014 and 2013 were 21,571,510.

For the third quarter ended September 30, 2014, the Company reported Consolidated Earnings (Loss) before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $235,000 compared to consolidated EBITDA of $328,000 in 2013.  EBITDA for the nine months ended September 30, 2014, was $649,000 compared to $1,410,000 for the same period of 2013, or $956,000 excluding 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 8.5 percent higher EBITDA of $394,000 for the third quarter ended September 30, 2014, compared to $363,000 in 2013.  EBITDA for the nine months ended September 30, 2014, was $1,118,000 compared to $1,197,000 for the same period of 2013.  EBITDA for the quarter ended September 30, 2014, was benefited by higher sales volume due to acquisitions. 

Other

Ascendant's real estate investments reported EBITDA of $25,000 for the third quarter ended September 30, 2014, compared to $104,000 in 2013.  Real estate investments EBITDA for the nine months ended September 30, 2014, was $47,000 compared to $184,000 in 2013. 

The Company's corporate overhead division reported negative EBITDA of ($184,000) for the third quarter of 2014 compared to ($139,000) in 2013.  Corporate overhead EBITDA for the nine months ended September 30, 2014, was ($516,000) compared to ($427,000) in 2013. 

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

Management Comments

"During the third quarter, we acquired our second community pharmacy, Thrifty Health and Compounding Pharmacy ("Thrifty"), located in Humble, Texas, through our Dougherty's Holdings subsidiary," said Jim Leslie, Chairman of Ascendant.  "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 of Ascendant, stated, "Our acquisitions of Thrifty and Family Pharmacies are expected to add approximately $6 million in annual revenues to Ascendant's results.  Increased revenues make a direct contribution to the bottom line, as seen in our improved EBITDA over the prior year.

"We are also pleased to note several balance sheet improvements for the September quarter, including a 17 percent reduction in current liabilities, and a 4 percent improvement in stockholders' equity.  In addition, book value per share increased 5 percent to $0.41 per share."

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.

Related Links

http://www.ascendantsolutions.com