CAMARILLO, CA--(MARKET WIRE)--Nov 16, 2007 -- International Card Establishment, Inc.
(I.C.E.) (OTC BB:ICRD.OB - News) today announced its third quarter
and nine month results for the period ended September 30, 2007. For the quarter ended
September 30, 2007, the company generated net revenue of $2,162,336 as compared to net revenues of $2,827,008 for the quarter ended
September 30, 2006. For the quarter ended September 30, 2007, the company reported a net
loss of ($623,317) ($0.02 per share) versus net income of $29,278 ($0.00
per share) for the quarter ended September 30, 2006. The company had positive EBITDAS (Earnings Before Interest, Taxes, Depreciation,
Amortization, and Share-based Compensation Expense) of $142,959 for the quarter ended September 30, 2007.
For the nine months ended September 30, 2007, the company
reported net revenues of $ 6,929,718 versus $7,683,082 in net revenues for the
comparable period a year ago. For the first nine months of 2007, the
company reported a loss of ($1,122,991) ($0.03 per share) versus a loss
of ($3,584,188) ($0.12 per share) for the nine month period ended
September 30, 2006. The company had positive EBITDAS for the nine months
ended September 30, 2007 of $1,140,995.
Net revenues fell by 10% from $7,683,082 for the nine months
ended September 30, 2006 to $6,929,718 compared to the nine months
ended September 30, 2007 primarily because of tighter controls
on new accounts, elimination of high risk accounts, and attrition of the
Merchant portfolio. There was a corresponding $728,717 decrease in the cost
of revenues from $5,243,888 for the nine months ended September 30, 2006
to $4,515,171 for the nine months ended September 30, 2007.
Operating, general, and administrative costs decreased by
$1,974,978 from $5,406,793 for the nine months ended September 30, 2006
to $3,431,815 during the nine months ended September 30, 2007 primarily
because of cost reductions of $500,778 in payroll expenses, $800,816 in
compensation expense for stock option awards, $368,277 in bad debts expense,
$118,830 in consulting fees, and $218,632 in office expenses relating
to the consolidation of operations from the Irvine, California
office to corporate headquarters in Camarillo, California.
"Our business model for bank card operations is predicated
on attracting and retaining high-quality, low-risk merchant accounts,"
said William Lopshire, CEO, I.C.E. "We will not chase high-risk merchants
and have tightened our underwriting criteria resulting in lower revenues
than in the historical period. However, we are comfortable in the knowledge
that we have a quality merchant portfolio for bank card processing
that is less prone to generate write-offs in future periods."
Mr. Lopshire went on to add, "The continued development
of our Gift and Loyalty operations together with recent strategic initiatives
that we have entered into with the National Association of Professional
Allstate Agents NAPAA, e-Chx and CPAmerica, and the planned launch of our
Community Card program are the means by which we expect to grow revenues
and attain sustainable profitability in 2008. "
About I.C.E. (http://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 rewards
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.
