Welcome!

News Feed Item

Cover-All Announces First Quarter 2014 Results

Cover-All Technologies Inc. (NYSE MKT: COVR) today announced financial results for the quarter ended March 31, 2014.

“We are pleased to report solid financial results driven by growth in services revenue and improvements in gross margins for support and services revenue,” said Manish Shah, CEO and President of Cover-All. “We are focusing on executing services backlogs, further improving gross margins and extending our sales and marketing efforts to boost organic growth while we look for accretive and strategic acquisition targets.”

Mr. Shah continued: “Historically, license revenues vary quarter-to-quarter and, as a result, we do not use it as a measure for growth by comparing it against previous quarters. Our services and support revenue grew 83% and 5%, respectively, this quarter compared to the same period in 2013.

“The cost saving initiatives implemented in 2013 resulted in improved margins, operating profitability and free cash flow. Gross margins for services and support revenue were 36% this quarter compared to 3% for the same period in 2013.

“We are extending our sales and marketing reach to grow organically and continue to see demand for our core systems and data analytics in the US P/C insurance industry. To support our organic growth strategies, we believe there are opportunities for accretive acquisitions. We are seeking acquisitions that create enterprise-wide solutions, develop cloud, mobile, and analytic products, and complement our business processing services.”

FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED MARCH 31, 2014

Revenue

  • Total revenues for the three months ended March 31, 2014 were $5.2 million compared to $6.9 million for the same period in 2013.
  • License revenue for the three months ended March 31, 2014 was $808,000 compared to $3.6 million for the same period in 2013.
  • Support Services revenue (which represents contracted continuing revenue) was $2.1 million for the three months ended March 31, 2014 compared to $2.0 million in the same period in 2013.
  • Professional Services revenue for the three months ended March 31, 2014 was $2.3 million compared to $1.2 million for the same period in 2013.

Profitability

  • Operating income for the three months ended March 31, 2014 was $531,000 compared to $803,000 in the comparable period in 2013.
  • Net income for the three months ended March 31, 2014 was $434,000, or $0.02 per basic and diluted share, compared to $705,000, or $0.03 per basic and diluted share, in the same period of 2013.

Non-GAAP* Profitability

  • Earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP metric, for the three months ended March 31, 2014 was $1.0 million, or $0.04 per basic and diluted share, compared to $2.0 million, or $0.08 per basic and diluted share, in the same period of 2013.

Balance Sheet

  • As of March 31, 2014, the Company had $2.2 million in cash and cash equivalents and $1.8 million in accounts receivable. Stockholders’ equity was $11.4 million as of March 31, 2014 compared to $10.9 million as of December 31, 2013.

WEBCAST AND CONFERENCE CALL INFORMATION

Management will conduct a live teleconference to discuss its 2014 first quarter financial results at 4:30 p.m. EDT on Thursday, May 15, 2014. Anyone interested in participating should call 1-877-941-2069 if calling from the United States, or 1-480-629-9713 if dialing internationally. A replay will be available until May 29, 2014, which can be accessed by dialing 1-877-870-5176 within the United States and 1-858-384-5517 if dialing internationally. Please use passcode 4682684 to access the replay.

In addition, the call will be webcast and will be available on the Company’s website at www.cover-all.com or by visiting http://public.viavid.com/index.php?id=109172.

FORWARD-LOOKING STATEMENTS

Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks which may cause the Company’s actual results in future periods to differ materially from expected results. Those risks include, among others, risks associated with increased competition, customer decisions, the successful completion of continuing development of new products, the successful negotiations, execution and implementation of anticipated new software contracts, the successful implementation of our acquisition strategies and our ability to complete or integrate acquisitions, the successful addition of personnel in the marketing and technical areas, our ability to complete development and sell and license our products at prices which result in sufficient revenues to realize profits and other business factors beyond the Company’s control. Those and other risks are described in the Company’s filings with the Securities and Exchange Commission (“SEC”) over the last 12 months, including but not limited to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 28, 2014, copies of which are available from the SEC or may be obtained upon request from the Company.

*ABOUT NON-GAAP FINANCIAL MEASURES

In evaluating its business, Cover-All considers and uses EBITDA as a supplemental measure of its operating performance. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. The Company presents EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance.

The term EBITDA is not defined under U.S. generally accepted accounting principles (“U.S. GAAP”) and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. EBITDA has limitations as an analytical tool, and when assessing the Company’s operating performance, investors should not consider EBITDA in isolation or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Among other things, EBITDA does not reflect the Company’s actual cash expenditures. Other companies may calculate similar measures differently than Cover-All, limiting their usefulness as comparative tools. Cover-All compensates for these limitations by relying on its U.S. GAAP results and using EBITDA only supplementally.

ABOUT COVER-ALL TECHNOLOGIES INC.

Cover-All provides property and casualty insurance professionals a robust state-of-the-art, browser-based family of Policy, Business Intelligence, and Claims solutions designed to deliver products to market faster, enhance quality, ensure compliance, and reduce costs. With offices in Morristown, NJ and Honolulu, HI, Cover-All continues its tradition of developing technology solutions designed to revolutionize the way property and casualty insurance business is conducted. Additional information is available online at www.cover-all.com.

Cover-All®, My Insurance Center™ (MIC) NexGen, Insurance Policy Database™ (IPD) and PipelineClaims™ are trademarks or registered trademarks of Cover-All Technologies Inc. All other company and product names mentioned are trademarks or registered trademarks of their respective holders.

 
 
Cover-All Technologies Inc. and Subsidiaries
 
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
 
    Three months ended March 31,
2014   2013
Revenues:
Licenses $ 807,599 $ 3,623,249
Support Services 2,129,663 2,022,963
Professional Services   2,270,288   1,239,621
Total Revenues   5,207,550   6,885,833
Cost of Revenues:
Licenses 360,000
Support Services 1,685,454 2,677,850
Professional Services   1,110,657   677,281
Total Cost of Revenues   2,796,111   3,715,131
Direct Margin   2,411,439   3,170,702
Operating Expenses:
Sales and Marketing 478,358 648,053
General and Administrative 733,797 577,029
Amortization of Capitalized Software 372,638 1,092,107
Research and Development   295,437   51,010
Total Operating Expenses   1,880,230   2,368,199
Operating Income   531,209   802,503
Other (Income) Expense:
Interest Expense 93,672 92,511
Interest Income
Other Income    
Total Other (Income) Expense   93,672   92,511
Income Before Income Taxes   437,537   709,992
Income Taxes Expense   3,688   4,666
Net Income $ 433,849 $ 705,326
Basic Earnings Per Common Share $ 0.02 $ 0.03
Diluted Earnings Per Common Share $ 0.02 $ 0.03
Weighted Average Number of Common Shares
Outstanding for Basic Earnings
Per Common Share   26,543,000   26,029,000
Weighted Average Number of Common Shares
Outstanding for Diluted Earnings
Per Common Share   26,555,000   26,201,000
 
 
Cover-All Technologies Inc. and Subsidiaries
 
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
 
    March 31,

2014

  December 31,

2013

(unaudited)
Assets:
Current Assets:
Cash and Cash Equivalents $ 2,171,355 $ 1,848,571
Accounts Receivable (Less Allowance for Doubtful Accounts of $25,000) 1,838,322 2,604,489
Prepaid Expenses 623,453 491,905
Deferred Tax Asset   850,500     850,500  
Total Current Assets 5,483,630 5,795,465
Property and Equipment – Net 634,656 708,590
Goodwill 1,039,114 1,039,114
Capitalized Software (Less Accumulated Amortization of $22,677,829 and $22,305,191 in 2014 and 2013, respectively) 7,591,945 7,964,583
Customer Lists/Relationships (Less Accumulated Amortization of $356,500 and $341,333 in 2014 and 2013, respectively) 45,500 60,667
Deferred Tax Asset 2,674,928 2,674,928

Deferred Financing Costs (Net Amortization of $43,667 and $36,082 in 2014 and 2013, respectively)

48,616 56,201
Other Assets   328,000     424,522  
Total Assets $ 17,846,389   $ 18,724,070  
 
Liabilities and Stockholders’ Equity:
Current Liabilities:
Accounts Payable $ 953,612 $ 1,059,238
Accrued Expenses 631,221 1,412,400
Deferred Charges 219,679 231,051
Current Portion of Capital Lease 115,862 114,640
Unearned Revenue   2,493,208     2,997,455  
Total Current Liabilities   4,413,582     5,814,784  
 
Long-Term Liabilities:
Long-Term Debt 1,687,813 1,639,109
Long-Term Portion of Capital Lease   323,711     353,139  
Total Long-Term Liabilities   2,011,524     1,992,248  
Total Liabilities   6,425,106     7,807,032  
Commitments and Contingencies        
 
Stockholders’ Equity:

Common Stock ($0.01 Par Value, Authorized 75,000,000 Shares; 26,638,477 and 26,402,227 Shares Issued and Outstanding in 2014 and 2013, respectively)

266,385 264,022
Additional Paid-In Capital 32,742,407 32,674,374
Accumulated Deficit   (21,587,509 )   (22,021,358 )
Total Stockholders’ Equity   11,421,283     10,917,038  
Total Liabilities and Stockholders’ Equity $ 17,846,389   $ 18,724,070  
 
 
Cover-All Technologies Inc. and Subsidiaries
 
RECONCILIATION of U.S. GAAP NET INCOME to EBITDA
(UNAUDITED)
 
    Three months ended March 31,
2014   2013
 
Net Income $ 433,849 $ 705,326
 
Interest (Income) Expense, Net 93,672 92,511

Income Tax Expense

3,688 4,666
Depreciation 81,829 61,838
Amortization:
Amortization of Capitalized Software 372,638 1,092,107
Amortization of Customer Lists/Relationships 15,167 33,500
Amortization of Deferred Financing Costs   7,585   6,746
Total Amortization $ 395,390 $ 1,132,353
 
EBITDA $ 1,008,428 $ 1,996,694
 
EBITDA per Common Share:
Basic $ 0.04 $ 0.08
Diluted $ 0.04 $ 0.08

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities. In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, posited that disruption is inevitable for comp...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...