NEWS RELEASE
FOR IMMEDIATE RELEASE
The Banker’s Store
reports 2007 second quarter financial results
BOWLING GREEN,
The company, which supports financial institutions and other companies with equipment, software and services, serves customers predominantly through its Bowling Green-based B.G. Banking Equipment division.
For the fiscal 2007 second quarter, revenues were $495,009, compared with $738,278 for the year-earlier period, primarily due to a larger mix of orders that take longer to complete. Net loss was $(110,032), or $(0.01) per share, compared with earnings of $101,816, or $0.01 per share, for the same quarter in 2006.
Last October, The Banker’s Store hired a new chief executive officer and a new chief financial officer as part of its strategy to expand the company by acquiring attractive banking services companies and by taking steps to grow sales through current operations. The company has been actively identifying several potential acquisition candidates, evaluating capital structure alternatives and making other personnel and structural changes.
“As we carry out these plans, we expect that financial results will be negatively impacted by our investment in growth-related activities,” said CEO Vince Buckman. “For the longer term, we are working to achieve a vision of a much larger and more potent Banker’s Store which would serve the financial industry and related companies in a greater capacity with a wider array of products and services.”
The company previously announced its intention to grow by acquiring or merging with related financial services companies in the region, or by buying companies that expand specific industry niches. Buckman said management will continue to evaluate and implement best practices in order to improve sales and internal efficiencies.
While order backlog varies from month to month and quarter to quarter, Buckman said orders for December 2006 exceeded $300,000, a company record. The longer-to-fill orders written during the second quarter should be completed and delivered during the third and fourth quarters of fiscal 2007, he said.
The company’s full filing can be retrieved from the Securities and Exchange Commission’s Edgar site at www.sec.gov.
Annual meeting results
At the company’s Jan. 11 annual meeting, shareholders elected board members Paul Clark, Vince Buckman, Sam Stone, Roberta Clark and Cindy Hayden to one-year terms. They also approved a stock ownership incentive plan, approved the grant of options to fulfill executive employment agreements and ratified the selection of Marmann, Irons and Associates, PC, as independent public accountants.
About The Banker’s
Store
Primarily through its B.G. Banking Equipment division, The Banker’s Store sells, services and maintains a variety of equipment used within the banking industry, including ATMs, imaging equipment and digital security systems. It also sells new and refurbished safe deposit boxes, safes, banking office furniture and other specialized equipment. The Banker’s Store trades Over the Counter under the symbol BSTR.OB. More information about the company can be found at www.bankersstore.com.
This news release may include forward-looking statements as defined by the Private Securities Litigation Act of 1995. These statements are subject to various risks and uncertainties, many of which are outside the control of the Company. A discussion of these factors can be found in the Company’s latest annual report on Form 10-K filed with the Securities and Exchange Commission. The Banker’s Store undertakes no obligation to update forward-looking statements for revisions or changes.
For more information:
Terry McWilliams,
president, Mozaic Investor Relations, Inc., 502-410-2113 (terrym@mozaicir.com)
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FINANCIAL STATEMENTS
FOLLOW
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THE
BANKER'S STORE, INC. AND SUBSIDIARIES |
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
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NOVEMBER
30, 2006 AND 2005 |
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(unaudited) |
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6
MONTHS ENDED |
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3
MONTHS ENDED |
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NOVEMBER
30, |
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NOVEMBER
30, |
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2006 |
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2005 |
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2006 |
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2005 |
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Revenue |
$1,090,881 |
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$1,306,638 |
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$495,009 |
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$738,278 |
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Cost of
goods sold |
827,672 |
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811,101 |
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362,679 |
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396,771 |
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Gross
profit |
263,209 |
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495,537 |
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132,330 |
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341,507 |
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Selling,
general and administrative expenses |
462,549 |
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398,421 |
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239,016 |
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198,732 |
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Income
(loss) from operations |
(199,340) |
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97,116 |
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(106,686) |
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142,775 |
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Other
income (expense): |
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Interest & other income |
3,119 |
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1,765 |
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1,471 |
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566 |
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Interest expense |
(9,462) |
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(8,444) |
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(4,817) |
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(7,835) |
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Total
other income (expense) |
(6,343) |
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(6,679) |
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(3,346) |
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(7,269) |
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Income
before income tax provision |
(205,683) |
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90,437 |
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(110,032) |
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135,506 |
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Income
tax provision |
0 |
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33,690 |
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0 |
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33,690 |
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Net
income |
($205,683) |
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$56,747 |
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($110,032) |
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$101,816 |
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Basic
earnings (loss) per common share |
($0.01) |
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$0.00 |
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($0.01) |
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$0.01 |
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Diluted
earnings (loss) per share |
($0.01) |
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$0.00 |
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($0.01) |
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$0.01 |
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Weighted
average number of common shares |
14,954,781 |
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14,947,215 |
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14,954,715 |
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14,947,215 |
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