Exhibit 99.1
iMERGENT Announces Record Revenues For Fiscal Year 2003
* Annual Revenues Grow 43% to $53,225,083
* Annual Earnings Grow 129% to $5,034,072
* Fourth Quarter Revenues Increase 42% to $15,566,095
* Record Annual Per Share Earnings of $0.44
Orem, Utah, September 16, 2003 - iMERGENT, Inc. (OTC.BB: IMGG) announced today
its results for the three and 12 month periods ended June 30, 2003.
The total revenues for the quarter ended June 30, 2003, our fourth quarter of
the fiscal year ended June 30, 2003, increased to $15,566,095 from $10,964,365
in the quarter ended June 30, 2002, an increase of 42%.
Net income for the fiscal quarter ended June 30, 2003 was $1,613,642 or $0.14 a
fully diluted share in earnings (post reverse stock split) representing
11,943,142 shares as compared to net loss of $328,188 or $0.04 a diluted share
(post reverse stock split) representing 9,035,396 shares for the comparable
quarter of the prior fiscal year.
The total revenues for the 12-month period ended June 30, 2003, increased to
$53,225,083 from $37,350,850 in the comparable period of the prior fiscal year,
an increase of 43%. The company noted that the results for the 12-month period
ended June 30, 2003 included less than $110,000 of net deferred revenue, while
the comparable period of the prior fiscal year included more than $5.3 million
of net deferred revenue.
Net income for the 12-month period ended June 30, 2003 was $5,034,072 or $0.44 a
diluted share in earnings (post reverse stock split) based on 11,552,621 shares
(post reverse stock split) as compared to earnings of $2,198,769 for the year
ended June 30, 2002, or $.37 a diluted share, based on 5,878,404 shares (post
reverse stock split).
Commented iMergent Chairman and CEO Donald Danks, "This has been a year of
achievement for our company. Not only are we pleased with the fourth quarter and
our 12 month results, we are also pleased at the solid business operation that
we have built over the past year that can provide the foundation for future
revenue and earnings growth. We are growing rapidly, generating profits, and
generating cash. We continue to improve our business model, and we are looking
forward to leveraging our large domestic customer base and to expanding
internationally. The entire iMergent team deserves recognition for an
extraordinary effort in creating a successful, growing, and profitable company."
Said iMergent President, Brandon Lewis, "Through the work of all at our company,
we have the focus and discipline to continue to deliver on the results we are
reporting today. We serve a very large and fragmented market and intend to
continue with the strong growth momentum we've established over the past year."
FINANCIAL TABLES FOLLOW
About Imergent, Inc.
Imergent is a leading technology and training company delivering eServices to
small business and entrepreneurs. Imergent provides eServices to over 100,000
customers annually. Imergent enables companies of all sizes to extend their
business to the Internet quickly, effectively-with minimal investment. Imergent
develops, hosts, licenses, and supports a wide range of Internet applications.
Imergent (www.Imergentinc.com) is located at 754 Technology Ave., Orem, UT
84097.
Statements made in this press release that are not historical in nature
constitute forward-looking statements within the meaning of the Safe Harbor
Provision of the Private Securities Litigation Reform Act of 1995." Such
statements are based on the current expectations and beliefs of the management
of Imergent and are subject to a number of factors and uncertainties that could
cause actual results to differ materially from those described in the
forward-looking statements. For a more detailed discussion of factors that
affect Imergent's operating results, please refer to its SEC reports including
its most recent Form 10-K and Form 10-Q.
IMERGENT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations for the
Three Months and the Twelve Months Ended June 30, 2003 and 2002
Unaudited
Three Months Ended Twelve Months Ended
-------------------------------------------- ----------------------------------------
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
--------------------- -------------------- -------------------- ------------------
Revenue $ 15,566,095 $ 10,964,365 $ 53,225,083 $ 37,350,850
Cost of revenue 2,879,945 1,874,238 9,784,368 5,531,757
Cost of revenue - related party 277,739 273,113 1,118,002 994,043
--------------------- ------------------ -------------------- -----------------
Total cost of revenue 3,157,684 2,147,351 10,902,370 6,525,800
--------------------- ------------------ -------------------- -----------------
Gross profit 12,408,411 8,817,014 42,322,713 30,825,050
Operating Expenses
Product development 0 (35,799) - 51,805
Selling and marketing 5,358,653 4,412,927 18,214,488 13,540,587
Selling and marketing - related party 172,126 126,592 521,806 479,984
General and administrative 1,498,238 1,090,473 4,743,068 5,691,434
Depreciation and amortization 38,311 222,188 338,285 668,730
Bad debt expense 4,439,677 3,419,086 14,255,877 6,675,238
--------------------- ------------------ -------------------- -----------------
Total operating expenses 11,507,004 9,235,467 38,073,524 27,107,778
-
Income from operations 901,407 (418,453) 4,249,189 3,717,272
Other income 9,366 (9,101) 12,358 41,813
Interest income 263,722 124,409 813,136 390,371
Interest expense (11,128) (25,044) (40,611) (1,950,687)
--------------------- ------------------ -------------------- -----------------
Total other income (expense) 261,960 90,264 784,883 (1,518,503)
--------------------- ------------------ -------------------- -----------------
Income before income taxes 1,163,367 (328,188) 5,034,072 2,198,769
Provision for (income taxes) 450,275 0 - -
--------------------- ------------------ -------------------- -----------------
Net income $ 1,613,642 $ (328,188) $ 5,034,072 $ 2,198,769
===================== ================== ==================== =================
Basic earnings per share: $ 0.15 $ (0.04) $ 0.46 $ 0.37
Diluted earnings per share: $ 0.14 $ (0.04) $ 0.44 $ 0.37
Weighted average shares outstanding:
Basic 11,043,340 9,035,396 11,019,094 5,873,654
Diluted 11,943,142 9,035,396 11,552,621 5,878,404
Note: The provision for income taxes adds to profit because it is a reversal of the YTD accrual as of 3-30-03
IMERGENT, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, 2003 and 2002
2003 2002
------------------ ------------------
Assets
Current assets
Cash $ 2,319,618 $ 519,748
Trade receivables, net of allowance for doubtful accounts of $4,471,667 at
June 30, 2003 and $1,918,673 at June 30, 2002. 4,965,769 2,247,129
Inventories 34,194 23,416
Prepaid expenses 646,907 607,857
Credit card reserves, net of allowance for doubtful accounts of $319,812 at
June 30, 2003 and $137,370 at June 30, 2002. 450,200 1,022,701
------------------ ------------------
Total current assets 8,416,688 4,420,851
Property and equipment, net 200,174 409,460
Goodwill, net 455,177 455,177
Trade receivables, net of allowance for doubtful accounts of $2,131,593 at
June 30, 2003 and $1,357,938 at June 30, 2002. 2,254,969 1,673,740
Other assets, net of allowance for doubtful accounts of $0 at June 30, 2003
and $0 at June 30, 2002. 103,460 417,384
------------------ ------------------
Total Assets $ 11,430,468 $ 7,376,612
================== ==================
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 1,322,035 $ 1,215,400
Accounts payable - related party 114,925 111,702
Bank overdraft 14,685 150,336
Accrued wages and benefits 396,935 681,472
Past due payroll taxes - 26,797
Accrued liabilities 204,137 548,016
Current portion of capital lease obligations 26,536 80,938
Current portion of notes payable 121,206 160,671
Other current liabilities 35,840 450,523
Deferred revenue 653,463 705,558
------------------ ------------------
Total current liabilities 2,889,762 4,131,413
Capital lease obligations, net of current portion 1,802 27,906
Notes payable, net of current portion 435,857 393,560
------------------ ------------------
Total liabilities 3,327,421 4,552,879
------------------ ------------------
Commitments and contingencies
Minority interest - 355,159
------------------ ------------------
Stockholders' Equity
Capital stock, par value $.001 per share
Preferred stock - authorized 5,000,000 shares; none issued
Common stock - authorized 100,000,000 shares; issued and outstanding
11,062,290 and 10,995,774 shares, at June 30, 2003 and June 30, 2002, respectively 11,063 10,996
Additional paid-in capital 72,605,749 72,017,928
Deferred compensation (22,474) (34,987)
Accumulated other comprehensive loss (4,902) (4,902)
Accumulated deficit (64,486,389) (69,520,461)
------------------ ------------------
Total stockholders' equity 8,103,047 2,468,574
------------------ ------------------
Total Liabilities and Stockholders' Equity $ 11,430,468 $ 7,376,612
================== ==================
See Notes to Consolidated Financial Statements