U.S. Debt Settlement Publishes Financial Results FY 2010
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US Debt Settlement /
U.S. Debt Settlement Publishes Financial Results FY 2010
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Grapevine, Texas - April 12, 2011 U.S. Debt Settlement, Inc. ("USDS", or "the
Company") today announces its financial results for the fiscal year ended
December 31(st), 2010 (unaudited). The Company achieved a revenue growth of 29%
to USD 1.704 million. Net loss for the period under review declined from USD
1.180 million to USD 262 thousand.
Business Highlights in 2010
* Four acquisitions completed
* Consolidation of operations in Grapevine, Texas
* Transformation of company from pure debt settlement to a full service
financial wellness company with launch in 2011 of Debt Away
Key Financials for the Year ended December 31(st), 2010
* Total Revenues reached USD 1.704 million, an increase of 29% compared to USD
1.320 million for 2009
* Gross Margin was 96.2% compared to 49.2% for 2009
* Total Operating Expenses reached USD 1.903 million, an increase of 3%
compared to USD 1.846 million for 2009
* Net loss reached USD -262 thousand, a 78% improvement compared to the USD
-1.180 million for 2009
* Net Earnings per share were at USD -0.01 basic and diluted, compared to USD
-0.03 in 2009
Management Discussion
Michael Mann, CEO for U.S. Debt Settlement, stated, "The past year has been one
of transition for both the industry and our company. The new FTC rules,
effective as of October 27, 2010, prohibits upfront fees being charged to out of
State customers by debt settlement companies for all work performed to the
consumer until a negotiated settlement is made, accepted and paid by the
customer to the the respective creditor. The new rules have reduced competition
in the industry and have created an opportunity for us. In this light, we have
been transitioning into becoming a financial wellness company that offers an
entire range of services to people in debt, irrespective of their debt
situation. Not every potential customer with a debt problem requires debt
settlement. With our comprehensive list of services, our debt consultants will
realize greater transaction closing ratios and returns on marketing budgets."
"The outcome of this transition has been the launch of Debt Away. Debt Away is a
full service platform that offers virtually every product or service to
consumers that have debt. I would invite people to visit our new site
www.debtaway.com to learn more about this."
"Debt Away is a business opportunity with a Network Marketing benefit for
individuals throughout the country that are ready to transition into a new
successful career or simply need or want to make extra money, by offering the
products and services to consumers that have debt irrespective of the consumer's
financial situation. Our goal is to have the largest army of well trained,
independent representatives in the industry, assisting consumers in debt, one by
one. Debt Away offers the following services: Do it Yourself Debt Settlement
programme, Contingency Debt Settlement, Debt Management, which reduces interest
rates and allows more of the monthly payment to go towards the principle, Tax
Resolution, Financial Life Coaching, Do it Yourself Loan Modification Program,
Do it yourself Credit Restoration Program. Additionally, we have more products
and services under development."
"Obviously, the development of such an extensive platform requires the
allocation of considerable resources. The revenue generated by the acquisitions
we made this past year has allowed us to dedicate the required resources to the
Debt Away project and it is in this light that I am pleased that despite these
regulatory developments, we have managed to post a growth in revenues and
managed to cut our losses compared to 2009. We have decided to focus entirely
on the roll out of Debt Away going forward. In order to do so, we have sold off
the majority of our client base to raise the funds required. This step has also
allowed us to rationalise our cost base, and as a result we now have a very lean
structure that is entirely geared towards supporting the roll out of Debt Away
and grow our network of debt consultants nationwide."
"This coming year, our focus will be on the marketing of Debt Away. For this we
have developed a multi level marketing strategy in which we aim to have
thousands of trained representatives throughout the country helping people in
debt. We anticipate that this model will significantly accelerate market
penetration as well as allow us to control our costs. "
"We will also apply to change the corporate name to Debt Away as we diversify
into a full service financial wellness company. This name better describes our
focus on options to the consumer as we transition away from just being a debt
settlement focused company. This was my vision when we started the company and
now, after six months of development, we are ready to roll it out."
"With USDS being listed on the Open Market segment of the Frankfurt Stock
Exchange, there is one further event to take note of. As of September 30, 2011,
in order to comply with new regulations, all companies listed require a minimum
capital of ? 500,000 or must have a full prospectus prepared. We intend to have
a capital increase in the coming months in an effort to meet the ? 500,000
requirement. We have had certain key investors and a Broker Dealer state that
they are committed in principle to fund this increase."
About U.S. Debt Settlement
Founded in 2003, U.S. Debt Settlement (US4.DE) provides professional debt
management solutions to financially troubled consumers throughout the country.
U.S. Debt Settlement specializes in helping those people faced with overwhelming
debt. The Company offers its clients a very practical and effective way to
resolve what they owe credit card companies and other sources of unsecured debt.
Contacts:
U.S. Debt Settlement
Michael Mann, CEO
4811 Merlot Avenue, Suite 110
Grapevine, Texas 76051
Telephone 1- 817 778 4740
mmann(at)usdebtsettlement.com
Note to editors: If you are interested in viewing additional information on US
Debt Settlement , please visit the US Debt Settlement Web page at
http://www.USDebtSettlement.com on US Debt Settlement's corporate information
pages. Web links, telephone numbers, addresses and titles were correct at time
of publication, but may since have changed. For additional assistance,
journalists and analysts may contact US Debt Settlement's Rapid Response Team or
other appropriate contacts listed at http://www.USDebtSettlement.com
--- End of Message ---
US Debt Settlement
21625 Prairie St, 2nd Floor Chatsworth USA
WKN: A0RFKP;ISIN: US9033201099;
Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;
Press Release as PDF:
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[HUG#1505723]
Unternehmensinformation / Kurzprofil:
Datum: 12.04.2011 - 18:20 Uhr
Sprache: Deutsch
News-ID 53440
Anzahl Zeichen: 8559
contact information:
Town:
Chatsworth
Kategorie:
Business News
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