BRISTOL, Pa., Aug. 12, 2005 (PRIMEZONE) -- Strategic Distribution, Inc. (Nasdaq:STRD), a leading provider of maintenance, repair and operating (MRO) supply chain management services, today reported financial results for the second quarter ended June 30, 2005.
The Company reported revenues of $33.7 million for the second quarter of 2005 compared to $27.4 million for the second quarter of 2004. The increase in revenue for the second quarter of 2005 over the second quarter of 2004 was substantially attributable to $8.4 million of revenue growth within the existing customer base, partially offset by a $2.2 million decline in revenues relating to contracts terminated in prior periods.
The Company reported a net loss of $1.1 million or 36 cents per diluted share in the second quarter of 2005 compared to a net loss of $0.7 million or 23 cents per diluted share in the same quarter of 2004. The results for the second quarter of 2005 include an increase to the Company's allowance for doubtful accounts of $0.7 million primarily driven by one of the Company's customers that filed for protection under Chapter 11 of the U.S. Bankruptcy Code. The results for the second quarter of 2004 included a $0.4 million benefit related to the favorable settlement of a disputed liability with a vendor.
For the first half of 2005, the Company reported revenues of $62.7 million compared to $59.4 million reported during the first half of 2004. The increase in revenues for the first six months of 2005 compared to the first six months of 2004 is primarily attributed to revenue growth within the Company's existing customer base. Revenues for the first six months of 2004 included the recognition of $5.7 million of revenue in the first quarter of 2004, related to supplies shipped during
the third quarter of 2003. This $5.7 million in revenue was not recognized until the first quarter of 2004 when all of the criteria of SEC Staff Accounting Bulletin No. 104, Revenue Recognition, were met.
The Company reported a net loss of $2.7 million or 90 cents per diluted share in the first half of 2005 compared to a net loss of $1.2 million or 39 cents per diluted share in the same period of 2004. The results for the first half of 2005 include an increase to the Company's allowance for doubtful accounts of $0.7 million. The results for the first six months of 2004 included a $0.4 million benefit related to the favorable settlement of a disputed liability with a vendor.
At June 30, 2005, the Company reported total cash and cash equivalents of $25.0 million compared to $28.9 million at March 31, 2005. The decrease in cash is primarily attributable to the net operating loss reported for the quarter ended June 30, 2005 and working capital requirements to support the Company's revenue growth during the quarter.
SDI helps customers optimize their business performance and meet strategic goals by providing technology and supply chain solutions to increase productivity and reduce total costs. Commercial and industrial customers, as well as educational institutions, benefit from reduced costs and increased efficiencies in the procurement and management of maintenance, repair and operating (MRO) materials. Additional information about SDI can be found on the Company's web site at www.sdi.com.
The foregoing paragraphs contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company's actual results could differ materially from those set forth in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's 2004 annual report as filed on Form 10-K with the Securities and Exchange Commission.
STRATEGIC DISTRIBUTION, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
(in thousands, except share data)
Three months ended Six months ended
June 30, June 30,
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2005 2004 2005 2004
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Revenues $ 33,690 $ 27,384 $ 62,713 $ 59,410
Costs and expenses:
Cost of materials 27,829 21,288 51,613 46,855
Operating wages and
benefits 2,236 2,227 4,484 4,519
Other operating expenses 868 880 1,670 1,698
Selling, general and
administrative expenses 3,932 3,698 7,761 7,576
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Total costs and expenses 34,865 28,093 65,528 60,648
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Operating loss (1,175) (709) (2,815) (1,238)
Interest and other income 188 44 311 129
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Loss before income
taxes (987) (665) (2,504) (1,109)
Income tax expense (68) (12) (152) (43)
--------- --------- --------- ---------
Net loss $ (1,055) $ (677) $ (2,656) $ (1,152)
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Net loss per common share
- basic and diluted $ (0.36) $ (0.23) $ (0.90) $ (0.39)
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Weighted average number of
shares of common stock
outstanding - basic and
diluted 2,958,174 2,953,539 2,958,804 2,953,420
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