OMAHA, NE — (Marketwire) — 03/16/12 — iSECUREtrac Corp (OTCBB: ISEC), an industry leader in electronic monitoring solutions, has announced its financial results for the year ended December 31, 2011.
For the year ended December 31, 2011, as compared to 2010, total revenues declined $776,501, from $10,639,683 in 2010 to $9,863,182 in 2011, while net loss increased $199,257 from $1,007,433 in 2010 to $1,206,690 in 2011. For the year ended December 31, 2011, in comparison to 2010, revenue from the Company-s core business — equipment leasing and supplemental services, declined $590,348.
According to CEO Lincoln Zehr, “The year-over-year comparisons alone don-t tell the whole story. In fact, if one were to look only at the year-over-year comparisons they would not get an accurate picture of where the Company is at today, financially. For example, the Company-s net loss for the year was $1.2 million — however, $1.1 million of that loss occurred in the first six months of the year. During the last six months of the year, on only $27,000 more revenue than the first six months, the Company-s net loss was only $92,000. Furthermore, while the accrual of executive severance in the fourth quarter was certainly appropriate from the standpoint of applying accounting principles, it does not allow for perspective when comparably measuring operating performance. Without the accrual of executive severance in the fourth quarter, the Company would have generated net income of $206,000 in the last six months of 2011 — $120,000 in the third quarter and $86,000 in the fourth quarter.”
Zehr went on to note that, “The expected decline in 2012 revenue, as a result of not renewing the contract with the Office of the Commissioner of Probation in the Commonwealth of Massachusetts beyond the current terms presents, some short term challenges — notably, continuing to generate net income and cash flow. However, long-term the Company is well positioned to return to generating cash flow and net income, due to declining expenses in 2012 and having just recently finished paying for the vast majority of the equipment in deployed in connection with this contract.”
In addition to the improved financial performance, Zehr pointed out the recent additions of Mr. Thomas Burlin and Mr. Greg Gaggini to the Company-s Board of Directors. Mr. Zehr commented that, “The revamped Board of Directors, coupled with the new management team announced a month ago, has added a significant amount of enthusiasm and energy to the Company. Management and the Directors share a renewed vision for the Company and a renewed commitment to the Company-s success.”
The Company-s CEO, Lincoln Zehr will host a conference call on Wednesday, March 21 at 3:30 PM Central time to discuss the Company-s 2011 results and provide shareholders an opportunity to ask questions.
Conference call details are as follows:
Time: 3:30 PM Central – 4:30 PM Eastern
Dial-in number: 1-877-941-1427
International: 1-480-629-9664
Please dial in 5-10 minutes prior to the start. An operator will request your name and organization and ask you to wait until the call begins. If you have any difficulty connecting, please call iSECUREtrac at (866) 537-0022.
iSECUREtrac Corp provides electronic monitoring systems, client management software and supplemental services for use in community supervision. The company-s rich stream of reliable data concerning a client-s location, movement and status better enables effective compliance management and positive behavior modification. Visit for more information.
This press release contains forward-looking statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to iSECUREtrac Corp. and its business. The predictions embodied in these statements will involve risks and uncertainties and accordingly, iSECUREtrac-s actual results may differ significantly from the results discussed or implied in such forward-looking statements.
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