TUSTIN, Calif., Aug. 17, 2004 (PRIMEZONE) -- VillageEDOCS (OTCBB:VEDO) announced today its financial results for the quarter ended June 30, 2004.
Net sales for the three months ended June 30, 2004 were $1,330,346, a 177% increase over net sales for prior year quarter of $479,427. The increase in the 2004 quarter resulted from an increase of $198,787 in revenue from the Company's electronic document delivery services (which resulted from growth in the number of clients) as well as the addition of $652,132 in revenue contributed by Tailored Business Systems, Inc., our wholly owned subsidiary ("TBS"), which provides accounting and billing solutions for county and local governments.
Gross profit for the three months ended June 30, 2004 increased 250% to $910,327 as compared to $260,440 for the prior year quarter. Gross profit margin for the 2004 quarter was 68% as compared with 54% for the 2003 quarter. Of the overall increase of $649,887, $167,652 is attributable to improved profits from the Company's electronic document delivery service, and $482,235 is attributable to TBS.
Operating expenses for the three months ended June 30, 2004 increased by 30% to $811,392 from the $625,080 reported in the three months ended June 30, 2003, an increase of $186,312. Product and technology development decreased $47,489 to $83,776 from the $131,265 reported in the prior year quarter. Sales and marketing decreased by $106,324 to $139,745 from the $246,069 reported in the prior year quarter. General and administrative increased by $324,475 to $534,230 from the $209,755 reported in the prior year quarter. Depreciation and amortization expense increased $15,650 to $53,641 from the $37,991 reported in the 2003 quarter.
For the quarter ended June 30, 2004, the operations of the electronic document delivery business resulted in operating income of $63,055, and the operations of TBS resulted in operating income of $112,993. Corporate operations reported an operating loss of $77,113 for an overall operating income of $98,935.
Net loss for the three months ended June 30, 2004 was $62,569, or $0.00 per share, compared to a net loss of $511,101, or $0.02 per share, for the three months ended June 30, 2003 on weighted average shares of 35,911,544 and 30,920,702, respectively.
Net sales for the six months ended June 30, 2004 were $2,245,791, a 145% increase over net sales for prior year quarter of $918,217. The increase in the 2004 period resulted from an increase of $362,166, or 39%, in revenue from the Company's electronic document delivery services (which resulted from growth in the number of clients) as well as the addition of $965,408 in revenue contributed by TBS.
Gross profit for the six months ended June 30, 2004 increased 205% to $1,481,479 as compared to $486,032 for the prior year period. Gross profit margin for the 2004 period was 66% as compared with 53% for the 2003 period. Of the overall increase of $995,447, $278,159 is attributable to improved profits from the Company's electronic document delivery service, and $717,288 is attributable to TBS.
Operating expenses for the six months ended June 30, 2004 increased by 21% to $1,530,027 from the $1,263,710 reported in the six months ended June 30, 2003, an increase of $266,317. Product and technology development decreased $92,710 to $174,849 from the $267,559 reported in the prior year period. Sales and marketing decreased by $140,795 to $307,499 from the $448,294 reported in the prior year period. General and administrative increased by $477,024 to $953,037 from the $476,013 reported in the prior year period. Depreciation and amortization expense increased $22,798 to $94,642 from the $71,844 reported in the 2003 period.
For the six months ended June 30, 2004, the operations of the electronic document delivery business resulted in operating income of $84,705, and the operations of TBS resulted in operating income of $156,696. Corporate operations reported an operating loss of $289,949 for an overall operating loss of $48,548.
Net loss for the six months ended June 30, 2004 was $324,486, or $0.01 per share, compared to a net loss of $1,219,224, or $0.04 per share, for the six months ended June 30, 2003 on weighted average shares of 34,727,364 and 30,711,988, respectively.
"We are excited to report a $98,935 income from operations for the second quarter. TBS continues to make a significant contribution to both our revenues and bottom line, contributing $112,993 in operating income. The electronic document delivery business contributed $63,055 in operating income and has now reported an operating income for the second quarter in a row. We anticipate our current revenue trends to continue for the balance of 2004," said Mr. Mason Conner, President and CEO of VillageEDOCS.
Mr. Conner continued, "I'm pleased with our solid growth and continuing trend of improving gross margins, operating income, net income, and earnings per share. These results reflect our continued management of costs and our effort to invest in building for long-term growth through strong management of existing business and strategy of acquiring complementary and profitable companies in the business information delivery market. Our aggressive acquisition efforts result in a higher expense of corporate operations which dampens our results. We are confident the dampening will be resolved through success in further acquisitions as well as growth in our existing business. We currently see a large number of acquisition opportunities and believe the next 12 months will be an exciting time for the company."
About VillageEDOCS
VillageEDOCS is a leading provider of comprehensive business-to-business electronic document management and delivery services for organizations with mission-critical needs, including major corporations, government agencies and non-profit organizations. Through TBS, our wholly owned subsidiary, we provide accounting and billing solutions for county and local governments. For further information, visit our website at www.villageedocs.com.
Contact Information: Phone: 714.734.1030, Fax: 714.734.1040, email: info@villageEDOCS.com, Corporate Website: www.villageedocs.com Service Website: www.villagefax.net
Cautionary Statement Regarding Forward-Looking Information
All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent the Company's plans, intentions, expectations and belief and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected or expressed herein. These include uncertainties in the market, competition, legal, regulatory initiatives, success of marketing efforts, availability, terms and deployment of capital, and other risks detailed in the Company's SEC reports, of which many are beyond the control of the Company. The Company assumes no obligation to update or alter the information in this news release. Investors are cautioned not to put undue reliance on any forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in Section 21E of the Exchange Act.