EXHIBIT 99
Contacts:
Chief Executive Officer SVP Finance
Zach Lonstein William McHale
Infocrossing, Inc. Infocrossing, Inc.
201-840-4710 201-840-4732
zlonstein@infocrossing.com wmchale@infocrossing.com
Media Relations Investor Relations
Michael Wilczak Matthew Hayden
Infocrossing, Inc. Hayden Communications, Inc.
201-840-4941 (760) 487-1137
mwilczak@infocrossing.com
INFOCROSSING ISSUES FINANCIAL GUIDANCE FOR 2004 AND 2005
LEONIA, NJ, JUNE 23, 2004 --INFOCROSSING, INC. (NASDAQ: IFOX), a provider of
selective IT outsourcing and business processing solutions, announced today
financial guidance for the remainder of 2004 and the full-year 2005. For the
full year ending December 31, 2004, Infocrossing forecasts record revenue of
$95.4 million and net income of $7.6 million, or $0.40 per diluted share. During
the same period, the Company forecasts earnings before interest, taxes,
depreciation and amortization (EBITDA) to reach $20.2 million. Infocrossing
presents EBITDA because it considers such information an important supplemental
measure of its performance and believes it is frequently used by securities
analysts, investors and other interested parties in the evaluation of companies
with comparable market capitalization, many of which present EBITDA when
reporting their results.
For the full year ending December 31, 2005, Infocrossing forecasts revenue
between $132.0 million and $135.0 million and net income between $17.9 million
to $18.6 million, or between $0.86 - $0.89 per diluted share. EBITDA for 2005 is
projected to grow to between $36.7 million to $37.7 million. A reconciliation of
net income to EBITDA is included in the table below. Additional information
about the Company's financial guidance for 2004 and 2005 was disclosed in a Form
8-K filed today with the Securities and Exchange Commission.
SUMMARY CONSOLIDATED PROJECTED INCOME STATEMENTS
(IN MILLIONS EXCEPT PER SHARE DATA)
QUARTERS ENDING YEARS ENDING
------------------------------------------------------------- --------------------------------------
MARCH JUNE SEPTEMBER DECEMBER DECEMBER DECEMBER
31, 2004 (A) 30, 2004 30, 2004 31, 2004 31, 2004 31, 2005
------------- ------------- ------------- ------------- -------------- --------------------
Revenues $ 15.2 $ 24.4 $ 26.2 $ 29.6 $ 95.4 $ 132.0 - 135.0
--------- --------- --------- ---------- ---------- -----------------
Net income (b) $ 0.8 $ 1.0 $ 1.9 $ 3.9 $ 7.6 $ 17.9 - 18.6
========= ========= ========= ========== ========== =================
Net income per diluted
common share $ 0.05 $ 0.05 $ 0.09 $ 0.19 $ 0.40 $ 0.86 - 0.89
========= ========= ========= ========== ========== =================
Weighted average
common shares and
equivalents outstanding 17.1 20.8 20.8 20.8 19.2 20.8
========= ========= ========= ========== ========== =================
SUMMARY CONSOLIDATED PROJECTED INCOME STATEMENTS
RECONCILIATION OF NET INCOME TO EBITDA
(IN MILLIONS EXCEPT PER SHARE DATA)
QUARTERS ENDING YEARS ENDING
------------------------------------------------------------- ----------------------------------
MARCH JUNE SEPTEMBER DECEMBER DECEMBER DECEMBER
30, 2004 (A) 30, 2004 30, 2004 31, 2004 31, 2004 31, 2005
-------------- ------------ ----------- ------------ -------------- -----------------
Net income (b) $ 0.8 $ 1.0 $ 1.9 $ 3.9 $ 7.6 $ 17.9 - 18.6
Income tax
provision (benefit) (0.2) 0.1 0.2 0.3 0.4 6.9 - 7.2
Interest expense (b) 0.7 1.1 1.1 1.1 4.0 3.8
Depreciation and
amortization expense 1.6 2.1 2.2 2.3 8.2 8.1
---------- ---------- ---------- ---------- ---------- -------------
Earnings before interest,
taxes, and depreciation
and amortization
(EBITDA) $ 2.9 4.3 5.4 7.6 20.2 36.7 - 37.7
========== ========== ========== ========== ========== =============
(a) Actual results.
(b) Excludes the effect of a proposed financing. See Forecast Assumptions.
EBITDA represents net income before interest, taxes, depreciation and
amortization. The Company presents EBITDA because it considers such information
an important supplemental measure of its performance and believes it is
frequently used by securities analysts, investors and other interested parties
in the evaluation of companies with comparable market capitalization, many of
which present EBITDA when reporting their results. The Company also uses EBITDA
for the following purposes: (1) EBITDA is one of the factors used to determine
the total amount of bonuses available to be awarded to executive officers and
other employees; (2) the Company's credit agreement uses EBITDA (with additional
adjustments) to measure compliance with covenants such as interest coverage and
debt incurrence; (3) EBITDA is also used by prospective and current lessors as
well as potential lenders to evaluate potential transactions with the Company;
and (4) EBITDA is also used by us to evaluate and price potential acquisition
candidates.
EBITDA has limitations as an analytical tool, and you should not consider it in
isolation, or as a substitute for analysis of the Company's results as reported
under GAAP. Some of these limitations are: (a) EBITDA does not reflect changes
in, or cash requirements for, the Company's working capital needs; (b) EBITDA
does not reflect the significant interest expense, or the cash requirements
necessary to service interest or principal payments, on the Company's debts; and
(c) although depreciation and amortization are non-cash charges, the assets
being depreciated and amortized may have to be replaced in the future, and
EBITDA does not reflect any cash requirements for such capital expenditures.
Because of these limitations, EBITDA should not be considered as a principal
indicator of the Company's performance. The Company compensates for these
limitations by relying primarily on the Company's GAAP results and using EBITDA
only supplementally.
Infocrossing's forecasts for 2004 and 2005 do not reflect a proposed offering of
$60 million of 4% Convertible Senior Notes due 2024, announced in a separate
press release issued today. The initial purchaser will also have a 30-day option
to purchase up to an additional $12 million of such notes. Net proceeds from the
private offering will be used to repay approximately $40 million of outstanding
indebtedness which currently bears an interest rate of 9%, to fund potential
acquisitions and for general corporate purposes. The exact timing and terms of
the financing will depend upon market conditions and other factors.
If the proposed private offering closes as expected in the second quarter of
2004, Infocrossing will incur a one-time non-cash charge of approximately $1.3
million, or approximately $.06 per diluted share, in additional expenses related
to the write-off of previously deferred financing costs. As a result of the
repayment of the existing indebtedness, the Company will no longer have
principal payment obligations of $0.3 million in 2004, and at least $3.8 million
in 2005. The table below reflects the impact of the proposed offering.
PRO FORMA SUMMARY CONSOLIDATED PROJECTED INCOME STATEMENTS
(IN MILLIONS EXCEPT PER SHARE DATA)
QUARTERS ENDING YEARS ENDING
----------------------------------------------------------------- ----------------------------------
MARCH JUNE SEPTEMBER DECEMBER DECEMBER DECEMBER
31, 2004 (C) 30, 2004 30, 2004 31, 2004 31, 2004 31, 2005
-------------- -------------- -------------- -------------- -------------- ------------------
Revenues $ 15.2 $ 24.4 $ 26.2 $ 29.6 $ 95.4 $ 132.0 - 135.0
---------- ---------- ---------- ---------- ----------- --------------
Net income (d) $ 0.8 $ (0.2) $ 2.1 $ 4.0 $ 6.7 $ 17.8 - 18.5
========== ========== ========== ========== =========== ==============
Net income per diluted
common share $ 0.05 $ (0.01) $ 0.10 $ 0.19 $ 0.35 $ 0.86 - 0.89
========== ========== ========== ========== =========== ==============
Weighted average
common shares and
equivalents outstanding 17.1 20.8 20.8 20.8 19.2 20.8
========== ========== ========== ========== =========== ==============
(c) Actual results.
(d) Includes the effect of the proposed financing in the amount of $60 million.
ABOUT INFOCROSSING, INC. (http://www.infocrossing.com)
Infocrossing, Inc. (IFOX) is a provider of selective IT outsourcing services,
delivering the computing platforms and proprietary systems that enable companies
to process data and share information within their business, and between their
customers, suppliers and distribution channels. Leading companies leverage
Infocrossing's robust computing infrastructure, skilled technical team, and
process-driven operations to reduce costs and improve service delivery by
outsourcing the operation of mainframes, mid-range, open system servers,
networks, and business processes to Infocrossing.
This release contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended. As such, final results
could differ from estimates or expectations due to risks and uncertainties,
including, but not limited to: incomplete or preliminary information; changes in
government regulations and policies; continued acceptance of the Company's
products and services in the marketplace; competitive factors; new products;
technological changes; the Company's dependence upon third-party suppliers;
intellectual property rights; difficulties with the integration of SMS, and
other risks. For any of these factors, the Company claims the protection of the
safe harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995, as amended.