-- Net income of $458,502 or $.10 per basic share or $.07 per share fully diluted in Q3 of 2005 versus income of $1,679 in Q3 0f 2004
-- Revenues increase 244% to $11.7 million for Q3 of 2005 versus $3.4 million for Q3 of 2004
Nine Months Highlights
-- Net Income of $1.32 million for the first nine months of 2005 versus a loss of $(149,040) for the same period 2004
-- Revenues Increase 335% to $31.02 million for the first nine months of 2005 versus $7.12 million for 2004
Cordia Corporation (OTCBB: CORG), a communications services provider, announced the results of operations for the third quarter and nine months ended September 30, 2005.
Third quarter results:
The Company reported revenues of $11.71 million for the quarter ending September 30, 2005, an increase of approximately $8.3 million or 244%, from the $3.41 million in reported revenues for the quarter ended September 30, 2004.
Cordia reported third quarter EBITDA of $576,613 for the quarter ended September 30, 2005, an improvement from the $33,416 of EBITDA compared to the same period during 2004. Net income increased to $458,502, or $0.10 per basic share and $0.07 per fully diluted share, compared to a net income of $1,679 or $0.00 per basic and fully diluted share last year.
Nine months results:
The Company reported revenues of $31.02 million for the nine months ended September 30, 2005, an increase of approximately $23.9 million or 335%, from the $7.12 million in reported revenues for the nine months ended September 30, 2004.
Cordia reported EBITDA of $1.53 for the nine months ended September 30, 2005, an improvement from $(92,270) of EBITDA in the same period during 2004. Net income increased to $1.32 million, or $0.29 per basic share and $0.21 per fully diluted share, compared to a net loss of $(149,040) or $(0.03) per basic and fully diluted share for the same period last year.
Our balance sheet shows $11.13 million in total assets as of September 30, 2005, as compared to $5.5 million at December 31, 2004 and stockholder equity increased to approximately $1.95 million from a deficit of $(851,144) at December 31, 2004.
Joel Dupre, Chief Executive Officer of Cordia Corporation, stated, "We accomplished several milestones during the third quarter of 2005, while maintaining our rapid growth and expansion. We continue to rollout our VoIP network by building strategic relationships nationally and internationally, with a particular focus on the Asia-Pacific region. In September, Cordia obtained a license from the Telecommunication Authority in Hong Kong. We anticipate the commencement of our international VoIP service offering during 4th quarter 2005."
Kevin Griffo, President of Cordia, commented, "We continue to focus on the enhancement of our financial performance through the implementation of our customer service reorganization, targeted marketing and new credit scoring initiatives. These initiatives should create greater efficiency and earnings as we pursue new territories for expansion over the next year."
Conference Call Reminder
A conference call to discuss our 3Q results will take place at 4:15 p.m. Eastern, on Tuesday, November 15, 2005. Anyone interested in participating should call 800-322-0079 if calling within the United States or 973-935-2100 if calling internationally approximately 5 to 10 minutes prior to 4:15 p.m. There will be a playback available until November 22, 2005. To listen to the playback, please call 877-519-4471 if calling within the United States or 973-341-3080 if calling internationally. Please use pass code 6706428 for the replay.
This call is being webcast by ViaVid Broadcasting and may be accessed at Cordia's website at http://www.cordiacorp.com. The webcast may also be accessed at ViaVid's website at www.viavid.net. The webcast can be accessed through February 28, 2006 on either site. To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit: www.microsoft.com/windows/windowsmedia/en/download/default.asp.
About Cordia Corporation
Cordia Corporation develops and provides industry specific applications, solutions and services. Cordia's primary operations are currently concentrated in the telecommunications industry through its operating subsidiary, Cordia Communications Corp. In addition to retail and wholesale telecommunications services, Cordia also provides a suite of proprietary Web-based software and outsourced services it refers to as "UNE-P in a Box" that permit competitive local and long distance telecommunications providers to rapidly introduce local and long distance services.
This release contains forward-looking statements that involve risks and uncertainties. Cordia's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, availability of management; availability, terms, and deployment of capital; Cordia's ability to successfully market its services to current and new customers, generate customer demand for its product and services in the geographical areas in which Cordia can operate, access new markets, all in a timely manner, at reasonable cost and on satisfactory terms and conditions, as well as regulatory, legislative and judicial developments that could cause actual results to vary in such forward-looking statements.
CORDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2005 2004
------------- ------------
ASSETS (unaudited)
Current Assets
Cash and cash equivalents $ 626,597 $ 300,119
Cash - restricted 1,390,784 -
Accounts receivable, less allowance for
doubtful accounts of $4,133,423 (2005)
and $627,158 (2004) 6,614,287 4,423,423
Prepaid expenses 785,620 324,420
Accrued usage receivable 442,725 263,014
------------- ------------
TOTAL CURRENT ASSETS 9,860,013 5,310,976
------------- ------------
Property and equipment, at cost
Office and computer equipment 608,735 236,597
Computer software 457,603 -
Leasehold Improvements 252,426 -
------------- ------------
1,318,764 236,597
Less: Accumulated
depreciation/amortization (239,791) (59,182)
------------- ------------
NET PROPERTY AND EQUIPMENT 1,078,973 177,415
------------- ------------
Other Assets
Security deposits and other assets 194,483 59,064
------------- ------------
TOTAL ASSETS $ 11,133,469 $ 5,547,455
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
Current Liabilities
Accounts payable $ 3,643,363 $ 3,316,121
Accrued expenses 4,061,675 2,154,910
Unearned income 1,374,283 867,728
Loans payable - other 57,000 57,000
------------- ------------
TOTAL CURRENT LIABILITIES 9,136,321 6,395,759
------------- ------------
Noncurrent Liabilities
Deferred rent 44,985 2,840
------------- ------------
Commitments and Contingencies
Stockholders' Equity (Deficit)
Preferred stock, $0.001 par value;
5,000,000 shares authorized, 1,275,000
shares issued and outstanding 1,275 -
Common stock, $0.001 par value;
100,000,000 shares authorized, 4,832,210
(2005) and 4,541,210 (2004) shares
issued and outstanding 4,832 4,541
Additional paid-in capital 5,304,938 3,660,087
Accumulated deficit (3,262,884) (4,459,774)
------------- ------------
2,048,161 (795,146)
Less: Treasury stock, at cost, 117,694
(2005) and 77,694 (2004) common shares (95,998) (55,998)
------------- ------------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 1,952,163 (851,144)
------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT) $ 11,133,469 $ 5,547,455
============= ============
CORDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Nine Months Ended Three Months Ended
September 30, September 30,
2005 2004 2005 2004
------------ ----------- ------------ -----------
Revenues
Telecommunications
Revenue $30,453,742 $6,674,533 $11,516,174 $3,276,862
Other 570,521 450,661 195,808 134,945
------------ ----------- ------------ -----------
31,024,263 7,125,194 11,711,982 3,411,807
------------ ----------- ------------ -----------
Operating Expenses
Resale and
Wholesale Line
Charges 15,965,714 3,217,955 5,962,601 1,619,574
Sales and Marketing 3,520,247 1,333,616 1,392,772 685,285
Provision for
Doubtful Accounts 3,766,457 262,826 1,457,057 193,117
General and
Administrative 6,239,013 2,403,067 2,322,939 880,415
Depreciation 183,734 31,119 94,954 13,087
------------ ----------- ------------ -----------
29,675,165 7,248,583 11,230,323 3,391,478
------------ ----------- ------------ -----------
Operating Income
(Loss) 1,349,098 (123,389) 481,659 20,329
------------ ----------- ------------ -----------
Other Income
(Expenses)
Other (expense) (47,792) (17,808) (33,326) (16,554)
Net Interest Income
(expense) 17,999 (7,843) 10,169 (2,096)
------------ ----------- ------------ -----------
(29,793) (25,651) (23,157) (18,650)
------------ ----------- ------------ -----------
Net Income (Loss) $ 1,319,305 $ (149,040) $ 458,502 $ 1,679
============ =========== ============ ===========
Basic Income (Loss)
per share $ 0.29 $ (0.03) $ 0.10 $ -
============ =========== ============ ===========
Weighted Average
Common Shares
Outstanding 4,530,397 4,806,579 4,580,580 4,504,808
============ =========== ============ ===========
Diluted Income (Loss)
per share $ 0.21 $ (0.03) $ 0.07 $ -
============ =========== ============ ===========
Weighted Average
Common and Common
Equivalent Shares
Outstanding 6,183,236 4,806,579 6,585,351 4,504,808
============ =========== ============ ===========
