DATATRAK International, Inc. Reports Fourth Quarter And Full Year Results Of 2014
CLEVELAND, March 11, 2015 /PRNewswire/ -- DATATRAK International, Inc. (OTCQX: DTRK), a leader in cloud-based, unified eClinical® technologies and related services for the clinical trials industry, today announced its operating results for the fourth quarter and full year 2014 and a call to action to the industry.
Fourth Quarter Highlights:
- Third consecutive quarter of record breaking backlog, ending the year (December 31, 2014) at $26.0 million, a 25% increase over backlog at the end of 2013
- Strategic partnership with NTT DATA delivered a multi-million dollar non-dilutive cash infusion and established a global reseller to immediately expand the DATATRAK market and to fuel growth initiatives
- New contract sales increased 15% year-over-year, the highest in the Company's history
- Cash, equivalents and certificate of deposit increased 15% year-over-year to $3.8 million, the highest balance since 2008
- Gross Profit Margin for the year remained strong at 80%
- Book-to-bill ratio of 2.4 in 2014 reflecting confidence in the marketplace to sign long-term enterprise agreements resulting in a more stable, visible and longer term revenue stream
- 96% of contracts utilized two or more solutions; 46% of contracts utilized three or more solutions
- 66% of increase in Property and Equipment is the result of investment in solutions expanding the benefits of DATATRAKunified eClinical® platform
- Chicago selected as expansion site for DATATRAK, opening in early 2015
Laurence P. Birch, Chairman and CEO, commented "It's an exciting time for DATATRAK. Our 2014 results were some of the strongest in the Company's history. Our record setting backlog this quarter continues the trend of steady growth each year since our 2009 restructuring, and is the result of our proactive efforts to transition clients to longer-term deals and create a more reliable revenue base. We announced a strategic partnership with NTT DATA in November, which not only expanded our global presence, but also delivered a non-dilutive capital raise to accelerate our growth. This capital will fuel our 2015 initiatives, including expanding our sales and marketing capabilities, delivering NEW technologies in Clinical Trial Management Systems, and continuing to protect our intellectual property."
"The clinical research industry must challenge the accepted complexities from some eClinical providers. The notion that the best the industry can offer is costly and time consuming processes, including data integration and long wait times for cross-study reporting, is absurd," continued Birch.
"That's why we introduced the DATATRAK ONE® Unified Experience in 2014, which included numerous transformational benefits for the clinical research industry. Many of our long-term customers already recognize how our unified eClinical® platform removes complexities to deliver safer research, faster. With new features that simplify clinical research management, improve data quality, and enhance patient safety, the DATATRAK ONE® Unified Experience challenges users of competitor eClinical solutions to reconsider their choice."
"As a result, new and existing clients are expanding their commitment to DATATRAK as demonstrated by our record-setting backlog, new client contracts, and revenue-generating agreements in 2014. Everything we do at DATATRAK is focused on the end result and that's to safely accelerate meaningful treatment to patients in need around the world. Looking forward, we will continue to leverage technology to deliver best-in-class eClinical solutions and we are excited about our path in 2015 and beyond," concluded Birch.
Financial Highlights:
The Company's revenue increased 1% for the year ended December 31, 2014 compared to the year ended December 31, 2013 reflecting an evolving mix of revenue from shorter-term Trial-by-Trial agreements and an increasing number of longer-term enterprise agreements. Included in the revenue mix is the tapering off of a significant long-term contract that is nearing completion. This reduction of revenue was offset by gains in enterprise agreements. However, due to the long-term nature of the enterprise agreements, revenues have not increased at the same rate as new contract sales.
DATATRAK maintained a relatively stable gross profit margin of 80% for the year ended December 31, 2014 compared to 82% for the year ended December 31, 2013 due to controlled growth strategies and efficient and effective cost structures. SG&A expenses increased by $302,000, or 3%, for the year ended December 31, 2014 compared to the prior year primarily due to higher employee related costs, infrastructure improvements to better support customers, marketing activities to improve focus on customer care, and sales support. As a result, the Company's loss from operations for year ended December 31, 2014 was $(1,280,000) compared to a loss from operations of $(873,000) for the corresponding period in 2013.
DATATRAK's backlog at December 31, 2014 was $26.0 million compared to a backlog of $20.9 million at December 31, 2013. Backlog consists of future value from authorization letters to commence services, statements of work, technology and services agreements, change orders and other customer contracts, billed and unbilled. The improvement in backlog from was due to new contract sales, in particular enterprise agreements and extensions of existing enterprise agreements, change orders and contract amendments.
All contracts are subject to possible delays or cancellation or can change in scope in a positive or negative direction. Therefore, current backlog is not necessarily indicative of the Company's future quarterly or annual revenue. Historically, backlog has been a poor predictor of the Company's short-term revenue.
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About DATATRAK International, Inc.
DATATRAK International is a worldwide technology and services company delivering unified eClinical® solutions and related services for the clinical trials industry. DATATRAK built its multi-component, comprehensive solution on a single, unified platform and expanded this concept to include services delivery via DATATRAK's Clinical and Consulting Services group. The Company delivers a complete portfolio of software products designed to accelerate the reporting of clinical research data from sites to sponsors and ultimately regulatory authorities, faster and more efficiently than loosely integrated technologies. The DATATRAKONE® software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Preclinical and Phase I - Phase IV drug and device studies in multiple languages throughout the world. DATATRAK is located in Chicago, Illinois; Cleveland, Ohio; Bryan, Texas; Cary (RTP), North Carolina and London, England. For more information, visit http://www.datatrak.com.
Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward-looking statements
are made based on management's expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors which are difficult to predict and, in many instances, are beyond the control of the Company, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. For a list of certain factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company's report filed with the OTCQX Market on March 14, 2014 announcing its results for the full-year period ended December 31, 2013. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.
DATATRAK International, Inc. and Subsidiaries | ||
Condensed Consolidated Balance Sheet Data | ||
(Unaudited) | ||
December 31, 2014 | December 31, 2013 | |
Cash and cash equivalents | $3,510,499 | $3,305,852 |
Certificate of deposit | 300,000 | |
Accounts receivable, net | 1,143,045 | 1,084,377 |
Property & equipment, net | 508,895 | 190,799 |
Other | 722,711 | 461,196 |
Total assets | $6,185,150 | $5,042,224 |
Accounts payable and other current liabilities | $1,900,258 | $1,855,061 |
Deferred revenue | 6,170,711 | 4,425,167 |
Other long-term liabilities | 67,701 | 29,775 |
Shareholders' deficit | (1,953,520) | (1,267,779) |
Total liabilities and shareholders' deficit | $6,185.150 | $5,042.224 |
DATATRAK International, Inc. and Subsidiaries | ||
Condensed Consolidated Statements of Operations | ||
(Unaudited) | ||
For the 3 Months Ended December 31, | ||
2014 | 2013 | |
Revenue | $2,815,068 | $2,848,013 |
Direct costs | 549,309 | 491,109 |
Gross profit | 2,265,759 | 2,356,904 |
Selling, general and administrative expenses | 2,454,468 | 2,162,593 |
Depreciation and amortization | 32,277 | 11,102 |
(Loss) income from operations | (220,986) | 183,209 |
Interest income | 546 | 3,715 |
Interest expense | (3,546) | (1,709) |
Net (loss) income | $(223,986) | $ 185,215 |
Net (loss) income per share: | ||
Net (loss) income per share, basic | $ (0.16) | $ 0.14 |
Weighted-average shares outstanding, basic | 1,439,209 | 1,364,028 |
Net (loss) income per share, diluted | $ (0.16) | $ 0.13 |
Weighted-average shares outstanding, diluted | 1,439,209 | 1,477,428 |
For the 12 Months Ended December 31, | ||
2014 | 2013 | |
Revenue | $11,010,792 | $10,900,711 |
Direct costs | 2,199,756 | 2,006,564 |
Gross profit | 8,811,036 | 8,894,147 |
Selling, general and administrative expenses | 10,009,461 | 9,707,633 |
Depreciation and amortization | 81,796 | 59,891 |
Loss from operations | (1,280,221) | (873,377) |
Interest income | 1,405 | 3,955 |
Interest expense | (14,018) | (9,480) |
Other income | 750,000 | |
Net loss | $ (1,292,834) | $ (128,902) |
Net loss per share: | ||
Net loss per share, basic and diluted | $ (0.90) | $ (0.10) |
Weighted-average shares outstanding, basic and diluted | 1,430,644 | 1,345,955 |
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SOURCE DATATRAK International, Inc.
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