EXHIBIT 99.1
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[PALWEB LOGO]
PalWeb Corporation (Ticker: PLWB, Exchange: OTCBB)
News Release-January 6, 2004
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PALWEB REPORTS RESULTS
FOR SECOND QUARTER OF FISCAL YEAR 2004
DALLAS, Texas - January 6, 2004 - PalWeb Corporation (OTCBB: PLWB) announced
today that its sales increased to $2,097,715 for the second quarter ended
November 30, 2003 compared to $513,012 for the comparable quarter last year,
representing an increase of in excess of 400%. PalWeb also reported a net loss
to common shareholders for the quarter ended November 30, 2003 of ($519,524), or
($0.04) per share, versus ($1,321,849), or ($0.26) per share, for the same
quarter last year. PalWeb's EBITDA (earnings (loss) before interest (including
preferred dividends), taxes, depreciation (including impairments) and
amortization) for the quarter ended November 30, 2003 is ($3,211) versus
($634,913) for the same period last year. PalWeb's increased sales for the
quarter ended November 30, 2003 are primarily attributable to its recent
acquisition of Greystone Plastics, Inc.
"We are making progress in implementing our business plan and intend to
aggressively manage manufacturing costs to push the company into profitability
in the calendar year 2004," said Warren Kruger, President and CEO of PalWeb
Corporation. "The recent acquisition of Greystone Plastics coupled with the
pending consolidation of our production facilities should contribute to our
efforts to achieve profitability as well as allow us to expand our product
line."
NON-GAAP FINANCIAL MEASURE
This release contains disclosure of EBITDA, which is a non-GAAP financial
measure within the meaning of Regulation G promulgated by the Securities and
Exchange Commission. A reconciliation of EBITDA to net income (loss) available
to common shareholders before income taxes, the most directly comparable GAAP
financial measure, as well as additional information concerning EBITDA, is
included at the end of this release.
ABOUT PALWEB CORPORATION
PalWeb Corporation develops, manufactures and sells high quality plastic pallets
that provide innovative logistics solutions needed by a wide range of industries
such as the food and beverage, pharmaceuticals, automotive, chemical, and
consumer products industries and large injection molding machines and systems.
For more information visit PalWeb online at http://www.palweb-plwb.com.
FORWARD-LOOKING STATEMENTS
This press release includes certain statements that may be deemed
"forward-looking statements" within the meaning of the federal securities laws.
All statements, other than statements of historical facts, that address
activities, events or developments that PalWeb expects, believes or anticipates
will or may occur in the future, including the profitability of PalWeb,
potential sales of pallets or other possible business developments, are
forward-looking statements. Such statements are subject to a number of
assumptions, risks and uncertainties. The forward-looking statements above could
be affected by any of the following factors: PalWeb's prospects could be
affected by changes in availability of raw materials, competition, rapid
technological change and new legislation regarding environmental matters; PalWeb
may not be able to secure additional financing necessary to sustain and grow its
operations; and a material portion of PalWeb's business is and will be dependent
upon a few large customers and there is no assurance that PalWeb will be able to
retain such customers. These risks and other risks that could affect PalWeb's
business are more fully described in its reports filed with the Securities and
Exchange Commission, including PalWeb's Form 10-KSB for the fiscal year ended
May 31, 2003. Actual results may vary materially from the forward-looking
statements. PalWeb undertakes no duty to update any of the forward-looking
statements in this release.
PALWEB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
NOVEMBER 30,
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2003 2002
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Sales $ 2,097,715 $ 513,012
Gross Profit (Loss) 252,385 (300,206)
Operating Profit (Loss) (124,745) (1,019,890)
Net Loss (268,292) (1,097,916)
Preferred dividends (251,232) (223,933)
Net Loss to Common Shareholders (519,524) (1,321,849)
Per Share of Common Stock (0.04) (0.26)
Average Shares of Common Outstanding 12,237,000 5,073,000
PALWEB CORPORATION
SUPPLEMENTAL STATISTICAL INFORMATION
Net Loss to Common Shareholders $ (519,524) $ (1,321,849)
Add Back:
Interest expense, including preferred
dividends of $251,232 at 11/30/2003 409,756 301,959
Provision for income taxes -- --
Depreciation and amortization, including
Impairments of $310,875 at 11/30/2002 106,557 384,977
EBITDA (A) $ (3,211) $ (634,913)
(A) EBITDA represents income (loss) before income taxes plus interest,
depreciation and amortization. The Company has included preferred
dividends in fiscal year 2004 with interest expense and an impairment
charge in fiscal year 2003 with depreciation. The EBITDA presented
above while considered the most common definition used by investors
and financial analysts, may not be comparable to similarly titled
measures reported by other companies. The Company believes that
EBITDA, while providing useful information, should not be considered
in isolation or as an alternative to other financial measures
determined under GAAP.
Corporate Contact: Investor Relations Contact:
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PalWeb Corporation The Investor Relations Group, Inc.
Warren F. Kruger, President & CEO Jane Lin / John Nesbett
918-583-7441 212-825-3210