ARI Network Services announced that it was recognized in The Business Journal’s Top 25 List as one of Wisconsin’s fastest-growing public companies.
“It’s an honor to be included in the Top 25 List this year,” said Roy W. Olivier , CEO and president of ARI. “Despite a sluggish economy in the vertical markets we serve, we have been able to successfully execute on our strategic growth objectives. We have a lot of momentum that sets the stage for sustained, profitable growth and I’m excited about our future.”
According to Olivier, ARI has been on the Top 25 List in four out of the last five years.
The Top 25 List is published annually by The Business Journal. All public companies headquartered in Wisconsin with a stock price of $1 or more between February and April 2012, and positive revenue growth from fiscal 2011 to 2012 were considered for the list. The information on each company is gathered by The Business Journal from annual reports and financial statements.
ARI Network Services reported a decrease in net income on a 35.9% rise in revenue for its fiscal second quarter, ended Jan. 31.
The Milwaukee marketing firm, which provides eCommerce solutions to several industries including RV, posted revenue of $7.5 million for the second quarter versus $5.5 million for the same period last year. Recurring revenue comprised approximately 88.3% of total revenue during the quarter and 86% of total year to date revenue in fiscal 2013, compared to 84.6% and 84.2% for the same periods last year.
Net income for the quarter was $4,000, or 0 cents per share, compared to $61,000, or 1 cent per share, for the same period last year. EBITDA, a non-GAAP measure, was $241,000 for the second quarter of fiscal 2013, compared to $935,000 for the same period last year.
ARI noted that on Nov. 28, 2012, the company acquired the assets of the retail division of 50 Below Sales & Marketing Inc., a leading provider of eCommerce websites to the powersports, automotive tire and wheel aftermarket, medical equipment and pool and spa industries. The acquisition brings with it over 3,500 dealer websites, more than doubling the size of ARI’s website business and making websites the company’s largest source of revenue.
Total operating expenses in the second quarter increased 55% to $6.3 million for the three-month period compared with $4.1 million a year ago. This increase resulted primarily from the addition of the Ready2Ride and 50 Below operations. Of this increase, approximately $625,000 represents acquisition-related legal and professional fees. The company reported a loss from operations of $566,000 during the quarter, versus operating income last year of $170,000. This loss stems primarily from the acquisition-related fees as well as ongoing integration activities.
The company also announced that it has entered into definitive agreements with various accredited investors in a private placement of $4.8 million of common stock at a price of $1.50 per share. In addition, ARI will issue to the investors warrants to purchase 1,066,667 shares of common stock. The warrants have an exercise price of $2.00 per share and are exercisable for five years.
Roy W. Olivier, president and CEO of ARI, commented, “50 Below integration activities are well under way; this acquisition will be a game changer for ARI. The integration of 50 Below into ARI makes us one of the leading providers of websites to the powersports market, and the addition of Ready2Ride’s aftermarket fitment data to our product offering makes ARI one of the most comprehensive providers of eCommerce solutions to the powersports industry. This acquisition also provides us with a footprint in the automotive aftermarket industry with more than 2,000 wheel and tire dealer websites.”