Global DataTel Reports 1998 and First Quarter 1999 Results
FRIDAY, MAY 28 1999 7:12 PM EST
DELRAY BEACH, FLA. (May 28) BUSINESS WIRE -May 28, 1999--
ProForma Revenue $23,635,078 with Net Income of $1,850,457
First Quarter Revenue Expected at $6.5 million
with Earnings of $600,000 Global DataTel Inc. (OTCBB:GDIS) today reported proforma consolidated results for the year ended Dec. 31, 1998. Net income for the year was $1,850,457 or $.25 per share on revenues of $23,635,078. These results are presented as if the five acquisitions made by Global DataTel at the end of 1998 were reporting together for the year, following an audit of each individual company's financial statements independently.
On Dec. 14, 1998, International Computer Resources, of Florida; Manteniemiento Electronico de Sistemas Ltd.; DLR & CIA; Micro Star Ltda.; and CASA Informatica, all based in Colombia, South America, merged together into a previously existing public company to become Global DataTel, Inc. All of the companies engage in the sale and distribution of high-end computer and software products, including ERP suites, as well as providing information technology solutions and support to medium and large business clients. Global DataTel, through these wholly-owned subsidiaries, is a First Tier IBM Partner in South America.
Actual audited consolidated results reported for the corporation in 1998 include revenue and earnings from these five companies only for the period Dec. 14-31, 1998. Global DataTel reported net sales of $1, 937,578 with a net loss of $295,515 as compared to net sales in 1997 of $14,973 with a net loss of $2,081,666. The 1997 results reflect only the business of the former public company and none of the current Global DataTel business. The loss for 1998 is solely attributed to the prior public company's business and not the current business of Global DataTel, which was profitable for that period.
For the quarter ending March 31, 1999, Global DataTel expects to report net income of $600,000 on revenues of $6.5 million. This compares to earnings of $410,000 on revenue of $5.1 million for the preceding year. Revenues on a quarter to quarter basis increased nearly 30 percent. It should be noted that these quarterly results are for the current Global DataTel companies and do not take into account the former business of the preceding company. The company is expected to report actual first quarter results shortly.
Infanti Lago & Company, of Miami, a regional accounting firm that specializes in Latin American businesses, carried out the audit, including the completion of an audit for the preceding three year period of the business of each subsidiary that comprises Global DataTel. The proforma results of these audits will be available when the company files its registration statement pursuant to its already-announced convertible bond offering. Infanti Lago & Company is a member of the Standards Committee for the SEC, where it participates in peer review.
The company also announced that its year end and first quarter results are being put into Edgar format and will be filed with the SEC on Form 10K and Form 10Q.
Global DataTel (www.globaldatatel.com) is a First Tier IBM Business Partner and the Latin American leader in medium to large system integration projects. Global also partners with Compaq, Dell, Hewlett-Packard and Cisco, and is a Microsoft Certified Solution Provider, Lotus Premier Team Provider and is a distributor of JBA International E.R.P. company.
Its wholly-owned subsidiary, eHOLA.com Online Service Network (www.ehola.com), is the first integrated Internet access service and Spanish language content portal available to Spanish-speaking individuals in North, Central and South America. The network provides consumer and business dial-up and dedicated internet access to 300 cities throughout 13 countries, and is available to 85 percent of the "wired" population in the U.S., Mexico, Argentina, Brazil, Colombia, Chile, Venezuela, Peru, Ecuador, Guatemala, El Salvador, Costa Rica and Panama. With more than 220 local POP's (points of presence) and monthly subscriptions for as low as $9 per month, the eHOLA.com network offers a unique entry point for the more than 35 million new Latin American users expected to be online by 2001. eHOLA.com is the first Spanish internet portal providing its own content, as well as access to the internet, offering subscribers the capability of dialing into a local access number without a roaming charge, whether in North, Central or South America.
This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Forward-looking statements involve the known and unknown risks and uncertainties that may cause the company's actual results in future periods to differ materially from that which is anticipated.
Global DataTel Inc. and Its Subsidiaries
Consolidated Statements of Operations
for the Year ended Dec. 31, 1998 and
the Nine Months ended Dec. 31, 1997
1998 1997
Net Sales $1,937,578 $ 14,973
Cost of goods sold 1,032,350 --
Gross profit 905,228 14,973
Selling, general and
administrative expenses 731,860 188,376
Payroll and related expenses 1,450,160 --
Interest expense 45,047 --
Other (income) expense (141,140) 1,908,263
Total expenses 2,085,927 2,096,639
Loss before provision for
income taxes (1,180,699) (2,081,666)
Provision for income taxes 503,725 --
Loss from continuing operations
before extraordinary items (1,684,424) (2,081,666)
Discontinued operations:
Loss from operations from
subsidiary sold (629,473) --
Gain on sale of subsidiary 1,999,813 --
Income from extraordinary items 1,370,340 --
Net Loss (314,084) (2,081,666)
Other comprehensive income:
Foreign currency translation 18,569 --
Comprehensive Loss $ (295,515) $ (2,081,666)
Comprehensive loss per share:
Loss per share from continuing
operations $ (0.22) $ (0.82)
Income per share from
extraordinary items 0.18 --
Net Loss per share $ (0.04) $ (0.82)
Weighted average shares
outstanding 7,586,815 2,533,238
Global DataTel and Its Subsidiaries
Consolidated Statements of Cash Flows
For the Year ended Dec. 31, 1998 and
the Nine Months ended Dec. 31, 1997
1998 1997
Cash flows from operating activities
Net Loss $ (314,084) $(2,081,666)
Adjustment to reconcile net loss to
net cash (used) provided by
operations
Loss on impaired assets and sales
of assets 13,547 -
Loss on sale of land - 1,619,888
Other losses, net - 288,425
Loss from operations from
subsidiary sold 629,473 -
Gain on sale of division (1,999,813) -
Depreciation and amortization 287,023 120,885
Provision for bad debt expense 389,880 -
Deferred barter credits (123,900) -
Changes in assets and liabilities
Increase in accounts receivable and
due from shareholders (3,682,283) -
Increase in inventories (1,152,746) -
Decrease in other assets and
deferred costs 1,521,770 -
Increase in prepaid expenses - (10,749)
Increase in accounts payable 2,570,498 27,101
Increase in accrued expenses 742,034 (35,175)
Increase in deferred revenues 409,081 -
Increase in notes payable to
shareholders 1,021,667 -
Net cash (used) provided by
operating activities 312,147 (71,291)
Cash flows used by investing activities
Purchase of net assets of acquired
companies (301,102) (8,216)
Net cash used by investing activities (301,102) (8,216)
Cash flows from financing activities
Increase in bank overdraft - 6,776
(Increase) Decrease in mortgages
payable, bank (7,374) 72,731
Proceeds from sale of subsidiary 1,370,340 -
Convertible debenture received for
sale of subsidiary (3,350,000) -
Notes payable assumed in connection
with acquisitions 1,175,146 -
Proceeds from issuance of
common stock 574,000 -
Net cash flows (used) provided by
financing activities (237,888) 79,507
Increase (decrease) in cash prior
to effect of exchange rate on cash (226,843) -
Effect of exchange rate on cash 328,586 -
Net increase (decrease) in cash 101,743 -
Cash at beginning of year - -
Cash at end of year $101,743 $ -
Supplemental Investing and financing
non-cash transactions
Property, plant and equipment
acquired for stock $(472,107) $ -
Rescinded preferred stock (276,395) -
Preferred shares issued to
purchase subsidiaries 105 2,618,201
Common shares issued for services 199,200 545
Common shares issued to purchase
subsidiaries 11,467,977 -
$10,918,780 $2,618,746
Global DataTel and its Subsidiaries
Proforma Statement of Operations
For the Twelve Months Ended Dec. 31, 1998
TOTAL COMBINED BALANCES
REVENUES
Product sales 18,441,944
Services 3,699,196
Returns & Allowances (362,447)
TOTAL REVENUES 21,778,692
NON OPERATIONAL INCOME
Interest income 171,164
Rental income 22,899
Commissions 418
Cost & Expense reimbursements 73,223
Sale of assets 29,426
Gain on sale of division 1,370,340
Prior period adjustments 15,305
Miscellaneous 173,610
Total Non Operational Income 1,856,386
TOTAL INCOME 23,635,078
COST AND EXPENSES
COST OF SALES 13,614,257
ADMINISTRATIVE COST OF SALES
Labor 3,058,862
Commissions 503,979
Taxes 56,256
Rentals 58,263
Insurance 10,302
Services Purchased 139,961
Maintenance 4,637
Travel 137,880
Other 888,089
4,858,229
ADMINISTRATIVE EXPENSES
Wages 752,655
Commissions 128,643
Taxes 89,909
Rentals 224,510
Membership fees 18,387
Insurance 7,562
Services purchased 277,588
Legal fees 6,345
Maintenance 91,850
Travel expense 6,117
Depreciation 179,781
Amortization 59,163
Various 198,089
2,040,603
NON OPERATIONAL EXPENSES
Interest expense 653,051
Loss on sale of assets 31,483
Various 31,174
Taxes 655,824
1,271,532
TOTAL COST AND EXPENSES 21,784,622
NET INCOME 1,850,457
NOTE: The financial statements herein do not include any amortization
of goodwill and assume all the Andean Group was owned as of 1/1/98.
Global DataTel and its Subsidiaries
Consolidated Balance Sheets
as of Dec. 31,
ASSETS
1998 1997
Current Assets:
Cash $ 101,743 --
Accounts receivable, net of
allowance for doubtful accounts
of $389,880 2,720,363 --
Due from stockholders 572,040 --
Inventory 1,152,746 --
Other current assets 117,292 134,649
Total current assets 4,664,184 134,649
Property, Plant and Equipment, net 479,970 7,331
Other Assets:
Goodwill, net 10,918,780 --
Convertible debenture 3,350,000 --
Other assets 923,082 2,427,495
Total other assets 15,191,862 2,427,495
Total Assets $ 20,336,016 $ 2,569,475
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 2,597,599 $ 27,101
Short term borrowings, banks 1,175,146 --
Deferred revenues 409,081 --
Other accrued liabilities 751,026 8,992
Notes payable to shareholders 1,021,667 --
Total current liabilities 5,954,519 36,093
Mortgage Payable - Bank 97,159 104,533
Deferred Barter Credits -- 123,900
Stockholders' Equity:
Preferred stock 25,000,000 shares
authorized, par value $.001,
105,000 and 450,000 shares issued
as of Dec. 31, 1998 and 1997,
respectively 105 4,500
Common stock, 50,000,000 shares
authorized, par value $.001,
9,180,123, and 7,162 shares issued
and outstanding as of Dec. 31, 1998
and 1997, respectively 9,180 7
Paid in capital 17,781,557 5,821,448
Accumulated deficit (3,835,090) (3,521,006)
Foreign currency translation
adjustment 328,586 --
Total Stockholders' Equity 14,284,233 2,300,449
Total Liabilities and
Stockholders' Equity $ 20,336,016 $ 2,569,475
sdg/ny* jc bh
CONTACT: Martin E. Janis & Company, Chicago
Bev Jedynak, 312/943-1100 KEYWORD: FLORIDA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS TELECOMMUNICATIONS
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