TIDMBILL
RNS Number : 5881Y
Billing Services Group Limited
10 September 2015
For Immediate Release
Billing Services Group Limited
("BSG" or the "Company")
Unaudited interim results for the six months ended June 30,
2015
PROFITABLE FIRST HALF DRIVES FURTHER DEBT REDUCTION
(September 10, 2015) London, England and San Antonio, Texas --
BSG, a leading provider of clearing and financial settlement
products, Wi-Fi data solutions and verification services, today
announces its unaudited interim results for the six months ended
June 30, 2015.
Financial Highlights
(All amounts in US$)
Six Months Ended June 30
2015 2014
----------------- ---------------
Revenue $ 18.8 million $ 22.1 million
EBITDA (1) $ 3.3 million $ 4.7 million
Net income $ 6.0 million $ 2.0 million
Net income per $ 0.02 per share $ 0.01 per
basic and diluted share share
Debt at end of period $ 1.5 million $ 11.1 million
(1) EBITDA (a non-GAAP measure) is computed as earnings before
interest, income taxes, depreciation, amortization and other
non-cash and non-recurring items
-- Improved gross margin by 2.4 percentage points (49.2% vs.
46.8% in the first six months of 2014).
-- Generated $3.6 million of cash flow from operating activities
($0.8 million in first six months of 2014).
-- Repaid $4.8 million of outstanding debt, for a period-end
balance of $1.5 million (December 31, 2014: $6.3 million).
Operational Highlights
-- Delivered branded versions of our extended hotspot finder and
connection product suite to channel partner Deutsche Telekom, as a
key component of their recently launched 'Business Wi-Fi' product
line.
-- Extended penetration of the North American Multiple System
Operator ('MSO') market by deploying the latest release of our
hotspot finder product for iOS and Android at four tier 1 cable
MSOs in North America.
-- Delivered our new Analytics product to our first customer, a
Tier 1 operator, in conjunction with technology partner Tutela
Technologies.
-- Deployed a white label reporting portal for the largest
telecommunications provider in the UK. This solution allows us to
sell the same white label capabilities to other customers.
Current Trading
-- Trading for the six months ended June 30, 2015 was in line
with the Board's expectations and consistent with the recent
trading conditions experienced by the Company.
-- The Company expects that revenues in the second half of 2015
will continue to be affected by the secular decline in billable
long distance and operator service calls initiated on landline
phones, partially offset by revenue gains from services to the
wireless market.
-- For the year ending December 31, 2015, the Company confirms
its prior guidance and expects revenues to be within a range of
$37.0 million to $39.0 million, and EBITDA to be within a range of
$6.5 million to $7.0 million, with current trends toward the lower
end of each range.
Commenting on the results, Norman M. Phipps, Chief Executive
Officer, said:
"The first half earnings were in line with expectations. Overall
revenues declined, but we succeeded in generating additional
revenues from higher-margin services for the wireless market. A
strong cash flow from operations has positioned us to fully
amortize our term loan by September 30, 2015."
INQUIRIES:
Billing Services Group Limited +1 210 949 7000
Norman M. Phipps
finnCap Limited +44 (0) 20 7220 0500
Stuart Andrews/Scott Mathieson
BSG Media Relations +1 210 326 8992
Leslie Komet Ausburn
About BSG:
BSG has locations in San Antonio, Texas, USA and London, United
Kingdom. The Company's shares are traded on the London Stock
Exchange (AIM: BILL). For more information on BSG, visit
(www.bsgclearing.com).
Chief Executive's Statement
The first half earnings were in line with expectations. Overall
revenues declined, but we succeeded in generating additional
revenues from higher-margin services for the wireless market. A
strong cash flow from operations has positioned us to make our
final term loan payment on September 30, 2015.
Transition to Wireless Markets
As long-term shareholders know, our historical clearing and
settlement business for landline phone transactions has been in
decline over the past several years. As wireless communications
rapidly displace landline calls, BSG's transaction volumes
declined. The regulatory environment concurrently turned negative,
abruptly eliminating a significant portion of the revenue base.
In response to these conditions, we modified our business plan.
We began our transition from a niche service provider for the U.S.
landline sector to an international service provider for landline
and wireless applications. In 2012, we acquired a UK company which
offers Wi-Fi solutions for providers and users of mobile data
services. We will continue to pursue similar opportunities to offer
complementary services which leverage our skills and technology
platform.
Our strategy is working. Its effects may not be easily
discernible, because the vast majority of our revenues continue to
arise from landline transactions. Nonetheless, revenue from
wireless transactions has grown and has partially offset the
decline in revenue from landline-related services. The services
provided to wireless markets have widened profit margins and
established our credibility as a trusted service provider in an
attractive worldwide market.
Class Action Litigation
We continue to make progress in the class action litigation
against two of the largest LECs which provide billing and
collection services for our customers' transactions. The class
action allegations triggered indemnification obligations from BSG
to the LECs under our contracts with them. At the same time, our
customers have related indemnification obligations to us under our
contracts with them. In 2012, we recorded a $12.0 million charge as
an initial step towards assessing the Company's estimated
indemnification liability. With three years of additional
visibility and confirmed payments of a portion of both end user
claims and class action expenses, we have begun charging both
former and current clients for their respective shares of direct
end user refunds and allocable class action expenses. For the six
months ended June 30, 2015, this process of charging client
accounts, coupled with write-offs of certain balances owed by
former clients, resulted in the recognition of a net $5.0 million
of non-recurring, non-cash other income.
Debt Repayment
We are days away from being a debt free company. On September
30, 2015, we will make our final payment on debt borrowed in 2011.
When that occurs, we will have greater freedom in allocating cash
flow to alternate uses under our business plan. We will continue to
operate with a prudent, yet opportunistic, mindset.
Current Trading and Prospects
The long-recognized secular decline in landline phone usage will
continue to restrain revenue and earnings. We are endeavouring to
mitigate the decline through a larger presence in the wireless
market.
For the year ending December 31, 2015, the Company confirms its
prior guidance and expects revenues to be within a range of $37.0
million to $39.0 million, and EBITDA to be within a range of $6.5
million to $7.0 million, with current trends toward the lower end
of each range.
As previously announced, we have been managing litigation with
the Federal Trade Commission. Further updates will be made as
additional information becomes available.
Norman M. Phipps
Chief Executive Officer
FINANCIAL REVIEW
Financial Review of the Six Months Ended June 30, 2015
The Company's unaudited results for the six months ended June
30, 2015 are compared to the corresponding period of 2014 in the
accompanying financial statements. BSG's consolidated financial
statements are prepared in conformity with United States generally
accepted accounting principles ("GAAP") for interim financial
information.
Certain Terms
Revenues. Revenues are derived primarily from fees charged to
wireline and wireless service providers for data clearing,
financial settlement, information management, payment and financial
risk management, third-party verification and customer service
functions.
Cost of Services and Gross Profit. Cost of services arises
primarily in the Company's clearinghouse business. Cost of services
in the clearinghouse business includes fees charged by local
exchange carriers ("LECs") for billing and collection services.
Such fees are assessed for each record submitted and for each bill
rendered to end-user customers. BSG charges its customers a
negotiated fee for LEC services. Accordingly, gross profit is
largely dependent upon transaction volume, nature of services
rendered, processing fees charged per transaction and any
differential between the LEC fees charged to customers by BSG and
the related fees charged to BSG by LECs.
Cash Operating Expenses. Cash operating expenses include all
selling, marketing, customer service, facilities and administrative
costs (including payroll and related expenses) incurred in support
of operations and settled through the payment of cash.
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Depreciation and Amortization. Depreciation expense applies to
software, furniture and fixtures, telecommunications and computer
equipment. Amortization expense relates to definite-lived
intangible assets that are amortized in accordance with Accounting
Standards Codification ("ASC") 350, Intangibles - Goodwill and
Other. These assets consist of contracts with customers and LECs.
Assets are depreciated or amortized, as applicable, over their
respective useful lives. Deferred finance fees are amortized over
the term of the related loans.
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA"). Earnings before interest, income taxes, depreciation
and amortization, a non-GAAP metric, is a measurement of
profitability often used by investors and lenders. The computation
of EBITDA also excludes other non-cash and non-recurring items as
additions or deductions to earnings.
Third-Party Payables. Third-party payables include amounts owed
to customers in the ordinary course of clearinghouse activities and
additional amounts maintained as reserves for retrospective charges
from LECs. In its clearinghouse business, the Company aggregates
call records submitted by its customers and submits them to LECs
for billing to end-user customers. The Company collects funds from
LECs each day and, approximately ten days later, distributes to
customers the collected cash, net of withholdings, under weekly
settlement protocols. The Company withholds a portion of the funds
received from the LECs to pay billing and collection fees of
certain LECs, to pay the Company's processing fees and to serve as
a reserve against retrospective charges from LECs. Depending upon
the timing of receipts, weekly settlements and reserve releases,
both cash and third-party payables can fluctuate materially from
day-to-day.
When LECs make payments to the Company, they withhold funds to
cover a variety of expenses and potential retrospective charges. As
noted above, the Company similarly withholds funds from its clients
to cover expenses and retrospective charges. The third-party
payable balance is computed as the net excess of funds owed to
clients (recorded as a liability) over reserves withheld by LECs
(recorded as an asset).
Comparison of Results for the Six Months Ended June 30, 2015 to
the Six Months ended June 30, 2014
Total Revenues. Total revenues of $18.8 million during the first
half of 2015 were $3.3 million, or 15%, lower than the $22.1
million of revenues recorded during the first half of 2014. The
$3.3 million decrease reflects lower transaction volumes across all
clearing, settlement and customer service activities provided for
landline service providers, partially offset by higher fees earned
for services to wireless communication providers.
Cost of Services and Gross Profit. Cost of services in the first
half of 2015 was $9.5 million, compared to $11.8 million during the
first half of 2014. The $2.3 million, or 19%, decrease in cost of
services is largely attributable to lower LEC fees for billing and
collection services associated with a reduced volume of
transactions. The Company generated $9.3 million of gross profit in
the first half of 2015 compared to $10.4 million in the same period
of 2014. The gross margin of 49.2% in the first half of 2015 was
2.4 percentage points higher than the 46.8% margin achieved in the
first half of 2014. The improved gross margin in 2015 resulted from
a favorable mix of services provided within the landline business
and a larger percentage of revenue from the wireless business,
which operates at a higher gross margin level than the landline
business.
Cash Operating Expenses. Cash operating expenses were $6.0
million in the first half of 2015, compared to $5.7 million in the
first half of 2014. The $0.3 million, or 5%, increase largely
reflects higher compensation costs in the expanding wireless
business.
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA"). The Company generated $3.3 million of EBITDA during the
first half of 2015, compared to $4.7 million during the first half
of 2014. A reconciliation of net income and EBITDA in each period
is shown below:
Six Months Ended June
30,
---------------------------------- ------------------------------
$ millions 2015 2014
---------------------------------- ------------- --- ----------
Net income $ 6.0 $ 2.0
Depreciation expense 1.0 1.3
Amortization of intangibles 0.3 0.4
Stock-based compensation expense 0.1 -
Interest expense 0.2 0.4
Interest income (0.1) (0.2)
Non-recurring other income,
net (4.9) -
Income tax expense 0.9 1.3
All other income, net (0.2) (0.5)
EBITDA $ 3.3 $ 4.7
Depreciation and Amortization Expense. Depreciation and
amortization expenses during the first half of 2015 were $1.3
million, compared to $1.7 million in the same period of 2014. The
$0.4 million decline largely reflects cessation of depreciation and
amortization charges on several categories of capitalized software
development costs and intangible assets for which accumulated
depreciation and amortization reserves reached the assets'
respective gross carrying values during 2014.
Stock-based Compensation Expense. The Company incurred $0.1
million or less of stock-based compensation expense during the
first halves of 2015 and 2014. Stock-based compensation expense,
all of which is non-cash, was not included as a deduction to
earnings for purposes of calculating EBITDA.
Interest Expense. Interest expense was $0.2 million during the
first half of 2015, compared to $0.4 million in the first half of
2014. The reduced expense in 2015 largely resulted from a reduced
level of outstanding debt in 2015. During the first half of 2015,
the weighted average debt outstanding was $5.0 million, compared to
$14.6 million in the first half of 2014.
Other Income and Expense. During the first half of 2015, the
Company recognized $5.1 million of net other income. The $5.1
million of net other income in the period was largely attributable
to a net of $4.9 million of non-recurring other income resulting
from indemnification charges to both our former and current clients
for their respective shares of direct end-user refunds and
allocable class action expenses under litigation pending against
two LECs, coupled with write-offs of certain balances owed by
former clients. In the first half of 2014, the Company recognized
$0.5 million of other income, largely attributable to income
arising from the favorable settlement of customers' accounts
payable balances.
Other income or expense arises from miscellaneous items
typically of a non-recurring nature. Accordingly, other income and
expense items were not included as earnings or as a deduction to
earnings for purposes of computing EBITDA.
Change in Cash. BSG's cash balance at June 30, 2015 was $8.2
million, compared to $9.0 million at December 31, 2014. The $0.8
million decrease during the first six months of 2015 is largely
attributable to $4.8 million of principal payments on long-term
debt and $0.9 million of capital expenditures, offset by $3.6
million of cash provided by operations and $1.6 million of
transfers from restricted cash.
Change in Restricted Cash. In the ordinary course of business,
LECs withhold funds from their payments to the Company in order to
create a reserve securing potential future obligations of the
Company to the LEC. Through December 31, 2014, pursuant to a 2012
agreement with one LEC, the LEC released a net $14.3 million of
cash reserves. The cash was transferred into a restricted Company
bank account to be used solely for funding the Company's
indemnification obligation under pending class action litigation
against the LEC. During the first half of 2015, the Company
released $1.6 million from the restricted cash account to satisfy
indemnification obligations. The resulting $12.7 million of
restricted cash at June 30, 2015, combined with $12.0 million of
cumulative indemnification credits which arose during 2012 under
this agreement and a separate agreement with another LEC, resulted
in a total of $24.7 million of liquid resources available at June
30, 2015 to satisfy the Company's indemnification obligations
associated with class action litigation.
Change in Third-Party Payables. Third-party payables at June 30,
2015, inclusive of long-term liabilities, were $16.1 million,
compared to $19.8 million at December 31, 2014. The $3.7 million
decline reflected a $3.9 million reduction related to adjustments
to class action liability reserves, offset by a $0.1 million
increase related to an increase in purchased receivables and a $0.1
million increase arising from ordinary course settlement
activities.
When the Company purchases receivables from a customer, the
Company typically advances approximately 50% of the gross
receivable amount to the customer. The remaining 50% is classified
as a third-party payable until the Company completes settlement
activities related to the purchased receivable. During the first
half of 2015, the Company increased purchased receivables by $0.3
million, which resulted in a $0.1 million increase in third-party
payables.
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Change in Accrued Liabilities. Accrued liabilities at June 30,
2015 were $24.5 million compared to $26.3 million at December 31,
2014. The $1.8 million decrease in accrued liabilities resulted
largely from $1.6 million of payments for indemnification
liabilities to LECs under pending class action litigation (see
"Change in Restricted Cash" above) and a $0.6 million reduction
related to adjustments to indemnification reserves under class
action litigation, offset by a $0.4 million increase in reserves
for other accrued liabilities in the ordinary course of business.
It is anticipated that at least $12.7 million of accrued
liabilities will be paid from restricted cash.
Capital Expenditures. During the first half of 2015, the Company
invested $0.9 million in capital expenditures, primarily for
capitalized software development costs. During the first half of
2014, capital expenditures were $0.6 million.
Cash Flows for the Six Months Ended June 30, 2015
Cash flow from operating activities. Net cash provided by
operating activities was $3.6 million during the first half of
2015. Net cash provided was principally attributable to $6.0
million of net income, $1.3 million of depreciation and
amortization, a $1.0 million increase in the provision for deferred
taxes, a $0.7 million decrease in accounts receivable and a $0.6
million decrease in income taxes receivable, offset by a $3.7
million reduction in third-party payables and a $1.9 million
reduction in accrued and other liabilities.
Cash flow from investing activities. Net cash used in investing
activities was $1.2 million, reflecting $0.9 million of capital
expenditures and $0.3 million of net advances on purchased
receivables.
Cash flow from financing activities. Net cash used in financing
activities was $3.2 million, resulting from $4.8 million of
principal payments on long-term debt, offset by $1.6 million of
transfers from restricted cash.
*******************************
A copy of this statement is available on the Company's website
(www.bsgclearing.com) and copies are available from BSG's Nominated
Advisor at the address below:
Billing Services Group Limited
c/o finnCap Limited
60 New Broad Street
London EC2M 1JJ
United Kingdom
Forward Looking Statements
This report contains certain "forward--looking" statements and
information relating to the plans, objectives, expectations and
intentions of the Company that are based on the beliefs of the
Company's management as well as assumptions made by and information
currently available to the Company's management. When used in this
report, the words "anticipate," "believe," "estimate," "expect,"
"intend," "projects," "could," "should," "will" and words or
phrases of similar meaning, are intended to identify
forward--looking statements. Forward-looking statements reflect the
Company's current views with respect to future events and financial
performance. Such statements, including certain information set
forth herein under "Financial Review" that is not historical fact
or statement of current condition, reflect management's assessment
of the current risks, uncertainties and assumptions related to
certain factors, including, without limitation, the competitive
environment, general economic conditions, customer relations,
relationships with local exchange carriers and other vendors,
availability of credit, borrowing terms, interest rates, foreign
exchange rates, litigation, governmental regulation and
supervision, capital expenditures, product development, product
acceptance, technological change and disruption, changes in
industry practices, one-time events and other factors described
herein. Based upon changing conditions or circumstances arising
from any one or more of these risks or uncertainties, or should any
underlying assumptions prove incorrect, actual results may vary
materially from historical or anticipated results as described
herein.
Readers are cautioned not to place undue reliance on
forward-looking statements. The Company does not intend to update
or revise these forward--looking statements, whether as a result of
new information, future events or otherwise.
Billing Services Group Limited
Consolidated Balance Sheets
(In thousands, except shares)
June 30, December 31, June 30, 2014
2015 2014
----------- ------------ ---------------
(Unaudited) (Audited) (Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 8,225 $ 9,037 $ 10,893
Restricted cash 12,730 14,299 14,506
Accounts receivable 6,389 7,049 7,421
Purchased receivables 2,680 2,426 2,942
Income tax receivable 442 994 -
Prepaid expenses and other current assets 581 286 753
Deferred taxes - current 1,728 904 1,623
----------- ------------ ---------------
Total current assets 32,775 34,995 38,138
Property, equipment and software 47,464 46,536 46,336
Less accumulated depreciation and amortization 42,493 41,510 40,491
----------- ------------ ---------------
Net property, equipment and software 4,971 5,026 5,845
Deferred finance costs, net of accumulated
amortization of $347, $337 and $317
at June 30, 2015, December 31, 2014
and June 30, 2014, respectively 1 10 31
Intangible assets, net of accumulated
amortization of $74,436, $74,083 and
$73,787 at June 30, 2015, December 31,
2014 and June 30, 2014, respectively 7,871 8,174 8,492
Goodwill 25,280 25,281 25,283
Other assets 165 165 184
----------- ------------ ---------------
Total assets $71,063 $ 73,651 $77,973
=========== ============ ===============
Continued on following page
Billing Services Group Limited
Consolidated Balance Sheets (continued)
(In thousands, except shares)
June 30,
June 30, December 31,
2015 2014 2014
----------- ------------ -----------
(Unaudited) (Audited) (Unaudited)
Liabilities and shareholders' equity
Current liabilities:
Trade accounts payable $ 2,374 $ 2,442 $ 4,364
Third-party payables 15,980 19,450 17,985
Accrued liabilities 24,450 26,344 24,127
Income tax payable - - 16
Current portion of long-term debt 1,481 6,281 9,600
Total current liabilities 44,285 54,517 56,092
Long-term debt, net of current portion - - 1,481
Deferred taxes - noncurrent 2,292 461 1,382
Other liabilities 81 324 329
Total liabilities 46,658 55,302 59,284
Commitments and contingencies
Shareholders' equity:
Common stock, $0.59446 par value; 350,000,000
shares authorized; 282,415,748 shares
outstanding 167,771 167,771 167,771
Additional paid-in capital (deficit) (175,524) (175,576) (175,618)
Retained earnings 32,143 26,190 26,112
Accumulated other comprehensive income
(loss) 15 (36) 424
Total shareholders' equity 24,405 18,349 18,689
Total liabilities and shareholders' equity $ 71,063 $ 73,651 $ 77,973
=========== ============ ===========
See accompanying notes.
Billing Services Group Limited
Consolidated Statements of Operations
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(In thousands, except per share amounts)
Six Months Ended June 30,
2015 2014
---------------- -----------
(Unaudited) (Unaudited)
Operating revenues $ 18,793 $ 22,128
Cost of services 9,538 11,769
---------------- -----------
Gross profit 9,255 10,359
Selling, general, and administrative
expenses 5,972 5,675
EBITDA 3,283 4,684
Depreciation and amortization expense 1,301 1,730
Non-recurring expense - 8
Stock-based compensation expense 53 36
Operating income 1,929 2,910
Other income (expense):
Interest expense (171) (406)
Interest income 139 209
Other income, net 4,927 560
---------------- -----------
Total other income, net 4,895 363
---------------- -----------
Income from operations before income
taxes 6,824 3,273
Income tax expense (871) (1,267)
---------------- -----------
Net income 5,953 2,006
Other comprehensive income 51 154
---------------- -----------
Comprehensive income $ 6,004 $ 2,160
================ ===========
Net income per basic and diluted share:
Basic net income per share $ 0.02 $ 0.01
================ ===========
Diluted net income per share $ 0.02 $ 0.01
================ ===========
Weighted average shares outstanding 282,416 282,416
================ ===========
See accompanying notes.
Billing Services Group Limited
Consolidated Statements of Cash Flows
(In thousands)
Six Months Ended June 30,
2015 2014
-------------------------- -------------------
(Unaudited) (Unaudited)
Operating activities
Net income $ 5,953 $ 2,006
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation 968 1,271
Amortization of intangibles 324 408
Amortization of deferred finance costs and
other assets 9 50
Stock-based compensation expense 53 36
Changes in operating assets and liabilities:
Decrease in accounts receivable 659 479
Decrease in income taxes receivable 553 -
Increase in other current assets and other
assets (296) (340)
Decrease in trade accounts payable (67) (459)
Decrease in third-party payables (3,713) (254)
Decrease in accrued and other liabilities (1,895) (3,102)
Provision for deferred taxes 1,006 732
Net cash provided by operating activities 3,554 827
Investing activities
Purchases of property, equipment and software (912) (628)
Net (advances) receipts on purchased receivables (254) 897
Proceeds from disposal of assets - 159
Translation adjustment in intangible assets (21) (87)
-------------------------- -------------------
Net cash (used in) provided by investing
activities (1,187) 341
Financing activities
Payments on long-term debt (4,800) (4,897)
Restricted cash 1,570 1,753
Net cash used in financing activities (3,230) (3,144)
Effect of exchange rate changes on cash 51 154
-------------------------- -------------------
Net decrease in cash and cash equivalents (812) (1,822)
Cash and cash equivalents at beginning of
period 9,037 12,715
-------------------------- -------------------
Cash and cash equivalents at June 30 $ 8,225 $ 10,893
========================== ===================
See accompanying notes.
BILLING SERVICES GROUP LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial
statements of Billing Services Group Limited ("BSG" or the
"Company") have been prepared in accordance with United States
generally accepted accounting principles for interim financial
information. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. Management uses
estimates and assumptions in preparing financial statements in
accordance with generally accepted accounting principles. Those
estimates and assumptions affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities,
and the reported amounts of revenues and expenses. Actual results
could vary from the estimates that were used.
NOTE 2 NET INCOME PER COMMON SHARE
Basic and diluted net income per share are computed by dividing
net income by the weighted average number of shares of common stock
outstanding during the relevant periods.
Diluted net income per share includes the effect of all dilutive
options exercisable into common stock, unless the effect of such
inclusion would be anti-dilutive.
NOTE 3 LONG-TERM DEBT
In June 2015, the Company amended its 2011 credit facility which
was otherwise scheduled to mature on June 30, 2015. At June 30,
2015, the outstanding balance owed under the facility was $1.5
million. The amended credit facility provides for the loan balance
at June 30, 2015 to be retired through three equal principal
payments of $0.5 million during July 2015, August 2015 and
September 2015. Prepayments are permitted without premium or
penalty.
Outstanding loans at June 30, 2015, December 31, 2014 and June
30, 2014 were $1.5 million, $6.3 million and $11.1 million,
respectively.
The Company's credit facility includes covenants requiring the
Company to maintain certain minimum levels of debt service coverage
and maximum levels of leverage and capital expenditures. The
agreement also includes various representations, restrictions and
other terms and conditions that are usual and customary in
agreements of this nature. The Company was in compliance with all
terms of the credit facility during the first half of 2015.
BILLING SERVICES GROUP LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(UNAUDITED)
NOTE 4 COMMITMENTS AND CONTINGENCIES
The Company is involved in various claims, legal actions and
regulatory proceedings arising in the ordinary course of business.
The Company believes it is unlikely that the final outcome of any
of the claims or proceedings to which the Company is a party will
have a material adverse effect on the Company's financial position.
Due to the inherent uncertainty of litigation and regulatory
proceedings, however, there can be no assurance that the resolution
of any particular claim or proceeding would not have a material
adverse effect on the Company's results of operations for the
fiscal period in which such resolution occurred.
The Company's subsidiary's federal tax returns for 2013 and 2014
remain subject to examination by the federal tax authority. Most
state tax returns for the 2011 through 2014 tax years remain open
for examination by the relevant tax authorities.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BSGDCUXGBGUC
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Billing Service (LSE:BIS)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
