IBSG International, Inc. (“IBSGI”) (OTC BB: IBIN), developer and marketer of BizWorld Pro©, a comprehensive, Internet-based Commerce Platform that operates as a digital service centre for any government ministry-department, announced today results for the second quarter and six months ended June 30, 2008.
For the second quarter ended June 30, 2008, IBSGI reported record revenue of $4,424,798, an increase of 45% over the $3,058,544 of revenue for the second quarter of 2007. This marks the 16th consecutive quarter of increases in quarter-over-quarter revenue. Net Income declined to a fully taxed $1,265,048, or $0.13 per diluted share, from a partially taxed $1,882,011, or $0.26 per diluted share, in the prior-year second quarter. The effective tax rate for the second quarter 2008 was a fully-taxed 37% compared to an effective tax rate of 8% for the second quarter 2007. Weighted shares outstanding on a diluted basis for the second quarter of 2008 were 10,065,331 as compared to 7,072,895 for the second quarter of 2007.
For the first six months ended June 30, 2008, revenue increased 51% to a record $9,204,552 as compared with $6,089,260 for the first six months of 2007. Cash Flow from Operating Activities soared to a record $5,238,116 as compared to $434,691 in the first six months of 2007. Net income declined to a fully-taxed $2,396,258, or $0.24 per diluted share, from a partially-taxed $2,946,277 or $0.42 per diluted share, for the first six months of 2007. The effective tax rate for the first six months of 2008 was a fully-taxed 37% compared to an effective tax rate of 25% for the second quarter 2007. Weighted shares outstanding on a diluted basis for the first six months of 2008 were 10,168,585 as compared to 7,234,173 for the first six months of 2007.
As of June 30, 2008, the Company had cash on hand of $7,376,612, a 245% increase as compared to $2,138,496 cash on hand as of 12/31/07. Total Current Assets increased to $32,488,322, a 29% increase as compared to total assets of $25,414,601 as of 12/31/07. Book value at June 30, 2008 was $2.60 per diluted share. In the second quarter and 1st six’ months of 2008, the Company had cash collections from accounts receivable of approximately $3,500,000 and $3,800,000 respectively.
Commenting on the announcement, Dr. Michael Rivers, CEO of IBSG International stated, “For a company to perform at these levels quarter over quarter takes tremendous dedication on the part of the various COOs of our subsidiaries and their staff. We have managed to continue to prove our model around the world. The Company’s performance has enabled us to strengthen our balance sheet beyond the Company’s operational average cash needs with an informal reserve of approximately $6 million to demonstrate to governments we have the financial strength to implement multiple projects simultaneously around the world. This informal international requirement is despite the fact that our implementation model can be replicated anywhere in the world at approximately the equivalent economic levels that have yielded the high returns we have been demonstrating. Most governments want to see approximately 15% of the first year license values. This can be challenging. We are seeing more nations negotiating in tandem with the intent of implementing simultaneously. Our financial strategy has always included this requirement.
Rivers continued, “While opportunities continue to be developed in Europe, Africa and domestically, the Company has been able to demonstrate to governments around the world that we have a successful solution to meet the growing demand for internet strategies that accelerate the commercial growth of the small to mid size business community which worldwide, is recognized as the core of a nations commerce strength. A range of business tools combined with the ability to create a robust internet presence is critical to these businesses in order to increase business parity. This is augmented with sophisticated procurement functions that open the competition for government contracts combined with a relatively new set of functions that bring investors and companies seeking investment together is quickly being recognized as critical core functional requirements for the forward growth of commercial activity within a nation and the world. With nearly 1 billion SMEs worldwide, our Company has only scratched the surface of this vast market. As Mr. Max Bowser said, ‘IBSGI is an ‘Earning Juggernaut.”
Conference Call: Management of IBSG International will host a conference call on August 19, 2008 at 10:00 am. EDT to discuss the company's financial results and achievements. Those who wish to participate in the conference call may telephone 866-682-6100, from the U.S. or, 201-499-0416 for international callers, no PIN number is necessary for the live call but, you must provide the operator with your name, company and phone number. If you cannot participate in the call, but wish to listen to it, you may logon at www.ibsgi.com and click on investor call archive. The audio will be available starting one day after the completion of the live call.
Noble Conference Web Cast: Dr. Rivers will give a 25-minute presentation regarding IBSG International’s market positioning, financial performance, and strategic direction at the Fourth Annual Noble Financial Equity Conference at 11:30 a.m. (Pacific), 2:30 Eastern), on Tuesday, August 19, 2008 at the Loews Lake Las Vegas Resort, Nevada. The presentation will be webcast LIVE featuring high-definition, streaming video and PowerPoint slides. Access is available by logging on to the conference website www.noblemadmax.com or by going to the company’s website at www.ibsgi.com and locating the page “live webcast” which can be found on the left hand side of the screen. It is recommended that interested parties register at least 15 minutes prior to the start of the presentation to ensure timely access.
About IBSG International, Inc.:
IBSG International, Inc. (http://www.ibsgi.com/), through its wholly-owned subsidiaries, is the developer and marketer of BizWorld Pro©, a unique turnkey digital service center software, that provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform. IBSGI licenses BizWorld Pro© primarily to international government agencies and ministries, State governments within the United States, as well as business associations, who typically both utilize the platform internally and make the platform available on a subscription basis to small-to-medium size enterprise businesses within their jurisdiction. For more information about the Company, please visit us on the web at www.ibsgi.com or call 321-939-6321. Investor Relations Contact: Michael Porter, President, Porter, LeVay & Rose, Inc., 212-564-4700.
Safe Harbor Forward-Looking Statements: Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The above information does not guarantee any successful closing of new business. No assurances can be given that any projections related to gross revenues or profit margins will be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.
IBSG INTERNATIONAL, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) | ||||||
| June 30, 2008 | December 31, | |||||
| (Unaudited) | (Audited) | |||||
ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash | $ | 7,376,612 | $ | 2,138,496 | ||
| Accounts receivable, net | 24,886,055 | 21,873,881 | ||||
| Prepaid expenses | 225,655 | 1,402,274 | ||||
| Total Current Assets | 32,488,322 | 25,414,601 | ||||
| FURNITURE, FIXTURES AND SOFTWARE, NET | 514,757 | 703,024 | ||||
| OTHER ASSETS | ||||||
| Accounts receivable, net of current portion | 4,995,000 | 4,995,000 | ||||
| Note receivable | 1,868,215 | 1,802,324 | ||||
| Other assets | 141,385 | 141,665 | ||||
| Deferred consulting services | 1,755,064 | 2,350,375 | ||||
| Deferred tax asset, net | 1,717,127 | 350,000 | ||||
| Total Other Assets | 10,476,791 | 9,091,313 | ||||
| TOTAL ASSETS | $ | 43,479,870 | $ | 35,756,989 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Accounts payable and accrued expenses | $ | 735,567 | $ | 878,770 | ||
| Income tax payable | 3,392,268 | 1,026,350 | ||||
| Deferred revenue | 4,481,343 | 3,711,347 | ||||
| Deferred tax liability, net | 1,342,176 | 914,137 | ||||
| Total Current Liabilities | 9,951,354 | 6,530,604 | ||||
| Deferred revenue, net of current portion | 4,995,000 | 4,995,000 | ||||
| TOTAL LIABILITIES | 14,946,354 | 11,525,604 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||
| STOCKHOLDERS’ EQUITY | ||||||
| Common stock authorized 100,000,000 shares at $0.001 par value; 10,955,669 and 9,685,052 respectively shares issued and outstanding as of June 30, 2008 and December 31, 2007, respectively | 10,956 | 9,686 | ||||
| Additional paid-in capital | 22,064,648 | 20,160,045 | ||||
| Retained earnings | 6,457,912 | 4,061,654 | ||||
| Total Stockholders’ Equity | 28,533,516 | 24,231,385 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 43,479,870 | $ | 35,756,989 | ||
IBSG INTERNATIONAL, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Sales | $ | 4,424,798 | $ | 3,058,544 | $ | 9,204,552 | $ | 6,089,260 | ||||||||
| Cost of Sales | 89,093 | 89,093 | 178,186 | 178,186 | ||||||||||||
| Gross Profit | 4,335,705 | 2,969,451 | 9,026,366 | 5,911,074 | ||||||||||||
| General and Administrative | 2,322,799 | 959,399 | 5,241,293 | 2,064,949 | ||||||||||||
| Income from Operations | 2,012,906 | 2,010,052 | 3,785,073 | 3,846,125 | ||||||||||||
| Interest Income | — | 32,947 | — | 65,893 | ||||||||||||
| Net Income Before Provision of Income Taxes | 2,012,906 | 2,042,999 | 3,785,073 | 3,912,018 | ||||||||||||
| Provision for Income Taxes | (747,858 | ) | (160,988 | ) | (1,388,815 | ) | (965,741 | ) | ||||||||
| Net Income | $ | 1,265,048 | $ | 1,882,011 | $ | 2,396,258 | $ | 2,946,277 | ||||||||
| Net Income Per Share – Basic/Diluted | $ | 0.13 | $ | 0.26 | $ | 0.24 | $ | 0.42 | ||||||||
|
Weighted Average Number of Shares Outstanding
During the Period – Basic/Diluted | 10,065,331 | 7,072,895 | 10,168,585 | 7,234,173 | ||||||||||||
Contacts:
321-939-6321
or
Porter,
LeVay & Rose, Inc.
Michael Porter, President
212-564-4700
