This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cover-All Announces First Quarter 2012 Financial Results

Additional information is available online at www.cover-all.com.

Cover-All®, My Insurance Center™ (MIC) NexGen and Insurance Policy Database™ (IPD) are trademarks or registered trademarks of Cover-All Technologies Inc. All other company and product names mentioned are trademarks or registered trademarks of their respective holders.

Forward-looking Statements

Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks which may cause the Company’s actual results in future periods to differ materially from expected results. Those risks include, among others, risks associated with increased competition, customer decisions, the successful completion of continuing development of new products, the successful negotiations, execution and implementation of anticipated new software contracts, the successful implementation of our acquisition strategies and our ability to complete or integrate acquisitions, the successful addition of personnel in the marketing and technical areas, our ability to complete development and sell and license our products at prices which result in sufficient revenues to realize profits and other business factors beyond the Company’s control. Those and other risks are described in the Company’s filings with the Securities and Exchange Commission (“SEC”) over the last 12 months, including but not limited to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on April 2, 2012, copies of which are available from the SEC or may be obtained upon request from the Company.

The following is a summary of operating highlights for the three months ended March 31, 2012 and 2011, respectively, and the consolidated balance sheet as of March 31, 2012 and 2011, respectively:

         

Cover-All Technologies Inc. and Subsidiaries

Consolidated Statement of Operations

 
Three months ended March 31,
2012       2011
Revenues: (Unaudited)
Licenses $ 129,998 $ 1,961,161
Support Services 2,140,177 2,114,243
Professional Services   1,281,919     1,122,039  
Total Revenues   3,552,094     5,197,443  
Cost of Revenues:
Licenses 987,770 517,244
Support Services 1,498,499 1,138,120
Professional Services   1,278,290     1,309,107  
Total Cost of Revenues   3,764,559     2,964,471  
Direct Margin   (212,465 )   2,232,972  
Operating Expenses:
Sales and Marketing 536,447 390,142
General and Administrative 421,481 452,326
Acquisition Costs 136,957
Research and Development   154,175     153,812  
Total Operating Expenses   1,249,060     996,280  
Operating Income   (1,461,525 )   1,236,692  
Other (Income) Expense:
Interest Expense 3,750
Interest Income (32 ) (83 )
Other Income   (98 )   (9,709 )
Total Other (Income)   (130 )   (6,042 )
(Loss) Income Before Income Taxes (1,461,395 ) 1,242,734
Income Taxes       37,385  
Net (Loss) Income $ (1,461,395 ) $ 1,205,349  
Basic Earnings (Loss) Per Common Share $ (0.06 ) $ 0.05  
Diluted Earnings (Loss) Per Common Share $ (0.06 ) $ 0.05  

Weighted Average Number of Common Shares    Outstanding for Basic Earnings (Loss)    Per Common Share

  25,858,000     25,085,000  

Weighted Average Number of Common Shares    Outstanding for Diluted Earnings (Loss)    Per Common Share

  25,858,000     26,208,000  
 
               

Cover-All Technologies Inc. and Subsidiaries

Consolidated Balance Sheet

March 31,

2012

December 31,

2011

(Unaudited)
Assets:
Current Assets:
Cash and Cash Equivalents $ 1,190,745 $ 3,281,965

Accounts Receivable (Less Allowance for Doubtful Accounts  of $25,000)

1,999,569 1,817,793
Prepaid Expenses 1,146,735 576,522
Deferred Tax Asset   1,099,000     1,099,000  
Total Current Assets   5,436,049     6,775,280  
Property and Equipment – At Cost:
Furniture, Fixtures and Equipment 976,153 912,527
Less: Accumulated Depreciation   (630,429 )   (633,356 )
Property and Equipment – Net   345,724     279,171  
Goodwill   1,039,114     1,039,114  

Capitalized Software (Less Accumulated Amortization of  $14,871,794 and $14,134,024, Respectively)

  10,317,293     8,799,711  

Customer Lists/Relationships (Less Accumulated Amortization of  $165,426 and $126,093, Respectively)

  236,574     93,907  

Non-Competition Agreements (Less Accumulated Amortization of  $126,044 and $110,044, Respectively)

  33,956     49,956  
Deferred Tax Asset   2,168,500     2,168,500  
Business Acquisition       1,035,821  
Other Assets   216,971     216,971  
Total Assets $ 19,794,181   $ 20,458,431  
 
Liabilities and Stockholders’ Equity:
Current Liabilities:
Accounts Payable $ 1,224,891 $ 440,635
Accrued Expenses Payable 586,974 753,888
Deferred Charges 30,652 43,788
Unearned Revenue   2,378,555     2,298,985  
Total Current Liabilities   4,221,072     3,537,296  
Long-Term Liabilities:
Deferred Charges        
Total Liabilities   4,221,072     3,537,296  
Commitments and Contingencies

Stockholders’ Equity:

 Common Stock, $.01 Par Value, Authorized 75,000,000 Shares;  25,857,730 and 25,782,730 Shares Issued and 25,857,730 and  25,782,730 Shares Outstanding in 2012 and 2011, Respectively

258,577 257,827
Paid-In Capital 30,924,678 30,812,059
Accumulated Deficit   (15,610,146 )   (14,148,751 )
Total Stockholders’ Equity   15,573,109     16,921,135  
Total Liabilities and Stockholders’ Equity $ 19,794,181   $ 20,458,431  
 

Cover-All Technologies Inc. and Subsidiaries

EBITDA Reconciliation to U.S. GAAP Net Income

(unaudited)

   
     

Three months ended March 31,

2012

     

2011

 
Net (Loss) Income $ (1,461,395 ) $ 1,205,349
 
Interest Income (Expense), Net 32 (3,667 )
Income Tax Expense –– 37,385
Depreciation 39,860 42,686
Amortization   793,103     329,190  
 
EBITDA $ (628,464 ) $ 1,618,277  
 
 
EBITDA per Common Share:
Basic $ (0.02 ) $ 0.06  
Diluted $ (0.02 ) $ 0.06  




5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs