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ProLink Holdings Corp. Reports Record Domestic 2008 First Quarter Results

CHANDLER, Ariz., May 15 /PRNewswire-FirstCall/ -- ProLink Holdings Corp. (OTC Bulletin Board: PLKH), the world's largest provider of digital advertising screens for the golf course market and Global Positioning golf course management systems, today announced financial results for its first quarter ended March 31, 2008.

    Some of the highlights of the first quarter include:

    -- Domestic total revenue for the 2008 first quarter of $5.7 million
       increased 40% compared to $4.1 million in the 2007 first quarter.

    -- Record revenue from Domestic System sales -- 90% increase in domestic
       system sales to $4.8 million, as compared to $2.5 million in the
       year-earlier period.

    -- Media Ready courses increased by 38 courses to 626 worldwide.

    -- Service Revenue continues to grow, increasing 11% to $590,000 versus
       the 2007 first quarter.

    -- Operating expenses decline $727,000 or 17% to $3.6 million from
       $4.4 million in the first quarter of 2007.

    -- Improved Operating Results -- The Company generated EBITDA plus
       adjustment for non-cash 123R compensation of ($658,000) (a non-GAAP
       measure) which compares favorably to an EBITDA plus adjustment for
       non-cash 123R compensation of ($939,000) in the 2007 first quarter.

    -- Signed Sport Business Group as a new distributor in France. With over
       400 golf courses, France is the largest Golf market in Europe.

    -- Financing-expanded senior term credit facility by $2.1 million and
       expanded working capital availability by $1 million in April, 2008.

"We are quite pleased by the continued strong growth in Domestic System Sales," said Lawrence D. Bain, CEO of ProLink Solutions. "Despite a challenging economic environment, customers in the United States continue to select ProLink Systems at record rates, as we further increase our leadership position in the industry. We are particularly encouraged by the fact that the 40% year over year growth generated in domestic sales during the first quarter follows the 90% growth in domestic system sales reported in the fourth quarter of 2007. The strong domestic results have helped to mitigate the impact of the loss of the distributor in Europe. Our ability to tightly control costs, as a result of the cost reduction programs we implemented in late 2007 and the first quarter of 2008, helped ProLink report improved results. We believe the full benefits of our cost reduction programs will be realized in Q2 and the remainder of 2008.

"We are confident that we have successfully implemented initiatives during Q1, 2008 that will continue to improve our results," continued Mr. Bain. "As we announced recently, we have completed agreements with our new distributor for France, Sport Business Group and anticipate announcements of other distributors shortly. We believe the signing of new distributors in Europe and other international areas will allow us to not only increase sales, but provide superior service for our embedded base. We expect to generate international revenues once again in the second quarter, which will increase in the third quarter, and return to or exceed previous levels in the near future. As we capitalize on our position as a leader in the new digital out of home arena, we are excited with the commitments and responses we are getting. We expect a strong 2008 revenue contribution from our advertising segment. The launch of our digital out of home industry research project has gotten encouraging buy-in and acceptance. That program goes live in early June and will continue during the subsequent months."

The Company reported first quarter revenue of $5.7 million compared to $6.7 million in the first quarter of 2007. First quarter revenue from New Domestic System sales and refinancings of $5.1 million compared to $3.8 million in the 2007 first quarter. International System Revenue declined from $2.7 million to $0.1 million, primarily as a result of the termination by the Company of its largest international distributor. Advertising revenue was $0.1 million compared to nominal revenue in the year earlier period. Service revenue increased from $0.5 million to $0.6 million. Gross margin for the 2008 first quarter was approximately 45%, compared to 44.0% in the 2007 first quarter.

The 2008 first quarter was impacted by approximately $425,000 due to expenses in complying with Sarbanes Oxley, annual audit fees and expenses related to the PGA merchandise shows. These costs are unique to the first quarter each year and will not be incurred for the remainder of the year. In addition, approximately $200,000 of litigation expense was realized in the first quarter as the Company pursued collection actions and patent infringement cases. The Company expects future quarters to be reduced to more customary levels.

For the 2008 first quarter, operating expenses were $3.7 million, compared to the 2007 first quarter of $4.4 million. Sales and marketing expenses were $0.9 million, compared to $1.5 million in the three months ended March 31, 2007. General and administrative costs were $1.9 million compared to the year-earlier period of $2.0 million. First quarter operating expenses include non-cash costs totaling $427,000 for stock-based compensation, depreciation and amortization, compared to non cash costs of $455,000 in the 2007 first quarter.

Net Income (Loss) -- First Quarter

The net income (loss) applicable to common stockholders for the three months ended March 31, 2008 was $(1.6) million or $(0.03) per share, compared to $(1.9) million or $(0.16) per share in the same period in 2007. The 2008 first quarter net loss includes $217,000 in non-cash 123R expense.


    Consolidated Balance Sheets
    (dollars in 000's)
                                                           As of
                                             March 31, 2008  December 31, 2008

    Cash and cash equivalents                          $680            $2,829
    Other current assets                             10,717             8,390
       Total current assets                          11,397            11,220

    Other assets                                     10,352            10,118

    Total assets                                    $21,748           $21,338

    Total current liabilities                        14,448            12,842

    Long-term liabilities                             4,278             4,632

    Stockholders' equity                              3,023             3,864

    Total liabilities and stockholders' equity      $21,748           $21,338



    Results of Operations
    (dollars in 000's)                       For the Three Months Ended
                                         March 31, March 31,     Change
                                            2008     2007       $      %
    REVENUES:
    New System Installation Revenue -
     Domestic                              $4,800   $2,518  $2,282   90.6%
    New System Installation Revenue -
     International                             79    2,684  (2,605) -97.1%
    Service Revenue                           589      531      58   11.0%
    Finance Revenue, net                      214      982    (767) -78.2%
    Advertising Revenue                        56       19      37     n/a
     Total Revenue                          5,739    6,734    (995) -14.8%

    Cost of Revenue                         3,176    3,770    (594) -15.8%

    Gross Margin                            2,563    2,964    (401) -13.5%
    Gross Margin Percentage                 44.7%    44.0%   40.3%

    Operating Expenses                      3,654    4,381    (727) -16.6%

    Income (Loss) from Operations          (1,091)  (1,417)    326     n/a
    Other (Income) Expense                    494      456      38     n/a

    Net Loss                               (1,585)  (1,874)    288     n/a
    Dividends on Series C Preferred
     Shares                                   -      3,901  (3,901)
    Net Loss Applicable to Common
     Shareholders                         $(1,585) $(5,774) $4,189     n/a

    Basic Loss per Common Share            $(0.03)  $(0.16)  $0.13

    Diluted Loss per Common Share          $(0.03)  $(0.16)  $0.13




    (dollars in 000's)                             For the Three Months Ended
                                                   March 31,         March 31,
    EBITDA plus adjustments calculation:              2008              2007

    Net Loss                                       $(1,585)          $(1,874)

    Deduct:
    Interest Expense                                  (319)             (120)
    Interest Expense - Warrant Expense                (181)             (360)
    Depreciation and amortization                     (210)             (170)

    EBITDA                                            (875)           (1,224)

    FAS 123R stock-based compensation                 (217)             (285)

    EBITDA plus adjustments                          $(658)            $(939)

ProLink will hold a conference call at 4:30 p.m. eastern time today to discuss the results. Interested parties may dial (800) 930-1353 or (913) 312-1446. Please use passcode 9282041. The call will also be webcast and may be accessed at http://www.goprolink.com/investors.

A telephonic replay will also be available for 30 days by dialing (888) 203-1112 or (719) 457-0820. Please use passcode 9282041.

Safe Harbor

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about ProLink Holdings Corp. (ProLink). Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of ProLink's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements which are set forth in greater detail in the Company's filings with the Securities and Exchange Commission from time to time. The information set forth herein should be read in light of such risks. ProLink does not assume any obligation to update the information contained in this press release.

For more information about ProLink, visit http://www.goprolink.com/, call 480.753.2337 or email info@goprolink.com.

     CONTACT:
     Daniel Mitchell
     Buffalo Communications
     253.312.4536
     dmitchell@billycaspergolf.com

     Investor Relations Contact:
     CEOcast, Inc.
     Gary Nash
     212.732.4300
     gnash@ceocast.com

SOURCE ProLink Holdings Corp.

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