EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Cordia Corporation – CORG - Announces Financial Results for Third Quarter of 2005
Third Quarter Highlights
-
Net income of $458,502 or $.10 per basic share or $.07 per share fully diluted in Q3 of 2005 versus income of $1,679 in Q3 0f 2004
-
Revenues increase 244% to $11.7 million for Q3 of 2005 versus $3.4 million for Q3 of 2004
Nine Months Highlights
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Net Income of $1.32 million for the first nine months of 2005 versus a loss of $(149,040) for the same period 2004
-
Revenues Increase 335% to $31.02 million for the first nine months of 2005 versus $7.12 million for 2004
Orlando, FL – November 15, 2005 – Cordia Corporation (OTCBB: CORG), a communications services provider, announced the results of operations for the third quarter and nine months ended September 30, 2005.
Third quarter results:
The Company reported revenues of $11.71 million for the quarter ending September 30, 2005, an increase of approximately $8.3 million or 244%, from the $3.41 million in reported revenues for the quarter ended September 30, 2004.
Cordia reported third quarter EBITDA of $576,613 for the quarter ended September 30, 2005, an improvement from the $33,416 of EBITDA compared to the same period during 2004. Net income increased to $458,502, or $0.10 per basic share and $0.07 per fully diluted share, compared to a net income of $1,679 or $0.00 per basic and fully diluted share last year.
Nine months results:
The Company reported revenues of $31.02 million for the nine months ended September 30, 2005, an increase of approximately $23.9 million or 335%, from the $7.12 million in reported revenues for the nine months ended September 30, 2004.
Cordia reported EBITDA of $1.53 million for the nine months ended September 30, 2005, an improvement from $(92,270) of EBITDA in the same period during 2004. Net income increased to $1.32 million, or $0.29 per basic share and $0.21 per fully diluted share, compared to a net loss of $(149,040) or $(0.03) per basic and fully diluted share for the same period last year.
Our balance sheet shows $11.13 million in total assets as of September 30, 2005, as compared to $5.5 million at December 31, 2004 and stockholder equity increased to approximately $1.95 million from a deficit of $(851,144) at December 31, 2004.
Joel Dupré, Chief Executive Officer of Cordia Corporation, stated, "We accomplished several milestones during the third quarter of 2005, while maintaining our rapid growth and expansion. We continue to rollout our VoIP network by building strategic relationships nationally and internationally, with a particular focus on the Asia-Pacific region. In September, Cordia obtained a license from the Telecommunication Authority in Hong Kong. We anticipate the commencement of our international VoIP service offering during 4th quarter 2005.”
Kevin Griffo, President of Cordia, commented, “We continue to focus on the enhancement of our financial performance through the implementation of our customer service reorganization, targeted marketing and new credit scoring initiatives. These initiatives should create greater efficiency and earnings as we pursue new territories for expansion over the next year.”
Conference Call Reminder
A conference call to discuss our 3Q results will take place at 4:15 p.m. Eastern, on Tuesday, November 15, 2005. Anyone interested in participating should call 800-322-0079 if calling within the United States or 973-935-2100 if calling internationally approximately 5 to 10 minutes prior to 4:15 p.m. There will be a playback available until November 22, 2005. To listen to the playback, please call 877-519-4471 if calling within the United States or 973-341-3080 if calling internationally. Please use pass code 6706428 for the replay.
This call is being webcast by ViaVid Broadcasting and may be accessed at Cordia's website at http://www.cordiacorp.com. The webcast may also be accessed at ViaVid's website at www.viavid.net. The webcast can be accessed through February 28, 2006 on either site. To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit: www.microsoft.com/windows/windowsmedia/en/download/default.asp .
About Cordia Corporation
Cordia Corporation develops and provides industry specific applications, solutions and services. Cordia's primary operations are currently concentrated in the telecommunications industry through its operating subsidiary, Cordia Communications Corp. In addition to retail and wholesale telecommunications services, Cordia also provides a suite of proprietary Web-based software and outsourced services it refers to as "UNE-P in a Box" that permit competitive local and long distance telecommunications providers to rapidly introduce local and long distance services.
This release contains forward-looking statements that involve risks and uncertainties. Cordia's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, availability of management; availability, terms, and deployment of capital; Cordia's ability to successfully market its services to current and new customers, generate customer demand for its product and services in the geographical areas in which Cordia can operate, access new markets, all in a timely manner, at reasonable cost and on satisfactory terms and conditions, as well as regulatory, legislative and judicial developments that could cause actual results to vary in such forward-looking statements.
Contact:
Cordia Corp
Kevin Griffo, 866-777-7777
kgriffo@cordiacorp.com
Or
Investors:
Alliance Advisors, LLC
Alan Sheinwald, 914-244-0062
asheinwald@allianceadvisors.net
Tables Follow
CORDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| | | September 30, | | December 31, |
| | | 2005 | | 2004 |
ASSETS | | (unaudited) | | |
| | | | | |
Current Assets | | | | |
Cash and cash equivalents | | $ 626,597 | | $ 300,119 |
Cash - restricted | | 1,390,784 | | - |
Accounts receivable, less allowance for doubtful accounts of | | | | |
$4,133,423 (2005) and $627,158 (2004) | | 6,614,287 | | 4,423,423 |
Prepaid expenses | | 785,620 | | 324,420 |
Accrued usage receivable | | 442,725 | | 263,014 |
| | | | | |
TOTAL CURRENT ASSETS | | 9,860,013 | | 5,310,976 |
| | | | | |
Property and equipment, at cost | | | | |
Office and computer equipment | | 608,735 | | 236,597 |
Computer software | | 457,603 | | - |
Leasehold Improvements | | 252,426 | | - |
| | | | | |
| | | 1,318,764 | | 236,597 |
Less: Accumulated depreciation/amortization | | (239,791) | | (59,182) |
| | | | | |
NET PROPERTY AND EQUIPMENT | | 1,078,973 | | 177,415 |
| | | | | |
Other Assets | | | | |
Security deposits and other assets | | 194,483 | | 59,064 |
| | | | | |
| | | | | |
TOTAL ASSETS | | $ 11,133,469 | | $ 5,547,455 |
| | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | | | | |
| | | | | |
Current Liabilities | | | | |
Accounts payable | | $ 3,643,363 | | $ 3,316,121 |
Accrued expenses | | 4,061,675 | | 2,154,910 |
Unearned income | | 1,374,283 | | 867,728 |
Loans payable - other | | 57,000 | | 57,000 |
| | | | | |
TOTAL CURRENT LIABILITIES | | 9,136,321 | | 6,395,759 |
| | | | | |
Noncurrent Liabilities | | | | |
Deferred rent | | 44,985 | | 2,840 |
| | | | | |
Commitments and Contingencies | | | | |
| | | | | |
Stockholders' Equity (Deficit) | | | | |
Preferred stock, $0.001 par value; 5,000,000 shares authorized, | | | | |
1,275,000 shares issued and outstanding | | 1,275 | | - |
Common stock, $0.001 par value; 100,000,000 shares authorized, | | | | |
4,832,210 (2005) and 4,541,210 (2004) shares issued and outstanding | | 4,832 | | 4,541 |
Additional paid-in capital | | 5,304,938 | | 3,660,087 |
Accumulated deficit | | (3,262,884) | | (4,459,774) |
| | | | | |
| | | 2,048,161 | | (795,146) |
Less: Treasury stock, at cost, 117,694 (2005) and 77,694 (2004) common shares | | (95,998) | | (55,998) |
| | | | | |
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | | 1,952,163 | | (851,144) |
| | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | | $ 11,133,469 | | $ 5,547,455 |
CORDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| | | | | | | | | |
| | | Nine Months Ended | | Three Months Ended |
| | | September 30, | | September 30, |
| | | 2005 | | 2004 | | 2005 | | 2004 |
Revenues | | | | | | | | |
Telecommunications Revenue | | $30,453,742 | | $6,674,533 | | $11,516,174 | | $3,276,862
|
Other | | 570,521 | | 450,661 | | 195,808 | | 134,945 |
| | | | | | | | | |
| | | 31,024,263 | | 7,125,194 | | 11,711,982 | | 3,411,807 |
| | | | | | | | | |
| | | | | | | | | |
Operating Expenses | | | | | | | | |
Resale and Wholesale Line Charges | | 15,965,714 | | 3,217,955 | | 5,962,601 | | 1,619,574 |
Sales and Marketing | | 3,520,247 | | 1,333,616 | | 1,392,772 | | 685,285 |
Provision for Doubtful Accounts | | 3,766,457 | | 262,826 | | 1,457,057 | | 193,117 |
General and Administrative | | 6,239,013 | | 2,403,067 | | 2,322,939 | | 880,415 |
Depreciation | | 183,734 | | 31,119 | | 94,954 | | 13,087 |
| | | | | | | | | |
| | | 29,675,165 | | 7,248,583 | | 11,230,323 | | 3,391,478 |
| | | | | | | | | |
Operating Income (Loss) | | 1,349,098 | | (123,389) | | 481,659 | | 20,329 |
| | | | | | | | | |
Other Income (Expenses) | | | | | | | | |
Other (expense) | | (47,792) | | (17,808) | | (33,326) | | (16,554) |
Net Interest Income (expense) | | 17,999 | | (7,843) | | 10,169 | | (2,096) |
| | | | | | | | | |
| | | (29,793) | | (25,651) | | (23,157) | | (18,650) |
| | | | | | | | | |
Net Income (Loss) | | $ 1,319,305 | | $(149,040) | | $ 458,502 | | $ 1,679 |
| | | | | | | | | |
Basic Income (Loss) per share | | $ 0.29 | | $ (0.03) | | $ 0.10 | | $ - |
| | | | | | | | | |
Weighted Average Common Shares Outstanding | | 4,530,397 | | 4,806,579 | | 4,580,580 | | 4,504,808 |
| | | | | | | | | |
Diluted Income (Loss) per share | | $ 0.21 | | $ (0.03) | | $ 0.07 | | $ - |
| | | | | | | | | |
Weighted Average Common and Common Equivalent Shares Outstanding | 6,183,236 | | 4,806,579 | | 6,585,351 | | 4,504,808 |
| | | | | | | | | |
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