Cover-All Technologies Inc. (NYSE MKT:COVR) today provided important business updates for the quarter ended June 30, 2014. Preliminary results for the 2014 second quarter include:
- Total revenues were approximately $5.0 million, compared to $4.0 million for the 2013 second quarter.
- Net income was approximately $0.3 million, or $0.01 per diluted share, compared to a loss of $1.2 million, or $(0.04) per share, in the same period of 2013.
- Earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP metric, was over $0.8 million, or $0.03 per diluted share, compared to $0.2 million, or $0.01 per diluted share, in the same period of 2013.
A reconciliation of the Company's anticipated GAAP and non-GAAP earnings is provided in the following table:
|Cover-All Technologies Inc. and Subsidiaries EBITDA RECONCILIATION TO U.S. GAAP NET INCOME (UNAUDITED)|
|Three Months Ended June 30,|
|Net Income||$ 0.3 million||$ (1.2) million|
|Interest Expense, Net||0.1 million||0.1 million|
|Depreciation||0.0 million||0.1 million|
|Amortization||0.4 million||1.2 million|
|EBITDA||$ 0.8 million||$ 0.2 million|
ABOUT NON-GAAP FINANCIAL MEASURESIn evaluating its business, Cover-All considers and uses EBITDA as a supplemental measure of its operating performance. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. The Company presents EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance. The term EBITDA is not defined under U.S. generally accepted accounting principles (“U.S. GAAP”) and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. EBITDA has limitations as an analytical tool, and when assessing the Company’s operating performance, investors should not consider EBITDA in isolation or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Among other things, EBITDA does not reflect the Company’s actual cash expenditures. Other companies may calculate similar measures differently than Cover-All, limiting their usefulness as comparative tools. Cover-All compensates for these limitations by relying on its U.S. GAAP results and using EBITDA only supplementally. ABOUT COVER-ALL TECHNOLOGIES INC. Cover-All provides property and casualty insurance professionals a robust state-of-the-art, browser-based family of Policy, Business Intelligence, and Claims solutions designed to deliver products to market faster, enhance quality, ensure compliance, and reduce costs. With offices in Morristown, NJ and Honolulu, HI, Cover-All continues its tradition of developing technology solutions designed to revolutionize the way property and casualty insurance business is conducted. Additional information is available online at www.cover-all.com. Cover-All ®, My Insurance Center™ (MIC) NexGen, Insurance Policy Database™ (IPD) and PipelineClaims™ 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.