Pantellos announces cash flow positive position; signs up two new utilities to e-settlement network
The Woodlands, TX — July 22, 2003 — Pantellos, an electronic marketplace and supply chain services company for the utility industry, yesterday announced it completed its second consecutive quarter with positive earnings, excluding interest, taxes, depreciation and amortization (EBITDA). It further announced that it has exceeded its cash-flow expectations and finished June in a cash-flow positive position.
In addition the company said two utility companies, Cinergy Corp. and FirstEnergy Corp., have selected the Pantellos eSettlement Network, an electronic payables system, to further automate their procure-to-pay processes.
For the quarter ending June 30, 2003, Pantellos said it experienced revenue of more than $4.3 million. The results represent a 28 percent improvement compared to the same period in 2002. The company also reported finishing the quarter with more cash on hand and less monthly operating expenses than projected in its business plan. As a privately held company, Pantellos is not required to report its income.
The results reflect growth over the prior quarter, when Pantellos announced it had first reached an EBITDA-positive position, placing it among the few B2B marketplaces to achieve this financial milestone. Pantellos had previously announced that it expected to become cash flow positive during the third quarter of this year.
The company said it experienced significant activity in online auctions during the quarter, completing 102 auctions in May. In June, the company announced it had surpassed the $1 billion mark in total online auction volume conducted since January 2001.
"It is clear that utilities are under tremendous pressure to lower costs in order to improve earnings," said Pantellos President and CEO Jim Neikirk. "Pantellos will continue to help customers meet these challenges and make an impact on their bottom lines."
In the customer-win announcement from Pantellos, the e-marketplace said the utilities Cinergy Corp. and FirstEnergy Corp. chose its eSettlement Network to lower accounts payable (A/P) processing costs, reduce error rates, gain better visibility and control over payment methods, and strengthen supplier relationships.
Based on the ePayables solution from Xign Corp., the Pantellos eSettlement Network is an electronic invoice and payment service that automates the financial settlement processes. The Pantellos eSettlement Network also supports the MasterCard e-P3 electronic payment and information management service.
Cinergy and FirstEnergy join fellow utility Pacific Gas & Electric (PG&E) in moving from paper to electronic settlement. "When we transact with suppliers through linked electronic networks, the cost savings can be substantial," said Craig Weida, vice president, supply chain and administrative services at Cinergy. "We are excited about the potential savings we can achieve in our financial settlement processes through the Pantellos eSettlement Network."
Watch for a market report on the payment space in the August/September 2003 issue of iSource Business.