Billing Concepts Announces Fourth Quarter and Fiscal Year 1999 Results
SAN ANTONIO, Nov. 23 /PRNewswire/ -- Billing Concepts Corp. (Nasdaq: BILL - news) today reported for the fourth quarter ended September 30, 1999, consolidated revenue of $44.2 million compared to consolidated revenue of $47.5 million for the corresponding quarter of the prior fiscal year. Operating income for the fourth quarter of 1999 was $2.2 million, compared to $8.7 million for the corresponding quarter of the prior fiscal year. The Company generated fourth quarter 1999 net income of $0.7 million, or $0.02 per share, versus $5.6 million, or $0.15 per share for the corresponding prior year quarter.
The Company recorded fourth quarter 1999 special and other charges of $1.8 million, or $0.03 per share. These amounts relate primarily to contemplated spin-off, severance and bad debt reserve related charges. This compares with 1998 fourth quarter special charges of $2.0 million, or $0.05 per share, related to research and development costs from the Company's initial investment in Princeton eCom.
The Company's Internet operations generated fourth quarter 1999 losses of $1.1 million, or $0.03 per share. Without the effect of the charges noted above and excluding its Internet operations, the Company generated fourth quarter 1999 revenues of $45.1 million, operating earnings of $4.6 million and net earnings per share of $0.09.
For the fiscal year ended September 30, 1999, the Company reported consolidated revenues of $181.3 million compared to consolidated revenues of $176.0 million for the prior fiscal year. Operating income for fiscal year 1999 was $23.5 million, compared to $40.3 million for the prior fiscal year. The Company generated fiscal year 1999 net income of $15.8 million, or $0.42 per share, versus $26.7 million, or $0.71 per share, for the prior fiscal year.
Special and other charges recorded for fiscal year 1999 totaled $6.8 million, or $0.10 per share. These amounts consist of contemplated spin- off, litigation settlement, severance and bad debt reserve related charges. The Company also generated fiscal 1999 losses from its Internet operations of $2.3 million, or $0.06 per share. Without the effect of special and other charges and excluding its Internet operations, the Company generated fiscal year 1999 revenues of $184.6 million, operating income of $30.8 million and net earnings per share of $0.57.
The Company recently announced the acquisitions of FIData, Inc., a San Antonio, Texas-based provider of Internet-based automated loan approval products to the financial services industries, and an Austin, Texas-based company that is developing an Internet-based financial services website focused on the credit union industry and its members. Additionally, the Company recently announced the execution of an agreement to increase its ownership interest in Princeton eCom to 27% with a $2.6 million additional equity investment. Princeton eCom is a Princeton, New Jersey-based, privately-held provider of comprehensive electronic bill presentment and payment services via the Internet.
Parris H. Holmes, Jr., Chairman and CEO of Billing Concepts, stated, ''We continue to focus on revenue stabilization and new business opportunities for our LEC Billing division. With regard to our software division, Aptis, Inc., we believe our continued investment in infrastructure and research and development, in spite of its adverse impact on current earnings, to be a critical component to our long-term revenue growth opportunities in the billing systems solutions market.''
Aptis, Inc., a wholly owned subsidiary of Billing Concepts Corp., recently announced the preview of its TotalBill 3.0 and the availability of its Aptis ICP products. TotalBill 3.0 is a browser-based, Oracle billing and customer management software solution targeting the ISP (Internet Service Providers) market. TotalBill 3.0 is in beta testing through December 31, 1999 and will be available for implementation after February 1, 2000. Aptis ICP is a web- enabled, convergent software solution designed to meet the needs of ICPs (Integrated Communications Providers) with an emphasis on CLECs (Competitive Local Exchange Carriers) and those companies offering VoIP (Voice over Internet Protocol).
Holmes added, ''Our investment in Princeton eCom in September of 1998 was the beginning of our Internet-related business expansion. The Company has invested or committed over $24 million of capital resources to date in the Internet arena, and we plan further significant investment of capital over the foreseeable future in the Internet arena. We will continue to review additional strategic Internet acquisition opportunities that will complement or enhance our existing operations. Additionally, we continue to explore other strategic opportunities in the Internet arena outside of our current holdings.''
Billing Concepts is the largest third-party provider of LEC billing clearinghouse and information services to the communications industry. With over 400 customers throughout North America, the Company offers outsourced billing solutions for service providers, from the newest entrants to some of the largest facilities-based providers in the industry. Headquartered in San Antonio, TX, Billing Concepts Corp. maintains offices in Austin, TX, Corpus Christi, TX, Glendale, CA and Albany, NY. For more information, visit www.billingconcepts.com.
Aptis
Aptis is one of the most experienced companies providing comprehensive business support software and professional services to Internet, data and network service providers, as well as integrated communications providers (ICPs) of virtually any size. Aptis software and services quickly and dramatically improve an organization's ability to grow by optimizing revenues, simplifying software complexities and accelerating its time-to-market with new products and services. Aptis has over 125 completed U.S. installations and enterprise-wide agreements with progressive, next generation network services providers such as Intermedia Communications, Inc., WinStar Communications, Inc., CTC Communications, U.S. West Long Distance and IBM Global Services. For more information, visit www.aptissoftware.com.
Certain statements contained herein are ''forward-looking'' statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission.
Billing Concepts Corp. and Subsidiaries
Consolidating Statements of Income
Quarter Ended September 30, 1999
(Unaudited)
In Thousands, Except Per Share Amounts
SPECIAL CONSOL-
LEC AND OTHER IDATED
BILLING APTIS CORPORATE INTERNET CHARGES TOTAL
Revenues $33,812 $11,316 $0 $0 ($943) $44,185
Cost of revenues 21,552 5,253 0 0 0 26,805
Gross profit 12,260 6,063 0 0 (943) 17,380
Selling, general and
administrative 2,674 3,315 3,381 469 180 10,019
Research and development 333 2,114 0 63 0 2,510
Advance funding program
income, net (611) 0 0 0 0 (611)
EBITDA 9,864 634 (3,381) (532) (1,123) 5,462
Depreciation &
amortization 1,405 570 549 0 0 2,524
Special charges 0 0 0 0 723 723
Operating income (loss) 8,459 64 (3,930) (532) (1,846) 2,215
Other income (expense):
Interest income, net 1,163 1 0 0 0 1,164
Equity in net loss of
investee 0 0 0 (602) 0 (602)
Other 9 3 (5) 0 0 7
Other income (expense),
net 1,172 4 (5) (602) 0 569
Income (loss) before income
taxes $9,631 $68 ($3,935) ($1,134)($1,846) 2,784
Income tax expense (2,104)
Net income $680
Diluted earnings per
common share $0.02
Weighted average common
shares and common share
equivalents outstanding
(in thousands) 37,422
Billing Concepts Corp. and Subsidiaries
Consolidating Statements of Income
Quarter Ended September 30, 1998
(Unaudited)
In Thousands, Except Per Share Amounts
CONSOLI-
LEC SPECIAL DATED
BILLING APTIS CORPORATE INTERNET CHARGES TOTAL
Revenues $37,733 $9,724 $0 $0 $0 $47,457
Cost of revenues 24,184 4,454 0 0 0 28,638
Gross profit 13,549 5,270 0 0 0 18,819
Selling, general and
administrative 2,088 2,188 2,387 0 0 6,663
Research and development 380 663 0 0 0 1,043
Advance funding program
income, net (1,525) 0 0 0 0 (1,525)
EBITDA 12,606 2,419 (2,387) 0 0 12,638
Depreciation &
amortization 1,085 385 464 0 0 1,934
Special charges 0 0 0 0 2,000 2,000
Operating income
(loss) 11,521 2,034 (2,851) 0 (2,000) 8,704
Other income (expense):
Interest income
(expense), net 1,632 (20) (24) 0 0 1,588
Equity in net loss of
investee 0 0 0 0 0 0
Other (2) 14 16 0 0 28
Other income (expense),
net 1,630 (6) (8) 0 0 1,616
Income (loss) before
income taxes $13,151 $2,028 ($2,859) $0 ($2,000) 10,320
Income tax expense (4,753)
Net income $5,567
Diluted earnings per
common share $0.15
Weighted average common
shares and common share
equivalents outstanding
(in thousands) 37,272
Billing Concepts Corp. and Subsidiaries
Consolidating Statements of Income
For Year Ended September 30, 1999
(Unaudited)
In Thousands, Except Per Share Amounts
SPECIAL CONSOLI-
LEC AND OTHER DATED
BILLING APTISCORPORATEINTERNET CHARGES TOTAL
Revenues $138,646 $45,921 $0 $0 ($3,243)$181,324
Cost of revenues 87,763 21,756 0 0 0 109,519
Gross profit 50,883 24,165 0 0 (3,243) 71,805
Selling, general and
administrative 9,873 10,932 12,057 469 1,980 35,311
Research and
development 1,246 4,479 0 63 0 5,788
Advance funding
program income,
net (3,673) 0 0 0 0 (3,673)
EBITDA 43,437 8,754 (12,057) (532) (5,223) 34,379
Depreciation &
amortization 5,170 2,168 1,991 0 0 9,329
Special charges 0 0 0 0 1,529 1,529
Operating income
(loss) 38,267 6,586 (14,048) (532) (6,752) 23,521
Other income (expense):
Interest income
(expense), net 5,779 26 (16) 0 0 5,789
Equity in net loss
of investee 0 0 0 (1,809) 0 (1,809)
Other (18) 4 (86) 0 0 (100)
Other income
(expense), net 5,761 30 (102) (1,809) 0 3,880
Income (loss) before
income taxes $44,028 $6,616 ($14,150) ($2,341) ($6,752) 27,401
Income tax expense (11,579)
Net income $15,822
Diluted earnings per
common share $0.42
Weighted average common
shares and common share
equivalents outstanding
(in thousands) 37,685
Billing Concepts Corp. and Subsidiaries
Consolidating Statements of Income
For Year Ended September 30, 1998
(Unaudited)
In Thousands, Except Per Share Amounts
CONSOLI-
LEC SPECIAL DATED
BILLING APTIS CORPORATE INTERNET CHARGES TOTAL
Revenues $147,542 $28,481 $0 $0 $0 $176,023
Cost of revenues 92,761 15,417 0 0 0 108,178
Gross profit 54,781 13,064 0 0 0 67,845
Selling, general and
administrative 7,540 5,495 9,962 0 0 22,997
Research and development 1,168 2,109 0 0 0 3,277
Advance funding program
income, net (7,793) 0 0 0 0 (7,793)
EBITDA 53,866 5,460 (9,962) 0 0 49,364
Depreciation &
amortization 3,999 1,380 1,719 0 0 7,098
Special charges 0 0 0 0 2,000 2,000
Operating income (loss) 49,867 4,080 (11,681) 0 (2,000) 40,266
Other income (expense):
Interest income
(expense), net 4,361 (66) (104) 0 0 4,191
Equity in net loss of
investee 0 0 0 0 0 0
Other 62 39 140 0 0 241
Other income (expense),
net 4,423 (27) 36 0 0 4,432
Income (loss) before
income taxes $54,290 $4,053 ($11,645) $0($2,000) 44,698
Income tax expense (17,995)
Net income $26,703
Diluted earnings per
common share $0.71
Weighted average common
shares and common share
equivalents outstanding
(in thousands) 37,488
Billing Concepts Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
In Thousands
ASSETS
September 30, September 30,
1999 1998
Current assets
Cash and cash equivalents $134,007 $120,972
Accounts receivable, net 44,053 36,163
Purchased receivables 31,375 64,477
Prepaids and other 3,776 4,055
Total current assets 213,211 225,667
Property and equipment, net 25,868 23,887
Other assets, net 8,470 9,059
Investment in equity affiliate 7,530 8,000
Total assets $255,079 $266,613
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $21,397 $19,053
Accounts payable - billing customers 90,089 118,599
Accrued liabilities 28,172 26,757
Current portion of long-term debt --- 1,011
Total current liabilities 139,658 165,420
Long-term debt, less current portion --- 2,468
Other liabilities 1,315 1,635
Deferred income taxes 1,971 2,949
Total liabilities 142,944 172,472
Stockholders' equity 112,135 94,141
Total liabilities and stockholders' equity $255,079 $266,613
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