SUNAIR SERVICES CORPORATION 
By Revenues from continuing operations for the fourth quarter ended
Sunair Services incurred a tax affected loss from discontinued operations of
The Company reported a net loss of
Full Year Results
Revenues from continuing operations for the fiscal year ended
The tax affected loss from discontinued operations for the year was
The Company reported a net loss of
Discontinued Operations
On
On
Comments from Management
He added, "In light of a challenging business environment, we continue to review our operations carefully in order to improve our top line performance while simultaneously managing operational costs to increase the profitability of our Company. With of the completion of our legacy businesses dispositions, we believe the performance of our primary business should further improve."
ABOUT SUNAIR
Sunair Services Corporation, a
Information Regarding Forward Looking Statements
Some of the statements in this press release, including those that contain the words "anticipate," "believe," "plan," "estimate," "expect," "should," "intend" and other similar expressions, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or those of our industry to be materially different from any future results, performance or achievements expressed or implied by those forward-looking statements. Among the factors that could cause actual results, performance or achievement to differ materially from those described or implied in the forward-looking statements include the success of the Company's growth initiatives, demand for the Company's lawn care and pest control services, general economic conditions, competition, potential technology changes, the risks inherent in new product and service introductions, the risks inherent in the entry into new geographic markets, and other factors included in Sunair's filings with the SEC. Copies of Sunair's SEC filings are available from the SEC or may be obtained upon request from Sunair. Sunair does not undertake any obligation to update the information contained herein, which speaks only as of this date.
SUNAIR SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AUDITED
SEPTEMBER 30,
ASSETS
------
2008 2007
---- ----
CURRENT ASSETS:
Cash and cash
equivalents $2,974,382 $2,781,838
Accounts receivable, net 2,597,447 3,481,064
Inventories, net 1,403,832 1,826,636
Prepaid and other current assets 2,829,535 2,185,909
--------- ---------
Total Current Asset 9,805,196 10,275,447
--------- ----------
PROPERTY, PLANT, AND EQUIPMENT, net 1,907,213 2,118,552
OTHER ASSETS:
Note receivable, net - 2,000,000
Software costs, net 246,979 359,375
Customer list, net 7,456,704 10,958,234
Goodwill 62,112,528 60,675,353
Other assets 254,790 390,294
------- -------
Total Other Assets 70,071,001 74,383,256
---------- ----------
TOTAL ASSETS $81,783,410 $86,777,255
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable $1,787,406 $2,346,395
Accrued expenses 3,256,342 4,263,674
Unearned revenues 863,770 952,417
Customer deposits 3,149,715 3,166,264
Revolving line of credit,
current portion 4,100,000 -
Notes payable and capital leases,
current portion 2,306,189 409,029
--------- -------
Total Current Liabilities 15,463,422 11,137,779
---------- ----------
LONG TERM LIABILITIES:
Notes payable and capital leases, net
of current portion 3,682,184 5,545,456
Note payable -- related party 5,000,000 5,000,000
Revolving line of credit, net of
current portion 5,500,000 6,732,796
--------- ---------
Total Long Term Liabilities 14,182,184 17,278,252
---------- ----------
TOTAL LIABILITIES 29,645,606 28,416,031
STOCKHOLDERS' EQUITY:
Preferred stock - -
Common stock 1,309,110 1,309,110
Additional paid-in capital 52,756,311 52,378,437
Retained (deficit) earnings (1,927,617) 4,585,007
Accumulated other comprehensive gain -
cumulative translation adjustment - 88,670
- ------
Total Stockholders' Equity 52,137,804 58,361,224
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $81,783,410 $86,777,255
=========== ===========
SUNAIR SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
AUDITED
FYE 2008 FYE 2007
-------- --------
SALES $56,612,660 $53,015,997
COST OF SALES 21,642,620 19,285,950
---------- ----------
GROSS PROFIT 34,970,040 33,730,047
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 38,473,944 37,026,206
---------- ----------
LOSS FROM OPERATIONS (3,503,904) (3,296,159)
---------- ----------
OTHER INCOME (EXPENSES):
Interest income 142,814 202,280
Interest expense (1,339,721) (1,224,834)
Gain on disposal of assets (10,774) 27,896
Other income 75,000 -
------ -
Total Other Expenses (1,132,681) (994,658)
---------- --------
LOSS FROM OPERATIONS BEFORE INCOME TAXES (4,636,585) (4,290,817)
INCOME TAX (EXPENSE) BENEFIT - (337,065)
- --------
LOSS FROM CONTINUING OPERATIONS (4,636,585) (4,627,882)
(LOSS) INCOME FROM DISCONTINUED OPERATIONS,
NET OF INCOME TAX (1,876,039) 2,012,692
---------- ---------
NET LOSS $(6,512,624) $(2,615,190)
=========== ===========
BASIC AND DILUTED INCOME (LOSS) PER SHARE:
CONTINUING OPERATIONS $(0.35) $(0.35)
====== ======
DISCONTINUED OPERATIONS $(0.14) $0.15
====== =====
NET LOSS $(0.49) $(0.20)
====== ======
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 13,091,088 13,066,429
========== ==========
DILUTED 13,091,088 13,066,429
========== ==========
SUNAIR SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
3 months 3 months
ended 09/30/08 ended 09/30/07
-------------- --------------
SALES $14,380,859 $13,829,320
COST OF SALES 5,679,439 4,947,372
--------- ---------
GROSS PROFIT 8,701,420 8,881,948
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 8,888,152 10,840,039
--------- ----------
LOSS FROM OPERATIONS (186,732) (1,958,091)
-------- ----------
OTHER INCOME (EXPENSES):
Interest income 15,301 45,618
Interest expense (224,642) (279,630)
Gain on disposal of assets (15,843) 17,380
------- ------
Total Other Expenses (225,184) (216,632)
-------- --------
LOSS FROM OPERATIONS BEFORE
INCOME TAXES (411,916) (2,174,723)
INCOME TAX (EXPENSE) BENEFIT - (782,270)
- --------
LOSS FROM CONTINUING OPERATIONS (411,916) (2,956,993)
(LOSS) INCOME FROM DISCONTINUED
OPERATIONS, NET OF INCOME TAX (2,704,173) 626,857
---------- -------
NET LOSS $(3,116,089) $(2,330,136)
=========== ===========
BASIC AND DILUTED INCOME (LOSS)
PER SHARE:
CONTINUING OPERATIONS $(0.03) $(0.22)
====== ======
DISCONTINUED OPERATIONS $(0.21) $0.04
====== =====
NET LOSS $(0.24) $(0.18)
====== ======
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 13,091,088 13,091,088
========== ==========
DILUTED 13,091,088 13,091,088
========== ==========
SOURCE Sunair Services Corporation
