Municipal Solutions Announces Financial Results For First Quarter 2005
Victoria, British Columbia, May 17, 2005 - Municipal Solutions Group, Inc. ("Municipal Solutions") (TSX Venture: MSZ), a provider of business process automation solutions for government, today announced the financial results for the quarter ending March 31st, 2005.
Revenue increased from Q4 2004 to $770,188 from $436,779 but fell from $1,262,162 in comparison to Q1 2004, a 39% decrease. Expenses decreased 6% over the same period in 2004 to $1,037,760 from $1,103,956. About half of the savings were due to restructuring initiated in the second half of 2004 and the balance came from reduced rent expense. The company had a loss of $267,572 ($0.01/share) before taxes for the first quarter as compared to a profit of $158,206 in the first quarter of FY2004.
Iain McLean, the new Chief Executive Officer of Municipal Solutions, commented, "The impact of the changes in product offering and focus for the company has not yet been reflected in these results. The sale to Evansville indicated that our PreBuilt product offering will find acceptance in the marketplace." Mr. McLean continued, "the company is focused on generating sales opportunities, extending our client relationship management activities and delivering product solutions and we continue to see strong sales opportunities for the balance of 2005."
Operational Highlights
Municipal Software announced a new product line in February with the introduction of CityView PreBuilts. These are 'out of the box' software solutions that offer all the forms, reports and automation necessary to manage Property Information, Permits and Inspections, Planning, Code Enforcement, Business Licensing and Cashiering in local government. These solutions are built on the unique CityView Application Builder, a tool that allows CityView clients to change CityView PreBuilts as their organizational needs evolve and/or create their own unique CityView applications.
The City of Evansville announced that they have selected CityView PreBuilt solutions to meet the city's immediate need to automate a range of business processes and offer the best possible service to citizens.
The City of Huntington Beach went live with their new CityView system which included five new software applications, Building, Permitting and Inspections, Planning, Business Licensing, Code Enforcement and Cashiering.
During the quarter the company secured new financing totaling just over $1.4 million and appointed Iain McLean as Chief Executive Office on January 11th.
A summary of the Quarterly consolidated Municipal Solutions income statement follows, along with a comparison to the previous eight most recently completed quarters.
|
Q1 2005 |
Q4 2004 |
Q3 2004 |
Q2 2004 |
|
| Total Revenues |
$770,188 |
$436,779 |
$995,200 |
$881,888 |
| Net Income (Loss) |
$(267,572) |
$(786,571) |
$(60,215) |
$(139,490) |
| Net Income (Loss) per share |
$(0.01) |
$(0.03) |
$0.00 |
$(0.01) |
|
Q1 2004 |
Q4 2003 |
Q3 2003 |
Q2 2003 |
|
| Total Revenues |
$1,262,162 |
$1,185,960 |
$1,537,388 |
$1,080,953 |
| Net Income (Loss) |
$154,056 |
$(419,156) |
$76,778 |
$(288,620) |
| Net Income (Loss) per share |
$0.01 |
$(0.01) |
$0.00 |
$(0.01) |
