Boston Communications Group Reports First Quarter
Results
WOBURN, Mass.--(BUSINESS WIRE)--April 29, 1997-- Boston Communications Group Inc
today reported financial results for the first quarter ended March 31, 1997.
Net revenues for the first quarter increased 40% to $15,619,000 from $11,153,000 reported in
the first quarter of 1996. Net income available to common shareholders for the first quarter was
$93,000, or $0.01 per share, compared with net income available to common shareholders of
$192,000, or $0.02 per share reported in last year's first quarter. The weighted average number of
shares outstanding was 12,883,000 and 9,179,000 in 1997 and 1996, respectively.
"We are very pleased with our first quarter performance," commented Paul Tobin, Chairman,
President and CEO of Boston Communications. "We are particularly pleased to see the increased
acceptance of prepaid wireless service offerings as reflected by our carrier s subscriber count. To
date, our carrier customers have over 250,000 international subscribers and 86,000 domestic
subscribers on the company s prepaid systems. As reflected in our first quarter results, we are
continuing our investment in and the expansion of our C2C prepaid network to provide service
availability to the 151 million POPs in our carriers markets.
"Our Teleservice business is strengthening as the result of signing two new contracts during the
quarter, and System revenues experienced significant growth, reflecting our continued expansion
into Mexico during the first quarter," continued Tobin. "We look forward to additional growth in
sales of all of our products and services throughout the remainder of 1997."
Boston Communications Group, Inc. develops, markets and provides high quality innovative call
processing services, prepaid network services, teleservices and prepaid and voice systems to
wireless telephone carriers. The Company's roaming services, teleservices and prepaid wireless
services are designed to enable wireless telephone carriers to focus internal resources on their core
business activities, while increasing revenues, improving service quality and reducing costs. The
Company provides one or more of its services to approximately 95 cellular and personal
communications services (PCS) companies in the United States, Mexico and Canada, including
nine of the 10 largest cellular carriers in the United States.
This press release contains, in addition to historical information, forward-looking statements that
involve risks and uncertainties, including Mr. Tobin s comments regarding the acceptance of the
prepaid wireless service and the growth of the company s products and services. Such statements
are based on management s current expectations and are subject to a number of uncertainties and
risks that could cause actual results to differ materially from those described in the forward-looking
statements. Among the important factors that would cause actual results to differ materially from
those indicated by such forward-looking statements are significant decreases in business from
major customers, declines in demand for the Company's services, lack of acceptance of the
prepaid wireless service, general economic conditions, and the risk factors detailed from time to
time in the Company's periodic reports and registration statement filed with the Securities and
Exchange Commission.
BOSTON COMMUNICATIONS GROUPS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended
March 31, 1997 March 31, 1996
Revenues:
Calling service revenues $ 7,012 $ 7,214
Teleservice revenues 3,789 3,847
Prepaid network service revenues 790 --
System revenues 4,028 92
15,619 11,153
Expenses:
Cost of service revenues 9,419 8,311
Cost of system revenues 2,640 37
Engineering, research and development 1,029 419
Sales and marketing 1,063 557
Related party management fees -- 252
General and administrative 670 482
Depreciation and amortization 890 360
Total operating expenses 15,711 10,418
Operating income (loss) (92) 735
Interest income (expense), net 262 (6)
Income before income taxes and
minority interest 170 729
Minority interest (21) --
Income before income taxes 191 729
Provision for income taxes 98 300
Net income 93 429
Accretion of dividends on redeemable
preferred stock -- (237)
Net income available to common shareholders $ 93 $ 192
Net income available to common shareholders
per common share:
Net income $0.01 $ 0.02
Shares used in computing net income
per common share 12,883 9,179
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
3/31/97 12/31/96
Cash and short term investments $ 15,088 $ 21,421
Working capital 23,515 26,480
Property & equipment (net) 16,053 12,906
Total assets 52,661 51,959
Shareholders' equity 43,004 42,893
CONTACT: Boston Communications Group, Inc.
Fritz von Mering, 617-692-7000
or
Morgen-Walke Associates
Andrea Kaimowitz
Press: Lee Foley/Ann Travers
212-850-5600 |
