EXHIBIT 99.1
------------
PALWEB REPORTS RESULTS FOR FISCAL YEAR ENDING 2004
Tuesday August 31, 9:41 am ET
TULSA, Okla.--(BUSINESS WIRE)--Aug. 31, 2004--PalWeb Corporation (OTCBB:PLWB -
News) announced today that its sales increased to $6,964,943 for fiscal year
ending May 31, 2004 compared to $1,280,945 for fiscal year 2003 for an increase
of $5,683,998, representing an increase of 443%. PalWeb also reported a net loss
to common shareholders for the year ended May 31, 2004 of ($3,121,098), or
($0.28) per share, versus ($4,115,018), or ($0.79) per share, for the same
period last year after deducting dividends to preferred shareholders of $660,171
in 2004 and $900,166 in 2003. PalWeb's EBITDA (earnings (loss) before interest
(including preferred dividends), taxes, depreciation (including impairments) and
amortization) for the year ended May 31, 2004 is ($1,128,505) versus
($2,239,427) for the same period last year. The EBITDA for fiscal 2004 includes
one-time relocation costs of $222,196.
"We are focusing on establishing our physical capacities to meet expected demand
and bringing operating costs inline with company established goals," said Warren
Kruger, President and CEO of PalWeb Corporation. "The bulk of our increase in
sales during 2004 was a result of the acquisition of Greystone and increased
orders from our existing customer base. The acquisition of Greystone Plastics
and the production consolidation into our Iowa plant will contribute to our
efforts while expanding the Company's product line to meet new inquiries for our
unique line of recycled plastic pallets, including significant requests for
pallets by global corporations."
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, are
included at the end of this release.
About PalWeb Corporation
PalWeb Corporation develops, manufactures and sells high quality plastic pallets
that provide logistics solutions required 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 www.palweb-plwb.com.
Forward-Looking Statements
This press release includes certain statements that may be deemed
"forward-looking statements" within the meaning of 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 decreased costs, 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, 2004. 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
Year Ended May 31,
----------------------------
2004 2003
------------ ------------
Sales $ 6,964,943 $ 1,280,945
Gross Profit (Loss) 196,517 (1,157,397)
Operating Profit (Loss) (1,773,440) (2,781,096)
Net Loss (2,460,927) (3,214,852)
Preferred dividends 660,171 900,166
Net Loss to Common Shareholders (3,121,098) (4,115,018)
Per Share of Common Stock (0.28) (0.79)
Average Shares of Common Outstanding 11,026,000 5,201,000
PalWeb Corporation
Supplemental Statistical Information
Net Loss to Common Shareholders $ (3,121,098) $ (4,115,018)
Interest expense, including
preferred dividends 1,359,832 1,333,922
Provision for income taxes -- --
Depreciation and amortization,
Including impairments 632,761 541,669
------------ ------------
EBITDA (A) $ (1,128,505) $ (2,239,427)
(A) EBITDA represents income (loss) before income taxes plus interest,
depreciation and amortization. The Company has included preferred dividends
with interest expense. 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.
- --------------------
CONTACT:
PalWeb Corporation, Tulsa
Warren F. Kruger, 918-583-7441
wfkruger@aol.com
or
Investor Relations:
Lori O'Brien, 918-583-7441
lobrien@sbcglobal.net