TO ALL: NEWS kinda old but what the hell
International Standards Group Reports Results For Third Quarter
And Nine Months Of 1996
BOCA RATON, Fla., Aug. 23 /PRNewswire/ -- International Standards Group, Ltd, (Nasdaq:
ISGI) today reported revenues for the third quarter and nine months ending June 30, 1996, the
Company's first quarterly announcement since its acquisition of Total World Telecom (TWT), its
Tier II long-distance telecommunications subsidiary.
Third quarter fiscal 1996 revenues continuing operations increased approximately 2505 percent to
$3,846,166 compared with $1,083,676 in the same period of 1995. The rise is attributed to
across the board increases in the Company's three main subsidiaries: the RESN real estate
subsidiary (up 45 percent to $1,266,789 versus $877,645 for the same period last year); the FSG
auditing services subsidiary (up 28 percent to $264,244 versus $206,031) and its newly acquired
TWT long distance telecommunications subsidiary which had revenues for two weeks of the
quarter (since being acquired) of $2,315,133. The Company's consolidated net loss for the
quarter was $2,124,305 ($.07 per share) as compared to $1,020,832 ($0.06 per share) for the
same period last year. Quarter losses are attributed to a one-time non- recurring charge of
$1,533,077 due to a write-off of marketing expenses, the acquisition of TWT and the sale of its
non-profitable subsidiaries. There was also a $343,255 loss from the RESN subsidiary, which
was primarily due to the opening of its new real estate offices and a developing
advertising/marketing division. Gross profit for the three months ended June 30, 1996 was
$722,304 compared to $290,945 for the same period last year, a 148 percent increase primarily
attributable to the TWT acquisition.
Nine-month fiscal 1996 revenues from operations increased 130 percent to $6,735,981
compared to $2,935,252 for the nine months ended June 30, 1995 and was primarily due to the
acquisition of TWT. Net loss for the nine-month period was $4,350,465 ($0.19 per share) versus
$2,673,887 ($0.17 per share) for the same period one year ago. Gross profit for the nine-month
period was $1,202,409 compared to $623,734 for the same period last year, a 93 percent
increase primarily due to the TWT acquisition. On June 30, 1996 total assets increased to
$80,358,350 as compared to $7,120,682 at September 30, 1995, the last fiscal year-end.
With regard to the TWT acquisition, pro forma information as of the nine months ended June 30,
1996 and the year ended September 30, 1995 reflects the acquisition of TWT as if it had
occurred on October 1, 1994. The acquisition has been accounted for utilizing the purchase
method in accordance with APB #16, and accordingly all assets and liabilities are reflected at their
historical cost basis. For the nine months ended June 30, 1996, pro forma net revenues were
approximately $44 million versus approximately $31 million for the year ended September 30,
1995. Net loss for the same periods were $8,818,537 ($0.53 per share) versus $7,748,490
($0.57 per share).
"Our fully absorbed acquisition of TWT has made 1996 the most important year in our company's
history," said Joseph Lents, president and chief executive officer of International Standards Group.
"TWT has consistently averaged net revenues of over $5 million per month and we anticipate
significant expansion during the next 12 months through internal growth and acquisitions."
"It is anticipated that (TWT will become cash flow positive) as soon as the quarter ending
September 30, 1996," stated Don Booth president of TWT. "In addition we are confident that we
will be able to fund our own growth and working capital through our internal operations and lines
of credit."
International Standards Group, Ltd. (ISG) provides telecommunications through its wholly owned
subsidiary TWT, which is a Tier 2 switch-based inter-exchange carrier that utilizes state-of-the-art
digital and fiber optic facilities, including five Seimens Stromberg-Carlson DCO tandem switches
located in New York, Chicago, Los Angeles, Atlanta and Houston. ISGI, through its wholly
owned subsidiary, Financial Standards Group, Inc.(FSG), provides financial services and asset
management to credit unions, assists credit unions and their supervisory committees in performing
comprehensive or internal regulatory compliance audits. In addition, through its Real Estate
Services Network (RESN), which includes The Financial Group, ISG provides commercial and
residential real estate brokerage, mortgage origination and title services. TWT's World Wide Web
Address: http//bpli.com./twt.com.htm.
INTERNATIONAL STANDARDS GROUP, LTD.
June 30, 1996 Sept. 30, 1995
(Unaudited)
Total Current Assets $20,621,865 $1,419,033
Total Assets 80,358,350 7,120,682
Total Current Liabilities 16,789,631 5,229,744
Total Liabilities and
Stockholders Equity 80,358,350 7,120,682
Nine Months Ended June 30
1996 1995
Revenues $6,735,981 $2,935,252
Cost of Revenues 5,533,572 2,311,518
Gross Profit 1,202,409 623,734
SG&A 4,756,001 2,641,145
Depreciation and Amortization 506,635 395,941
Loss from Continuing Operations (4,060,227) (2,413,352)
Loss per Common Share (0.19) (0.17)
Average Common Shares Outstanding 22,986,167 15,661,263
Quarter Ended June 30
1996 1995
Revenues $3,846,166 $1,083,676
Cost of Revenues 3,123,862 792,731
Gross Profit 722,304 290,945
SG&A 2,448,154 1,050,199
Depreciation and Amortization 296,802 132,862
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