OMAHA, Neb. – August 14, 2002 -- FindEx.com, Inc. (OTCBB: FIND) announced results today for its second quarter ended June 30, 2002.
For the three and six months ended June 30, 2002 the Company reported gross sales of $1,214,944 and $2,216,206, respectively, as compared to $692,618 and $2,096,460, respectively, for the three and six months ended June 30, 2001. Gross revenues for the second quarter increased by approximately $522,000 or 75%.
Net income increased from a loss of $2,648,233 and $2,929,440, respectively, for the three and six months ended June 30, 2001 to income of $80,647 and $169,072, respectively, for the same periods of the current year. This marks the second consecutive profitable quarter and the first back-to-back profitable quarters for the Company in over two years. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased from losses of approximately $3,211,000 and $3,377,000, respectively, for the three and six months ended June 30, 2001 to profit of approximately $162,000 and $354,000, respectively, for the same periods of 2002.
FindEx Chief Executive Officer Steven Malone commented, “We believe the turnaround strategy we implemented late last year is starting to pay off. Our cost cutting initiatives have reduced our overhead significantly and our focus on our core product line has allowed us to introduce a new version of one of our flagship products, Membership Plus. Additionally, we are introducing new products that will be part of our Membership Plus family of products that we believe will truly make Membership Plus a ‘franchise’ product line for the company and help us maintain and grow our leadership position in the Church Management Software (CMS) industry. We have also entered the second phase of our turnaround plan, which is rebuilding our product development team. Again, cost cutting and restoring profitability has allowed us to begin allocating resources towards new product development in order to provide our customers with the best in new technology and leading edge products.
“Towards that end, we are pleased to announce the return of William (Bill) Terrill as our Chief Technology Officer.” Malone continued, “Bill brings to FindEx a wealth of experience not only in the software industry, but with our own product line. He formerly ran the Parsons Church Division of The Learning Company prior to FindEx acquiring it in 1999 and remained with FindEx through early 2000. Bill’s return marks a major step in FindEx re-taking the technology lead in Bible Study Software technology and his pre-existing knowledge of our products means that he can hit the ground running and in fact already has.”
In discussing the operating results of the Company, Kirk Rowland, Chief Financial Officer for FindEx stated, “The second quarter has traditionally been slower than the first. By sticking with our turnaround strategy, we were able to add to the momentum that started in the first quarter and for the first time in Company history, post second quarter sales that exceeded the first. We again experienced positive cash flow from operations and have continued to reduce our trade payables and improve our vendor and provider relationships.”
The Company also announced that it completed its consolidation of its production and shipping facility and its corporate offices into a new facility in June 2002. A spokesperson for the Company stated, “This consolidation provides the company with improved efficiency by having its staff in one facility and provides cost savings with staff reductions that resulted in the shift along with lower facilities overhead.”
FindEx is a developer, publisher, distributor and supplier of “inspirational” and faith-based, off-the-shelf software products to individuals and religious and other spiritual organizations including schools, churches and other faith-based ministries.
In addition to the historical financial information contained herein, this release contains certain forward-looking statements. Forward-looking statements in this press release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations and involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. A number of factors, including those identified below, could adversely affect the Company’s ability to obtain these results: as of June 30, 2002, our current liabilities exceeded our current assets by $4,332,040 and our auditors included a “going concern” footnote in our audited financial statements for our last fiscal year ended December 31, 2001; we are currently in arrears in the payment of approximately $237,000 of payroll taxes; the outcome of our pending litigation with The Zondervan Corporation; the sufficiency of our existing capital resources and our ability to raise additional capital to fund cash requirements for future operations; our ability to meet ongoing royalty payments owed; our ability to sustain sales of major product lines notwithstanding the removal of certain highly acknowledged and popular content; our dependence on third parties to fulfill a significant portion of our orders; uncertainties involved in our ability to introduce new products; our ability to retain key executives and other personnel; product returns exceed reserves; potential infringement of the intellectual property rights of others;, and general economic conditions. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public reports filed with the SEC, including the Company’s Form 10-KSB for the 2001 fiscal year and the Company’s 10-QSBs for the quarters ended March 31, 2002 and June 30, 2002, as filed with the SEC.
