U.S. Debt Settlement Publishes Financial Results H1 2010
(Thomson Reuters ONE) -
US Debt Settlement / U.S. Debt Settlement Publishes Financial Results H1 2010 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Profitability Reached in Q2 2010
LOS ANGELES, CA. - August 4(th), 2010 - U.S. Debt Settlement, Inc. ("USDS", or
"the Company") today announces its unaudited financial results for the first six
months of financial year 2010. Overall revenues increased by 10.9% to USD
928,461, while at the same time the company managed to keep operating costs
below last year's level and achieved profitability for Q2. Adjusted for
discontinued operations, USDS's core business revenues jumped by 122%.
Business Highlights H1 2010
* Completion of acquisitions American Debt Settlement and Fast Debt Control.
* Consolidation of acquisitions leads to significant improvement in margins.
* Product portfolio diversification will allow company to widen its market
reach.
Key Financials for the Six Months ended June 30(th), 2010
* Total Revenues reached USD 928,461, up 10.9% compared to H1 of 2009.
* Gross Profit increased by 57.2% to USD 874,578.
* Gross Margin increased from 66.5% to 94.2%.
* Total Operating Expenses fell by 2.8% to USD 1,066,273 despite increased
revenues.
* Net loss fell from USD 543,395 to USD 190,477
* Cash status: USD 40,669 as of June 30(th) 2010.
Detailed figures are provided in table form at the end of this press release.
Michael Mann, CEO of USDS, commented: "We are obviously very pleased to have
reached profitability in Q2. Visibility of our business is such that we expect
the remaining quarters to be profitable also. Although our cash position does
not seem to be overly large, our cash flow and cash flow predictions lead us to
believe that we have no need to come to the market for additional financing. If
it ever comes to pass that we do need additional capital, we have a core group
of investors who have indicated their willingness to commit."
"The relative small revenue increase for the first six months compared to last
year is mainly related to our move away from loan modification. We achieved
considerable revenues from this activity in the first nine months of last year,
but as banks proved very inconsistent in their policies regarding loan
modification, we decided to move away from that industry. Adjusted for 'loan
modification' revenues, we managed to increase our core business revenues in
debt settlement by 122% from roughly $418,000 to the reported $928,461, an
increase we think is a testament to our abilities of making the correct
strategic choices and execute upon these."
"This year to date has been one of strategy execution and transition. As
mentioned in our press release for the 2009 financials, we are following a
two-tier strategy. Firstly, we are seeking to grow through acquisitions. The two
acquisitions made earlier this year and the subsequent consolidation led to a
significant increase in both top and bottom line, which shows the validity of
this strategy."
"The second element to our strategy is diversification. We are broadening our
product portfolio to become more than only a debt settlement company and
transition into a company that can service numerous types of debt for consumers,
such as consumer credit counseling, bankruptcy, tax resolution and pay day loan
settlement. In addition to these services, we plan to launch a new product in
early August, which will strengthen our product offering towards clients and
attorneys alike. Working more closely with the latter group means we will not be
subject in this area to new proposed legislation, which calls for a reduction in
margins made on traditional debt settlement. We are very excited about this and
anticipate this to become a strong revenue driver for USDS and I look forward to
making further announcements about this soon."
"We furthermore continue to assess potential acquisition targets. Further to
this, we have entered into a Letter of Intent with one such target company and
expect to close the acquisition in August 2010. This strategic purchase will
increase our revenue and net income throughout Q3 and Q4 of 2010. It is too
early to provide numbers at this stage, but we are very confident that the
execution of our strategy will allow us to become a significant force in debt
management."
About U.S. Debt Settlement
Founded in 2003, U.S. Debt Settlement (US4.DE) provides professional debt
settlement 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
+-------------------------------+----------+----------+----------+----------+
|Unaudited Results H1 2010 | 2010 H1 | 2009 H1 | Q2 2010 | Q1 2010 |
|in US-Dollar | | | | |
+-------------------------------+----------+----------+----------+----------+
|Total Income |928,461 |836,837 |543,904 |384,557 |
+-------------------------------+----------+----------+----------+----------+
|COGS |53,882 |280,528 |16,771 |37,112 |
+-------------------------------+----------+----------+----------+----------+
|Gross profit |874,578 |556,309 |527,133 |347,445 |
+-------------------------------+----------+----------+----------+----------+
|Operating expenses | | | | |
+-------------------------------+----------+----------+----------+----------+
|Research & development |89,573 |243,244 |21,200 |45,967 |
+-------------------------------+----------+----------+----------+----------+
|Selling & marketing |42,832 |146,186 |6,448 |36,384 |
+-------------------------------+----------+----------+----------+----------+
|General & administrative |933,869 |707,792 |486,199 |470,076 |
+-------------------------------+----------+----------+----------+----------+
|Total operating expenses |1,066,273 |1,097,223 |513,846 |552,427 |
+-------------------------------+----------+----------+----------+----------+
|Operating income (loss) |-191,695 |-540,914 |13,287 |-204,982 |
+-------------------------------+----------+----------+----------+----------+
|Other income |1,331 | |1,331 |0 |
+-------------------------------+----------+----------+----------+----------+
|Other expenses |113 |2,481 |0 |113 |
+-------------------------------+----------+----------+----------+----------+
|Income (loss) before est. taxes|-190,477 |-543,395 |14,618 |-205,095 |
+-------------------------------+----------+----------+----------+----------+
|Income (loss) after est. taxes |-190,477 |-543,395 |14,618 |-205,095 |
+-------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------+----------+----------+----------+----------+
|Earnings per share |-0.01 |-0.02 |-0.01 |-0.01 |
+-------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------+----------+----------+----------+----------+
|Shares Outstanding |37,549,362|30,541,775|37,549,632|37,314,632|
+-------------------------------+----------+----------+----------+----------+
[HUG#1435726]
--- 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:
http://hugin.info/143076/R/1435726/381024.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
All reproduction for further distribution is prohibited.
Source: US Debt Settlement via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 04.08.2010 - 11:34 Uhr
Sprache: Deutsch
News-ID 38646
Anzahl Zeichen: 0
contact information:
Town:
Chatsworth
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 204 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"U.S. Debt Settlement Publishes Financial Results H1 2010"
steht unter der journalistisch-redaktionellen Verantwortung von
US Debt Settlement (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
