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AnythingIT Reports 2013 Third Quarter Financial Results

FAIR LAWN, N.J., May 1, 2013 (GLOBE NEWSWIRE) -- AnythingIT, Inc. (OTCBB:ANYI), a leading information technology electronics recycler and e-waste handler serving both government and commercial markets today announced its third quarter of fiscal 2013 results including net sales of $1.5 million and gross profit of $0.7 million, increases of 21% and 27%, respectively, over the third quarter of fiscal 2012.

Third Quarter of Fiscal 2013 Financial Highlights:

  • Third quarter of fiscal 2013 net sales improved 70% to approximately $1.5 million as compared to $0.9 million in the prior quarter. Net sales decreased 31% for fiscal year to date 2013 to $3.3 million compared to $4.8 million for fiscal year to date 2012.
  • Gross profit for the third quarter of fiscal 2013 was approximately $0.7 million or 51% of net sales compared to approximately $0.6 million or 49% of net sales for the third quarter of fiscal 2012.
  • EBITDA for the third quarter of fiscal 2013 was approximately zero as compared to approximately $(0.1) million for the comparable period in fiscal 2012 and improved by $0.2 million compared to approximately $(0.2) million in the prior quarter.

David Bernstein, our Chief Executive Officer stated, "The company has just completed a system wide software implementation that now allows for an automated and repeatable solution for us to grow our business while ensuring that we remain at the highest levels of compliance with regulatory standards. Additionally we have just completed our first step of growth which was executed at the end of the quarter with the opening of a new operating facility in Tampa. We look forward to the many opportunities to continue to grow our business through the expansion of relationships with both existing and new customers."

Three month financial results for the period ended March 31, 2013 (In Thousands):

The company is driven by technology refreshes, upgrades, and disposals by both commercial and government partners and clients. Sales in the third quarter of fiscal 2013 increased 21% to $1,464 as compared to the third quarter of fiscal 2012.

The gross profit margin depends on various factors, including product mix, pricing strategies, market conditions, and other factors, any of which could result in changes in gross margins from period to period. Gross profit increased 27% to $745 in the third quarter of fiscal 2013 as compared to the third quarter of fiscal 2012. As a percentage of sales, gross profit was 51% in the third quarter of fiscal 2013 as compared to 49% in the third quarter of fiscal 2012.

The company reported a net loss of ($86), or ($0.00) per share, for the three months ended March 31, 2013, compared to a net loss of $(481), or $(0.01) per share, for the corresponding period last year.

Nine month financial results for the period ended March 31, 2013 (In Thousands):

Sales for the first nine months of fiscal 2013 decreased 31% to $3,333 as compared to sales through the first nine months of fiscal 2012. The decrease in our sales for the first nine months of fiscal 2013 reflects the impact on operations during the first and second quarter from the ERP implementation. These system challenges were resolved at the end of the second quarter of fiscal 2013, which supported our increase in net sales during that period.

Gross profit decreased 21% to $1,560 for the first nine months of fiscal 2013 as compared to the comparable period of fiscal 2012. As a percentage of sales, gross profit was 47% for the first nine months of fiscal 2013 as compared to 41% for the comparable period of fiscal 2012.

The Company reported a net loss of $(942), or $(0.03) per share, for the nine months ended March 31, 2013, compared to a net loss of $(694), or $(0.02) per share, for the corresponding period last year.

Balance Sheet as of March 31, 2013 (In Thousands):

Cash and cash equivalents were $327 at March 31, 2013. At March 31, 2013, working capital was $256 compared to $891 at June 30, 2012. The decrease in working capital was the result of operating challenges during the first and second quarters of fiscal 2013 from our ERP implementation.

About AnythingIT

AnythingIT is a leading asset management vendor and e-waste handler serving OEM's, Equipment Resellers, government and enterprise clients. Services provided by the company include: data scrubbing, shredding, inventory management, repair and remarketing of equipment and recycling of parts and materials. AnythingIT has been operating since 1992 and is a GSA Schedule Holder who has achieved R2 and ISO 14001 certification. You can find more information at the Company's website at www.anythingit.com.

Comparable companies include: Waste Management, Inc., Republic Services, Inc., Avnet, Inc., Arrow Electronics, Inc. and Sims Metal Management Limited.

Cautionary Note Regarding Forward Looking Statements

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Words or expressions such as "anticipate," "plan," "will," "intend," "believe" or "expect'" or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of AnythingIT and are difficult to predict. AnythingIT undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional key risks are described in the filings made by AnythingIT with the U.S. Securities and Exchange Commission, including the Form 10-K for the year ended June 30, 2012.

ANYTHINGIT, INC.
Condensed Balance Sheets
March 31, 2013
(unaudited)
June 30, 2012
ASSETS
Current assets
Cash and cash equivalents $ 327,383 $ 1,009,580
Restricted cash 90,496 30,387
Accounts receivable, net of allowance for doubtful accounts 633,819 674,606
Inventories 64,203 141,087
Deferred financing costs -- 27,986
Prepaid expenses and other current assets 75,049 43,617
Total current assets 1,190,950 1,927,263
Property and equipment, net 259,144 189,361
Security deposits 14,451 10,403
Total assets $ 1,464,545 $ 2,127,027
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
Current liabilities
Accounts payable $ 446,568 $ 706,881
Accrued expenses 156,643 148,952
Customer deposits 164,376 19,020
Current portion of capital lease payable 17,393 18,640
Current portion of deferred rent 1,725 --
Deferred revenues 111,383 103,114
Current portion of notes payable 37,225 40,031
Total current liabilities 935,313 1,036,638
Long term debt:
Note payable bank 26,802 28,644
Capital lease payable 44,546 --
Deferred rent 14,728 --
Convertible notes payable net of debt discount 500,000 451,706
Total long-term debt 586,076 480,350
Total Liabilities 1,521,389 1,516,988
Shareholders' Equity/(Deficit)
Preferred stock - $.01 par value, 5,000,000 shares authorized; none outstanding -- --
Common stock - $.01 par value, 200,000,000 shares authorized; 36,510,238 and 36,190,238 shares issued and outstanding, respectively 365,102 361,902
Additional paid-in capital 8,072,424 7,800,900
Accumulated deficit (8,494,370) (7,552,763)
Total shareholders' equity/(deficit) (56,844) 610,039
Total liabilities and shareholders' equity/(deficit) $ 1,464,545 $ 2,127,027
ANYTHINGIT, INC.
Condensed Statements of Operations
For the Three Months and Nine Months Ended March 31, 2013 and 2012
(Unaudited)
Three months ended March 31, Nine months ended March 31,
2013 2012 2013 2012
Net sales $ 1,464,097 $ 1,207,719 $ 3,333,001 $ 4,818,415
Cost of sales 719,311 621,931 1,773,033 2,847,702
Gross profit 744,786 585,788 1,559,968 1,970,713
Operating Expenses
Selling, general and administration 803,153 1,012,280 2,374,296 2,513,941
Operating income (loss) (58,367) (426,492) (814,328) (543,228)
Other income (expense) :
Interest expense, net of interest income (25,565) (50,503) (125,216) (146,795)
Income (loss) before income taxes (83,932) (476,995) (939,544) (690,023)
Provision for income taxes (2,063) (3,526) (2,063) (3,576)
Net Income (loss) $ (85,995) $ (480,521) $ (941,607) $ (693,599)
Net income (loss) per common share:
Basic: $ (0.00) $ (0.01) $ (0.03) $ (0.02)
Diluted: $ (0.00) $ (0.01) $ (0.03) $ (0.02)
Weighted average common shares outstanding:
Basic: 36,479,571 36,049,048 36,295,347 35,237,323
Diluted: 36,479,571 36,049,048 36,295,347 35,237,323

Reconciliation of Net Loss to EBITDA

In addition to disclosing financial results in accordance with United States generally accepted accounting principles (GAAP), the company's earnings release contains the non-GAAP financial measure "EBITDA".

EBITDA is not a measure of performance defined in accordance with GAAP. However, management believes that EBITDA is useful to investors in evaluating the company's performance because EBITDA is a commonly used financial analysis tool for measuring and comparing companies in the company's industry in areas of operating performance.

Management believes that the disclosure of EBITDA offers an additional view of the company's operations that, when coupled with the GAAP results and the reconciliation to GAAP net loss, provides a more complete understanding of the company's results of operations and the factors and trends affecting the company's business.

EBITDA should not be considered as an alternative to net income as an indicator of the company's performance or as an alternative to net cash provided by operating activities as a measure of liquidity. The primary material limitations associated with the use of EBITDA as compared to GAAP net loss is:

  • it may not be compared to similarly titled measures used by other companies in the company's industry, and
  • it excludes financial information that some may consider important in evaluating the company's performance.

The company compensates for these limitations by providing a reconciliation of EBITDA to GAAP net loss, to enable investors to perform their own analysis of the company's operating results, in Thousands.

Three Months Ended March 31, Nine Months Ended March 31,
2013 2012 2013 2012
Net Loss $ (86) $ (481) $ (942) $ (694)
Interest, net 26 51 125 147
Taxes 2 3 2 4
Depreciation/Amortization 18 15 54 49
Stock Based Compensation 51 264 212 523
Total EBITDA $ 11 $ (148) $ (549) $ 29

CONTACT: AnythingIT, Inc. Gail Babitt, Chief Financial Officer 201-475-7300 extension 379 gailb@anythingit.com or Investor Relations Investor Awareness, Inc. Tony Schor 847.945.2222 Tony@investorawareness.com

Source:AnythingIT, Inc.