ProLink Holdings Corp., the world’s largest provider of global positioning system golf course management systems and on-course advertising, has announced financial results for the year ended December 31, 2006.
“We completed 2006 with dramatic improvements in revenue and gross margin performance,” commented Lawrence Bain, President and CEO of the company. “However, this was offset by increased expenses related to our heavy investment in the foundation required to build a world class company. In the second half of 2006, we hired new systems sales executives and advertising sales executives in order to build-out our front-end channel in both areas.
“We have also continued to expand and invest in our manufacturing and services platform as our commitment to our customer. We believe that the investment in staff expansion and system improvements were required to fully develop our opportunities in the marketplace. As these new sales executives ramp up, and we continue to roll off unprofitable service contracts, we expect to see increased system sales and improvement in service margins in 2007 and beyond.”
Bain continues, “We also significantly enhanced and strengthened our management team in 2006 while transitioning into a publicly traded Company. We believe that as we enter 2007 we are well positioned to profitably execute on our growth initiatives.”
ProLink’s largest international distributor, Elumina Iberica, purchased 950 units, installed at twenty-six courses in seven countries in the year’s first quarter. These included eight courses in the United Kingdom, three in Spain, and new installations in the burgeoning markets of Portugal, Dubai, South Africa and Tunisia.
2006 Operating and Financial Highlights include:
- During 2006, the Company had approximately $23.4 million in total revenues, consisting of GPS systems sales, service revenue, support income and other income.
- Revenues increased 45% from $16.2 million in total revenue realized during 2005.
- New systems sales increased by 33.1%.
- Service revenue increased by 27.1%.
- The Company completed 152 new course installs and lease renewals
- The Company established its ProLink Media division, launching its advertising initiative with Chris Wightman as President.
- The Company completed its senior management team with the hiring of Michael Browne as CFO/COO and L. Gerard Johnson as Senior Vice President of Operations.
- As of December 31, 2006, the Company has media-ready systems installed on more than 500 golf courses worldwide, consisting of over 35,000 units, which management believes represents more than the market share of all the Company’s major competitors combined.
- The Company completed a private placement on December 31, 2006 with accredited institutional investors, raising gross proceeds of $11.4 million, which was used to retire $4.5 million of subordinated debt, expand operations and utilized for general working capital purposes. This amount was not included in 2006, as funds were not received by the Company until after year-end.
- During the first quarter of 2007, ProLink Media completed the hiring and training of eight salespeople in key, designated market areas.
- In January 2007, the Company announced the signing of a Letter of Intent to acquire Elumina Iberica, its distributor in Europe, the Middle East and Australia, and its affiliates. In 2006, Elumina reported revenues in excess of $10 million and net income of approximately $3 million (non US GAAP, non Audited). This transaction is anticipated to close in late Q2 or early Q3 of 2007.
- The Company also completed its domestic system sales expansion plan by adding 8 new sales executives (for a total of seventeen) to support the continued growth in the U.S.
Management will conduct a conference call to discuss these results at 11:00 a.m. EDT on Wednesday, April 18, 2007. To participate in the conference call: from within the US please dial 1-888-321-3075 five to ten minutes prior to the scheduled conference call time. International callers should dial 1-973-582-2855. This call is being webcast by ViaVid Broadcasting and can be accessed at ProLink’s website at www.goprolink.com
The webcast may also be accessed at ViaVid’s website at www.viavid.net
The webcast can be accessed until April 25, 2007 on either site.
To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit: www.microsoft.com/windows/windowsmedia/en/download/default.asp