Great American Group(R)* Announces Improved Fourth Quarter and Full Year 2011 Financial Results
(firmenpresse) - WOODLAND HILLS, CA -- (Marketwire) -- 03/30/12 -- Great American Group, Inc. (OTCBB: GAMR) ("Great American Group" or the "Company"), a leading provider of asset disposition, valuation and appraisal services, today announced financial results for its fourth quarter and full year ended December 31, 2011.
Fiscal 2011 total revenues of $63.5 million, an increase of 50.7% from a year ago
Fiscal 2011 operating income of $7.4 million, up from an operating loss of $11.4 million a year ago
Fiscal 2011 net income of $602,000, up from a net loss of $11.0 million a year ago
Fiscal 2011 diluted earnings per share of $0.02, up from diluted loss per share of $(0.39) a year ago
For the fourth quarter ended December 31, 2011, the Company reported total revenues of $11.4 million, an increase of 3.3% from revenues of $11.0 million in the fourth quarter of 2010. Revenues from services and fees were $10.5 million, compared to $10.6 million in the same period the prior year. Revenues from sales of goods were $0.9 million, compared to $0.4 million in the fourth quarter of 2010. The increase in total revenues during the quarter was primarily due an increase in revenues from the sale of goods in the Auction and Liquidation segment.
"During fiscal 2011 we experienced year-over-year improvements in our financial results with a strong increase in revenues and a return to profitability. The retail liquidation of T.J. Hughes Limited in Europe and our participation in the joint venture involving the liquidation of Borders Group in the United States contributed to the increase in revenues and operating profit in the auction and liquidation segment during fiscal 2011," said Andrew Gumaer, Chief Executive Officer of Great American Group. "We continue to monitor expenses, and our cost reduction initiatives had a positive financial benefit during the year and help to contribute to a significant increase in operating income. Going forward, we will continue to invest in our newer revenue generating initiatives such as GA Keen and GA Europe and expect these businesses to continue to complement our core businesses going forward."
Direct cost of services was $3.8 million, compared to $4.5 million a year ago. The decrease in direct cost of services was primarily the result of a decrease in the number of fee and commission engagements in the fourth quarter of 2011, where the Company contractually bills fees, commissions and reimbursable expenses, in the auction and liquidation segment as compared to the same period in 2010. Cost of goods sold was $1.1 million in the fourth quarter of 2011, compared to $0.6 million in the fourth quarter of the prior year. The increase was primarily the result of the sale of goods in 2011 with high asset values and a lower of cost or market charge of $0.2 million for goods held for sale or auction in 2011 compared to the prior year.
Selling, general and administrative expenses were $6.1 million, compared to $6.8 million in the fourth quarter of 2010. The decrease was primarily the result of the Company's corporate cost savings initiatives and a decrease in contractual compensation with noncontrolling shareholder's that earn a profit and bonus based on a percentage of the operating profits from their operations.
Operating income for the fourth quarter of 2011 was $0.3 million, compared to operating loss of $0.8 million during the same period of 2010.
Interest expense during the fourth quarter of 2011 was flat at $1.0 million, compared to the prior year.
Loss from operations before a provision for income taxes was $0.5 million during the fourth quarter of 2011, compared to loss from operations of $2.1 million in the fourth quarter of 2010.
During the fourth quarter of 2011, the Company recorded a provision for income taxes of $0.2 million, compared to a benefit for income taxes of $0.2 million in the fourth quarter of 2010. Overall, in the fourth quarter of 2011, the Company generated net loss of $0.7 million, or $0.02 per diluted share, compared with net loss of $1.9 million, or $0.07 per diluted share, in the fourth quarter of 2010.
For the year-ended 2011, the Company reported total revenues of $63.5 million, an increase of 50.7% from $42.1 million in 2010. Revenues from services and fees were $60.6 million, up from $37.0 million a year ago. Sales of goods were $2.9 million, compared to $5.1 million in the prior year.
Total operating expenses were $56.1 million, compared to $53.5 million in 2010. Operating income was $7.4 million, compared to an operating loss of $11.4 million in the prior year. Income before provision for income taxes was $2.7 million, compared to a loss before income taxes of $16.1 million during 2010. The Company recorded a provision for income taxes of $2.1 million during 2011, compared to a benefit for income taxes of $5.1 million in the same period of 2010. Net income for 2011 was $0.6 million, or $0.02 per diluted share, compared with a net loss of $11.0 million, or $(0.39) per diluted share, in the same period of 2010.
At December 31, 2011, the Company had $15.0 million in cash and cash equivalents. Working capital was $26.1 million at December 31, 2011. During 2011, the Company used $2.0 million in cash from operations.
The Company will host a conference call at 4:30 p.m. EDT on Friday, March 30, 2012, to discuss results for the fourth quarter ended December 31, 2011. To participate in the event by telephone, please dial (877) 941-1427 10 minutes prior to the start time (to allow time for registration) and use conference ID #4525808. International callers should dial (480) 629-9664. A digital replay will be available beginning March 30, 2012, at 7:30 p.m. EDT, through April 13, 2012, at 11:59 p.m. EDT. To access the replay, dial (877) 870-5176 (U.S.), and use passcode 4525808. International callers should dial (858) 384-5517 and enter the same passcode. The call will also be broadcast over the Internet and can be accessed on the Investor Relations section of the Company's Web site at . To listen to the webcast, please visit the site at least 15 minutes prior to the start of the call in order to register, download and install any necessary audio software. A replay of the call will also be available for 90 days on the Web site.
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Great American Group, Inc. is a leading provider of asset disposition solutions and valuation and appraisal services to a wide range of retail, wholesale and industrial clients, as well as lenders, capital providers, private equity investors and professional service firms. Great American Group has offices in Atlanta, Boston, Chicago, Dallas, London, Los Angeles, New York and San Francisco. For more information, please visit .
*Great American Group and the Eagle Design are trademarks registered in the US Patent and Trademark Office and are exclusive property of Great American Group, Inc.
This press release may contain forward-looking statements by Great American Group that are not based on historical fact, including, without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions and statements. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Such factors include those risks described from time to time in Great American Group's filings with the SEC, including, without limitation, the risks described in Great American Group's proxy statement/prospectus filed with the SEC on July 18, 2011, and its Annual Report on Form 10-K for the year ended December 31, 2010. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and Great American Group undertakes no duty to update this information.
Certain of the information set forth herein, including Adjusted EBITDA, may be considered non-GAAP financial measures. Great American Group believes this information is useful to investors because it provides a basis for measuring Great American Group's performance against the contingent share earnout provisions in the AAMAC transaction. In addition, Great American Group's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating Great American Group's operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by Great American Group may not be comparable to similarly titled amounts reported by other companies.
Great American Group
Phil Ahn
SVP, Strategy & Corporate Development
818-884-3737
Addo Communications
Andrew Greenebaum
310-829-5400
or
Great American Group
Laura Drummond
847-444-1400 ext. 312
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Datum: 30.03.2012 - 14:00 Uhr
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