Ascendant Solutions, Inc. Reports First Quarter 2016 Earnings

DALLAS, May 13, 2016 /PRNewswire/ -- Ascendant Solutions, Inc. (Pink Sheets: ASDS) ("Ascendant" or the "Company") today announced its results for the first quarter of fiscal 2016.  The Company reported first quarter Consolidated Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $162,000 compared to consolidated EBITDA of $14,000 in 2015.

For the first quarter ended March 31, 2016, the Company reported a consolidated net loss of $216,000, or $0.01 per share, compared to net loss of $199,000, or $0.01 per share, for the same period of 2015.  The increase in the Company's net loss for the first quarter 2016 compared to the same quarter in 2015 was attributable to increased interest, depreciation and amortization from the two acquired pharmacies in the third quarter of 2015.

Healthcare

The Company's subsidiary, Dougherty's Holding, Inc. ("DHI"), which owns and operates multiple Dougherty's Pharmacies, reported EBITDA of $321,000 for the first quarter ended March 31, 2016, compared to $185,000 in 2015, an increase of 73.5%.

Dougherty's initial stores reported a sales decline of 1 percent for the 2016 quarter when compared to prior year, and gross margins improved by 120 basis points to 30.5 percent, along with SG&A decreases of 4.6 percent.

First quarter revenue from acquisition stores improved $1,884,000 year over year at 21.8 percent margins.  Acquisition store EBITDA for the first quarter of 2016 was $56,000.  

The following chart summaries Dougherty's Healthcare segment comparing the Company's two initial pharmacies and the five pharmacies acquired since 2014, along with Dougherty's corporate overhead. 

Other

The Company's corporate overhead division reported negative EBITDA of ($159,000) for the first quarter of 2016 compared to ($171,000) in 2015.

Management Comments

Jim Leslie, Chairman of Ascendant, commented, "We continue to make progress on the development of our five acquired pharmacies, and are pleased with the $1.9 million first quarter revenue contribution from these stores.  Our 2016 revenue run rate for our healthcare division is now approximately $48 million, reflecting annualized topline growth of 17 percent. Our script count in the first quarter of 2016 increased 43 percent over Q1 2015 to more than 111,000 scripts sold for the quarter.  We are also happy to announce that first quarter 2016 EBITDA in our healthcare division was $321,000, which is a 73.5 percent improvement over Q1 2015 EBITDA of $185,000.  As previously stated, we intend to continue to build our healthcare segment through the opportunistic acquisition of well-run community pharmacies which will augment our sales, EBITDA and net income over time."

Mark Heil, President and CEO, added, "First quarter 2016 revenues were impacted to some degree by the weak flu season as well as the impact of flooding in the Houston area, which resulted in closure of our Humble location for two days.  These impacts were offset to some degree by the 30 percent increase in script count for the quarter.  As we move forward, we maintain our focus on continuing to increase EBITDA for our acquired locations over time through improved operational efficiencies and practical cost management.  We expect to see growth in revenue and EBITDA throughout 2016.  We continue to pursue additional strategic pharmacy acquisitions and could potentially acquire one to two additional pharmacies in 2016.  We remain convinced our growth strategy will produce solid shareholder returns over time." 

EBITDA is calculated as net income (loss) before deducting interest, taxes, depreciation and amortization.  Although EBITDA is not a measure of actual cash flow because it does not consider changes in assets and liabilities that may impact cash balances, the Company's management reviews these non-GAAP financial measures internally to evaluate the Company's performance and manage the operations.  Additionally, the Company believes it is a useful metric to evaluate operating performance and has therefore included such measures in the reporting of operating results.

About Ascendant Solutions, Inc.

Ascendant Solutions, Inc. is a value-oriented investment firm focused on successfully acquiring, managing and growing community-based pharmacies in the Southwest Region. Ascendant currently has approximately $43 million in net operating loss carryforwards which can be used to shelter future income, thus enhancing free cash flow or debt service capabilities. Interested investors can access financials and stock trading information for Ascendant at OTCMarkets.com or at www.ascendantsolutions.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations, projections, estimates and assumptions. These forward-looking statements may be identified by words such as "expects," "believes," "anticipates" and similar expressions.  Forward-looking statements involve risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements.  The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.

SOURCE Ascendant Solutions, Inc.

Related Links

http://www.ascendantsolutions.com