EXHIBIT 99
FOR RELEASE AT 7:52 AM EDT
CONTACTS:
Chairman and Chief Executive Officer Chief Financial Officer
Zach Lonstein William McHale
Infocrossing, Inc. Infocrossing, Inc.
201) 840-4726 (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 (858) 704-5065
mwilczak@infocrossing.com
INFOCROSSING ISSUES FINANCIAL GUIDANCE FOR THIRD QUARTER 2005
AND FULL YEAR 2006
LEONIA, NJ, OCTOBER 25, 2005 --INFOCROSSING, INC. (NASDAQ: IFOX), a provider of
selective IT outsourcing and business processing solutions, announced today
financial guidance for the third quarter of 2005 and the full-year 2006. For the
third quarter ending September 30, 2005, Infocrossing forecasts revenue of $34.1
million and net income of $0.1 million, or $0.01 per diluted share. During the
same period, the Company forecasts earnings before interest, taxes, depreciation
and amortization (EBITDA) of $4.4 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. A reconciliation of EBITDA to net income is included in the table
below.
On October 25, 2005 Infocrossing announced that the Company had entered into a
definitive agreement to acquire (i)Structure LLC from a subsidiary of Level 3
Communications, Inc. The transaction is expected to close, subject to customary
conditions, including Hart-Scott-Rodino clearance, within 45 days.
Including the acquisition, Infocrossing forecasts revenue for the full year
ending December 31, 2006 to be between $239.0 million and $246.0 million, and
net income for the period to be between $6.8 million to $7.9 million. EBITDA for
2006 is projected to be between $43.5 million to $46.1 million. A reconciliation
of net income to EBITDA is included in the table below.
RECONCILIATION OF EBITDA TO NET INCOME
(IN MILLIONS)
PROJECTED
QUARTER
ENDING
SEPTEMBER PROJECTED YEAR ENDING
30, 2005 DECEMBER 31, 2006
FROM TO
Net income $ 0.1 $ 6.8 $ 7.9
Tax provision 0.2 4.5 5.2
Interest 1.4 10.0 10.4
Depreciation and amortization 2.7 22.2 22.6
------------- ------------- -----------
EBITDA $ 4.4 $ 43.5 $ 46.1
============= ============= ===========
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.
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, regardless of industry, 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.
SAFE HARBOR STATEMENT
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; closing contracts
with new customers and renewing contracts with existing customers on favorable
terms; expanding services to existing customers; new products; technological
changes; the Company's dependence upon third-party suppliers; intellectual
property rights; difficulties with the identification, completion, and
integration of acquisitions, including the integration of Infocrossing
Healthcare Services, Inc., f/k/a Verizon Information Technologies Inc. and
(i)Structure, LLC 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.
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