HOUSTON, May 18, 2006 (PRIMEZONE) -- Labwire, Inc. (Pink Sheets:LBWR), a leading provider of employee screening solutions, today announced results for the first quarter ended March 31, 2006. During the quarter ended March 31, 2006, revenue increased 134% to $1,057,040, compared to $452,422 for the first quarter of 2005. The positive first quarter 2006 results can be attributed to a combination of efforts put forth in 2005, including (i) increased sales of the Company's employee screening services to new and existing customers and (ii) sales of the Company's canine surveillance and security services.
"We continue to see strong growth from our employee screening solutions and from our canine surveillance and security services," commented Mr. Dexter Morris, Chief Executive Officer of Labwire, Inc. "Our focus on increasing shareholder value by emphasizing improvement in our core business and through the pursuit of other complementary revenue-generating opportunities will be instrumental in meeting our goals and driving our growth."
Operating expenses increased from $219,243 in the first quarter of 2005 to $337,779 for the period ended March 31, 2006, primarily as a result of personnel requirements within the Company's security and surveillance business and as a result of additional legal, accounting, and other professional costs relating to filing and reporting as a public entity.
For the three months ended March 31, 2006, earnings before interest, taxes, depreciation, and amortization, or EBITDA, totaled $37,668 compared to negative EBITDA of $18,825 for the first quarter of 2005, an increase of approximately $56,493.
As of March 31, 2006, total assets were $1,707,702 and total liabilities were $1,095,129 resulting in stockholders' equity of $612,573. This is compared to total assets of $879,265, total liabilities of $746,761, and stockholders' equity of $132,504 as of March 31, 2005. This represents an increase in stockholders' equity of $480,069 or 362%.
According to the notes to the March 31, 2006 financial statements, the Company's restated net income was $372,103, an increase of $101,238 over its previously reported net income. This increase can be attributed to depreciation timing differences between tax and GAAP financial statements resulting in a decrease in income tax expense of $101,238.
To read the full report, refer to the Interim Financial Report that has been filed at www.pinksheets.com.
About Labwire, Inc.
Labwire Inc. (http://www.labwire.com), headquartered in Houston, TX, provides secure and compliant employee drug screening and background checking services to Fortune 500 corporations via the Labwire(tm) Platform. Labwire(tm) is a proprietary, web-based application that streamlines the complex regulatory and record management activities associated with employee screening, delivering accurate timely results while eliminating service calls and paper trails. This comprehensive solution to managing employee screening services is the most efficient and cost-effective platform in the industry.
Safe Harbor Provisions
Certain oral statements made by management from time to time and certain statements contained in press releases and periodic reports issued by Labwire, Inc. (the "Company"), as well as those contained herein, that are not historical facts are "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934 and, because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements, including those in Management's Discussion and Analysis, are statements regarding the intent, belief or current expectations, estimates or projections of the Company, its Directors or its Officers about the Company and the industry in which it operates, and are based on assumptions made by management. Forward looking statements include without limitation statements regarding: (a) the Company's strategies regarding growth and business expansion, including future acquisitions; (b) the Company's financing plans; (c) trends affecting the Company's financial condition or results of operations; (d) the Company's ability to continue to control costs and to meet its liquidity and other financing needs; (e) the declaration and payment of dividends; and (f) the Company's ability to respond to changes in customer demand and regulations. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur. When issued in this report, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions are generally intended to identify forward-looking statements.
Important factors that could cause the actual results to differ materially from those in the forward-looking statements include, among other items, (i) changes in the regulatory and general economic environment; (ii) conditions in the capital markets, including the interest rate environment and the availability of capital; (iii) changes in the competitive marketplace that could affect the Company's revenue and/or cost and expenses, such as increased competition, lack of qualified marketing, management or other personnel, and increased labor and inventory costs; (iv) changes in technology or customer requirements, which could render the Company's technologies noncompetitive or obsolete; (v) new product introductions, product sales mix and the geographic mix of sales.
The Company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this advertisement are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, governmental approval processes, the impact of competitive products or pricing, technological changes, and the effect of economic conditions.