Analytical Surveys Reports Third Quarter Results
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Analytical Surveys Reports Third Quarter Results

SAN ANTONIO, Aug. 14 /PRNewswire-FirstCall/ -- Analytical Surveys, Inc. (ASI) (NASDAQ: ANLT), a provider of utility-industry data collection, creation and management services for the geographic information systems (GIS) markets, and an emerging participant in the oil and gas industry, today announced financial results for its third fiscal quarter and nine months ended June 30, 2006.

Revenue totaled $1.0 million in the quarter ended June 30, 2006, as compared with $1.4 million in the comparable 2005 quarter. The Company reduced its net loss from operations to $42,000 in the fiscal 2006 quarter, compared with $783,000 in the same quarter last year. Net loss available to common shareholders totaled $82,000, or $0.02 per diluted share, compared with $795,000, or $0.28 per diluted share, in the fiscal 2005 quarter.

Through nine months, revenue totaled $3.8 million as compared with $4.9 million in the comparable period in fiscal 2005. Net loss from operations was reduced to $77,000 as compared with $1.859 million in the comparable period last year. Net loss available to common shareholders was $144,000, or $0.04 per diluted share, compared with a net loss available to common shareholders of $1.964 million, or $0.76 per diluted share, in the comparable period in fiscal 2005.

The reduced net loss for the third quarter and nine-month period was principally due to lower salaries, wages, benefits and subcontractor costs, which were proportionately lower than the decline in revenue. Management attributed the decline in revenue to a lower number of active contracts versus last year, and a lower level of new contract signings in recent fiscal years. The Company ended the third quarter with an order backlog of $1.9 million versus $4.0 million at the end of fiscal 2005.

Lori Jones, chief executive officer, said, "In conjunction with our transition into the oil and gas sector, we have successfully curbed the significant operating losses generated by our traditional GIS data conversion business. We anticipate that our investments in oil and natural gas properties will begin generating revenue in fiscal 2007. Our objective is to provide returns to our shareholders from these and additional investments that are well above those we could generate in our GIS business."

Analytical Surveys Inc. (ASI) (NASDAQ: ANLT), which has historically provided utility-industry data collection, creation and management services for the geographic information systems (GIS) markets, has recently transitioned its focus toward the development of oil and gas opportunities. ASI's Energy Division is focused on expansion into high-quality exploratory and developmental drilling opportunities and purchases of proven reserves with upside potential attributable to behind-pipe reserves, infill drilling, deeper reservoirs and field extension opportunities. ASI is headquartered in San Antonio, Texas. For more information, visit www.anlt.com and www.asienergy.com.

This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding the Company's strategy, future sales, future expenses and future liquidity and capital resources. All forward-looking statements in this press release are based upon information available to the Company on the date of this press release, and the Company assumes no obligation to update any such forward-looking statements. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in Item 1. Business -- "risk factors" and elsewhere in the Company's Annual Report on Form 10-KSB.



                           ANALYTICAL SURVEYS, INC.
                         CONSOLIDATED BALANCE SHEETS
                                (In thousands)

                                                      June 30,   September 30,
                       Assets                           2006         2005
   Current assets:                                  (Unaudited)
        Cash and cash equivalents                       $810         $622
          Accounts receivable, net of allowance
           for doubtful accounts of $50 at
           June 30, 2006 and September 30, 2005        1,572        1,529
          Revenue earned in excess of billings           622        1,612
          Prepaid expenses and other                     208           81
              Total current assets                     3,212        3,844

    Oil and natural gas properties and equipment       2,026           --
    Equipment and leasehold improvements, at cost:
        Equipment                                      3,920        3,979
        Furniture and fixtures                           363          363
        Leasehold improvements                            75           75
                                                       4,358        4,417
        Less accumulated depreciation and
         amortization                                 (4,232)      (4,249)
              Net equipment and leasehold
               improvements                              126          168
    Other non-current assets                             125           --
              Total assets                            $5,489       $4,012

             Liabilities and Stockholders' Equity
    Current liabilities:
        Current portion of long-term debt and capital
         lease obligations                               $21          $17
        Billings in excess of revenue earned             218          425
        Accounts payable                                 118          289
        Interest payable                                  23           --
        Accrued liabilities                               64          688
        Accrued payroll and related benefits             320          687
              Total current liabilities                  764        2,106
    Long-term debt:
        Capital lease obligations, less
         current portion                                  23           30
        Senior secured note payable, net of discount   1,923           --
        Redeemable preferred stock, no par value;
         authorized 2,500 shares; 166 shares issued
         and outstanding at September 30, 2005
         (liquidation value $266)                         --          247
              Total long-term liabilities              1,946          277
              Total liabilities                        2,710        2,383

    Commitments and contingencies                         --           --

    Stockholders' equity:
        Convertible preferred stock, no par value:
         authorized 2,500 shares, 280 and 0 shares
         issued and outstanding at June 30, 2006 and
         September 30, 2005, respectively                261           --
        Common stock, no par value; authorized
         100,000 shares, 3,779 and 2,869 shares
         issued and outstanding at June 30, 2006,
         and September 30, 2005, respectively         36,345       35,312
        Accumulated deficit                          (33,827)     (33,683)
              Total stockholders' equity               2,779        1,629
              Total liabilities and stockholders'
               equity                                 $5,489       $4,012



                           ANALYTICAL SURVEYS, INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In thousands, except per share amounts)
                                 (Unaudited)

                                Three Months Ended         Nine Months Ended
                                      June 30                   June 30
                                 2006         2005         2006         2005

    Revenues                    $1,049       $1,363       $3,792       $4,935

    Costs and expenses:
        Salaries, wages and
         benefits                  748        1,206        2,405        4,054
        Subcontractor costs         43          395          457        1,206
        General and
         administrative            285          506          955        1,325
        Depreciation and
         amortization               15           39           52          142
        Severance and related
         costs                      --           --           --           67
        Total operating costs    1,091        2,146        3,869        6,794
            Loss from operations   (42)        (783)         (77)      (1,859)
    Other income (expense):
        Interest expense, net      (23)         (12)         (78)         (64)
        Gain on extinguishment
         of debt                    --           --           61           --
        Other income (expense),
         net                       (11)          --           (7)         (41)
        Total other income
         (expense)                 (34)         (12)         (24)        (105)
        Loss before income taxes   (76)        (795)        (101)      (1,964)
        Provision for income
         taxes                      --           --           --           --
            Net loss               (76)        (795)        (101)      (1,964)
    Deemed dividend associated
     with beneficial conversion
     feature of preferred stock     --           --          (30)          --
    Dividends on preferred
     stock                          (6)          --          (13)          --
            Net loss available
             to common
             stockholders         $(82)       $(795)       $(144)    $ (1,964)

    Basic net loss per common
      share                     $(0.02)      $(0.28)      $(0.03)      $(0.76)
    Preferred stock dividends       --           --        (0.01)          --
    Basic net loss per common
     share available to common
     stockholders               $(0.02)      $(0.28)      $(0.04)      $(0.76)

    Diluted net loss per
     common share               $(0.02)      $(0.28)      $(0.03)      $(0.76)
    Preferred stock dividends       --           --        (0.01)          --
    Diluted net loss per common
     share available to common
     stockholders               $(0.02)      $(0.28)      $(0.04)      $(0.76)

    Weighted average common
     shares:
        Basic                    3,724        2,869        3,250        2,568
        Diluted                  3,724        2,869        3,250        2,568

Web site: http://www.anlt.com/
http://www.asienergy.com/