Supportsave Solutions (SSVE) research, news, and more from GeoInvesting

Company description

Tue, 14 Apr 2009 04:00:00 GMT

Supportsave Solutions Inc. provides offshore business process outsourcing, or “BPO,”is a low-cost provider of outsourced customer service, technical support and back-office support which are delivered primarily to U.S.-based clients from the Company's facilities in the United States and te Philippines from just $5 per hour. BPO services involves contracting with an external organization to take primary responsibility for providing a business process or function, such as:

customer management
transcription and captioning
processing services
human resources
procurement
logistics support
finance and accounting
engineering, facilities management
information technology and training.

These customer care services and solutions are provided by skilled customer service representatives to small and mid-sized companies in the healthcare, communication, business services, financial services, publishing, and travel and entertainment industries.

Comments & Business Outlook

Tue, 24 Jan 2012 05:00:00 GMT

SUPPORTSAVE SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2011 AND 2010 (UNAUDITED)

	2011			2010
REVENUE
Sales	$	899,505		$	750,424
Less returns and allowances		-0-			(3,780	)

TOTAL REVENUE		899,505			746,644

EXPENSES
Wages and benefits		443,483			706,096
Rent		53,500			28,177
Advertising		132			13,076
Telephone, internet and utilities		28,199			52,340
Commissions		11,167			37,124
Settlements expense		(2,000	)		-0-
Legal and accounting		15,217			20,374
Depreciation		18,230			14,825
Selling, general and administrative		172,167			66,837

TOTAL EXPENSES		740,095			938,849

OPERATING INCOME (LOSS)		159,410			(192,205	)

OTHER INCOME (EXPENSE)
Interest income		2,291			5,622
Other income		2			204
Gains/(losses) on sales of investments		(4,995	)		-0-
Gains/(losses) on sales of assets		(2	)		-0-

TOTAL OTHER INCOME (EXPENSE)		(2,704	)		5,826

NET INCOME (LOSS) BEFORE PROVISION FOR FEDERAL INCOME TAX (BENEFIT)		156,706			(186,379	)

PROVISION FOR FEDERAL INCOME TAX (BENEFIT)		54,000			(65,000	)

NET INCOME (LOSS)	$	102,706		$	(121,379	)

NET INCOME (LOSS) PER SHARE:
BASIC AND DILUTED	$	0.01		$	(0.01	)

WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC AND DILUTED		18,417,143			14,728,558

Comments & Business Outlook

Mon, 17 Oct 2011 04:00:00 GMT

SUPPORTSAVE SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED AUGUST 31, 2011 AND 2010 (UNAUDITED)

	Three Months Ended			Three Months Ended
	August 31, 2011			August 31, 2010
REVENUE
Sales	$	911,171		$	572,587
Less returns and allowances		(2,651	)		(5,934	)

TOTAL REVENUE		908,520			566,653

EXPENSES
Wages and benefits		407,895			680,948
Rent		67,595			27,034
Advertising		16,434			20,539
Telephone, internet and utilities		45,979			25,250
Commissions		14,550			16,910
Settlements expense		4,500			-0-
Legal and accounting		6,737			8,381
Depreciation		17,798			14,480
Selling, general and administrative		109,717			44,799

TOTAL EXPENSES		691,205			838,343

OPERATING INCOME (LOSS)		217,315			(271,690	)

OTHER INCOME (EXPENSE)
Interest income		1,698			5,806

TOTAL OTHER INCOME (EXPENSE)		1,698			5,806

NET INCOME (LOSS) BEFORE PROVISION FOR FEDERAL INCOME TAX (BENEFIT)		219,013			(265,884	)

PROVISION FOR FEDERAL INCOME TAX (BENEFIT)		77,000			(93,000	)

NET INCOME (LOSS)	$	142,013		$	(172,884	)

NET INCOME (LOSS) PER SHARE:
BASIC AND DILUTED	$	0.01		$	(0.01	)

WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC AND DILUTED		19,769,266			14,728,558

Notable Share Transactions

Sat, 15 Oct 2011 04:00:00 GMT

LOS ANGELES, CA -- (Marketwire - October 04, 2011) - SupportSave Solutions, Inc. (OTCBB: SSVE) (www.supportsave.com), a provider of Business Process Outsourcing (BPO) services in the Philippines, has announced the execution of a stock buyback program, subject to market conditions, with purchases to be made out of ongoing positive cash flow from operations. Under the program, the Company may acquire approximately 3,000,000 shares at prices of up to $0.10 per share over the next 90 days.

Resolution of Legal Issues

Wed, 28 Sep 2011 04:00:00 GMT

On June 27, 2011, Mr. Joseph Duryea, our former President, filed a complaint (the “Complaint”) against us in the United States District Court for the District of Nevada (Case No. 2:11-cv-01054-GMN CWH) alleging breach of contract, breach of the covenant of good faith and fair dealing, tortious breach of contract, and fraud (the “Litigation”) in relation to an employment agreement (the “Employment Agreement”) we entered into with him on January 15, 2010.

On September 15, 2011, we entered into a settlement agreement (the “Settlement Agreement”) with Mr. Duryea to resolve the above Litigation. Under the terms of the Settlement Agreement, we agreed to pay Mr. Duryea a total of $85,000 (the “Settlement Funds”). Of this total amount, we agreed to pay $45,000 upon execution of the Settlement Agreement and the remaining $40,000 shall be paid in four equal installments, payable on or before October 15, 2011, November 15, 2011, December 15, 2011 and January 15, 2012.

Comments & Business Outlook

Thu, 15 Sep 2011 04:00:00 GMT

SUPPORTSAVE SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED MAY 31, 2011 AND 2010

	2011			2010
REVENUE
Sales	$	2,845,159		$	2,866,822
Less: returns and allowances		(38,613	)		(54,333	)

NET REVENUE		2,806,546			2,812,489

OPERATING EXPENSES
Wages and benefits		2,963,906			1,656,087
Rent		211,767			103,977
Advertising		87,050			104,390
Telephone, internet and utilities		149,972			145,679
Commissions		165,889			283,526
Severance		149,000			0
Legal and accounting		94,673			62,472
Depreciation		74,240			58,318
Selling, general and administrative		184,308			206,541
TOTAL OPERATING EXPENSES		4,080,805			2,620,990

OPERATING INCOME (LOSS)		(1,274,259	)		191,499

OTHER INCOME (EXPENSE)
Interest income		13,240			16,922
Miscellaneous other income		1,154			235
Gain on sale of investments		0			7,895
Write off of note receivable		(110,000	)		0
Gain (loss) from currency hedging transactions		0			54,964
Gain (loss) on sale of assets		(15,210	)		149,540
TOTAL OTHER INCOME (EXPENSE)		(110,816	)		229,556

NET INCOME (LOSS) BEFORE PROVISION FOR FEDERAL INCOME TAX (BENEFIT) EXPENSE		(1,385,075	)		421,055

PROVISION FOR FEDERAL INCOME TAXES (BENEFIT) EXPENSE		(485,000	)		147,000

NET INCOME (LOSS)	$	(900,075	)	$	274,055

NET INCOME (LOSS) PER SHARE: BASIC AND DILUTED	$	(0.06	)	$	0.02

WEIGHTED AVERAGE SHARES OUTSTANDING: BASIC AND DILUTED		15,771,646			13,638,800

The accompanying notes are an integral part of the financial statements

Comments & Business Outlook

Tue, 18 Jan 2011 05:00:00 GMT

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED NOVEMBER 30, 2010 AND 2009 (UNAUDITED)

	2010			2009
REVENUE
Sales	$	750,424		$	851,056
Less returns and allowances		(3,780	)		(3,091)

TOTAL REVENUE		746,644			847,965

EXPENSES
Wages and benefits		706,098			237,085
Rent		28,177			19,768
Telephone, internet and utilities		52,340			29,356
Commissions		37,124			71,793
Selling, general & administrative		115,110			99,924

TOTAL EXPENSES		938,849			457,926

OPERATING INCOME (LOSS)		(192,205	)		390,039

OTHER INCOME (EXPENSE)
Interest income		5,622			3,093
Other income		204			-0-
Gains/(losses) from currency hedging contracts		-0-			9,444
Gains/(losses) on sales of assets		-0-			(3,152)

TOTAL OTHER INCOME (EXPENSE)		5,826			9,385

NET INCOME (LOSS) BEFORE PROVISION FOR FEDERAL INCOME TAX BENEFIT		(186,379	)		399,424

PROVISION FOR FEDERAL INCOME TAX (BENEFIT)		(65,000	)		140,000

NET INCOME (LOSS)	$	(121,379	)	$	259,424

WEIGHTED AVERAGE SHARES OUTSTANDING: BASIC AND DILUTED		15,068,531			13,255,198

NET INCOME (LOSS) PER SHARE: BASIC AND DILUTED	$	(0.01	)	$	0.02

As demonstrated above and going forward, we will experience higher costs related to the compensation of our new management team and the build out and migration to our new 550 seat operation center in the Cybergate building in Cebu, Philippines. The new management team’s stock-based compensation awards are scheduled to continue through the end of the fiscal year, significantly increasing our salary and compensation expense in the near-term. In addition, our new facility was opened in early December 2010 and we experienced higher costs as we migrate to the facility. We believe the new management team and larger, more modern facility will position us to pursue new business contracts that are much larger than the typical and traditionally smaller BPO contracts we now have. Consequently, we anticipate the increased expense associated with the management team and facility will impair our profitability in the near-term and mid-term, but we also anticipate significant improvement in both overall revenues and profits in the long-term as these new contracts are secured and ramp up.

Liquidity Requirements

Tue, 18 Jan 2011 05:00:00 GMT

Currently, our primary source of liquidity is cash flows provided by our operations. We will not require additional capital to execute our plan, unless we expand into additional facilities or grow through the acquisition of complementary businesses. Our current cash flows from operations are sufficient to meet our working capital requirements over the next 12 months.

GeoSpecial Notes

Tue, 08 Jun 2010 04:00:00 GMT

Added to the GeoSpecial list on October 20, 2009 @ $0.55

Catalyst: We're speculating that above average revenue growth would begin to translate into meaningful EPS numbers; Trend for business outsourcing will intensify.
Peak performance: Reached a high of $1.35 January 10, 2010
Current Price: $0.69

Current road block: Lack of investor awareness; Shares are quite illiquid; P/E is over 25; EPS has still has not broken out to a meaningful number, as we had hoped. (Quarterly EPS has never exceeded $0.01).

Removing from the GeoSpecial list and placed on the GeoSpecial on the radar list until EPS growth accelerates.

Risky investors may want to follow this story. On February 8, 2010 we reported that Supportsave Solutions President purchased 50 thousand shares. We feel that there is an outside chance that SSVE becomes an acquisition target down the line, a similar route that competitors have taken in the recent past.

Liquidity seems in tact:

"Currently, our primary source of liquidity is cash flows provided by our operations. We will not require additional capital to execute our plan, unless we expand into additional facilities or grow through the acquisition of complementary businesses. Our current cash flows from operations are sufficient to meet our working capital requirements over the next 12 months."

GeoSpecial Notes

Mon, 08 Feb 2010 05:00:00 GMT

Positive Development:

GeoSpecial Supportsave Solutions President purchases 50K shares. We view this as a bullish sign, especially since the stock is trading near its 52 week high.

Special Situations

Tue, 20 Oct 2009 04:00:00 GMT

Supportsave Solutions is starting to pique our curiosity. While the company is not producing earth-shattering EPS numbers in an absolute sense, it has remained profitable throughout the global recession. In fact, SSVE believes that the recession is spurring demand for its management outsourcing business:

"Our services are in great demand as small to mid-sized corporations across the globe look to reduce costs to withstand the economic downturn. Going forward we plan to cater to a wider segment of the market and expand our client base."

Furthermore, it appears that the SSVE is beginning to embark on an aggressive growth strategy:

The Company understands its position: "To become more profitable and competitive, we have to attract more clients, sell our services and generate more revenues."
Increase in advertising budget: Larger cash flows have allowed SSVE to reposition the company to attract larger clients via a more vigorous marketing campaign.
The company has issued impressive financial guidance which it stresses is still conservative:

May Fiscal Year	Fiscal 2011 Guidance	Fiscal 2010 Guidance	2009 Reported	2008 Reported
GAAP Revenue	$10.0 million	$5.0 million	$1.9 million	$1.0 million
EBITDA Margin	35.0%	35.0%	16.3%	n/a
EBITDA	$3.50 million	$1.75 million	$322 thousand	-$365 thousand
EPS ^a	$0.15 ^b	$0.08 ^b	$0.02	-$0.03
Fully Diluted Shares ^b	13,255,198	13,255,198	12,918,508	11,880,772

^a EPS figures eliminate one time charges/gains as well as any tax benefits. A tax rate of 36% and first quarter pre-tax margins of 32% are applied.

^b SSVE did not provide EPS guidance. The GeoTeam® used the company's first quarter pre-tax margins and outstanding share count to calculate an implied EPS figure.

Strong Financials Characteristics:

Current Ratio: 9.93 to 1
Strong cash position: $766 thousand in Cash representing 63% of total assets
"GOING CONCERN" warning recently removed from financials
No long-term debt
No short-term notes
32% pre-tax margins

Shareholder Friendly Management:

Shareholder letter stressing importance of saving money and enhancing shareholder growth.
Management Confidence:
- "We have repurchased 266,869 shares on the open market and will continue to do so at our discretion until we reach 500,000 shares. We truly believe the company's shares are very undervalued and will take advantage of buying opportunities."
- "We finance our operations through significant positive cash flows and not through the sale of stock. Our management team and directors have never sold a single share of stock or exercised a single option since inception and have no plans to do so for the foreseeable future. With our strong liquidity position we will not require additional capital to execute our plans for the future, unless we expand into additional facilities or grow through the acquisition of complementary businesses."

We still would like to interview SupportSave. The company is tiny and certainly will carry a level of perceived risk with investors. Furthermore, SSVE has not been able to break out of the $0.01 EPS range, a factor that does not support our implied EPS assumption based on company guidance.

The Company seems to have a conservative management philosophy as evidenced by its balance sheet structure--our view that it is maybe a little too conservative. If we gain confidence that SSVE guidance will lead to more substantial EPS figures, then the SSVE story may have legs.

We are actually excited to track SSVE and are coding it as a low tier GeoSpecial.