International Card Establishment Obtains $1,000,000 Credit Facility and Completes Restructuring Initiatives
27 Juli 2006 - 1:00PM
PR Newswire (US)
CAMARILLO, Calif., July 27 /PRNewswire-FirstCall/ -- International
Card Establishment, Inc. (I.C.E.) (OTC:ICRD) (BULLETIN BOARD: ICRD)
today announced it had obtained a $1,000,000 line of credit from a
private party to enable it to fund its growth. The terms of the
line of credit calls for the Company to pay an interest rate of
prime plus three points. In addition to its recent retirement of
approximately $1,700,000 in debt (associated with the sale of its
GlobalTech leasing unit), the Company was successful in retiring an
additional $500,000 in debt and accrued interest from the proceeds
of the GlobalTech sale. Apart from the new line of credit, I.C.E.
has no long-term debt. After a careful evaluation of the
credit-card 2processing market in general, and of the current lofty
acquisition prices for portfolios of merchant accounts, I.C.E. has
opted to grow its credit card processing business organically
through a network of independent agents. In order to attain
profitable growth in both its credit card and gift and loyalty card
units, I.C.E. has instituted a number of cost-cutting measures
ranging from an approximate 50% head-count reduction to the closure
of unprofitable Company owned sales offices. Executive management
has also agreed to take only nominal salaries and will be chiefly
compensated on a performance basis. This last measure was
instituted by management to closely align its interests with those
of the Company's shareholders. The restructuring efforts, which
have culminated with the acquisition of the $1,000,000 credit
facility, are designed for I.C.E. to rapidly, but organically
attain positive EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) and in the near future,
profitability. Separately, the Company announced that it had
appointed Mr. Dana E. Marlin as its new General Manager. Most
recently, Mr. Marlin has been a successful private equity investor
in the credit card processing field. Mr. Marlin is a certified
public accountant with over 20 years experience in finance,
operations and sales with both public and private companies. "Given
the current acquisition prices for merchant account portfolios,
I.C.E. has decided to concentrate its financial and management
resources into growing the Company organically through a network of
independent agents," said William Lopshire, CEO, I.C.E. "Having
pared our facilities and staff to the most efficient configuration
possible, we should be able to quickly become EBITDA positive and
attain profitability with even modest revenue gains. However, our
plans are considerably more ambitious, as we have implemented an
operation plan to prudently expand our independent agent network
which should result in solid revenue growth in 2007." Mr. Lopshire
went on to add, "We consider ourselves very fortunate to have Mr.
Marlin join our team. Mr. Marlin has been instrumental in assisting
the Company with the implementation of overhead reduction measures
as well as identifying operational efficiencies and strategic
growth initiatives." About I.C.E. http://www.cardnetone.com/ I.C.E.
is a rapidly growing provider of diversified products and services
to the electronic transaction processing industry. I.C.E.
establishes merchant accounts for businesses that enable them to
accept credit cards, debit cards and other forms of electronic
payments; supplies point-of-sale systems; facilitates processing;
and markets a proprietary "Smart Card"-based system through its
wholly-owned Neos Merchant Solutions subsidiary
(http://www.neosmerchant.com/) that enables merchants to offer
store-branded gift and loyalty cards. Forward-Looking Statements
This press release may contain forward-looking statements that are
subject to risks and uncertainties. Important factors which could
cause actual results to differ materially from those in the
forward-looking statements, include but are not limited to: the
company's short operating history which makes it difficult to
predict its future results of operations; the company's initial
history of operating losses with possible future losses which could
impede its ability to address the risks and difficulties
encountered by companies in new and rapidly evolving markets; the
company's future operating results could fluctuate which may cause
volatility or a decline in the price of the company's stock; the
possibility that the company may not be able to price its services
above the overall cost causing its financial results to suffer; and
other factors detailed in this press release and in future company
filings with the Securities and Exchange Commission, at such time
as the company is required to report its results of operations
under the Securities Exchange Act of 1934, as amended. Contact:
Wain Swapp Chief Financial Officer, I.C.E. 866-423-2491 x532 email:
or Investor Relations Contact: PAN Consultants, Ltd. Philippe
Niemetz, toll-free: 800/477-7570 212/344-6464 email: DATASOURCE:
International Card Establishment CONTACT: Wain Swapp, Chief
Financial Officer of I.C.E., 1-866-423-2491, ext. 532, ; or
Investor Relations, Philippe Niemetz of PAN Consultants, Ltd.,
1-800-477-7570 or +1-212-344-6464, , for International Card
Establishment Web site: http://www.cardnetone.com/
http://www.neosmerchant.com/
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