TAMPA, Fla., Aug. 13 /EMWNews/ -- Pinpoint Recovery Solutions Corp., (OTC Bulletin Board: PPNT) and its subsidiary SALT Payroll Consultants, Inc., a company providing federal, state and local payroll and unemployment tax recovery services today announced its operating results for the 2nd Quarter ended June 30, 2008. Net sales for the second quarter were $805,000 and net income was $137,000 or $0.03 basic earnings per share and $0.02 diluted earnings per share. This compares to a loss of ($0.25) for the comparable period in 2007 due to expenses relating to the acquisition of SALT Payroll Consultants, Inc. On a pro forma basis, sales were flat compared with the second quarter ended June 30, 2007 but income increased significantly. The Company absorbed a number of non-recurring deal expenses related to the acquisition and establishment of the predecessor SALT Company and non-recurring legal and accounting expenses related to other potential acquisitions in 2007. The table below sets forth Pinpoint's actual (unaudited) results.
Pinpoint Recovery Solutions Corp. and Subsidiaries Consolidated Statement of Operations (unaudited) Three months ended June 30, 2008 2007 Revenues $ 805,094 $98,614 Costs and Expenses: Direct costs 107,095 - Payroll and related costs 286,710 - Consulting fees 5,500 21,250 Professional fees 53,403 510,943 Interest expense-related party 37,204 1,725 General and administrative 178,095 30,610 Total costs and expenses 668,007 564,528 Net income (loss) $ 137,087 $(465,914) Earnings (Loss) per Share: Basic $0.03 $(0.25) Diluted $0.02 $(0.25) Weighted common shares Basic 4,617,588 1,857,613 Diluted 5,595,032 1,857,613 Kevin Cappock, CEO of Pinpoint Recovery Solutions Corp. (Pinpoint) commented, "While we are satisfied with our second quarter results, we are seeking additional opportunities to grow both our revenue and profit. Over the past nine months, we have incurred additional overhead expenses related to new initiatives in the launching of our marketing and internal sales group. We anticipate this endeavor to start yielding positive results in the second half of calendar 2008 and seek greater financial momentum during this period. In addition to our regular marketing program, we established two strategic relationships in July to broaden our reach and provide cross-selling opportunities. In this difficult economic environment, Pinpoint's subsidiary, SALT Payroll Consultants, Inc. offers companies an opportunity to potentially recover payroll and unemployment taxes they may have overpaid and not have realized without our assistance."
About SALT Payroll Consultants, Inc. SALT Payroll Consultants, Inc., a subsidiary of Pinpoint Recovery Solutions Corp. (OTC Bulletin Board: PPNT), based in Tampa, FL, provides federal, state and local payroll and unemployment tax recovery services. With the exception of historical information, the matters discussed in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve a number of risks and uncertainties about Pinpoint and SALT. The actual results may differ materially depending on a number of risk factors. In some cases, you can identify forward-looking statements by use of words such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other similar words. Although Pinpoint and SALT believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by Pinpoint or SALT, or any other person, that such forward-looking statements will be achieved. Neither Pinpoint nor SALT undertakes any duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risks factors detailed in Pinpoint's reports filed with the Securities and Exchange Commission.
Press Contact: Pinpoint Recovery Solutions Corp. Jon D. Leslie, Chief Financial Officer (914) 723-6171
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