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Financial

For the fiscal year ended June 30, total revenue increased 15% to $200.5 million from $174.3 million last year. Excluding non-recurring items, earnings before interest expense, income taxes, depreciation and amortization- a widely used measure of a company’s ability to generate cash flow from operations- rose 127% to $15.3 million from $5.2 million a year ago.

 

Excluding a deferred tax benefit and other non-recurring expenses and extraordinary items, net income for the year was $10.6 million, an increase over the $1 million recorded last year. Fully diluted earnings per share on this basis increased to $.58 per fully diluted share, vs. $1.8 million, or a loss of $.08 per share, last year.

 

Non-recurring items in this fiscal year totaled $5.7 million.

These include: a gain on the payoff of debt, net of taxes, of $4.6 million; other non-recurring expenses of $1.8 million relating primarily to the relocation of our corporate offices; and a deferred tax benefit of $3.1 million, reflecting the benefit from our net operating loss carry-forward recognized in the fourth quarter of this fiscal year.

 

The Company has additional net operating losses as of June 30, which are available to offset taxable income in future years.

 

We also significantly strengthened

our balance sheet this year, in large part due to the completion of two common stock transactions that raised aggregate gross proceeds of $18.75 million of equity capital from two strategic investors. As a result, all the Company’s long-term debt was retired, all convertible preferred stock was either retired or converted into common stock, and all historical accrued but undeclared dividends on convertible preferred stock were forgiven.

 

Additionally, the Company secured a $13 million revolving credit facility that is available to fund new initiatives expected to strengthen and expand our service lines.