CALGARY, April 12 /CNW/ - WellPoint Systems Inc. (TSXV: WPS) today
announces its results for the year ended December 31, 2006. The Company
recorded its highest ever annual results with revenues of $16,005,780, more
than double the revenues of 2005, EBITDA(1) of $2,669,214, a ten fold increase
over 2005 and net income of $637,088 compared to a loss of $726,980 in 2005.
For the quarter ended December 31, 2006, the Company also achieved record
results with revenues of $5,346,049, EBITDA of $1,150,843 and net income of
$463,213. WellPoint has now achieved record financial results for three
consecutive quarters in 2006.
"A key part of our success is attracting and retaining great customers.
The record annual and fourth quarter results demonstrate our continued
progress in successfully executing our strategic plan recognizing the cyclical
nature of the software business," says Frank Stanford, CEO of WellPoint
Systems. "We are well positioned to increase our dominance as the leading
provider of software solutions to both the oil & gas and mining sectors."
- Revenues more than doubled to $16,005,780 in 2006, as compared with
$7,323,849 in 2005. Record revenues were as a result of strong
license sales and revenues from IDEAS International, Inc. (IDEAS)
acquired on March 10, 2006 and increased revenues in Canada. In the
fourth quarter of 2006, record revenues increased 180% to $5,346,049
compared to $1,912,474 in the same period of 2005.
- EBITDA was $2,669,214 for 2006, approximately a 900% increase
compared to $271,093 for the comparable period of 2005. In the fourth
quarter of 2006, EBITDA was $1,150,843 compared to $130,789 in the
fourth quarter of 2005.
- Net income was $637,088 for the year 2006, compared to a loss of
$726,982 incurred in 2005. In the fourth quarter of 2006, net income
was $463,213 compared to a loss of $493,709 in the fourth quarter of
- The improvement in gross margin percentage and the reduction of
general and administrative expenses as a percentage of revenue in
2007 were contributing factors in the improved performance.
- WellPoint announced that it has completed the certification processes
associated with Microsoft's Industry Builder program ("IBP") and, as
a result, now has its financial management product included on
Microsoft's Dynamics AX price lists in the United States, Canada and
the United Kingdom. The product, rebranded as "Energy Financial
Management for Microsoft Dynamics AX, is now available for resale by
Microsoft and the Microsoft partners within those specific regions
who choose to become certified in the marketing and implementation of
- WellPoint announced it had completed its purchase of iSoft
Technologies (Pty) Ltd. ("iSoft") whose software applications focus
primarily around enterprise asset management, a concept especially
relevant to asset intensive industries like mining and energy.
WellPoint believes iSoft's MRO (maintenance, repair and operate)
module to be the most valuable mining intellectual property within
the Microsoft application suite.
- WellPoint announced it had formally initiated its channel program
with the announcement of two new strategic alliances, one with
ePartners Incorporated and the other with Deloitte and Touche. These
alliances will ensure the Company has the implementation capacity to
keep pace with the demand for WellPoint's products.
- WellPoint announced it had released WellPoint Risk Expert, a product
designed to provide critical risk management tools to oil and gas
trading companies. The functionality of the first version includes
advanced pricing tools and mark to market reporting capabilities that
allow companies to improve their forecasting capabilities as well as
support process controls demanded by the Sarbanes-Oxley Act.
Progress toward WellPoint's 2006 key strategy points:
1. Enhance WellPoint's position as Microsoft's Energy Vertical Partner.
- Completed the final stages of the technical and support
certification processes associated with Microsoft's Industry
- Named to Microsoft's "Inner Circle" - the top 1% of the worldwide
Microsoft Business Solution partners.
- New member of Microsoft's elite Industry Builder Program - one of
only 9 global partners.
2. Aggressively grow top line revenue (2006 target $13 to $14 million)
- Record results were seen in the annual and fourth quarter results
in both these areas as revenues doubled for the year and increased
180% in the quarter and EBITDA increased ten fold for the year and
almost 900% for the quarter.
3. Exploit receptive U.S. & International markets.
- U.S. and International revenue represented 38% of total revenue
for the year.
4. Continue building new energy products around the Microsoft Dynamics
- Risk Expert, a product designed to provide critical risk
management tools to oil and gas trading companies, has been
- The design of the Energy Broker midstream product is well
5. Pursue strategic acquisitions and partnerships that complement a
focused corporate strategy.
- The first quarter 2006 acquisition of IDEAS has been very
successful and brought great people.
- WellPoint now owns the most valuable piece of mining intellectual
property in the Microsoft application world with the first quarter
2007 acquisition of iSoft.
- WellPoint continues to look for new acquisitions.
The Company's quarterly financial statements and management's discussion
and analysis are available on SEDAR at www.sedar.com.
WellPoint also announced the grant, subject to regulatory approval, of
stock options entitling the purchase, for a period of five years, of up to
300,000 shares of WellPoint at a price of $0.40 per share to existing officers
of WellPoint. The options granted will vest over a period of one to three
(1) Non-GAAP Financial Measure
In addition to providing earnings measures in accordance with Generally
Accepted Accounting Principles (GAAP), WellPoint presents a non-GAAP
earnings measure. This is earnings before interest, taxes, depreciation
and amortization (EBITDA). This measure does not have any standardized
meaning prescribed by GAAP and is therefore unlikely to be comparable to
similar measures presented by other companies. EBITDA is provided to
assist investors in determining the ability of WellPoint to generate cash
from operations, to service the interest on indebtedness and to fund
deferred development costs.
A reconciliation of EBITDA to a GAAP financial measure is shown below:
Three months ended Year ended
2006 2005 2006 2005
EBITDA $ 1,150,843 $ 130,789 $ 2,669,214 $ 271,093
Amortization (312,958) (204,257) (1,216,455) (487,250)
Interest (147,441) (124,268) (583,984) (324,732)
(recovery) (227,231) (295,973) (231,687) (186,093)
Net income (loss)
measure) $ 463,213 $ (493,709) $ 637,088 $ (726,982)
About WellPoint Systems Inc.
WellPoint Systems provides premier software and related services for
managing critical operations within the energy industry. Aligning tightly with
Microsoft Corporation, WellPoint is the only Independent Software Vendor (ISV)
and Microsoft Dynamics partner dedicated to the energy sector. It is breaking
new ground with the creation of a more comprehensive, integrated energy
software suite based on existing Microsoft ERP technology that utilizes
state-of-the-art Dynamics AX(R) and .NET architectures. WellPoint became a
Microsoft Gold Certified Partner in 2005.
Founded in 1997, Calgary-based WellPoint Systems also has major
operations in Houston, TX, Livingston, NJ, Tampa, FL, Tunis, Tunisia and
WellPoint is publicly traded on the TSX Venture Exchange under the symbol
This document contains forward-looking statements. Some forward looking
statements may be identified by words like "expects", "anticipates", "plans",
"intends", "indicates" or similar expressions. The statements are not a
guarantee of future performance and are inherently subject to risks and
uncertainties. The Company's actual results could differ materially from those
currently anticipated due to a number of factors, including, but not limited
to, successful integration of structural changes, including restructuring
plans, acquisitions, technical or manufacturing or distribution issues, the
competitive environment for the Company's products, the degree of market
penetration of the Company's products, and other factors set forth in reports
and other documents filed by the Company with Canadian securities regulatory
authorities from time to time.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: WellPoint Systems Inc., Frank Standford, Chief
Executive Officer, (403) 538-3604, email@example.com,
www.wellpointsystems.com; Investor Cubed, Neil Simon, Strategic Consultants,
(866) 786-6601, firstname.lastname@example.org, www.investor3.ca