Maine should reverse compromise on REAL ID
Maine should reverse compromise on REAL ID
Kennebec Journal & Morning Sentinel 07/05/2008
The REAL ID Act mandates the states to comply with federal guidelines in order for people to be able to use their state driver's license or ID card to enter a federal building, board an airplane or even open a bank account. The federal government would reserve the right to reject a person's driver's license or ID card from any state that fails to comply.
In 2007, Maine overwhelmingly approved a bill that would restrict the secretary of state from amending "the procedures to applying for a driver's license or nondriver identification card ... in a manner designed to conform to the federal REAL ID Act."
Never in my life had I been so proud to be a Mainer. That feeling, however, was short-lived. In April, the Legislature ordered the secretary to study methods that would comply with measures from the act, "such as facial recognition or similar technology, to ensure that an applicant does not have more than one driver's license or nondriver identification card issued by the State." (LD 2309)
Meaning people would have to give their fingerprint, iris scan or some other biometric data to the state before they can get or renew their license or ID card. This would apply to everyone, irrespective of whether they are a lifelong resident of Maine or is a refugee from another country.
Repeal the new law as an extension of an unjust mandate that forces the state of Maine to comply with REAL ID.
Sherrie Tucker
Fairfield
http://morningsentinel.mainetoday.com/v ... 83988.html
One Nation, One ID, New World Order?
ublished: July 13, 2008
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One Nation, One ID, New World Order?
By Melissa Filbin
The Real I.D. Act, signed into law in May, will require people living or working in the United States to carry a federally approved identification card. This I.D. card will be needed for nearly all government services and for activities such as traveling on an airplane or opening a bank account.
The I.D. card will make it difficult for illegal immigrants to obtain the identification needed to move freely about the United States; however, it will also affect American citizens. The I.D. card will be distributed through state motor vehicle agencies and require people to present an authentic copy of their birth certificate, social security number, proof of residence and other identification, (all of which will need to be verified by a Department of Motor Vehicles agent) when getting or renewing a drivers license.
Legislatures and governors opposed to the Real I.D. Act say it will greatly increase lines at the DMV.
The Real I.D. Act establishes a centrally-coordinated database of information about American citizens such as name, birthday, sex, I.D. number, a digital photograph and address. The I.D. card will be electronically readable and have security features to prevent tampering, counterfeiting or duplication.
The legislation also grants authority to the Secretary of Homeland Security, Michael Chertoff, to require biometric information, such as fingerprints, DNA information or a retina scan, on future I.D. cards.
The Real I.D. Act, originally a standalone piece of legislation, was approved in the House, 261-161, in February and then was tacked on to the emergency military spending bill for operations in Iraq and Afghanistan.
Ron Paul, R-TX, was one of three House republicans who voted against the bill. "This bill purports to make us safer from terrorists who may sneak into the United States, and from other illegal immigrants. While I agree that these issues are of vital importance, this bill will do very little to make us more secure. It will not address our real vulnerabilities. It will, however, make us much less free," Paul said in a February 9 House debate on the Real I.D. Act.
Supporters of the Real I.D. Act say the bill does not establish a national I.D. card and it is needed to follow the recommendations made last year by the 9/11 Commission.
F. James Sensenbrenner, R-WIS, introduced the Real I.D. Act to the House. "The goal of the REAL I.D. Act is straightforward. It seeks to prevent another 9/11-type terrorist attack by disrupting terrorist travel. The 9/11 Commission's terrorist travel report stated that 'abuse of the immigration system and a lack of interior enforcement were unwittingly working together to support terrorist activities . . . the Real I.D. Act will make America a safer place," Sensenbrenner said in the February 9 House debate.
The $82 billion war fund bill, including the Real I.D. Act, passed unanimously in the Senate in May and was later signed into law by President Bush. The Real I.D. Act took effect in May 2008.
judythpiazza@newsblaze.com
http://newsblaze.com/story/200807131256 ... story.html
Real ID costly and invasive, yet W.Va. moves ever closer to
July 16, 2008
Seth DiStefano
Real ID costly and invasive, yet W.Va. moves ever closer to it
The recent move toward implementation of the federal Real ID program is a step in the wrong direction for West Virginia.
The recent move toward implementation of the federal Real ID program is a step in the wrong direction for West Virginia. The privacy rights of West Virginia citizens should never be used as a bargaining chip for money from the federal government, especially when the federal program in question has universal opposition from a broad spectrum of West Virginians.
Recently, the Pennsylvania House of Representatives voted unanimously to block the state's participation in the program. If and when the Pennsylvania Senate does the same, the number of states having passed laws prohibiting implementation of Real ID or resolutions condemning the program will exceed 20. Still, West Virginia moves toward compliance.
Having grown up in and around rural West Virginia, I can tell you the difference between a 40-hour paycheck and 20-hour paycheck will be hurtful to many West Virginians caught in the bureaucracy of trying to get a federally mandated identification card just to be able to drive. To add insult to injury, workers who end up taking more time off work to get a license are going to have to pay more for it because some in our state government refuse to consider the costs to individuals as a part of the overall financial burden of Real ID implementation. Truly, government is running like a business when the costs of an unfunded federal mandate like Real ID are passed on to consumers instead of being dealt with at the state level.
Real ID is more than an intrusive government overreach into the privacy of West Virginians. For some, it is an attempt at a national firearms registry. Others feel that this national identity card is a direct violation of their stated religious tenets. Ask any advocate for victims of domestic violence how they feel about national databases with personal information and you will hear about how the Department of Homeland Security has still not reconciled the very dire and possibly deadly consequences those trying to escape abusive relationships may face if this program is implemented. Identity theft, now a burgeoning criminal industry in America, will only worsen under the Real ID system, and we should never forget that at the end of the day, this unfunded federal mandate will not make any of us safer.
With so many reasons for throwing this federal boondoggle to the wayside, why does West Virginia march toward compliance? Is there a business interest with powerful connections to state government pulling the strings for West Virginia's compliance with Real ID? Could this issue be an opportunity to be seen as "tough" on national security?
Whatever the reasons, one thing seems clear: West Virginia, despite steady opposition from its citizenry, both liberals and conservatives, is moving toward compliance with an invasive national identity registry that will cripple state budgets, and, in the process, will increase wait times and drivers license fees at the DMV, while not doing one iota of good with respect to national security.
DiStefano is a community organizer for the ACLU of West Virginia.
http://wvgazette.com/Opinion/Op-EdComme ... 0807151136
House rebuffs federal plan to secure state IDs
South Carolina & Regional - Wire RSS
Posted on Wed, Jul. 16, 2008
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House rebuffs federal plan to secure state IDs
By WHITNEY WOODWARD - Associated Press Writer
RALEIGH, N.C. --
The North Carolina House voted Wednesday to rebuff a congressional mandate that the state make its driver's licenses more secure because the federal government did not provide money to enact the changes.
The measure, tentatively approved on a 72-43 vote after a heated debate, effectively says North Carolina will not comply with the REAL ID Act without federal funding.
The congressional plan was approved after officials learned some Sept. 11 terrorists held driver's licenses.
Proponents of the federal law say the stringent security checks it mandates will keep government-issued identification cards out of the wallets of terrorists and illegal immigrants.
But state taxpayers would have to pay $21 million each year through 2017 to comply, in addition to a $20 million software upgrade, said bill sponsor Rep. Nelson Cole, D-Rockingham. He criticized the federal government for requiring states to implement the security checks - some of which he called a "tremendous burden" - without offering to foot the bill.
"We need to send that message without the necessary appropriations and the passing-through of funds to us to make it happen, we cannot do it," Cole said while urging House members to approve the plan.
North Carolina has already spent $4.1 million on implementing some of the REAL ID Act's changes, Cole said.
If approved by the Senate and signed into law, Cole's plan would forbid the state from putting more resources into complying with the congressional measure.
But North Carolina would still be allowed to apply for and receive federal grants which could be used to bring the state into compliance. The state has applied for some grants but has yet to receive them, Cole has said.
Rep. Joe Boylan, R-Moore, said residents' lives would be greatly interrupted should North Carolina not comply with the REAL ID Act.
For example, if the federal government does not recognize North Carolina identification cards as valid, residents employed at the Butner Federal Correctional Complex won't be able to enter their work facilities and attorneys won't be able to enter federal courthouses, Boylan said.
"This has much farther implications than just thumbing our nose at Washington D.C.," Boylan said.
To date, 10 states have officially "opted-out" of the federal plan, by passing laws saying that their agencies will not comply with the law, according to data collected by the National Conference of State Legislatures.
Others have passed ceremonial resolutions criticizing the program.
With legislators rushing toward adjournment, it's unclear if the General Assembly has enough time to pass the bill and send it to Gov. Mike Easley.
The bill awaits a final vote in the House; approval would send it to the Senate for consideration
http://www.myrtlebeachonline.com/575/story/522660.html
Real ID cards drawing real controversy
Real ID cards drawing real controversy
By Sarah Lohman
POST-DISPATCH WASHINGTON BUREAU
07/21/2008
WASHINGTON — It seemed like a good idea in the wake of 9/11: a national system of identification cards that would be hard for terrorists to counterfeit or obtain fraudulently.
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But opposition to the still-undeveloped Real ID program is surfacing across the political spectrum, from civil liberties groups worried about privacy infringement, to religious groups that prohibit photographs and state lawmakers who don't have money to pay for the new safeguards.
"I think it's a sign of how obnoxious this piece of legislation is," Tim Sparapani, senior legislative counsel for the American Civil Liberties Union in Washington, said of the bipartisan nature of opposition to the program.
The opposition even includes some — like a Missouri state representative — who say the plan could lead to more drastic measures — like government tracking of citizens through microchips inserted in their bodies.
Eleven states have passed legislation prohibiting participation in the program. Missouri has been tapped to play a prominent role in developing the new cards, but the state's junior senator, Democrat Claire McCaskill, is co-sponsoring a bill to repeal the law that created Real ID, citing lack of funding for an expensive federal mandate.
Congress passed the law in 2005 following the recommendation of the 9/11 Commission, which noted that 18 of the 19 hijackers on 9/11 had fraudulent IDs. The law took effect in May, but the system hasn't been put in place, mostly because of a lack of funding.
The law sets up nationwide standards for identification cards and gives states until December 2009 to require that drivers licenses or other state-issued cards comply with those standards. Cards that meet the new requirements will be needed to board most flights, enter federal buildings and enter secure facilities such as nuclear power plants. Residents of states that don't comply will need to use passports or military identification.
The new card standards include:
•Special card stock that is not widely marketed.
•Ink that is hard to counterfeit.
•A security marking approved by the Department of Homeland Security.
•A machine-readable strip on the back capable of storing more information. The strip will allow law enforcement to swipe the card and retrieve information from it instantly.
In addition, people will be able to get the new cards only with specific forms of identification such as a birth certificate, Social Security card and certain immigration papers.
The Department of Homeland Security so far has awarded $79 million to states to get started on the program. Missouri received the largest portion of the grant — $17.5 million to develop a "verification hub" to connect state motor vehicle offices.
'WASTE OF MONEY'
The cost to states — estimated at $1 million annually — is one of the reasons states have objected to the federal plan.
The Missouri House passed a bill that would prohibit the state from taking part in the Real ID program, but the legislation stalled in the Senate.
In Illinois, the Legislature approved last year a resolution urging Congress to repeal Real ID, but the state has moved forward with planning for when money becomes available.
Henry Haupt, a spokesman for the Illinois secretary of state, said the state had plans to develop a Real ID card different from drivers licenses. The new card would be needed only by people who don't already have a passport.
Civil libertarians have their own concerns about the program.
The ACLU's Sparapani said he worried that the extra information on the back of the cards could be misused by businesses that scan the cards and store the information. That information might then be used for solicitation purposes or sold to other companies, he said.
"It is an invasion of privacy, is an enormous waste of taxpayer money, has a system which is incapable of making us safer and, in fact, would likely make us weaker," Sparapani said.
MICROCHIP?
Even greater fears are expressed by opponents such as Missouri state Rep. Jim Guest, R-King City, founder of Legislators Against Real ID and a featured speaker at a recent protest rally in Washington on the subject.
Guest worries Real IDs will someday be required not just to enter a federal building but to buy a prescription or open a bank account.
He worries, too, that Real ID will lead to a requirement that Americans must carry a radio frequency chip that can be tracked.
"Say you start out with your Real ID card, then they put a little RFID (radio-frequency identification) chip on it, so you have to carry that with you, then when you forget to carry your card, they'll just take this little RFID chip and they'll insert this microchip in your arm," Guest said.
Last month, Missouri passed Guest-sponsored legislation to prevent employers from requiring workers to have information chips implanted in their bodies.
Laura Keehner, a spokeswoman for the Department of Homeland Security in Washington, said people's fears about the program were founded on mistruths, dispelled on the department's website (www.dhs.gov).
She said Homeland Security was only following the instruction of Congress and couldn't speak to how the cards would be used in years to come.
"Our record is clear," Keehner said. "How am I to know what anyone in the future is going to do?"
slohman@post-dispatch.com | 202-298-6880
http://www.stltoday.com/stltoday/news/s ... enDocument
L-1 Identity Solutions Reports Second Quarter 2008 Financial
ublished: July 30, 2008
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L-1 Identity Solutions Reports Second Quarter 2008 Financial Results
STAMFORD, Conn., July 30 /PRNewswire-FirstCall/ -- L-1 Identity Solutions, Inc., (NYSE: ID), a leading provider of identity solutions and services, today announced financial results for the second quarter and six months ended June 30, 2008.
Revenue for the second quarter of 2008 was $145.0 million compared to $90.1 million in the second quarter of 2007, an increase of $54.9 million or 61 percent. Organic growth in the quarter was 22 percent and reflects strong demand for credentialing solutions, continued growth from intelligence service business and increases from enrollment and background screening services.
Gross margin for the second quarter 2008 was approximately 33 percent compared to 31 percent in the second quarter of 2007. Gross margin improvements reflect higher revenues from biometric solutions and the impact of improved leverage.
Adjusted EBITDA for the second quarter of 2008 improved to $22.5 million from $14.1 million for the same period in the prior year, an increase of $8.4 million, or 60 percent, reflecting the impact of organic sales growth, acquisitions and improved operating leverage. Second quarter 2008 operating expenses as a percentage of revenue decreased to 27 percent compared to 28 percent in the second quarter of 2007.
The Company reported second quarter net income of $3.2 million, or $0.04 per diluted share compared to a net loss of $1.2 million, or ($0.02) per diluted share in the second quarter of 2007 based on weighted average diluted shares outstanding of 74.8 million in the second quarter of 2008 compared to 71.3 million in the prior year period. Included in the Company's second quarter net income are expenses of $13.7 million for non-cash items related to the amortization of intangibles, stock-based compensation and depreciation, compared to $11.9 million in the second quarter of 2007.
"I am pleased with the results for the quarter and applaud the efforts of our divisions in working together to help us achieve our financial targets for the first six months of 2008," said Robert V. LaPenta, Chairman, President and CEO of L-1 Identity Solutions. "Strong momentum from the first half of the year, fueled by an excellent pipeline of biometric division opportunities, intelligence contracts and secure credentialing solutions as evidenced by the recently expanded U.S. Passport Card contract and a new award for the Border Crossing Card, provide positive momentum for the second half of 2008."
Year to Date Results for the Six Months Ended June 30, 2008
Revenue for the first six months of 2008 was $260.9 million compared with $160.1 million for the same period in the prior year, representing an increase of $100.8 million. The Company's organic revenue grew by 21 percent for the first half of 2008 compared to the first half of 2007.
Gross margin for the first six months of 2008 was 30 percent, compared to 28 percent in the same period in 2007 with improvements reflecting higher revenues from biometric solutions and the impact of improved leverage.
Adjusted EBITDA for the first six months of 2008 was $35.2 million compared to $19.8 million for the same period in 2007, representing a 78 percent increase. The increase in Adjusted EBITDA for the first six months of 2008 reflects the impact of higher revenues and improved operating leverage. Operating expenses as a percentage of revenues decreased to 27 percent in the first six months of 2008 from 31 percent in the first six months of 2007.
For the first six months ended June 30, 2008, the Company reported a net income of $1.3 million, or $0.02 per diluted share compared to a net loss of $10.0 million, or ($0.14) per diluted share in the first six months of 2007. Diluted weighted average shares outstanding increased to 73.8 million from 71.9 million in the prior year. Included in the company's six months net income for 2008 and net loss for 2007 are approximately $26.5 million and $23.7 million, respectively, of expenses for non-cash items related to the amortization of intangibles, stock-based compensation and depreciation.
The Company's first half 2008 revenue of $260.9 million, together with expected revenues from the Company's current backlog of approximately $800.0 million, represents approximately 85 percent of the Company's 2008 revenue target.
Second Quarter Highlights
-- L-1 was awarded the U.S. Passport Card contract with a negotiated value
of $215 million over five years and L-1 was awarded $24.8 million over
five years for the new U.S. Border Crossing Card (BCC) as part of an
expansion to the U.S. Passport Card program. Together, the value of
the prime contract award combined with the BCC award brings the value
of the Department of State contract with L-1 to approximately $239
million over five years.
-- The acquisition of the ID Systems Business of Digimarc Corporation
remains on course for completion in the second half of 2008. The
Company received early termination from the Federal Trade Commission of
the waiting period under the Hart-Scott-Rodino Act and the Company's
$310 million all cash tender offer was unanimously approved by
Digimarc's board of directors.
-- Enrollment services momentum in the quarter included an award of a
Master Contract with Washington State Department of Social and Health
Services (DSHS) for Civil Applicant Fingerprinting and L-1 Live Scan
technology was provided for Connecticut's first full-service applicant
fingerprinting and background check facility. In the first half of 2008
L-1 processed 647,000 prints, an increase of 36 percent over the print
volume experienced in the first half of 2007.
-- The demand for HIIDE biometric enrollment and recognition devices
continued with the Company receiving a $4.9 million task order in the
quarter.
-- A new Live Scan device was unveiled in the quarter, the TouchPrint(TM)
Enhanced Definition 4800 Live Scan, which captures forensic-quality ten
print and palm images on a single platen.
-- Opportunities for iris technologies continued to open up, in part
predicated by the resolution of the dispute with LG Electronics. L-1
also released the latest state-of-the-art iris algorithm, L-1's
proprietary Daugman '08.
-- The Enterprise Access Control Division continued the pace of innovation
by introducing the next generation 3D face reader for hands-free,
secure physical access control.
-- The Secure Credentialing Division had over $16.0 million in extensions
to existing driver's license contracts in the quarter.
-- REAL ID grants of nearly $80 million were released in June 2008 to
assist states in improving the security of state-issued driver's
licenses (DL) and identification documents (ID). Grants will fund
state-specific projects like improving the physical security of
licenses, upgrading facility security, and modernizing document imaging
and storage. Of that, current L-1 customers have been granted $16.0 -
$18.0 million.
-- L-1 is the current technology, infrastructure and maintenance provider
for the Registered Traveler (RT) program and the Company received
orders to deploy lanes at one new airport and six new terminals in the
second quarter. Today the RT program has 129,417 active members and L-
1 provides and supports RT kiosks located in 17 airports across the U.S.
Forward Looking Financial Expectations
The Company expects revenue for the third quarter ending September 30, 2008 of between $140.0 million and $150.0 million, with Adjusted EBITDA of $20.0 million to $23.0 million and EPS in the range of $0.04 to $0.06.
The Company expects revenue for the full year ending December 31, 2008 of approximately $555.0 million - $575.0 million, Adjusted EBITDA of $80.0 million - $85.0 million and unlevered free cash flow of $60.0 million - $65.0 million.
On a pro forma basis, assuming the pending Digimarc transaction closed at the start of the 2008 calendar year, the Company expects revenues of approximately $670.0 million, adjusted EBITDA of $110.0 million including expected operational efficiencies, unlevered free cash flow of $75.0 million and a backlog of $1.0 billion. In addition, L-1 expects to recognize synergies and additional operating efficiencies once the businesses are combined.
Conference Call Information
The Company will host a conference call with the investment community to discuss its operating results and outlook beginning at 11:00 a.m. (ET) today.
The conference call will be available live over the Internet at the investor relations section of the L-1 website at www.L1ID.com. To listen to the conference call, please dial 888-694-4641 using the passcode 51393020. For callers outside the U.S., please dial 973-582-2734 with the passcode 51393020. A recording of the conference call will be available starting one hour after the completion of the call. To access the replay, please dial 800-642-1687 and use passcode 51393020. To access the replay from outside the U.S., dial 706-645-9291 and use passcode 51393020.
Pro Forma Information
Pro Forma information presented in this press release reflects results after giving effect to the acquisitions consummated after January 1, 2008 as if they had occurred on January 1, 2008.
Organic Growth
Organic growth represents the increase in revenues in the current period, expressed as a percentage, for businesses included for the entire period in the current year over the revenues in the corresponding period in the previous year, assuming the same businesses had been acquired at the beginning of the prior year period.
Adjusted EBITDA
L-1 Identity Solutions uses Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adding back to net income (loss) interest, income taxes, depreciation, amortization, and stock-based compensation expense. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes Adjusted EBITDA is useful to help investors analyze the operating trends of the business before and after the adoption of SFAS 123 ( R ) and to assess the relative underlying performance of businesses with different capital and tax structures. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing L-1 Identity Solutions financial results with other companies in the industry, many of which also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as amortization, depreciation and stock-based compensation, as well as non-operating charges for interest and income taxes, investors can evaluate the Company's operations and can compare its results on a more consistent basis to the results of other companies in the industry. Management also uses Adjusted EBITDA to evaluate potential acquisitions, establish internal budgets and goals, and evaluate performance of its business units and management.
L-1 Identity Solutions considers Adjusted EBITDA to be an important indicator of the Company's operational strength and performance of its business and a useful measure of the Company's historical and prospective operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes interest income and expense and income taxes, all of which impact the Company's profitability, as well as depreciation and amortization related to the use of long term assets which benefit multiple periods. L-1 Identity Solutions believes that these limitations are compensated by providing Adjusted EBITDA only with GAAP net income (loss) and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) presented in accordance with GAAP. Adjusted EBITDA as defined by the Company may not be comparable with similarly named measures provided by other entities. A reconciliation of Adjusted EBITDA to GAAP net income or loss is included in the enclosed schedule. No reconciliation is provided for pro forma Adjusted EBITDA for the year ending on December 31, 2008 assuming the acquisition of Digimarc, since it is not practicable to estimate the corresponding reconciling items or pro forma net income.
Unlevered Free Cash Flow
Unlevered Free Cash Flow represents cash flow from operating activities, plus interest expense less capital expenditures. L-1 believes unlevered free cash flow is a useful measure for assessing the company's liquidity, meeting its debt service requirements and making acquisitions. Unlevered free cash flow is not necessarily comparable to similar measures used by other entities and is not a substitute for GAAP measures of liquidity such as cash flows from operating activities.
About L-1 Identity Solutions
L-1 Identity Solutions, Inc. (NYSE: ID), together with its portfolio of companies, offers a comprehensive set of products and solutions for protecting and securing personal identities and assets. Leveraging the industry's most advanced multi-modal biometric platform for finger, face and iris recognition, our solutions provide a circle of trust around all aspects of an identity and the credentials assigned to it -- including proofing, enrollment, issuance and usage. With the trust and confidence in individual identities provided by L-1 Identity Solutions, government entities, law enforcement and border management agencies, and commercial enterprises can better guard the public against global terrorism, crime and identity theft fostered by fraudulent identity. L- 1 Identity Solutions is headquartered inStamford, CT. For more information, visit www.L1ID.com.
ID-L
Forward Looking Statements
This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements in this press release and those made from time to time by L-1 Identity Solutions through its senior management are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's current views based on management's beliefs and assumptions and information currently available. Forward-looking statements concerning future plans or results are necessarily only estimates, and actual results could differ materially from expectations. Certain factors that could cause or contribute to such differences include, among other things, the ability of the Company to successfully close the Digimarc transaction on a timely basis (if at all), the availability of government funding for the Company's products and solutions, the size and timing of federal contract awards, performance on existing and future contracts, general economic and political conditions and other factors affecting spending by customers, and the unpredictable nature of working with government agencies. Additional risks and uncertainties are described in the Securities and Exchange Commission filings of the L-1 Identity Solutions, including the Company's Form 10-K for the year ended December 31, 2007, and the Company's Form 10-Q for the quarter ended March 31, 2008. L-1 Identity Solutions expressly disclaims any intention or obligation to update any forward-looking statements.
L-1 Identity Solutions, Inc.
Reconciliation of Adjusted EBITDA to Net Income (Loss) in thousands
(Unaudited)
Historical Periods Quarter Ending Quarter Ending
June 30, 2008 June 30, 2007
Net Income (Loss) $3,182 $(1,197)
Interest Expense, net 3,198 2,172
Depreciation and amortization 10,221 9,360
Stock Based Compensation 3,502 2,514
Income Tax Provision 2,442 1,208
----------------- -----------------
Adjusted EBITDA $22,545 $14,057
Six Months Ending Six Months Ending
June 30, 2008 June 30, 2007
Net Income (Loss) $1,297 $(10,028)
Interest Expense, net 6,459 3,877
Depreciation and amortization 19,894 18,419
Stock Based Compensation 6,563 5,241
Income Tax Provision 979 2,295
----------------- -----------------
Adjusted EBITDA $35,192 $19,804
Prospective Periods Quarter Ending Year Ending
September 30, 2008 December 31, 2008
Net Income (Loss) $3,000 - $6,000 $7,000 - $12,000
Reconciling Items:
Provision for Income Taxes 1,000 6,000
Interest, net 2,000 12,000
Stock-Based Compensation 4,000 15,000
Depreciation and Amortization 10,000 40,000
Adjusted EBITDA $20,000 - $23,000 $80,000 - $85,000
Exhibit II
L-1 Identity Solutions, Inc.
Unlevered Free Cash Flow
(in thousands)
Year Ending
December 31, 2008
Cash Flow from Operating Activities $61,000 - $66,000
Interest Paid 12,000
Tax Effect of Stock Options Exercised 1,000
Taxes Paid 1,000
Interest Income ---
Capital Expenditures (15,000)
Unlevered Free Cash Flow $60,000 - $65,000
L-1 IDENTITY SOLUTIONS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
June 30, December 31,
2008 2007
Assets
Current assets:
Cash and cash equivalents $8,352 $8,203
Accounts receivable, net 101,341 90,210
Inventory 26,911 21,534
Deferred tax asset 13,253 13,253
Other current assets 6,945 3,890
Total current assets 156,802 137,090
Property and equipment, net 27,201 23,451
Goodwill 1,085,577 1,054,270
Intangible assets, net 186,143 184,237
Deferred tax asset 36,314 37,293
Other assets, net 10,898 9,304
Total assets $1,502,935 $1,445,645
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $88,011 $81,549
Current portion of deferred revenue 13,835 12,279
Other current liabilities 3,134 2,393
Total current liabilities 104,980 96,221
Deferred revenue, net of current portion 6,194 4,671
Long-term debt 263,000 259,000
Other long-term liabilities 1,533 1,036
Total liabilities 375,707 360,928
Shareholders' equity:
Common stock, $0.001 par value;
125,000,000 shares authorized; 77,543,090
and 75,146,940 shares issued at June 30,
2008 and December 31, 2007, respectively 78 76
Additional paid-in capital 1,263,311 1,217,840
Pre-paid forward contract (69,808) (69,808)
Treasury stock (6,161) -
Accumulated deficit (68,501) (69,798)
Accumulated other comprehensive income 8,309 6,407
Total shareholders' equity 1,127,228 1,084,717
Total liabilities and shareholders'
equity $1,502,935 $1,445,645
L-1 IDENTITY SOLUTIONS, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
Revenues $144,952 $90,099 $260,947 $160,106
Cost of revenues:
Cost of revenues 91,049 55,856 169,789 102,033
Amortization of acquired
intangible assets 6,277 6,492 12,178 12,965
Total cost of revenues 97,326 62,348 181,967 114,998
Gross profit 47,626 27,751 78,980 45,108
Operating expenses:
Sales and marketing 8,999 7,444 16,484 12,904
Research and development 6,509 4,551 11,842 9,212
General and administrative 23,240 12,946 40,029 26,027
Amortization of acquired
intangible assets 829 700 1,655 868
Total operating expenses 39,577 25,641 70,010 49,011
Operating income (loss) 8,049 2,110 8,970 (3,903)
Interest income 64 99 135 166
Interest expense (3,262) (2,271) (6,594) (4,043)
Other income (expense), net 773 73 (235) 47
Income (loss) before income
taxes 5,624 11 2,276 (7,733)
Provision for income taxes (2,442) (1,208) (979) (2,295)
Net income (loss) $3,182 $(1,197) $1,297 $(10,028)
Net income (loss) per share
Basic $0.04 $(0.02) $0.02 $(0.14)
Dilutive $0.04 $(0.02) $0.02 $(0.14)
Weighted average shares
outstanding
Basic 74,019 71,257 73,085 71,895
Dilutive 74,816 71,257 73,761 71,895
CONTACTS:
Doni Fordyce
L-1 Identity Solutions
203-504-1109
dfordyce@L1ID.com
Steve Lipin
Brunswick Group
212-333-3810
SOURCE L-1 Identity Solutions, Inc.
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http://newsblaze.com/story/200807300533 ... story.html
Real ID may cost Alabama $16.3 million
Real ID may cost Alabama $16.3 million
By Markeshia Ricks • mricks@gannett.com • July 30, 2008
Complying with a federal law that creates national security standards for state-issued identification might leave Alabama with a bad case of sticker shock.
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It's estimated it will cost the state more than $16.3 million to reach full compliance with the federal Real ID Act and maintain it for five years, according to a special report from the Department of Examiners of Public Accounts.
Alabama, like every other state, has until Dec. 31, 2009, to meet 18 initial milestones, which include requiring people to prove where they live, and verifying their legal status and Social Security numbers. To be in full compliance by May 2011, they must meet 21 additional milestones.
About $10 million is needed to cover the cost of issuing IDs, creating a data management system and maintenance, according to the report. The Department of Public Safety would need another $6.6 million for more staff, additional facilities and security upgrades. But where that money would come from is a mystery.
State Sen. Wendell Mitchell, a member of the executive committee of the Southern Legislative Conference, said Real ID was a hot topic at a recent National Conference of State Legislatures summit he attended.
The more than $130 million that the federal government has appropriated since Real ID was passed "is only a drop in the bucket for what it will cost all 50 states to comply," said Mitchell, a Democrat from Luverne. "I think the figure to comply is so unrealistic for most states, particularly Alabama, with the crisis we're in."
Nine states have taken formal steps to reject Real ID. Alabama isn't one of them, and Gov. Bob Riley has made it clear that the state won't become one of them. To that end, the state has applied for more than $8 million in federal grant money. It has received less than $1 million.
Martha Earnhardt, a Department of Public Safety spokeswoman, said the lack of specific funding isn't going to stop the state from producing secure state-issued IDs. It might, however, make it difficult to comply with the law.
"We can't anticipate what might be available, so we will continue to pursue any and all sources of funding for implementing Real ID," she said. "Certainly there are some questions that the state is going to have to answer in terms of funding this program."
State Rep. Cam Ward, R-Alabaster, said if the answer includes making states scrape together money for an unfunded mandate, Alabama should say "no."
"This is a typical example of the federal government issuing an unfunded mandate with all these punishment provisions," said Ward, who sponsored a joint resolution opposing the federal act. "It's easy for them because the federal government can run a deficit. State governments have to have a balanced budget."
http://www.montgomeryadvertiser.com/app ... 00333/1009
Bob Barr Blasts McCain, Obama for Supporting National ID,
Bob Barr Blasts McCain, Obama for Supporting National ID, Again Urges Congress to Repeal Real ID Act
August 3rd, 2008 7:07 pm | by Mike Miller | Published in Big Government, Bob Barr, Civil Liberties, Constitution, Election, Individual Responsibility, Liberty, Politics, REAL ID, law, terrorism | Comment
Which presidential candidate is speaking out for our rights and against the heinous Real ID Act? Bob Barr, of course.
Over at CrazyForLiberty.com, Doug Craig quotes Barr:
“The Real ID Act establishes a new and privacy-invasive national ID card program. By forcing states to standardize their driver’s licenses and creating a vast national data base of private information on the citizenry, the law establishes through the back door something Americans would never have accepted directly—a National Identification Card….There was no open and honest vote on Real ID. The mandate was slipped into a supplemental appropriations bill, discouraging any real debate over the issue.â€
