TO ALL:
Friday September 6 2:52 PM EDT
International Standards Group Telecom Unit Reports Month And Year-To-Date Results Ending July
31, 1996
Company Also Announces Financing Arrangements For Five Additional Switches
BOCA RATON, Fla., Sept. 6 /PRNewswire/ -- International Standards Group Ltd today reported results of its wholly owned telecommunications
subsidiary, Total World Telecom (TWT), for the month and seven months ending July 31, 1996. The Company also announced financing terms for its
previously stated addition of five new telecommunications switches.
July 1996 net revenues from continuing operations increased $858,000, or 21.6 percent, to $4,819,000 compared with $3,961,000 for the of June l996. Profit
for the month of July increased $91,000 or 177 percent, to $141,000 compared with $50,836 for the prior month. Gross margins rose to 24.6 percent in July
versus 23.5 percent for the month of June.
Year to date revenues for the seven months ending July 31, 1996 reached $33,281,000 compared to approximately $32 million for the entire 1995 calendar
year. Profit for the seven-mouth period was $228,000 and gross margins averaged 22.4 percent. Also included in the seven-month results is a one-time
allowance charge of $700,000 to reserve for potential costs associated with upcoming state telecommunications licensing.
"July's strong revenue results position TWT for profitability and coupled with an increase in bottom line profits indicates that the Company's break- even
point is covered by its base of business," stated Donald Booth president of TWT. "In addition gross margin results point favorably to the fact that as TWT's
revenues increase, gross profit will increase incrementally higher due to the covering of fixed network costs and G/A costs over a larger revenue base."
Mr. Booth further stated that, as previously announced, TWT has signed a number of new contracts within the past eight weeks and revenues generated
from these contracts will begin to hit the Company's books in October and November 1996 thus positioning the last calendar quarter of 1996 as TWT's most
profitable in its history.
As reported on September 4, 1996, TWT announced the key addition of five telecommunications switches to be implemented the last quarter of l996. These
new switches raise the Company's total number to 10 and allows the Company to originate and terminate long distance calls to over 80 percent of the
population of the United States.
"The financing for the five new switches has been completed," said Booth. "Terms were arranged through Telecommunications Finance Group, a subsidiary
of Siemens Stromberg-Carlson with a lease purchase agreement under the same terms and conditions as the financing for the previous five switches that TWT
owns. By ordering these five switches in one order, TWT received favorable pricing from the manufacturer."
"The income for July indicates an ISGI fourth quarter fiscal year end profitability which will be the first profitable quarter in the Company's history," stated
Joe Lents, president of International Standards Group. "We fully expect TWT's revenue projections to exceed $70 million for calendar 1996, with projected
1997 revenues to far exceed the projected $145 million."
International Standards Group, Ltd. provides telecommunications through its wholly owned subsidiary Total World Telecom, which is a Tier 2 switch-
based interchange carrier that utilizes state-of-the-art digital and fiber optic facilities including five Siemens Stromberg-Carlson DCO tandem switches located
in New York, Chicago, Los Angeles, Atlanta and Houston with future switch sites projected in Miami, Denver, Kansas City, the Northeast and Seattle. ISG,
through its wholly owned subsidiary, Financial Standards Group, Inc. (FSG), provides financial services and asset management to credit unions. In addition
through its Real Estate Services Network (RESN), ISG provides commercial and residential real estate services.
INTERNATIONAL STANDARDS GROUP, LTD.
Seven Months Ended
July 1996 July 1996
Revenues $5,172 $35,853
Net Revenues 4,819 33,281
Gross Margins 1,189 7,455
Percentage of Revenue 24.6% 22.4%
Net Profits 141 228
Percentage of Net Profits 2.9% 0.31%
EBITDA Profits 224 797
SOURCE International Standard Group, Ltd. |
