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Exhibit 99.1
 |
For Immediate Release March 31, 2008 |
Smart Move Reports Year End 2007 Results
Revenue Increases by 39%
Revenue Increases by 39%
DENVER—(BUSINESS WIRE)—March 31, 2008— Smart Move, Inc. (AMEX: MVE), a Denver-based asset
logistics manager providing a unique, and increasingly popular alternative solution for
transporting household and commercial goods, today reported financial results for the fourth
quarter and the years ended December 31, 2007 and 2006.
For the year ended December 31, 2007 revenue increased by 39% to $5.8 million from $4.2 million
recognized in 2006. The net loss for 2007 was $12.8 million, compared to a net loss of $9.9 million
for the same period in 2006. The Company incurred significant non-cash expenses in 2007 and 2006.
Total non cash expenses in 2007 were approximately $8 million compared to non cash expenses of
approximately $5.1 million in 2006.
The increase in net loss from 2006 to 2007 is due primarily to:
| • | an increase in interest expense of $1.1 million ($1.0 million of non cash
interest expense), |
| • | a non-cash loss on debt extinguishment of $1.3 million, |
| • | an increase in depreciation of $1.8 million, |
| • | non-cash impairment expense of $1.6 million, and an |
| • | increase in selling, general and administrative expenses of approximately
$141,000 (exclusive of depreciation, amortization and non-cash compensation). |
The above were reduced by an increase in income tax benefit of $2.1 million and the increase of
$1.6 million in revenues.
Basic and diluted net loss per share for the year ended December 31, 2007 was $(1.21), compared to
$(1.77) reported in the same period in 2006. Net loss per share is based upon weighted average
shares outstanding of 10,623,167 for the year ended December 31, 2007, compared to 5,584,420 for
the year ended December 31, 2006. The increase in weighted average shares is primarily due to the
shares issued in conjunction with the December 2006 IPO, the conversion of debt and interest
expense to common stock in 2006 and 2007.
Revenue for the fourth quarter increased by approximately $250,000 to $1,208,000, an increase of
26%.
“2007 has been a transition year for Smart Move. The company did not achieve the top line revenue
we had anticipated for the year, but we believe that all of our efforts in establishing new revenue
opportunities with van lines, our affiliate program and the acquisition of StarMove Alliance, set
the stage for 2008. We have been very aggressive in partnering with van lines and corporate
relocation companies, and are excited about the growth we project from these alliances. In
addition we continue to see month over month and year over year growth in our internal move
bookings. The company needs to secure additional capital in the near future to support operations
while it continues to increase sales volume. We expect general sales activity to increase from all
sources as we enter the 2008 moving season” said Chris Sapyta, President and Chief Executive
Officer. He added, “We continue to explore alliance relationships as well as commercial
opportunities that we believe will add value to Smart Move.”
Selected highlights for the year ended December 31, 2007 versus the prior year follows:
| • | We have added over $10.9 million of property and equipment, including over 4,100 new
SmartVault™ containers. |
| • | We believe our current fleet of approximately 4,500 SmartVaults™ has the capacity to
enable us to generate over $18 million in annual revenues. |
| • | Smart Move lowered its average freight expense as compared to the prior year period by
25%. Freight expense is the single biggest component of cost of goods sold; in 2006 freight expense was 83% of
the top line revenues, for 2007, the average was 58%. |
The following information was filed by Smart Move, Inc. (SMVE) on Monday, March 31, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
View differences made from one quarter to another to evaluate Smart Move, Inc.'s financial trajectory
Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were removed , added and changed by Smart Move, Inc..
SMVE Quarterly Reports
- 10-Q Quarterly Report November 2008
- 10-Q Quarterly Report August 2008
-
10-Q Quarterly Report May 2008
