We have a clear strategic goal as a company and that is to focus on our customer’s success while conservatively building a strong financial position.
Boston, MA (Vocus) May 21, 2010
Jenzabar, Inc., a leading provider of software, services and strategies for higher education, announced today that the company has achieved the strongest financial position, as measured by net debt position (debt minus cash), as compared to its key competitors who sell software and services primarily to higher education.
Jenzabar’s financial results show a 19.4% increase in revenues from 2004 to 2008 and a 1.01% increase in GAAP EBITDA (earnings before interest, tax, depreciation, and amortization). Since 2004, Jenzabar has paid down nearly $12 million in debt to achieve net zero debt, building a strong sustainable balance sheet unlevered by the excessive debt loads on other higher education technology vendors. While maintaining financial leadership, Jenzabar reinvested higher revenues in research and development, positioning the company for long-term financial success and market leadership.
A. Christopher Bulger, a leading investment banker and founder of Bulger Capital, stated, “I have helped finance software companies for over 25 years and for the last decade worked with Jenzabar, Inc. The company has successfully grown while maintaining a disciplined financial approach, continually strengthening its balance sheet. By funding its expansion through internally generated cash flow -- not increasing leverage - the company has put itself in a strong position relative to its competitors.”
While peer companies completed leveraged buyouts, piling large amounts of debt on their companies and applying funds to pay high levels of fees, interest and principal, Jenzabar has decreased debt and built a strong cash balance. As of the period ending December 31, 2009, Jenzabar maintained its strong net zero debt status and realized the strongest balance sheet in the Company’s operating history. Jenzabar’s financial success is a result of a strong commitment to its growing and active client base, dedication to helping clients achieve high returns on their technology investment, and the ability to align products and services with institutional goals.
“As our financial results show, we are not distracted by leveraged buyouts and the large debt loads they bring to a company,” said Robert A. Maginn, Jr., Jenzabar Chairman and Chief Executive Officer. “In the recession of 2009, Jenzabar’s financial results matched 2008 performance with continuing strong financial results in the latest quarter ending March 31, 2010. We have a clear strategic goal as a company and that is to focus on our customer’s success while conservatively building a strong financial position.”
Jenzabar invites other industry vendors to release their financial status to allow all colleges and universities considering technology vendors to have full access to the current financial strength of any prospective vendor.
About Jenzabar, Inc.
Jenzabar, Inc. is a leading provider of enterprise software and services developed exclusively for higher education. With more than 35 years of combined experience offering technology solutions to colleges and universities, Jenzabar is the trusted partner of choice to more than 700 campuses worldwide, including private liberal arts, state, and community colleges and business, medical, law and other graduate schools. Jenzabar is headquartered in Boston, Massachusetts, with regional offices located across the United States. For further information, please visit http://www.jenzabar.com .
About Bulger Capital
Bulger Capital is a merchant bank advising on IPOs, mergers and acquisitions, private placements, and capital markets and also provides venture capital. A team of professionals combines comprehensive operating capabilities and financial expertise developed at the leading technology and financial services companies. For more information, please visit, http://www.bulgercapital.com .