Message #6 From:
NewsBot Date: September 21, 2005 12:16:00 PM
VCAT News VCAT Reports Results for the Fourth Quarter and Fiscal Year Ended June 30, 2005
SAN DIEGO--(BUSINESS WIRE)--Sept. 21, 2005--Venture Catalyst Incorporated ("VCAT") (OTCBB:VCAT), today reported the operating results for the fourth quarter and fiscal year ended June 30, 2005.
Fourth Quarter Results
VCAT reported net income for the fourth quarter of fiscal 2005, of $378,000 or $.05 per share. This compares with net income of $3,725,000, or $.52 per share, for the fourth quarter of fiscal 2004.
Revenues for the fourth quarter of fiscal 2005 were $3,201,000 as compared to $1,738,000 during the fourth quarter of fiscal 2004. Revenues from consulting services in the fourth quarter of fiscal 2005 were $1,861,000 compared to $1,725,000 earned during the fourth quarter of fiscal 2004. Revenues from software products and services in the fourth quarter of fiscal 2005 were $1,340,000, as compared to $13,000 in the fourth quarter of fiscal 2004.
Cost of revenues increased to $1,440,000 during the fourth quarter of fiscal 2005 from $1,173,000 during the fourth quarter of fiscal 2004.
Operating expenses, consisting of general and administrative, sales and marketing, and research and development expenses, increased to $1,206,000 during the fourth quarter of fiscal 2005 from $829,000 during the fourth quarter of fiscal 2004.
Net other income during the fourth quarter of fiscal 2005 was $20,000. Net other income during the fourth quarter of fiscal 2004 was $3,450,000, resulting primarily from a one-time gain of $3,714,000 from the release of the liability referred to as "advance of future consulting fees," partially offset by interest expense of $278,000 from VCAT's long-term debt.
During the fourth quarter of fiscal 2005, VCAT recorded a provision for income taxes of $198,000. During the fourth quarter of fiscal 2004, VCAT recorded an income tax benefit of $540,000 related to recognition of deferred tax assets primarily resulting from net operating loss carry-forwards.
Fiscal 2005 Results
VCAT reported net income for fiscal 2005 of $337,000, or $0.05 income per share. This compares with net income of $3,374,000, or $0.47 income per share, for fiscal 2004.
Revenues for fiscal 2005 increased to $8,858,000 from $7,670,000 during fiscal 2004. Revenues from consulting services in fiscal 2005 decreased to $7,161,000 from $7,402,000 during fiscal 2004. Revenues from software products and services in fiscal 2005 increased to $1,697,000 from $267,000 during fiscal 2004.
Cost of revenues decreased to $4,281,000 during fiscal 2005 from $4,381,000 during fiscal 2004.
Operating expenses, consisting of general and administrative, sales and marketing, and research and development increased to $4,188,000 during fiscal 2005 from $3,135,000 during fiscal 2004.
Net other income during fiscal 2004 was $81,000. Net other income during fiscal 2004 was $2,681,000, resulting primarily from a one-time gain of $3,714,000 from the release of the liability discussed above, partially offset by interest expense of $1,088,000 from VCAT's long-term debt.
During fiscal 2005, VCAT recorded a provision for income taxes of $133,000. During fiscal 2004, VCAT recorded an income tax benefit of $540,000 related to recognition of deferred tax assets primarily resulting from net operating loss carry-forwards.
About Venture Catalyst Incorporated
VCAT is a provider of consulting services and technology in the gaming and hospitality market. VCAT is headquartered in San Diego, California and has offices in Las Vegas, Nevada.
VENTURE CATALYST INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
For the Three Months Ended June 30,
2005 2004
------------- -------------
Revenues:
Consulting services 1,860,972 1,725,000
Software products and services 1,340,382 12,824
------------- -------------
Total revenues 3,201,354 1,737,824
Cost of Revenues:
Consulting services 896,510 807,753
Software products and services 543,887 365,099
------------- -------------
Total cost of revenues 1,440,397 1,172,852
------------- -------------
Gross profit 1,760,957 564,972
------------- -------------
Operating expenses:
General and administrative 1,051,201 667,500
Sales and marketing 129,253 151,698
Research and development 25,193 10,258
------------- -------------
Total operating expenses 1,205,647 829,456
------------- -------------
Operating profit (loss) 555,310 (264,484)
------------- -------------
Other income (expense):
Interest income 22,536 12,975
Release of advance of future
consulting fees -- 3,714,231
Interest expense -- (277,586)
Other (losses) (2,118) --
------------- -------------
Other income 20,418 3,449,620
------------- -------------
Income before income tax (provision)
benefit 575,728 3,185,136
------------- -------------
Income tax (provision) benefit (197,851) 540,000
------------- -------------
Net income 377,877 3,725,136
============= =============
Basic and diluted income per share:
Net income per share -- basic $ .05 $ .52
============= =============
Net income per share -- diluted $ .05 $ .52
============= =============
Weighted average common shares
outstanding
Basic 7,206,598 7,206,598
============= =============
Diluted 7,332,028 7,216,159
============= =============
VENTURE CATALYST INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Fiscal Year Ended June 30,
2005 2004
------------- -------------
Revenues:
Consulting services $ 7,160,815 $ 7,402,400
Software products and services 1,697,021 267,346
------------- -------------
Total revenues 8,857,836 7,669,746
Cost of Revenues:
-------------- --------------
Consulting services 2,798,038 2,842,790
Software products and services 1,482,978 1,538,577
------------- -------------
Total cost of revenues 4,281,016 4,381,367
------------- -------------
Gross profit 4,576,820 3,288,379
------------- -------------
Operating expenses:
General and administrative 3,475,516 2,476,051
Sales and marketing 638,689 609,686
Research and development 73,639 49,465
------------- -------------
Total operating expenses 4,187,844 3,135,202
------------- -------------
Operating profit 388,976 153,177
------------- -------------
Other income (expense):
Interest income 66,334 54,966
Other gains (losses) 14,486 (523)
Release of advance of future
consulting fees -- 3,714,231
Interest expense -- (1,088,133)
------------- -------------
Other income 80,820 2,680,541
------------- -------------
Income before income tax (provision)
benefit 469,796 2,833,718
Income tax (provision) benefit (132,851) 540,000
------------- -------------
Net income 336,945 3,373,718
============= =============
Basic and diluted income per share:
Net income per share -- basic $ .05 $ .47
============= =============
Net income per share -- diluted $ .05 $ .47
============= =============
Weighted average common shares
outstanding
Basic 7,206,598 7,206,598
============= =============
Diluted 7,320,301 7,224,301
============= =============
