CAMARILLO, CA--(MARKET WIRE)--Apr 2, 2008 -- International Card Establishment, Inc.
(I.C.E.) (OTC BB:ICRD.OB - News) today announced its fourth quarter
and year end financial results for the period ended December 31, 2007.
For the year ended December 31, 2007, I.C.E.'s net revenues were
$9,222,659, a decrease of 14% from 2006 revenues of $10,765,826. The 14%
decrease in net revenues was mainly due to I.C.E.'s tightening of credit
policies, which resulted in a refusal to sign on "high-risk" accounts; the
company also wrote off a number of questionable accounts as a result of
this policy and residual income decreased by approximately $220,000.
I.C.E. reported a net operating loss $(3,764,850) versus a net operating
loss of $(2,907,047) in 2006. The company recognized an impairment of
$3,649,711 in its merchant and gift card portfolios a non-cash charge which
resulted in a net loss of $(3,955,299) versus a year earlier net loss of
$(3,755,075). The company had positive EBITDAS (Earnings Before Interest,
Taxes, Depreciation, Amortization, and Share-based Compensation Expense) of
$837,148 for the year ended December 31, 2007.
In 2007, operating, general and administrative costs decreased by
approximately $3,200,000, or 50% from $6,515,470 to $3,322,854 mainly due
to the closing of two offices and consolidation of the Irvine and
Camarillo, CA offices and the reduction of staff. Also, some expenses were
reclassified from general and administrative expenses to the cost of sales.
Reductions in bad debt expense due to the tightening of credit policies
lowered overall expenses by approximately $500,000.
"Our decision early in 2007 to immediately stop signing on high-risk
accounts proved to be a good one, as the deteriorating of business and
credit conditions in the U.S. economy had a devastating effect on many
financial services companies. This policy, along with an unwavering
commitment to cost cutting in the past year, enabled the company to
generate positive EBITDAS of $837,148 for 2007," said I.C.E. CEO William
Lopshire.
Mr. Lopshire added, "While the non-cash impairment charge of $3,649,711 in
our merchant and gift card portfolio did cause us to report a significant
loss, it also results in a conservative valuation for our overall portfolio
and should diminish future charges associated with account attrition."
About I.C.E.
www.cardnetone.com
I.C.E. is a provider of diversified products and services to the electronic
transaction processing industry. I.C.E. establishes merchant accounts for businesses that enable them to accept credit
cards, debit cards and other forms of electronic payments; supplies point-of-sale systems; facilitates processing; and markets a proprietary
"Smart Card"-based system that enables merchants to offer store-branded gift and
loyalty cards.
Forward-Looking Statements
This press release may contain forward-looking statements that are subject
to risks and uncertainties. Important factors which could cause actual
results to differ materially from those in the forward-looking statements,
include but are not limited to: the company's short operating history which
makes it difficult to predict its future results of operations; the
company's initial history of operating losses with possible future losses
which could impede its ability to address the risks and difficulties
encountered by companies in new and rapidly evolving markets; the company's
future operating results could fluctuate which may cause volatility or a
decline in the price of the company's stock; the possibility that the
company may not be able to price its services above the overall cost
causing its financial results to suffer; and other factors detailed in this
press release and in future company filings with the Securities and
Exchange Commission, at such time as the company is required to report its
results of operations under the Securities Exchange Act of 1934, as amended.
