Online Art Community deviantART.com Unveils Redesign on 6th Birthday Version 5.0 ~ August 7, 2006
One of the Largest and Most Advanced Social Networks Announces a Sleeker and Simpler Redesign With Lots of New Features
deviantART.com, one of the most advanced social networks on the Internet, celebrates its sixth birthday this year with the release of Version 5.0 on August 7, 2006. Started as an underground society for artists to share their work, deviantART has evolved into an expansive social network and an online art gallery of gigantic proportions.
The new look and feel is the most striking feature about Version 5.0, which unveils a sleeker and simpler design. Improved navigation and usability, as well as advanced search capabilities, are key as deviantART continues to introduce modern art to the mainstream. The improvements make it easier for first time users or dedicated pros to find more quality art among the 22 million pieces posted, and provide customization options allowing each of the more than 2.5 million users to make the site their own.
"deviantART is a fire hose of creativity -- standing directly in front of it is only for the toughest of deviants. We've realized this with Version 5.0 and so we've created the equivalent of digital water fountains of art for all to drink," said CEO/Co-Founder Angelo Sotira. "We believe this approach will give a much wider group of artists in all genres an even greater audience than they already have with deviantART."
Version 5.0, which has been in the works for two years, is the foundation for many new developments that will be launched before the end of the year (with Version 5.5 adding most of the bells and whistles). While improved art viewing is important, communication within this social network will also reach new heights thanks to their MOODS advancement. Have you nearly gotten into a brawl because sarcasm was interpreted the wrong way? Fear not, the MOODS feature destroys the internet barrier by allowing users to attach animated emoticons to every comment, blog, news item, and piece of art. With this new feature in place, users will be able to browse the site based on emotion; searching only for artwork marked as happy or news articles that make users angry!
deviantART user accounts are free and allow their members to collect favorite images, talk to artists in chat and blogging environments and submit unlimited works of art to the community for critique. deviantART has forever altered how art is consumed by the masses and Version 5.0 will cement the site's place as the foremost location to find edgy, eye-catching work from artists worldwide.
Virtual Egg Sells for $10,000 USD
World Famous Gamer Jon "NEVERDIE" Jacobs, Owner of the Virtual Space Resort Club NEVERDIE in ENTROPIA UNIVERSE, Today Purchased a Unique Virtual Egg for $10,000 USD
The Unique Green Atrox Queen Egg was found last week by another gamer, Mc'Lap Tzest0s Alexan'ru, during a massive quest in Entropia Universe, the leading MMORPG with an RCE (real Cash Economy). The Unique Green Atrox Queen Egg was the final prize in a multi-part story quest, that tens of thousands of gamers participated in. At this time, the actual function of the Egg is still unknown and there has been much speculation on the forums as to its purpose and value. Tzest0s received a number of offers for the Atrox Queens Egg (http://www.entropiaforum.com/forums/showthread.php?t=31974), but controversial gamer NEVERDIE, who claims the title of the First Millionaire Gamer, outbid everyone with a 100,000 PED offer, equivalent to $10,000 USD. "The absurdity of paying $10,000 USD for a virtual egg is not lost on me," says NEVERDIE, "but in fact I'm confident it will prove to be a great investment. Club NEVERDIE is already the #1 privately owned entertainment venue in virtual reality, whatever hatches out of this thing is sure to prove a big draw to the Club."
Club NEVERDIE is built on an Asteroid and can only be reach via spaceship from within Entropia Universe or by starting an Avatar at the resort via the free download at www.Realityport.com. The resort boast 1000 private apartments, a shopping mall, 20 BioDomes with some of the best hunting and mining in the entire universe and a spectacular night club with multiple dance floors, where world famous DJs spin live sets for the participants. NEVERDIE paid $100,000 USD for the Resort in Oct 2005 and reports an 85% return on the investment in less than 8 months of operation.
Entropia Universe is the only virtual gaming community that actively supports sales of virtual products with actual cash value within its real economy system. The economy offers the user a secure and safe way to make purchases, sales and exchange real life currency into PED (Project Entropia Dollars) and back again into real money via the real world ATM system, at a fixed exchange rate to the US Dollar. PED allows members to invest in personal development and growth through the acquisition of goods, buildings, and land in the virtual universe. In 2005, the Entropia Universe turnover was an estimated $165,000,000 USD.
About Club NEVERDIE
Club NEVERDIE is situated within the Entropia Universe. NEVERDIE is a registered trademark of Jon Jacobs. Club NEVERDIE was established on Dec 19th, 2005 and can be visited via spaceship from the planet Calypso or new accounts can be spawned directly at the resort by downloading the Entropia Universe client from www.RealityPort.com and also www.NEVERDIE.com
Dairy Queen Franchisee Selects Intura Vision Point-of-Sale
Intura Solutions, LP (Intura), a leading supplier of point-of-sale (POS) and management software for quick service and delivery restaurant concepts, today announced that the Dairy Queen franchise owned by Work Enterprises, LLC, in Ohio recently selected and installed the Intura Vision POS application.
"Intura Vision is a great value for our investment and has an easy to use order process along with powerful management features," said Adam Work, founder of Work Enterprises. "Intura provides outstanding customer service and I would highly recommend the Intura Vision POS system to other quick service restaurants."
Work's requirements for his Dairy Queen operation included a sophisticated but easy to use order taking process, tight cash management controls, inventory controls with theoretical food cost and extensive management reporting.
"We are pleased to provide Work Enterprises with a solution that exceeds his expectations for a restaurant management system," stated Steve Richardson, vice president of sales and marketing for Intura. "Intura continues to win new opportunities with a variety of restaurant concepts like Dairy Queen by providing outstanding customer service and a superior product."
For more information on any Intura product or service, email sales@intura.com, call 866-405-9250, or visit the Intura website at www.intura.com.
About Intura Solutions
Intura Solutions, LP, is a leading developer of POS and business intelligence solutions for the quick-service and delivery segments of the restaurant industry. Intura continues to build on a 16-year history with Intura Vision, a restaurant POS and management system, and Intura Enterprise, a web-based portal for centralized multi-site management of data, reporting, and marketing. In addition to providing software, Intura offers professional services including staging, deployment, installation, training, and support. Some of Intura's valued customers include Dairy Queen, Hungry Howie's Pizza, Dunkin' Donuts, Garlic Jim's Famous Gourmet Pizza, Pizza Plus, Ba-Da Wings!, Jet City Pizza, Topper's Pizza, Mr. Jim's Pizza, and Pizza Inn. In 2001, Domino's Pizza, Inc. selected the Vision software product as its next generation store system now known as Domino's Pulse. Intura's limited partners include The Pinnacle Corporation and NTN Buzztime, Inc. For more information, visit www.intura.com.
MyPrint Corporation Doubles Fulfillment and Production Capacity to Accommodate Company Growth and Expanded Operations
In a move reflecting the company's dramatic growth in revenues over the past year, and rapidly expanding customer base, MyPrint Corporation has leased an additional building near its Irvine headquarters, nearly doubling the size of its production and fulfillment operations.
For MyPrint Corporation, one of Orange County, Calif.'s fastest-growing technology, print and fulfillment companies, and the region's largest on-demand software provider, the transaction was necessary to meet sales and revenue growth.
MyPrint intends to use the majority of the new space to expand fulfillment operations and open a stationery production center. This additional space will assist in supporting the company's current new customer implementation schedule. The company has also leased additional office space to accommodate additional staff for its technology division eTools. Staffing requirements for the software division could increase five-fold by yearend based on recent client additions and the current eTools implementation schedule.
According to Kent Barkouras, CEO of MyPrint Corporation, the expansion is urgently needed to accommodate the organization's considerable growth since the launch of its newest version of software, eTools 3.0. eTools software offers a suite of print on-demand and print supply chain solutions via an on-demand internet based software application.
"For the past several years, demand for our offering of services has sky-rocketed resulting in rapidly growing revenues; we are literally bursting at the seams," said Barkouras. "This much-needed expansion gives us some breathing room, and provides our technology and production teams the necessary amount of space for our short to mid-term requirements. We have some exciting projects launching and look forward to the challenges ahead."
Barkouras added that the decision to expand resulted from the company's augmented level of services within its current slate of national accounts, and the addition of several new national clients including United Healthcare, Apria Healthcare, Sunrise Senior Living, VF Corporation, Real Mex Restaurants, Honeywell, FedEx Kinko's, Wells Fargo, Indymac Bank, Home 123, and Stanley Security Services.
About MyPrint Corporation
MyPrint Corporation, headquartered in Irvine, Calif., provides national customers with unique on-demand complete business solutions, including software applications, print-on-demand, commercial printing, direct mail, fulfillment, and inventory management. MyPrint Corporation serves leading corporations throughout the United States and Canada in industries ranging from hospitality and entertainment to travel and manufacturing and has begun offering its eTools software application through a licensing model. For more information, call the Company's headquarters at (949) 261-0333, or visit the Company's Web site located at www.myprint.com.
About eTools, LLC
eTools is a wholly owned division of MyPrint Corporation and offers revolutionary and innovative print management software solutions to industry leading companies in fields ranging from entertainment to manufacturing to healthcare.
The company's software applications enable the largest organizations in the world to easily manage and order branded sales and marketing materials cost effectively from a web-based portal. The software offers powerful visual catalogs, workflow and approval features and provides detailed reporting capabilities.
William J. Gremp Joins Prospect Energy Corporation's Board of Directors
Prospect Energy Corporation (NASDAQ: PSEC) ("Prospect") announced today that William J. Gremp has joined Prospect's Board of Directors.
"We are delighted to have recruited Bill Gremp to our Board of Directors," said John Barry, Chairman and Chief Executive Officer of Prospect. "With Bill's track record, spanning many years of senior management experience in the energy and finance communities, and his well known ability to communicate our message, I cannot think of anyone who can make a greater contribution right now."
Mr. Gremp's career as an investment banker, with over 30 years of corporate finance experience in originating and executing transactions and advisory assignments for energy and utility related clients, has spanned years of significant change in the energy industry. Since 1999, Mr. Gremp has been responsible for traditional banking services, credit and lending, private equity and corporate cash management with Merrill Lynch & Co. From 1996 to 1999, he served at Wachovia as senior vice president, managing director and co-founder of the utilities and energy investment banking group, responsible for origination, structuring, negotiation and successful completion of transactions utilizing investment banking, capital markets and traditional commercial banking products. From 1989 to 1996, Mr. Gremp was the managing director of global power and project finance at JPMorgan Chase & Co., where he was responsible for the origination, delivery and successful implementation of all corporate finance and investment banking products and services to the utility and energy industries. He advised clients on corporate strategy, project financing, mergers and acquisitions and equity and lease finance. From 1970 to 1989, Mr. Gremp was with Merrill Lynch & Co., starting out as an associate in the mergers and acquisitions department, then in 1986 becoming the senior vice president, managing director and head of the regulated industries group. From 1965 to 1970, Mr. Gremp served in roles at the United States Army, the Mobil Oil Corporation and a New York management consulting firm. Mr. Gremp received his MBA from New York University and his Bachelor of Science degree from the University of Minnesota.
ABOUT PROSPECT ENERGY CORPORATION
Prospect Energy Corporation (www.prospectenergy.com) is a closed-end investment company that lends to and invests in energy-related businesses. Prospect Energy's investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
Prospect Energy has elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act"). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Failure to comply with any of the laws and regulations that apply to Prospect Energy could have an adverse effect on Prospect Energy and its shareholders.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company's control, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future. Such statements speak only as of the time when made, and the Company undertakes no obligation to update any such statement now or in the future
Explore the Depths of Africa With Nevsun Resources Ltd. on MN1.com
President and CEO John Clarke of Nevsun Resources Ltd. (AMEX: NSU) and (TSX: NSU) will be live on Market News First (www.MN1.com) for a Live Exclusive Interview on Thursday July 20, 2006 at 2:30pm CDT.
Nevsun Resources Ltd. (www.nevsun.com) invests, explores and develops mineral properties in Africa. The Company is now a junior gold producer that mines 100,000 ounces of gold per year at the Tabakoto Mine in Mali, West Africa. The world-class Bisha project in Eritrea is currently in the final engineering feasibility study stage which is due for completion in October 2006 and mining is expected to commence by 2009. At June 30th commodity prices of US$613/oz. gold, $3.20/lb. copper, $11/oz. silver and $1.45/lb. zinc, the Bisha project has a value of US$2.6 billion dollars.
If you are interested in investing in Nevsun Resources and would like to ask further questions directly to John Clarke, CEO, log on to MN1.com on July 20th to participate in this live discussion.
About MN1.com
Market News First is an online market news provider which brings investors current up to speed news on the market. Market News First is the only online live radio web site that brings real market news to investors and features live interaction with companies from the Bulletin Board to NYSE.
Through daily live pressers we bring you up to date on all the established companies and inform the investors of the newest opportunities within the market. Market News First's one on one interviews with the Presidents and CFOs of companies, broadcasted on our website, deliver answers to the questions that investors would ask and provide them insight into the companies' present condition and future plans.
Bowne Board Declares Quarterly Cash Dividend of $.055 per Share
The Board of Directors of Bowne & Co., Inc. (NYSE: BNE), announced the declaration of the quarterly cash dividend on its Common Stock at the rate of $.055 per share. The dividend will be payable August 18, 2006 to shareholders of record at the close of business August 4, 2006.
Bowne has paid consecutive quarterly cash dividends since the company became public in August 1968.
About Bowne & Co., Inc.
Bowne & Co., Inc., founded in 1775, is a global leader in providing high-value solutions that empower our clients' communications.
-- Bowne Financial Print: The world's largest financial printer and leading EDGAR filer, specializing in the creation, management, translation and distribution of regulatory and compliance documents. -- Bowne Marketing & Business Communications: Digital composition, print, delivery and fulfillment of customized and personalized communications designed to enable companies to more-effectively target customers. -- Bowne Litigation Solutions: Consulting and software solutions, including DecisionQuest®, one of the nation's largest trial research firms, bring our clients fresh perspective resulting in better informed choices about strategies and tactics at every step in the litigation process.
Bowne & Co. combines these capabilities with superior customer service, new technologies, confidentiality and integrity to manage, repurpose and distribute a client's information to any audience, through any medium, in any language, anywhere in the world. For more information, visit us at www.bowne.com.
Dan "The Smoothieman" Hits the Road: Southern Exposure Tour
Juice Gallery Multimedia will be on the road from July 22 - 31 spreading good cheer about the juice and smoothie industry. "We'll be traveling in our Silver Eagle bus. Several hundred copies of our best-selling smoothie books will be handed out along our route, which includes: Las Vegas, Phoenix, Austin, Houston, Baton Rouge and Tampa Bay," said Dan Titus, president of Juice Gallery Multimedia (www.juicegallery.com) and director of the Juice and Smoothie Association (www.smoothiecentral.com). "Everyone seems to be getting into the smoothie act, and it is time to educate the public about REAL juice and smoothie bars and their benefits, first hand," said Titus.
Q: What do companies like: Robeks Juice, Juice it Up!, Jamba Juice, Planet Smoothie, Juice Stop, Smoothie King, Rubyjuice, and Juice Zone have in common?
A: They are all part of the whimsical business known as the juice and smoothie industry!
Smoothies served in REAL juice and smoothie bars are 'platinum' or 'gold' level smoothies. These are the freshest and most natural smoothies offered to consumers.
The Juice and Smoothie Association has a ranking system to assist consumers in defining the quality of different kinds of smoothie products. Predicated on medals often presented in competition, the system uses: platinum, gold, silver and bronze.
Here are the general definitions:
Platinum Smoothie
High marks apply for any smoothie made to order and prepared with all-natural ingredients. Freshly squeezed juice and real fresh fruit also make for a top ranked smoothie.
Gold Smoothie
High marks for a smoothie made to order using seasonal fruit or 100% frozen fruit and 100% fruit juice from concentrates.
Silver Smoothie
This ranking is based on the ingredients that make up the smoothie mix or starter base. Basically, if the contents are high quality, in the way of 100% fruit purees and fruit juice, they qualify as a Silver Smoothie.
Bronze Smoothie
Smoothie made from a prepackaged smoothie mix or a product that is not 100% natural and consumed from a prepackaged container, fall into this category.
For detailed definitions go to:
http://www.smoothiecentral.com/smoothie_definitions.cfm
For listing of Dan's "The Smoothieman's" popular smoothie books, go to:
http://www.smoothiecentral.com/Products.cfm
The Sportsman's Guide Provides Second Quarter Update; Net Sales and EPS In-line With Expectations
The Sportsman's Guide, Inc. (NASDAQ: SGDE) today reported that net sales and fully diluted earnings per share, before adjustments for equity-based stock compensation and acquisition-related expenses, for the quarter ended June 30, 2006, will be consistent with the Company's budget expectations and in-line with recent analyst estimates.
Net sales for the quarter ended June 30, 2006 are expected to be in range of $69 to $70 million, compared with net sales of $63.8 million for the same period one year ago. Fully diluted earnings per share, before adjustments for equity-based stock compensation and acquisition-related expenses, are anticipated to be in a range from $0.34 to $0.36 per share, compared to earnings per share of $0.31 for the same period one year ago. Equity-based stock compensation expense is expected to be $0.05 per fully diluted share, consistent with the first quarter, and acquisition-related expenses are anticipated to be $0.06 per fully diluted share in the quarter.
The Company also noted that its final results for the period will be available when it files its 10-Q with the Securities and Exchange Commission on August 11, 2006. Given its pending acquisition by Redcats USA, the Company does not expect to provide a detailed press release or hold a conference call for the second quarter. Company officials also noted that it still expects the transaction with Redcats USA to close during the third calendar quarter.
ABOUT THE SPORTSMAN'S GUIDE
The Sportsman's Guide is a multi-channel direct marketer of value-priced outdoor gear and general merchandise, with a special emphasis on outdoor clothing, outdoor equipment, sporting goods, golf apparel and equipment and footwear. The company sells through both Internet websites and catalogs. The Company's websites include www.sportsmansguide.com, www.tgw.com, www.bargainoutfitters.com, www.baseballsavings.com and www.softballsavings.com. Investors can access information about the company at www.sportsmansguideir.com.
ABOUT REDCATS USA
Redcats USA is a leading catalog and online marketer of apparel and home products, operating in North America. Its primary brands are Chadwick's®, Roaman's®, Jessica London®, KingSize® and BrylaneHome®. Redcats USA is a wholly owned subsidiary of the Redcats Group, the world's third largest catalog and online group in apparel and home products operating in 26 countries, through 17 brands with a staff of 20,000 associates and a turnover of 4.37 billion euros in 2005. Redcats Group is a member of the PPR group of companies. The shares of PPR S.A. are listed on Euronext Paris (# 121485, PRTP.PA, PPFP). For more information, please visit www.ppr.com.
FORWARD-LOOKING STATEMENT
This document includes statements that do not directly or exclusively relate to historical facts. Such statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements regarding benefits of the proposed transaction, expected cost savings and anticipated future financial operating performance and results, including estimates of growth. These statements are based on the current expectations of management of The Sportsman's Guide. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this document. For example, (1) The Sportsman's Guide may be unable to obtain shareholder approval required for the transaction; (2) The Sportsman's Guide may be unable to obtain regulatory approvals required for the transaction, or required regulatory approvals may delay the transaction or result in the imposition of conditions that could have a material adverse effect on The Sportsman's Guide or cause the parties to abandon the transaction; (3) conditions to the closing of the transaction may not be satisfied; (4) the transaction may involve unexpected costs or unexpected liabilities; (5) the credit ratings of The Sportsman's Guide or its subsidiaries may be different from what the parties expect; (6) the businesses of The Sportsman's Guide may suffer as a result of uncertainty surrounding the transaction; (7) the industry may be subject to future regulatory or legislative actions that could adversely affect The Sportsman's Guide; and (8) The Sportsman's Guide may be adversely affected by other economic, business, and/or competitive factors. Additional factors that may affect the future results of The Sportsman's Guide are set forth in its filings with the Securities and Exchange Commission (the "SEC"). The Sportsman's Guide undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed transaction, a proxy statement of The Sportsman's Guide and other materials will be filed with SEC. WE URGE INVESTORS TO READ THE PROXY STATEMENT AND THESE OTHER MATERIALS CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE SPORTSMAN'S GUIDE AND THE PROPOSED TRANSACTION. Investors will be able to obtain free copies of the proxy statement (when available) as well as other filed documents containing information about The Sportsman's Guide at http://www.sec.gov, SEC's Web site. Free copies of The Sportsman's Guide's SEC filings are also available by directing a request to The Sportsman's Guide, Inc., 411 Farwell Avenue, South St. Paul, MN 55075, Attention: Investor Relations.
PARTICIPANTS IN THE SOLICITATION
The Sportsman's Guide and its executive officers and directors and VLP Corporation, a wholly owned subsidiary of Redcats USA, Inc., may be deemed, under SEC rules, to be participants in the solicitation of proxies from The Sportsman's Guide shareholders with respect to the proposed transaction. Information regarding the executive officers and directors of The Sportsman's Guide is included in its definitive proxy statement for its 2006 annual meeting filed with the SEC on March 21, 2006. More detailed information regarding the identity of potential participants, and their direct or indirect interests, by securities holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the proposed transaction.
Caneum, Inc. Announces Agreement to Provide HR BPO Services to iSensix
Business Process and Information Technology Outsourcing Company Signs and Successfully Completes Initial Outsourced Talent Placement Agreement With iSensix as Part of Its Core HR BPO Service Offering
-- Caneum, Inc. (OTCBB: CANM), a global provider of business process and information technology outsourcing services, today announced that it has signed an HR BPO services agreement with iSensix, Inc., a Shelter Capital Partners Portfolio Company, assisting in recruiting information technology talent at all levels in the company. Additionally, Caneum announced that it has already completed a number of organizational placements at iSensix and expects to ramp similar placement activities over the coming months and quarters ahead.
The underlying master services agreement signed allows for Caneum to be a provider of HR recruitment services to iSensix, and represents a new and broader HR BPO vertical segment for the Company. The new vertical could not only represent an internally estimated $50M market niche for Caneum, but it could also likely represent approximately $1M in new first year revenues should the Company find success developing placement services for other venture backed portfolio companies by working with similar venture and private equity funds.
"We are extremely pleased to have been selected by iSensix as a provider of these services," commented Michael Willner, Senior Vice President of Caneum. "The rapid success of the initial assignments is a validation of our belief that we can provide high performance results oriented outsourced services to venture backed firms and the funds that finance and support them. We believe that other venture capitalists can derive significant benefits by leveraging our domain expertise in HR business process outsourcing."
Ron Norys, Director of Finance and HR at iSensix commented, "We are delighted with the speed and quality of resources that Caneum has been able to find for iSensix on short notice. We were able to make the first executive appointments within 4 weeks of the start of these engagements and we look forward to working with Caneum for many of our other recruitment needs rolling forward."
About Caneum, Inc.:
Caneum, Inc. is a global provider of business process and information technology outsourcing services across vertical industries, including technology, energy, government, transportation, financial services, education and healthcare. The Company provides a suite of business strategy and planning capabilities to assist companies with their "make versus buy" decisions in the areas of data, network, product development, product maintenance and customer support, and fulfills its services in-house, on-shore, near-shore and off-shore, depending on the business goals and objectives of its global customers. In parallel, the Company is opportunistically pursuing accretive acquisitions within its core outsourcing service suite in order to broaden its core capabilities, expand its customer base and supplement its organic growth. For more information, please visit the Company's web site at http://www.caneum.com.
About iSensix:
iSensix, Inc. is a leading provider of web-based wireless healthcare monitoring systems for Healthcare and Life Sciences facilities. Using ARMS™ technology, the iSensix system provides complete environmental monitoring solutions to minimize catastrophic events and meet compliance requirements with ease. iSensix is a privately-held company headquartered in San Diego, California. For more information, visit the Company's web site at www.isensix.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, but are not limited to, the risk factors noted in the Company's filings with the United States Securities and Exchange Commission, such as the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products, services and enhancements by competitors; the competitive nature of the markets for the Company's services; the Company's ability to gain market acceptance for its services; the Company's ability to fund its operational growth; the Company's ability to attract and retain skilled personnel; the Company's ability to diversify its revenue streams and customer concentrations; and the Company's reliance on third-party suppliers.
Hoku Scientific, Inc. Reports First Quarter 2007 Results
Hoku Scientific, Inc. (NASDAQ: HOKU)
Highlights:
-- Hoku commences U.S. Navy fuel cell demonstration -- Hoku announces plans to enter solar module and polysilicon markets -- Sixth consecutive profitable quarter
Hoku Scientific, Inc. (NASDAQ: HOKU), a materials science company focused on clean energy technologies, today announced its financial results for its first quarter ended June 30, 2006 and provided a general update on its business.
Revenue for the quarter ended June 30, 2006 was $1.2 million compared to $1.1 million for the quarter ended June 30, 2005. Total deferred revenue was $3.1 million at June 30, 2006 compared to $4.0 million at March 31, 2006. As of June 30, 2006, deferred revenue was primarily attributable to contracts with the U.S. Navy of $2.4 million and Nissan of $756,000. As of March 31, 2006, deferred revenue was primarily attributable to contracts with Nissan of $1.7 million, and the U.S. Navy of $2.1 million, a portion of which was recognized in the quarter ended June 30, 2006. The deferred revenue is not due to a back log of orders rather it is a result of customer prepayments and the Company's revenue recognition policy.
Net income, computed in accordance with U.S. generally accepted accounting principles, or GAAP, for the quarter ended June 30, 2006 was $313,000, or $0.02 per diluted share, compared to GAAP net income of $341,000, or $0.03 per diluted share, for the quarter ended June 30, 2005.
Non-GAAP net income for the quarter ended June 30, 2006 was $481,000, or $0.03 per diluted share, compared to $734,000, or $0.06 per diluted share, for the quarter ended June 30, 2005. Non-GAAP net income for the quarters ended June 30, 2006 and 2005 excludes non-cash stock-based compensation of $168,000 and $393,000, respectively. The accompanying schedules provide a reconciliation of net income and net income per share computed on a GAAP basis to net income and net income per share computed on a non-GAAP basis.
Dustin Shindo, chairman, president and chief executive officer of Hoku Scientific, said, "We are pleased to report our sixth consecutive profitable quarter, and the commencement of the demonstration phase of our U.S. Navy fuel cell contract. We are on-track to achieve the technical milestones in our Nissan fuel cell contract, and continue to work with Sanyo on joint testing of our fuel cell products. In addition, we signed our first test agreement with an OEM developing micro PEM fuel cells for consumer electronics and military applications. This increases the total number of companies actively testing our fuel cell products from 11 to 12, which includes our contracts with Nissan, Sanyo and the U.S. Navy. We are pleased with the progress we have made during the quarter in our core fuel cell business as we continue to work closely with these OEMs towards product integration."
"We are also pleased with our progress towards executing our recently announced plans to enter the solar module and polysilicon markets. We are actively negotiating with potential customers for polysilicon contracts, and look forward to providing future updates on our progress in these new businesses."
Fuel Cells Business Update
-- Nissan Update: The Company continues to work with Nissan towards meeting the technical goals in its current collaboration agreement signed in February 2006. In January 2006, the Company achieved the milestones under its collaboration agreement with Nissan and in February 2006, the Company and Nissan entered into their third consecutive contract for further development, through September 30, 2006, of Hoku Membrane and Hoku MEA for Nissan's fuel cell cars and trucks. Although the contract was signed in February 2006, the Company and Nissan have been working together to meet the contract goals since January 1, 2006. Nissan paid the Company $2.7 million in March 2006 and is obligated to pay an additional $240,000 in July 2006 under the contract. The aggregate amount of the contract is being recognized as revenue over the duration of the contract. The Company is on target to meet the technical goals specified in the contract.
-- U.S. Navy Update: In December 2005, the Company successfully completed the remaining milestones in its initial contract with the U.S. Navy, which required the development of a prototype stationary fuel cell system manufactured by IdaTech LLC and incorporating Hoku MEA. In coordination with IdaTech LLC, the Company has begun manufacturing eleven fuel cell systems that incorporate Hoku MEA, ten of which are planned to be field tested by the Company for the U.S. Navy over a twelve-month period. To date, the U.S. Navy has accepted 7 of 11 fuel cell power plants; the remaining 4 are yet to be delivered to the Navy for acceptance. The Company has also commenced demonstration of 5 of these fuel cell power plants at Pearl Harbor, and plans to complete the installation of the remaining 5 systems by the end of this summer. The aggregate amount of the contract is $4.5 million of which $2.4 million has been classified as deferred revenue as of June 30, 2006. As of June 30, 2006 the Company has received $2.1 million in payments from the U.S. Navy. The Company received an additional $192,000 in payments from the U.S. Navy as of July 20, 2006.
In accordance with Hoku Scientific's revenue recognition policy, all payments received under the initial contract and for the manufactured systems will be classified as deferred revenue until the twelve-month field test begins; thereafter, all payments received, plus the payments to be made for the future delivery of the manufactured systems and field service and maintenance, will be recognized incrementally as revenue in monthly installments over the twelve-month field test period beginning when the field test commences for each of the ten fuel cell systems to be placed in service. The Company recognized $38,000 in revenue in June 2006 when the first two systems were installed and the demonstration commenced.
-- Sanyo Update: In December 2005, the Company and Sanyo entered into a new Material Transfer & Collaborative Testing Agreement to provide for Sanyo's testing of Hoku Scientific's next generation MEA products at Sanyo's R&D facility in Japan through July 31, 2006. Sanyo paid Hoku Scientific a fixed fee of $260,000 in February 2006 to collaborate with Sanyo on the testing, and in addition, is obligated under the contract to pay for the Hoku Membrane and Hoku MEA samples being tested. In accordance with Hoku Scientific's revenue recognition policy, the fixed fee is being recognized as revenue over the duration of the contract.
-- New Test Agreements: During the quarter ended June 30, 2006, the Company signed its first test agreement with an OEM developing micro PEM fuel cells for consumer electronics and military applications, increasing the total number of ongoing and active test agreements to 12, including its agreements with Nissan, the U.S. Navy and Sanyo. The Company has product testing relationships with original equipment manufacturers in the United States, Canada, Japan, Korea and Germany.
Solar & Materials Business Update
-- Polysilicon Contracts: The Company is actively negotiating polysilicon purchase agreements with manufacturers of solar cells. These negotiations are currently in the contract review and technical due diligence stages.
-- Engineering, Equipment & Facilities: The Company is still evaluating the costs and benefits of Singapore relative to other locations in Asia and in North America as the location for its planned polysilicon and solar module businesses. Key engineering consultants, construction firms and equipment suppliers have been identified for the design and construction of the polysilicon and solar facilities and related equipment. Contracts with such parties have not been negotiated or executed and are dependent upon the completion of polysilicon contract negotiations with potential customers, including the receipt of customer prepayment and other financing commitments, and final site selection.
Forward Guidance
The Company's policy when it reports quarterly financial results is only to provide top line revenue and net income or loss guidance for the next fiscal quarter. Fluctuations in quarterly revenue are expected to continue in future periods due to uncertainty regarding the level and the timing of revenue from customer contracts, the achievement of contract milestones and increases in product orders. Based on its current outlook, the Company expects revenue for the second quarter ending September 30, 2006 to be in the range of $1.8 to $2.0 million, all of which will be from the fuel cell business. In addition, the Company expects that it will need to increase its efforts in supporting its new and existing contracts, in developing the Company's next generation products, in growing its customer base, and in executing on its plans to enter the polysilicon and solar module markets. The result is that the Company expects its costs to increase significantly. Based upon projections, the Company expects net income for the second quarter ending September 30, 2006 to range from a loss to slightly profitable. Except as required by law, the Company assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Conference Call Information
Hoku Scientific has scheduled a conference call for after the market closes on Thursday, July 20, 2006 at 5:00 p.m., Eastern Time, to discuss its results for the quarter ended June 30, 2006. All interested parties are invited to call-in. To participate, please call (719) 457-2640. A live webcast can also be accessed by going directly to the Company's web site at www.hokuscientific.com and electing the conference call link on the home page. A playback of the webcast will be available on the Company's web site until the Company's conference call to discuss its financial results for its second quarter fiscal 2007.
About Hoku Scientific, Inc.
Hoku Scientific (NASDAQ: HOKU) is a clean energy technologies company that develops and manufactures fuel cell membranes and membrane electrode assemblies (MEA) for stationary (including residential and back-up power applications) and automotive proton exchange membrane (PEM) fuel cells. The Company is currently planning to expand its business to manufacture solar modules and polysilicon for the solar and integrated circuit markets. For more information visit www.hokuscientific.com.
Hoku, Hoku Membrane, Hoku MEA, Hoku Fuel Cells, Hoku Materials, Hoku Solar and the Hoku Scientific logo are trademarks of Hoku Scientific, Inc., all rights reserved. All other trademarks, trade names and service marks appearing in this press release are the property of their respective holders.
Forward-Looking Statements
This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to the Company's relationship with Nissan; the Company's relationship with Sanyo; and the Company's future performance with respect to its contracts with Nissan and Sanyo; the Company's expectations regarding the U.S. Navy field trials; the performance of the Company's Hoku MEA in such trials; the Company's relationship with the U.S. Navy and IdaTech; the Company's future performance with respect to the U.S. Navy contract; expectations with respect to the Company's manufacturing capabilities; the potential size and growth of the fuel cell and MEA markets in general and the Company's revenues in particular; the Company's expectations regarding the market acceptance of the Company's products; the Company's future financial performance; the Company's business strategy and plans; and objectives of management for future operation; the Company's ability to successfully raise sufficient funds to establish manufacturing facilities; install a production plant for solar modules and polysilicon; the Company's ability to manufacture solar modules and polysilicon; ability to license any necessary intellectual property rights to enter the polysilicon and solar module businesses; the performance and durability of Hoku Scientific's solar modules; the quality of polysilicon to be manufactured; Hoku Scientific's costs to manufacture solar modules and polysilicon, and its ability to offer pricing that is competitive with competing products; Hoku Scientific's future financial performance; Hoku Scientific's business strategy and plans; and objectives of management for future operations. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. In evaluating these statements, you should specifically consider the risks described in the Company's filings with the Securities and Exchange Commission. Except as required by law, the Company assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Use of Non-GAAP Financial Information
To supplement Hoku Scientific's financial statements presented on a GAAP basis, the Company uses non-GAAP measures of net income and net income per share, which are each adjusted to exclude expenses relating to non-cash stock-based compensation, which the Company believes is appropriate to enhance an overall understanding of its past financial performance and its future prospects. As the Company uses SFAS No. 123® to calculate its non-cash stock-based compensation expense, it believes that it is useful to investors to understand how the expenses associated with the application of SFAS No. 123® are reflected on its statements of operations. The Company further believes that where the adjustments used in calculating non-GAAP net income and non-GAAP net income per share are based on specific, identified charges that impact different line items in the statements of operations (including cost of service and license revenue, research and development, sales, general and administrative expense), that it is useful to investors to know how these specific line items in the statements of operations are affected by these adjustments. For its internal budgets and forecasting, the Company uses financial statements that do not include non-cash stock-based compensation expense. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with GAAP. Whenever the Company uses such non-GAAP financial measures, it provides a reconciliation of non-GAAP financial measures to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure.
Four-Star General (USAF, Retired) Lance Lord Joins Carrier Access Board of Directors
Carrier Access Increases Board of Directors to Seven
Carrier Access Corporation (NASDAQ: CACS) (www.carrieraccess.com) announced today that General (USAF, retired) Lance W. Lord, former Commander, Air Force Space Command at Peterson Air Force Base in Colorado, has joined its Board of Directors.
General Lord was responsible for the development, acquisition, and operation of the Air Force's space and missile systems, including the global network of communications and intelligence satellites, the missile warning system, and the ICBM launch facilities. He led nearly 40,000 space professionals who provide combat forces and capabilities to North American Aerospace Defense Command and U.S. Strategic Command.
"We are honored that General Lord has accepted our invitation to join our Board of Directors," stated Roger Koenig, Chairman, President and CEO of Carrier Access. "We look forward to benefiting from his leadership, management experience, and global viewpoint, as well as from his insights into the evolving needs of our public sector customers."
"I believe that Carrier Access has the right products at the right time for the mission critical operations in the communications industry -- whether it be wireline, wireless, or secure satellite communications. Their Board of Directors is impressive and I'm excited to be joining such a well qualified team," stated Lance Lord.
General Lord will be the seventh member of the Carrier Access Board of Directors, joining Roger Koenig, Nancy Pierce, John Barnett, Mark Floyd, Thomas Lamming, and David Laube.
About Carrier Access
Carrier Access (www.carrieraccess.com) designs and manufactures carrier class equipment that allows service providers and their business customers the ability to evolve their networks gracefully to IP, allowing them to increase network capacity, lower costs, and accelerate service revenue. Carrier Access is the leading provider of radio access network technology in North America, with tens of thousands of cell site nodes deployed, and is also a leading provider of VoIP solutions that converge voice and data over a single IP network connection. Carrier Access solutions help its customers do more with less.
Verdant Technology Corporation Acquires SynChem Technologies L.L.C.
Verdant Technology Corporation (PINKSHEETS: VTHC), an energy technology company that develops innovative solutions for the global energy industry, is pleased to announce its acquisition of SynChem Technologies L.L.C., a developer of chemical formulations for the Oil and Gas industry.
Previously, Verdant held an exclusive global rights license to SynChem's proprietary formulations and expertise.
SynChem Technologies L.L.C. has developed a family of chemical solvents known as V003 that address problems associated with deposits of paraffinic and asphaltic compounds in the production, storage and refining segments of the petroleum industry.
The V003 technology is a breakthrough application that increases production on restricted or plugged wells and is far faster acting than current competitor solutions. The V003 solvents are non-corrosive showing no negative effects on plant operations and processes and are also completely biodegradable with a high flash point, making them safe for the environment and personnel.
V003 was originally developed as an alternative to traditional solutions designed specifically to address paraffin related problems. After extensive testing in oil and gas wells throughout Tennessee, Kansas, Texas, Oklahoma, and Louisiana, as well as fields in Trinidad, Peru and Venezuela, the solvent was found to work for both paraffinic and asphaltic buildup. The V003 solvent has been shown to create production increases of between 100 and 700%.
"Verdant Technology Corporation is extremely excited to have now completed acquisition of this ground-breaking technology for the oil and gas industry. While common industry practice calls for the shut down or abandonment of known oil and gas producing wells, V003 allows producers to remain operational from known reserves while increasing production levels and reducing operational costs. With V003, Verdant is also able to follow the industry's growing mandate of utilizing products and solutions that are environmentally benign," said David Curd, CEO of Verdant Technology Corporation. "V003's effectiveness allows Verdant to introduce to the oil and gas industry a product that has the ability to significantly increase current production, while providing positive environmental and safety benefits."
About Verdant Technology Corporation
Verdant Technology Corporation (PINKSHEETS: VTHC) acquires and develops cutting-edge, environmentally sound technologies for the energy sector. Through its proven development program, the company identifies mid-stage technologies, shepherds them through the commercialization process and monetizes them under the management of seasoned experts.
For more information about Verdant Technology Corporation's services and technologies please visit our website at www.Verdant-Tech.com or email info@Verdant-Tech.com.
Statements in this release are "forward-looking" statements regarding Verdant Technology Corporation which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. Investors are cautioned that such forward-looking statements involve risk and uncertainties, including without limitation, acceptance of the company's products, significant levels of competition for the company and dependence on the performance of the management of the company.
Christiana Bank Reports Record Earnings in the Second Quarter of 2006 and Declares Special Stock Dividend
Christiana Bank and Trust Company (OTCBB: CBTD) (the "Bank") reported net income of $679 thousand for the quarter ended June 30, 2006, an increase of $305 thousand, or 82%, from $374 thousand in the second quarter of 2005. Net income for the first quarter 2006 was $416 thousand. For the first six months of 2006 net income was $1.1 million, an increase of $460 thousand, or 72%, from $635 thousand for the same period last year. The net income reported for the second quarter of 2006 is the highest level of quarterly net income in the history of the Bank.
At its meeting today, the Board of Directors declared a special stock dividend of 5% to be distributed on August 31, 2006 to stockholders of record on August 16, 2006. Fractional shares will be paid in cash. This is the third consecutive year the Bank has declared a stock dividend.
Net income per diluted share was $0.44 for the second quarter of 2006. This was an increase of 63% from $0.27 reported for the second quarter in 2005. The Bank reported $0.28 in net income per diluted share for the first quarter of 2006. For the first six months of 2006, net income per diluted share was $0.72, an increase of $0.26, or 57%, from the same period in 2005. All references to per share earnings for the first six months of 2006 have been adjusted to reflect the 5% stock dividend declared today and to be distributed August 31, 2006. References to 2005 have been adjusted to reflect today's declaration as well as the 5% stock dividend declared October 20, 2005.
The Bank's return on average assets for the second quarter of 2006 was 1.60% compared to 1.08% for the second quarter 2005 and 1.11% for the first quarter of 2006. Return on average equity for the second quarter of this year amounted to 16.08% compared to 10.11% and 10.33% for the prior-year second quarter and the first quarter of this year respectively. For the six months ended June 2006 the return on average assets and the return on average equity were 1.37% and 13.08% respectively compared to 0.91% and 8.73% for the same periods last year.
Zissimos A. Frangopoulos, President and CEO, stated, " We are very pleased with the results we are reporting today and we are particularly pleased that we are able to declare a special 5% stock dividend for our shareholders. As our business continues to grow, we are constantly mindful of the need to improve performance and efficiency and return on assets and return on equity are two of the measures we look to monitor our progress. The results for the second quarter of 2006 are encouraging and show good progress towards improved profitability."
FINANCIAL CONDITION
The Bank ended the second quarter with total assets of $183.3 million as compared to $157.5 million at March 31, 2006, and $150.3 million on June 30, 2005, reflecting growth of 16% and 22% respectively.
Loans, net of allowance for loan losses, were $127.6 million at June 30, 2006 compared to $121.8 million at March 31, 2006 and $109.7 million at the end of the second quarter of 2005, reflecting growth of 5% and 16% over the respective prior periods.
Total deposits at June 30, 2006 were $164.1 million as compared to $139.2 million at March 31, 2006, and $127.2 million at June 30, 2005, showing growth of 18% and 29% respectively.
EARNINGS
The earnings in the second quarter of 2006 reflect growth in total revenues of 35% primarily due to strength in net interest income and growth in trust fees. Non-interest expense grew by 19% reflecting costs associated with the higher volume of business. Compared to the first quarter, non-interest expense increased by 2% while total revenues increased by 17%.
For the first six months of 2006 total revenues grew by 27%, and non-interest expense grew by 14% compared to the same period last year. Non-interest expense in the first and second quarters of 2005 included prepayment fees of $166 thousand and $80 thousand respectively incurred for the early repayment of fixed rate long term debt. There were no prepayment fees in 2006.
Net Interest Income
Net interest income for the second quarter of 2006 was $1.8 million as compared to $1.4 million in the second quarter of 2005, and $1.6 million for the first quarter of 2006. The increase in the net interest income reflects, in part, a $19.6 million and $7.2 million increase in average loans over the second quarter of 2005 and first quarter of 2006. Net interest income was also affected by the increased net interest margin for the second quarter of 2006 of 4.55% compared to 4.35% for the same period in 2005. The net interest margin for the first quarter of this year was 4.62%.
For the six months net interest income was $3.5 million, compared to $2.7 million in the same period last year. The net interest margin for the first half of 2006 was 4.58% compared to 4.16% for the same period in 2005.
Provision for loan losses
During the second quarter of 2006, the Bank provided $95 thousand to the allowance for possible loan losses. By comparison, the Bank provided $56 thousand in the second quarter of 2005, and $63 thousand in the first quarter of 2006. The provision to the allowance for possible loan losses for the first six months of 2006 totaled $158 thousand compared to $66 thousand provided in the same period last year largely reflecting the growth in commercial and total loans.
Other income
For the first half of 2006, trust revenues were $2.1 million, with the second quarter contributing $1.2 million, compared to $1.6 million in the first half of 2005, of which $803 thousand came in the second quarter.
Assets under administration totaled $1.7 billion at June 30, 2006, $2.0 billion at March 31, 2006 and $1.8 billion at June 30, 2005. Assets under management were $465.9 million at June 30, 2006, as compared to $529.1 million at March 31, 2006 and $595.5 million at June 30, 2005.
There were no gains or losses on the sale of securities in the first or second quarters of 2006 and 2005.
The remaining other income for the second quarter of 2006 was $94 thousand compared to $87 thousand in the second quarter of 2005 and $102 thousand in the first quarter of 2006. For the first six months of 2006, it totaled $196 thousand compared to $184 thousand in the same period of 2005. This income largely reflects fees charged for various banking services and earnings on bank-owned life insurance.
Total revenues for the second quarter of 2006 amounted to $3.0 million compared to $2.2 million for the second quarter of 2005, and $2.6 million for the first quarter of 2006. For the first six months of 2006, total revenues were $5.6 million compared to $4.4 million for the same period in 2005. Relative to the same period last year, total revenues for the quarter increased 35%. Total revenues increased 17% when compared to the first quarter of 2006. For the first six months, total revenues in 2006 increased by 27% versus the same period in 2005.
Non-Interest Expense
Personnel expense was $1.2 million in the second quarter of 2006, compared to $898 thousand in the second quarter of 2005, and $1.1 million in the first quarter of 2006. Personnel expense for the first six months of this year was $2.3 million compared to $1.8 million in the same period last year. To meet the needs of its growing businesses, the Bank's staffing was 44 full-time equivalent employees at June 30, 2006 as compared to 42 at June 30, 2005. Additionally, increased incentives and commissions due to the increased volume during the year are reflected in personnel expense.
Occupancy expense for the second quarter of 2006 was $93 thousand, compared to $97 thousand in the second quarter of 2005 and $94 thousand in the first quarter 2006. Occupancy expense for the first six months of this year was $187 thousand compared to $198 thousand in the same period last year.
Trust operating expense totaled $103 thousand in the second quarter of 2006, compared to $119 thousand in the second quarter of 2005 and $128 thousand in the first quarter of 2006. For the six months, trust operating expense was $231 thousand compared to $234 thousand in the same period last year.
The remaining other expense totaled $540 thousand for the second quarter of 2006, compared to $552 thousand in the second quarter of 2005 and $668 thousand in the first quarter of 2006. For the first six months of 2006 and 2005, other expenses totaled $1.2 million. For the second quarter of 2005 and first half of 2005, other expense includes $80 thousand and $246 thousand respectively in prepayment fees for the early redemption of certain fixed rate borrowings. Since there were no prepayment fees in the comparable periods in 2006, the comparative increase in non-interest expense for the second quarter and the first six months resulted from higher professional fees and marketing expenses, plus higher travel and related expenses and higher data processing charges due to increased new business activities.
Total non-interest expense for the second quarter of 2006 was $2.0 million compared to $1.7 million in the second quarter of 2005, and $1.9 million in the first quarter of 2006. For the first six months of 2006, total non-interest expense was $3.9 million compared to $3.5 million in the first six months of 2005. Relative to the same quarter last year, total non-interest expense increased 19%, while expenses increased by 2% compared to the first quarter of 2006. For the six months, total non-interest expenses increased 14% versus the same period last year.
ASSET QUALITY
There were no non-performing loans at June 30, 2006, at March 31, 2006 or at June 30, 2005. No loans were charged off during any of these periods. The allowance for loan losses was $1.1 million, or 0.85% of total loans, at June 30, 2006, $1.0 million, or 0.81% of total loans, at March 31, 2006, and $885 thousand, or 0.80% of total loans, at June 30, 2005.
CAPITAL
Stockholders' equity totaled $17.3 million at June 30, 2006, compared to $16.6 million at March 31, 2006, and $15.1 million at June 30, 2005. The increase in stockholders' equity during the second quarter of 2006 reflects the earnings during the period, the issuance of shares to cover the Bank's additions to its 401(k) plan contributing $36 thousand and proceeds from the exercise of stock options amounting to $29 thousand, offset by an increase in unrealized losses on securities classified as available-for-sale of $68 thousand net of applicable federal tax. All the regulatory capital ratios of the Bank are in excess of the "well-capitalized" threshold.
THE COMPANY
Christiana Bank and Trust Company, headquartered in Greenville, Delaware, is listed on the OTC Bulletin Board under the symbol "CBTD." The Bank provides commercial banking as well as trust and asset management services from locations in Greenville and Wilmington, Delaware. In addition, Christiana Corporate Services, Inc., a wholly owned subsidiary, provides commercial domicile services in Delaware and Nevada and Christiana Trust Company LLC, a wholly owned non-depository trust company, provides commercial domicile and trust services in Nevada.
Forward-looking Statements
This news release contains forward-looking statements. Such statements are subject to certain factors that may cause the Bank's results to vary from those expected. These factors include changing economic and financial market conditions, competition, ability to execute the Bank's business plan, items already mentioned in this press release and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of this date. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances that arise after the date of this release.
CHRISTIANA BANK AND TRUST COMPANY
Income Statement
(unaudited)
Dollar amounts in For the three months ended Year to Date
thousands Jun-06 Mar-06 Dec-05 Sep-05 Jun-05 Jun-06 Jun-05
Total interest
income $ 2,867 $ 2,519 $ 2,394 $ 2,228 $ 1,936 $ 5,386 $ 3,728
Total interest
expense 1,024 871 710 617 526 1,895 1,009
------- ------- ------- ------- ------- ------- -------
Net interest
income 1,843 1,648 1,684 1,611 1,410 3,491 2,719
Provision for loan
losses 95 63 17 35 56 158 66
------- ------- ------- ------- ------- ------- -------
Net interest
income after
provision 1,748 1,585 1,667 1,576 1,354 3,333 2,653
Trust fees 1,193 916 912 756 803 2,109 1,603
Service fees and
other income 94 102 83 83 87 196 184
Gain on sale of
securities - - - - - - -
------- ------- ------- ------- ------- ------- -------
Total
non-interest
income 1,287 1,018 995 839 890 2,305 1,787
Total revenues 3,035 2,603 2,662 2,415 2,244 5,638 4,440
------- ------- ------- ------- ------- ------- -------
Personnel expenses 1,248 1,054 1,090 990 898 2,302 1,805
Occupancy expense 93 94 93 101 97 187 198
Trust operating
expense 103 128 49 100 119 231 234
Other expense 540 668 620 634 552 1,208 1,222
------- ------- ------- ------- ------- ------- -------
Total
non-interest
expense 1,984 1,944 1,852 1,825 1,666 3,928 3,459
Income before
taxes 1,051 659 810 590 578 1,710 981
Federal and state
income taxes 372 243 298 205 204 615 346
------- ------- ------- ------- ------- ------- -------
Net income $ 679 $ 416 $ 512 $ 385 $ 374 $ 1,095 $ 635
======= ======= ======= ======= ======= ======= =======
Certain reclasses have been made to conform prior periods to
current period presentation.
CHRISTIANA BANK AND TRUST COMPANY
Balance Sheet (unaudited)
Dollar amounts in
thousands Jun-06 Mar-06 Dec-05 Sep-05 Jun-05
Cash and due from banks $ 26,107 $ 6,092 $ 20,776 $ 11,111 $ 12,218
Investment securities 20,952 21,137 21,260 20,728 20,053
Loans (net of unearned
income) 128,667 122,832 116,974 114,826 110,578
Allowance for loan
losses 1,095 1,000 937 920 885
--------- --------- --------- --------- ---------
Net loans 127,572 121,832 116,037 113,906 109,693
Bank premises and
equipment - net 3,107 3,044 3,095 3,123 3,162
Other assets 5,563 5,385 4,918 5,141 5,154
--------- --------- --------- --------- ---------
Total assets $ 183,301 $ 157,490 $ 166,086 $ 154,009 $ 150,280
========= ========= ========= ========= =========
Non-interest bearing
deposits $ 53,140 $ 39,062 $ 40,968 $ 51,441 $ 44,040
Savings and interest
bearing demand 84,689 75,047 80,805 61,856 60,932
Time deposits 26,251 25,120 26,530 19,134 22,184
--------- --------- --------- --------- ---------
Total deposits 164,080 139,229 148,303 132,431 127,156
Borrowings - - - 5,000 7,000
Other liabilities 1,959 1,691 1,799 1,124 1,061
--------- --------- --------- --------- ---------
Total liabilities 166,039 140,920 150,102 138,555 135,217
Total stockholders'
equity 17,262 16,570 15,984 15,454 15,063
--------- --------- --------- --------- ---------
Total liabilities and
stockholders' equity $ 183,301 $ 157,490 $ 166,086 $ 154,009 $ 150,280
========= ========= ========= ========= =========
Certain reclasses have been made to conform prior periods to current period
presentation.
CHRISTIANA BANK AND TRUST COMPANY
SELECTED CONSOLIDATED FINANCIAL DATA (unaudited)
Dollar amounts in thousands except share and per share data
For and at the Three Months Ended
Jun-06 Mar-06 Dec-05 Sep-05 Jun-05
Share Data *
-------------
Book value per share
(period end) $ 12.35 $ 11.89 $ 11.59 $ 11.29 $ 11.04
Earnings per share
(basic) $ 0.49 $ 0.30 $ 0.37 $ 0.28 $ 0.27
Earnings per share
(diluted) $ 0.44 $ 0.28 $ 0.35 $ 0.27 $ 0.27
Basic shares 1,396,785 1,387,708 1,375,954 1,368,184 1,364,130
Diluted shares 1,531,082 1,529,970 1,473,969 1,418,392 1,385,273
Selected Averages
-----------------
Average Gross Loans $ 126,563 $ 119,368 $ 114,343 $ 113,025 $ 106,941
Average total
deposits $ 145,738 $ 130,809 $ 123,990 $ 124,161 $ 111,229
Average earning
assets (1) $ 162,615 $ 144,542 $ 141,307 $ 141,330 $ 129,993
Selected Performance Ratios
---------------------------
Return on average
assets 1.60% 1.11% 1.36% 1.02% 1.08%
Return on average
equity 16.08% 10.33% 12.97% 10.00% 10.11%
Net interest margin 4.55% 4.62% 4.73% 4.52% 4.35%
Non-interest income
as % of revenue 42.41% 39.11% 37.38% 34.75% 39.66%
Non-interest income
as % of average
assets 3.02% 2.67% 2.67% 2.25% 2.57%
Non-interest expense
as % of average
assets 4.65% 5.10% 4.97% 4.90% 4.82%
Asset Quality
-------------
Net chargeoffs $ - $ - $ - $ - $ -
Non-performing loans $ - $ - $ - $ - $ -
Allowance for loan
losses to total
loans (period end) 0.85% 0.81% 0.80% 0.80% 0.80%
Non-performing loans
to total loans
(period end) 0.00% 0.00% 0.00% 0.00% 0.00%
Capital
-------
Stockholders' equity
to total assets
(period end) 9.42% 10.52% 9.62% 10.03% 10.02%
Tier 1 leverage
ratio 10.34% 11.07% 10.91% 10.49% 10.98%
Tier 1 capital to
risk-weighted
assets 11.63% 11.76% 11.73% 11.70% 11.82%
Total capital to
risk-weighted
assets 12.36% 12.46% 12.40% 12.39% 12.51%
Year to Date
Jun-06 Jun-06
Share Data *
-------------
Book value per share
(period end) $ 12.35 $ 11.04
Earnings per share
(basic) $ 0.79 $ 0.46
Earnings per share
(diluted) $ 0.72 $ 0.46
Basic shares 1,392,272 1,362,296
Diluted shares 1,530,547 1,382,509
Selected Averages
-----------------
Average Gross Loans $ 122,985 $ 104,179
Average total
deposits $ 138,315 $ 114,329
Average earning
assets (1) $ 153,629 $ 131,927
Selected Performance Ratios
---------------------------
Return on average
assets 1.37% 0.91%
Return on average
equity 13.28% 8.73%
Net interest margin 4.58% 4.16%
Non-interest income
as % of revenue 40.89% 40.24%
Non-interest income
as % of average
assets 2.86% 2.55%
Non-interest expense
as % of average
assets 4.86% 4.93%
Asset Quality
-------------
Net chargeoffs $ - $ -
Non-performing loans $ - $ -
Allowance for loan
losses to total
loans (period end) 0.80% 0.80%
Non-performing loans
to total loans
(period end) 0.00% 0.00%
Capital
-------
Stockholders' equity
to total assets
(period end) 9.42% 10.02%
Tier 1 leverage
ratio 10.34% 10.98%
Tier 1 capital to
risk-weighted
assets 11.63% 11.82%
Total capital to
risk-weighted
assets 12.36% 12.51%
(1) Earning assets include loan balances before loan loss reserve and AFS
investments before unrealized holding gains or losses.
Certain reclasses have been made to conform prior periods to current
period presentation.
* Adjusted for 5% stock Dividend declared July 20, 2006. June and
September 2005 share data adjusted for 5% stock Dividend declared
October 20, 2005.
Essex Property Trust Announces $130 Million Convertible Preferred Equity Offering
Essex Property Trust, Inc. (NYSE: ESS) a fully integrated Real Estate Investment Trust (REIT) that invests in apartment communities located in highly desirable, supply-constrained markets, announced today its intention to offer 5.2 million shares of its Series G Cumulative Convertible Preferred Stock at $25 per share for estimated gross proceeds of $130 million. The Company also intends to grant the underwriter an option to purchase an additional 780,000 shares of its Series G Cumulative Convertible Preferred Stock.
Essex intends to use the net proceeds of the offering to pay down outstanding borrowings under its lines of credit, which bore interest at a blended rate of 5.76% for the quarter ended June 30, 2006, fund the development pipeline and for general corporate purposes.
Banc of America Securities LLC is acting as sole book running manager for the offering. A registration statement relating to these securities has been filed with the SEC. Copies of the prospectus can be obtained from Banc of America Securities LLC at the following address:
Banc of America Securities LLC
Capital Markets Operations (Prospectus Fulfillment)
100 West 33rd Street
New York, NY 10001
Essex Property Trust, Inc., located in Palo Alto, California and traded on the New York Stock Exchange (ESS), is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast communities. Essex currently has ownership interests in 126 multifamily properties (26,543 units), and has 551 units in various stages of development. Additional information about Essex can be found on the Company's web site at www.essexpropertytrust.com. If you would like to receive future press releases via e-mail please send a request to investors@essexpropertytrust.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements include the expectations, plans and prospects for the Company, including whether or not the Company will offer the Series G Convertible Preferred Stock or consummate the offering and the anticipated use of proceeds of the offering. The statements made by the Company are based upon management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond the Company's control and the risk factors and other cautionary statements described in the Company's filings with the SEC, including the Risk Factors section in Item 1A of the Company's Quarterly Report on Form 10-Q filed on May 10, 2006 (see page 25). The Company does not intend to update these statements and undertakes no duty to any person to affect any such update under any circumstance.
Enhance Your Brain Power With NeuroGenesis, Inc. on MN1.com
The President and Chairman of NeuroGenesis, Inc. (PINKSHEETS: NEUN), Al Bieser will be Live on Market News First (www.MN1.com) for an exclusive interview with the MN1.com online radio team. The Live interview will be held on July 21, 2006 at 9:30 CDT.
NeuroGenesis, Inc. (www.neurogenesis.com) created a patented nutritional supplement, Neu-Becalm'd, that supports healthy brain function, enhances mental focus, decreases stress, improves mood, fatigue, limits anxiety, and improves sleep.
This company has a very valuable product that it has developed over a period of 25 years. The following information can be "advertised" only to financial interests in the company, not the end users of the product -- under FDA and FTC regulation. The company believes it has found a legal way to bring this information to the public. We expect this new approach will be in use no later than October of this year (2006). It could possibly be sooner.
Most government numbers indicate that over 20% of the children registered in American schools, grades 1 through 12, have been diagnosed with ADHD (Attention Deficit, Hyperactivity Disorder/s) to some extent. It is further estimated that the number suffering from it is closer to 30%. Through research begun in 1978, at the University of Texas, it was found that many of the emotional characteristics of the human being are greatly affected by the chemistry of the Hypothalamus and the Hippo Campus. These chemistries are generally self-stabilizing but when they are, or become, unstable symptoms such as ADHD are the result. Thus, many drug companies have developed "drugs" to modify these chemistries. The problem with this solution is the "drugs'" are addictive and have serious side effects. Our Company has found a nutritional supplement approach to the solution to the ADHD (and related stress problems) without significant side effects and very high, 85% to 90%, efficacy.
FDA and FTC rules do not allow us to advertise any product that competes with an approved drug. Such approval typically costs $500,000,000 to $750,000,000. However, as said earlier, we have found a way to "spread the word" without violating the rules. Included in this, is that we may "tell all" to the investment community. The product using public must be sold very carefully and we are now doing this in test cases which will soon be greatly increased.
Log on to MN1.com on July 20th at 3:00pm CDT for further information or if you would like to participate in the live discussion with NeuroGenesis, Inc.
About MN1.com
Market News First is an online market news provider which brings investors current up to speed news on the market. Market News First is the only online live radio web site that brings real market news to investors and features live interaction with companies from the Bulletin Board to NYSE.
Through daily live pressers we bring you up to date on all the established companies and inform the investors of the newest opportunities within the market. Market News First's one on one interviews with the Presidents and CFOs of companies, broadcasted on our website, delivers answers to the questions that investors would ask and provides them insight into the companies' present condition and future plans.