(COMTEX) B: ABLE TELCOM HOLDING CORP. ANNOUNCES RESULTS FROM FIRST QU
B: ABLE TELCOM HOLDING CORP. ANNOUNCES RESULTS FROM FIRST QUARTER 1999
WEST PALM BEACH, Fla., March 17 /PRNewswire/ -- Able Telcom Holding
Corp. (Nasdaq: ABTE) today announced the results from operations for
the quarter ended January 31, 1999. Revenues for the quarter totaled
$92 million compared to $22 million for the same period a year ago
representing an increase of 318%. The increase in revenues is due
primarily to the acquisition of MSFNT in July 1998. Net income
applicable to common shares, excluding a non-cash charge of $3.4
million ($2.1 million after tax) for the increase in value of the Stock
Appreciation Rights (SARs) issued to WorldCom as part of the MFSNT
acquisition, increased to $1.3 million compared to a net loss of ($1.1)
million for the comparative quarter for 1998, an increase of 227%. Net
income before tax for the quarter was also impacted by non-recurring
charges of $1.1 million related to financing activities, legal,
consulting and accounting fees. The Company expects these types of
charges to be significantly reduced in future quarters. Net loss
attributable to common shares for the quarter ended January 31, 1999,
after the effect of the charge associated with the SARs was ($0.76)
million, or ($0.06) per share, as compared to a net loss of ($1.1)
million or ($0.12) per share for the same quarter of 1998.
It is important for the investment community to understand the
structure of the SARs and the fact that the charge reflected in the
January 31, 1999 quarter, for the increase in value of these rights
will never materialize if the shareholders vote to convert these rights
to options at the May 10, 1999 shareholders' meeting. The value
reflected in the charge to the statement of operations is based on a
determination of fair value using the closing price of Able's common
stock on January 31, 1999. The value will be reduced or increased
based on the fair value of the SARs utilizing the price of the
Company's common stock at each reporting date until the SARs are
converted to options or are exercised by WorldCom. If the SARs are
converted to stock options, then the charges previously recognized
would be credited back to equity. The impact of the reduction in this
liability would be reflected in the statement of operations.
Earnings per share was $0.09 before the charge for the increase in
value of the stock SARs. The non-recurring charges also impacted
earnings per share by approximately $0.05. Normalized earnings for the
quarter ended January 31, 1999, excluding the non-cash and
non-recurring charges, was $0.14 per share. The total weighted average
number of shares on January 31, 1999 was 14.5 million which includes
2.4 million shares associated with Series B Convertible Preferred
Stock, as compared to 8.8 million shares on January 31, 1998. Backlog
on January 31, 1999 totaled $1.2 billion as compared to $0.1 billion on
January 31, 1998. All per share information is reported on a diluted
basis.
"I am extremely proud of the performance of the employees of Able
Telcom Holding Corp. and its subsidiaries during our first quarter,"
stated Billy Ray, Jr., Chief Executive Officer and President of Able
Telcom Holding Corp., "especially in light of all the distractions the
Company has had to endure. Our current ratio improved from year end,
our backlog is up, and we are addressing the operational and
administrative issues at hand. Our next big hurdle is the official
testing of the New Jersey Consortium Violation Processing Center. So
far our preliminary testing has exceeded our expectations and we expect
to come to a successful conclusion within the terms of our agreement
with the customer. We are also continuing our efforts to increase our
line of credit in order to ensure the continued growth of our
organization."
Able is a leading international telecommunications systems integrator,
project developer and facilities manager of innovative, large scale,
facilities-based fiber optic and other communications networks for a
range of customers including emerging telecom service providers,
entrepreneurial Internet Service Providers, and many of the world's
largest telecommunications companies. Able's wholly owned subsidiary
MFS Network Technologies, Inc. (MFSNT), develops, integrates and
manages advanced intelligent transportation systems which include
automated toll collection systems and electronic traffic management and
control systems. MFSNT is an outgrowth of Peter Kiewit Son's, Inc.,
one of the most respected names in the telecom construction industry.
It was acquired by Able from MCI/WorldCom, Inc., which remains one of
Able's significant customers.
Certain matters discussed in this press release may constitute forward-
looking statements within the meaning of the federal securities laws.
Able Telcom's actual results could differ materially from those
anticipated in such forward-looking statements as a result of certain
factors, including those detailed from time to time in the Company's
reports and filings with the Securities and Exchange Commission. The
Company does not undertake to revise, and specifically disclaims any
obligation, to publicly release the result of any revisions which may
be made to any forward looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date of
such statements.
The following table represents selected financial information from
the Company's consolidated financial statements as of January 31, 1999
(unaudited) and October 31, 1998 (all amounts in millions, except per
share amounts).
Selected Historical Balance Sheet
Data (at period end):
January 31, 1999 October 31, 1998
Current assets $202 $186
Total assets 280 291
Current liabilities 151 160
Total shareholders' equity 34 40
Quarter Ended January 31,
1999 1998
Selected Historical Statement
of Operations Data:
Revenues $91.8 $22.3
Income (loss) from operations 5.4 (1.2)
Loss applicable to common stock (0.8) (1.1)
Loss per common share:
Basic (0.06) (0.12)
Diluted (0.06) (0.12)
Adjusted Operations Data (1):
Income (loss) applicable to common stock $1.3 ($1.1)
Income (loss) per common share:
Basic 0.11 (0.12)
Diluted 0.09 (0.12)
EBITDA (2) $7.3 0.1
(1) The non-cash charge related to the increase in the value of
the SARs in the quarter ended January 31, 1999, has been excluded to
present selected operations data of the Company prior to the impact of
the non-cash charge.
(2) EBITDA is being calculated by taking the Company's net loss and
adding back: income taxes, change in value of SARs, interest expense
and depreciation and amortization. EBITDA is not intended to represent
cash flows of the Company based upon generally accepted accounting
principles.
SOURCE Able Telcom Holding Corporation
-0- 03/17/99 /CONTACT: Edward Pollock,
General Counsel of Able Telcom Holding Corporation, 561-688-0400/
(ABTE)
CO: Able Telcom Holding Corporation ST: Florida IN: TLS SU: ERN
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