Yahoo Finance

Full year 2024 Highlights:

• Revenue - Total revenue was $23,057,000, a 6% decrease from $24,522,000 in 2023. The decrease is primarily related to a decrease in volume from our previously branded Newswire news distribution brand.

• Gross Margin - Gross margin was $17,440,000, or 76% of revenue, compared to $18,915,000, or 77% of revenue, during 2023.

• Operating Loss - Operating loss was $(16,319,000) compared to $(2,739,000) in 2023. The increase in operating loss is primarily due to the aforementioned impairment loss of $14,150,000 related to the tradename associated with Newswire. Absent the impairment, total operating expenses decreased $2,045,000 due to lower general and administrative expenses, lower headcount and stock compensation expense as well as lower sales and marketing expenses.

• Net Loss from continuing operations - On a GAAP basis, net loss from continuing operations was $(13,281,000), or $(3.47) per diluted share during 2024, compared to net loss from continuing operations of $(3,441,000), or $(0.90) per diluted share during 2023. The increase in net loss from continuing operations is primarily related to the impairment loss on the Newswire tradenames noted earlier.

• Income from discontinued operations, net of taxes - On a GAAP basis, we recorded income from discontinued operations, net of taxes, of $2,488,000, or $0.65 per diluted share, compared to $4,207,000, or $1.10 per diluted share, in 2023. The decrease is due primarily to two significant print and proxy fulfilment jobs that occurred in the prior year but did not reoccur in 2024.

• Operating Cash Flows - Net operating cash flows provided by continuing operations was $400,000 in 2024 compared to net operating cash flows used in operating activities of $(741,000) in 2023.

• Non-GAAP Measures from continuing operations - EBITDA for 2024 was $840,000, or 4% of revenue, compared to $(342,000), or (1)% of revenue, during 2023. Adjusted EBITDA for 2024 was $1,895,000, or 8% of revenue, compared to $2,005,000, also 8% of revenue, for 2023. Non-GAAP net income for 2024 was $791,000, or $0.21 per diluted share, compared to non-GAAP net income of $538,000, or $0.14 per diluted share, during 2023. Adjusted free-cash flow was $26,000 for 2024 compared to $(476,000) for 2023.

Key Performance Indicators:

• As of December 31, 2024, we had 12,349 customers who had an active contract during the past twelve months, compared to 11,924 as of December 31, 2023.

• Subscription customers increased by 71 to 1,124.

• ARR for subscriptions for quarter was $10,735, up from $9,489 at the end of 2023.

Non-GAAP Information

Certain Non-GAAP financial measures are included in this press release. In the calculation of these measures, the Company excludes certain items, such as amortization of intangible assets, stock-based compensation, tax impact of adjustments, other unusual items and discrete items impacting income tax expense. The Company believes that excluding such items provides investors and management with a representation of the Company's core operating performance and with information useful in assessing its prospects for the future and underlying trends in the Company's operating expenditures and continuing operations. Management uses such Non-GAAP measures to evaluate financial results and manage operations. The release and the attachments to this release provide a reconciliation of each of the Non-GAAP measures referred to in this release to the most directly comparable GAAP measure. The Non-GAAP financial measures are not meant to be considered a substitute for the corresponding GAAP financial statements and investors should evaluate them carefully. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies.

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except per share amounts)
CALCULATION OF EBITDA & ADJUSTED EBITDA

(1) This adjustment gives effect to one-time corporate projects, including acquisition and/or integration related expenses, incurred during the periods.
(2) For the three months ended December, 31, 2024 and 2023, this adjustment primarily gives effect to a gain or loss recorded on the change in fair value of our interest rate swap. For the year ended December 31, 2024, this adjustment gives effect to a gain recorded on the change in fair value of our interest rate swap of $81,000, as well as, one-time accounting fees, termination benefits and other non-recurring or unusual expenses of $219,000. For the year ended December 31, 2023, this adjustment gives effect to $370,000 payment related to early extinguishment of our Seller Note and one-time non-recurring expenses of $45,000 and a loss on the change in fair value of our interest rate swap of $21,000.
(3) The adjustments represent stock-based compensation expense related to awards of stock options, restricted stock units, or common stock in exchange for services. Although we expect to continue to award stock in exchange for services, the amount of stock-based compensation is excluded as it is subject to change as a result of one-time or non-recurring projects.

CALCULATION OF NON-GAAP NET INCOME

(1) This adjustment represents the impairment loss on intangible assets that was recognized for the year ended December 31, 2024.
(2) The adjustments represent the amortization of intangible assets related to acquired assets and companies.
(3) The adjustments represent stock-based compensation expense related to awards of stock options, restricted stock units, or common stock in exchange for services. Although we expect to continue to award stock in exchange for services, the amount of stock-based compensation is excluded as it is subject to change as a result of one-time or non-recurring projects.
(4) For the three months and full year ended December 31, 2024, this adjustment gives effect to a gain recorded on the change in fair value of our interest rate swap of $205,000 and $81,000, respectively, as well as, one-time accounting fees, termination benefits and other non-recurring or unusual expenses, including acquisition and/or integration expenses of $47,000 and $408,000, respectively. For the three months ended December 31, 2023, this adjustment give effect for the loss on the change in fair value of our interest rate swap of $400,000 and one-time corporate projects, including acquisition and/or integration related expenses of $116,000 incurred during the period. For the year ended December 31, 2023, this adjustment gives effect to $370,000 payment related to early extinguishment of our Seller Note and one-time non-recurring expenses, including acquisition and/or integration expenses of $591,000 and a loss on the change in fair value of our interest rate swap of $21,000.
(5) This adjustment eliminates discrete items impacting income tax expense. For the year ended December 31, 2024 and 2023, discrete items relate to additional income tax expense recorded during the period related to the exercise of stock compensation.
(6) This adjustment gives effect to the tax impact of all non-GAAP adjustments at the current Federal tax rate of 21%.

CALCULATION OF FREE CASH FLOW AND ADJUSTED FREE CASH FLOW

(1) This adjustment gives effect to one-time corporate projects, including acquisition and/or integration related expenses, paid during the periods.
(2) For the year ended December 31, 2024, this adjustment gives effect to payments for one-time accounting fees, termination benefits and other non-recurring or unusual expenses. During the year ended December 31, 2023, this adjustment is primarily related to a one-time payment of $370,000 related to the early termination of the note payable associated with the Newswire acquisition.

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.

Conference Call Replay Information

The replay will be available beginning approximately 1 hour after the completion of the live event.

About ACCESS Newswire Inc.

We are ACCESS Newswire, a globally trusted Public Relations (PR) and Investor Relations (IR) solutions provider. With a focus on innovation, customer service, and value-driven offerings, ACCESS Newswire empowers brands to connect with their audiences where it matters most. From startups and scale-ups to multi-billion-dollar global brands, we ensure your most important moments make an impact and resonate with your audiences. To learn more visit www.accessnewsire.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "goal," "intend," "plan," "project," "prospects," "outlook," "target" and similar words or expressions, or future or conditional verbs, such as "will," "should," "would," "may," and "could," are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance, or achievements to be materially different from any anticipated results, performance, or achievements for many reasons. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company's forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2024, including but not limited to the discussion under "Risk Factors" therein, which the Company filed with the SEC and which may be viewed at http://www.sec.gov/.

For Further Information:

ACCESS Newswire Inc.
Brian R. Balbirnie
(919)-481-4000
brianb@accessnewswire.com

Hayden IR
Brett Maas
(646)-536-7331
brett@haydenir.com

Hayden IR
James Carbonara
(646)-755-7412
james@haydenir.com

ACCESS NEWSWIRE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)

ACCESS NEWSWIRE INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)

ACCESS NEWSWIRE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except share and per share amounts)

SOURCE: ACCESS Newswire Inc.

View the original press release on ACCESS Newswire