Message #24 From:
Stock News Bot Date: November 15, 2006 04:30:00 AM
GLOI News GlobalOptions Group Announces Third Quarter Results
NEW YORK--(BUSINESS WIRE)--GlobalOptions Group, Inc. (OTCBB: GLOI), a leading provider of domestic
and international risk management services, today announced results for
the third quarter and nine months ended September 30, 2006.
Revenue for the third quarter was $21.0 million, as compared with $17.4
million in the second quarter and $2.5 million for the same period in
2005. This increase was due primarily to the company’s
2006 acquisitions, consisting of James Lee Witt Associates in March;
SafirRosetti and Secure Source, both completed in May; and Hyperion
Risk, completed in early August. The 21% revenue gain for the third
quarter over the second quarter reflects a full quarter’s
reporting for SafirRosetti and Secure Source, organic growth, and
revenue of $1.2 million generated by the mid-August acquisition of
Hyperion Risk. The company’s operating loss
for the quarter was $(0.2) million, versus a loss of $(1.2) million last
year. Net loss applicable to common stockholders for the third quarter
was $(16) thousand, or $0.00 per share, versus a net loss of $(1.4)
million, or $(0.10) per share, for the third quarter of 2005. The company’s
weighted average common shares outstanding rose to 19.5 million for the
period versus 14.4 million last year.
For the first nine months of 2006, GlobalOptions reported revenue of
$44.6 million, versus $4.8 million in the same period last year. Had all
acquisitions consummated in 2006 been completed as of January 1, 2006,
total pro forma revenue for the nine months ended September 30, 2006
would have been approximately $59.4 million. The operating loss was
$(1.1) million for the nine months ended September 30, 2006, as compared
with $(2.7) million in 2005. GlobalOptions’
net loss applicable to common stockholders for the period was $(36.2)
million, or $(2.11) per share, versus a net loss of $(3.8) million, or
$(0.34) per share, last year. For 2006, the net loss applicable to
common stockholders includes the impact of $7.6 million in amortization
expense related to the debt discounts and $2.7 million of amortized
deferred financing costs, along with $24.4 million in deemed dividends
to holders of the company’s Series B
convertible preferred stock.
“GlobalOptions saw strong demand and
sequential growth across all its business units this period, reflecting
positive momentum within our risk mitigation, emergency response, and
investigative services. Our operations are winning new contracts and
have a steady pipeline of opportunities, and the company has already
become one of the leading suppliers of security planning for stadiums in
the country. We are also providing the crucial services necessary to
research and address corporate fraud –
performing forensic investigations that save companies millions of
dollars annually,” stated Dr. Harvey W.
Schiller, Chairman and CEO of GlobalOptions Group. “At
the same time, we continue to cut overhead costs and eliminate
redundancies across operating platforms. In this regard, before the end
of the year, we will combine our James Lee Witt, SafirRosetti, and
Global International offices in Washington, DC, saving on rent expenses
and enabling the divisions to work more closely together.
“Looking ahead, since we did not complete the
merger with LocatePlus, we will likely end the year shy of our $100
million pro forma revenue run-rate goal. We now expect to reach that
level in the first half of 2007, through a combination of organic growth
and select transactions. Our acquisition pipeline remains active, and we
are carefully looking at several bolt-on targets that can enhance our
existing operating platforms. We will continue to look for high-quality
companies that can complement our core businesses and accelerate our
growth outlook.
“We remain confident that the company is on
the right growth trajectory and has the best team in the industry to
take advantage of current security demand dynamics and grow margins in
the year ahead. Leveraging the reputations of its operating units,
GlobalOptions Group is clearly becoming recognized as the most
comprehensive provider of critical risk management services in today’s
environment.”
Conference Call
GlobalOptions Group will host an earnings conference call at 10:00 a.m.
Eastern on November 15, 2006 for the third quarter ended September 30,
2006. During the call, Dr. Harvey Schiller, Chairman and Chief Executive
Officer, and Jeff Nyweide, Chief Financial Officer, will discuss the
Company’s quarterly performance and financial
results. The telephone number for the conference call is 888-634-9408. A
live webcast of the call will also be available on the company's
website, www.GlobalOptionsGroup.com.
The webcast will be archived on the site, and investors will be able to
access an encore recording of the conference call for one week by
calling 800-642-1687, conference ID #9410971. The encore recording will
be available two hours after the conference call has concluded.
About GlobalOptions Group, Inc.
GlobalOptions Group, with headquarters in New York City and offices in
16 cities, is a provider of high-end risk assessment and mitigation
services to Fortune 1000 corporations, governmental organizations and
high-profile individuals throughout the world. GlobalOptions Group’s
services currently include risk management and security, investigations
and litigation support, and crisis management. These engagements take
GlobalOptions Group staff around the world and are typically
highly-sensitive engagements where GlobalOptions Group is interacting
with senior leaders in corporations and governments. Its overall mission
is to identify, evaluate, assess, prevent and correct issues that may
threaten people, organizations or strategic initiatives for corporations
or governments. www.globaloptionsgroup.com
Statements in this press release regarding the company's business
that are not historical facts are "forward-looking statements" that
involve risks and uncertainties.The company wishes to caution
readers not to place undue reliance on such forward-looking statements,
which statements are made pursuant to the Private Securities Litigation
Reform Act of 1994, and as such, speak only as of the date made. To the
extent the content of this press release includes forward-looking
statements, they involve various risks and uncertainties including the
successful integration of the acquired businesses, projected financial
information, and the continued successful implementation of the company’s
business strategy.
Certain of these risks and uncertainties will be described in greater
detail in GlobalOptions Group’s filings with
the Securities and Exchange Commission.GlobalOptions Group is
under no obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements whether as a result of
new information, future events or otherwise.
GLOBALOPTIONS GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements Of Operations
(Unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2006
2005
2006
2005
Revenues
$
21,017,262
$
2,509,693
$
44,611,876
$
4,762,268
Cost of revenues
10,738,102
1,483,786
22,860,911
2,572,431
Gross profit
10,279,160
1,025,907
21,750,965
2,189,837
Operating expenses:
Selling and marketing
2,585,236
232,912
6,353,441
519,172
General and administrative
7,882,643
2,037,202
16,526,627
4,383,676
Total operating expenses
10,467,879
2,270,114
22,880,068
4,902,848
Income (loss) from operations
(188,719)
(1,244,207)
(1,129,103)
(2,713,011)
Other income (expense):
Interest income
193,980
15,688
210,517
16,563
Interest expense
(21,347)
(18,493)
(628,397)
(81,497)
Amortization of debt discount
-
-
(7,522,602)
-
Amortization of deferred financing costs
-
-
(2,694,500)
-
Other expense, net
172,633
(2,805)
(10,634,982)
(64,934)
Net loss
(16,086)
(1,247,012)
(11,764,085)
(2,777,945)
Deemed dividends to Series B convertible preferred stockholders
-
(147,250)
(24,413,362)
(979,750)
Net loss applicable to common stockholders
$
(16,086)
$
(1,394,262)
$
(36,177,447)
$
(3,757,695)
Basic and diluted net loss per share applicable to common
stockholders
$
-
$
(0.10)
$
(2.11)
$
(0.34)
Weighted average number of common shares
outstanding - basic and diluted
19,540,111
14,433,266
17,120,021
11,181,480
GLOBALOPTIONS GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
September 30, 2006
(Unaudited)
ASSETS
Current assets:
Cash
$
22,326,956
Accounts receivable, net of allowance for doubtful accounts of
$1,113,000
