PLANTATION, Fla., Jan. 19 /PRNewswire-FirstCall/ --The ordinary shares, units and warrants of DJSP Enterprises, Inc. begin trading today on the NASDAQ Global Market under the symbols DJSP, DJSPU, and DJSPW, respectively, as a result of the closing of its business combination with Chardan 2008 China Acquisition Corporation (Nasdaq: CACA) on Friday, January 15, 2010.
David Stern, Chairman and CEO of DJSP, stated "I am very happy that we were able to successfully complete the transaction with Chardan 2008. We at DJSP look at being public as an opportunity to continue our organic growth and to diversify our service offerings. I look forward to sharing our progress on these fronts with our investors."
DJSP is one of the largest providers of processing services for the mortgage and real estate industries in Florida and one of the largest in the United States. The Company provides a wide range of non-legal processing services in connection with mortgages, mortgage defaults, title searches and abstracts, REO (bank-owned) properties, loan modifications, title insurance, loss mitigation, bankruptcy, related litigation and other services. The Company's clients include all of the top 10 and 17 of the top 20 mortgage servicers in the United States, many of which have been customers for more than 10 years. The Company has approximately 1000 employees and is headquartered in Plantation, Florida, with additional operations in Louisville, Kentucky and San Juan, Puerto Rico. The Company's U.S. operations are supported by a scalable, low-cost back office operation in Manila, the Philippines that provides data entry and document preparation support for the U.S. operation.
The Company had revenues of approximately $117 million for the 6 months ended June 30, 2009 and an adjusted pro forma net income for that period of $22 million. (Please see Chardan's press release dated December 14, 2009 and the proxy statement relating to the extraordinary meeting (filed with the SEC on December 29, 2009) for additional information on the Company).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about DJSP. Forward looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of DJSP's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions, changing interpretations of generally accepted accounting principles; outcomes of government or other regulatory reviews, particularly those relating to the regulation of the practice of law; the impact of inquiries, investigations, litigation or other legal proceedings involving DJSP, which, because of the nature of the Company's business, have happened in the past; the impact and cost of continued compliance with government or state bar regulations or requirements; legislation or other changes in the regulatory environment, particularly those impacting the mortgage default industry; unexpected changes adversely affecting the businesses in which DJSP is engaged; fluctuations in customer demand; DJSP's ability to manage rapid growth; intensity of competition from other providers in the industry; general economic conditions, including improvements in the economic environment that slows or reverses the growth in the number of mortgage defaults, particularly in the State of Florida; the ability to efficiently expand its operations to other states or to provide services not currently provided by DJSP; the impact and cost of complying with applicable SEC rules and regulations, many of which DJSP will have to comply with for the first time; geopolitical events and changes, as well as other relevant risks detailed in DJSP's filings with the U.S. Securities and Exchange Commission, (the "SEC"), including its report on Form 20-F for the period ended December 31, 2008 and the Form 6-K filed with the SEC containing the proxy statement relating to the business combination which was mailed to shareholders of DJSP. The information set forth herein should be read in light of such risks. DJSP does not assume any obligation to update the information contained in this press release.
Non-GAAP Financial Measures
The financial information and data contained in this press release are unaudited and do not conform to the SEC's Regulation S-X. This press release includes certain estimated financial information and forecasts presented as pro forma financial measures that are not derived in accordance with generally accepted accounting principles ("GAAP"), and which may be deemed to be non-GAAP financial measures within the meaning of Regulation G promulgated by the SEC. DJSP believes that the presentation of these non-GAAP financial measures serves to enhance the understanding of the financial performance of DJSP. However, these non-GAAP financial measures should be considered in addition to and not as substitutes for, or superior to financial measures of financial performance prepared in accordance with GAAP. Our Non-GAAP financial measures may not be comparable to similarly titled pro forma measures reported by other companies. The Non-GAAP measures used herein may not be comparable to similarly titled measures reported by other companies. Such measures are not recognized terms under U.S. GAAP, and should be considered in addition to, and not as substitutes for, or superior to, operating income, cash flows, revenues, or other measures of financial performance prepared in accordance with generally accepted accounting principles. Such measures are not a completely representative measure of either the historical performance or, necessarily, the future potential of DJSP.
Adjusted Net Income - DJSP is providing adjusted Net Income, a non-GAAP financial measure, along with GAAP measures, as a measure of profitability because adjusted Net Income allows comparison of past performance with the taxable structure that will be in place after consummation of the transaction. In the calculation of adjusted Net Income, DJSP deducts the Depreciation and Amortization amounts to the Adjusted EBITDA calculation and then subtracts the income tax expense from that figure calculated at the expected 'going forward' tax rate of 35%.
SOURCE DJSP Enterprises, Inc.