SECURUS Technologies Announces Investor Call

DALLAS--(BUSINESS WIRE)--SECURUS Technologies, Inc. announced its results of operations for the three months ended March 31, 2008 as set forth in its recently filed Quarterly Report on Form 10-Q, which is filed with the SEC.

As more fully described in its recently filed 10-Q, SECURUS generated operating revenues of $97.1 million in the first quarter of 2008 as compared to $103.7 million in the first quarter of 2007. SECURUS reported EBITDA of $8.2 million in the first quarter of 2008, or $9.2 million before considering a $0.2 million restructuring charge and $0.8 million of Syscon purchase accounting amortization more fully explained below.

Richard Falcone, Chief Executive Officer stated, “Our first quarter results were in line with our expectations. Our EBITDA improved sequentially over 4^th quarter 2007 after considering one-time impacts, and we are reasonably confident about continued improvement. We benefited from our first full quarter of activity from our new State of Florida Department of Corrections account and have now, in the second quarter, completed the installation of our new State of Arizona Department of Corrections account. The first quarter results were negatively impacted, as expected, by relatively low revenues from our offender management software unit due to a temporary slow down of our ongoing project in the United Kingdom. Revenues from our United Kingdom project have increased and we continue to expect this contract to, on average, exceed the third quarter 2007 revenue level in the last three quarters of 2008. We also undertook numerous cost improvement initiatives in the first quarter which we expect to contribute to EBITDA going forward. In the first quarter, these cost savings were substantially offset by higher legal fees associated primarily with several intellectual property lawsuits. After significantly tightening our credit policies during the last half of 2007 and the first quarter of 2008, we are pleased that our bad debt levels remain at an historical low point despite the prevailing economic downturn. We do believe, however, that it remains possible that our bad debt results may begin to rise, because of the delayed visibility when utilizing local exchange carriers for the majority of our billings.”

The Company reported EBITDA of $8.2 million for the three months ended March 31, 2008. Revenue and EBITDA results are reduced by the $0.8 million, which represents the current period amortization of purchase accounting adjustments originally booked upon the Syscon acquisition to record the fair value of Syscon’s in-process customer contracts in accordance with Generally Accepted Accounting Principles.

As of May 14, 2008 the Company had $21.9 million of availability under its revolving credit facility.

For the three months ended March 31, 2008 and 2007, EBITDA reconciles to reported operating income as follows (in millions):

		Three Months Ended March 31,
		2007		2008
Operating Income (Loss)		$2.2		($0.4)
Add Back:
Depreciation and amortization		$8.5		$8.6
EBITDA		$10.7		$8.2

The Company believes EBITDA is an important financial measure used by the Company's lenders to monitor operating performance. The Company also believes EBITDA provides meaningful insight to its investors in understanding the Company's operating performance.

SECURUS Technologies, Inc. announced today that it will be holding a quarterly investor call on Thursday, May 22 at 10:00 a.m. Central Time (11:00 am Eastern Time) to discuss its results of operations. To access the call, participants should dial (877) 795-3635. Please let the operator know you are calling in for conference #5372014. If you are unable to join the call, a playback of the call will be available by dialing (888) 203-1112, then enter the passcode 5372014.

Special Note Regarding Forward-Looking Statements:

The foregoing release contains statements that are forward-looking 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 are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environment of SECURUS that may cause the actual results to be materially different from any future results expressed or implied in such forward-looking statements.