FOR IMMEDIATE RELEASE
DATE: December 22, 1997
EXECUTIVE TELECARD SHAREHOLDER LETTER
Denver Colorado, December 22, 1997 - The following letter being sent to shareholders of Executive TeleCard, Ltd. (NASDAQ: EXTL) was released today by Christopher Vizas, Chairman and Chief Executive Officer.
Dear Fellow Shareholder:
Recently, I was elected Chairman and Chief Executive Officer of your Company. My first month has been as rewarding as it has been challenging and before the end of the year I wanted to provide you with a personal report on the status of the Company. On behalf of all of us at Executive TeleCard, I wish you and your family a Joyous holiday season. I also want to share with you what steps we are taking to assure your Company's successful growth in the year ahead.
First, the fundamentals of the Company are sound. The last two months have seen a substantial improvement in EBITDA. While we can expect additional restructuring charges this month and next, those should not be more that a few hundred thousand dollars, with the possible exception of adjustments relating to past investments in eGlobe.
Our goal in the next few quarters, is for cash flow to remain positive, margins to improve and our top line to begin to show the kind of growth the Company is capable of. The Company has the basic infrastructure in place to support a much higher revenue base, perhaps as much as double the current revenues.
Our growth should emerge from the Company's new focus on its profitable core strengths: operating a global network that provides an enhanced calling card service for telecom carriers and credit card issuers. To this end, we have identified and taken steps to streamline operations. We are selling our Colorado-based reseller TeleCall and cancelling contracts unrelated to the Company's core business. We are also announcing a series of personnel changes and other steps taken to restructure our Company around its strengths. We are consolidating into the core operations the internet business begun in eGlobe. By taking assets already developed and integrating them with our core capabilities, costs will be reduced, permitting us by midsummer to provide an integrated package better positioned to serve our customers.
The mission of the Company is to establish itself as a leading independent global supplier of validation, billing and payment services for the calling card market, and to establish itself as a leader in providing complementary internet service.
I have had the opportunity to see the Company in operation and I believe that we will succeed.
On another front, recently initiated efforts to reduce receivables should result in an approximate one third reduction by the end of the fourth quarter.
I expect the actions announced today and other steps taken during the past four weeks, combined with the improvements in EBITDA experienced in October and November, to provide impetus in the New Year.
In a short time we have reorganized our management, refocused our marketing and sales strategy and accelerated efforts to increase revenues. We will be making additional changes to encourage growth. Over the next few months we will also present our strategy and targets to you so that you can measure results.
I am aware the current stock price is disappointing, and in my opinion does not reflect the current potential of Executive TeleCard. The management and directors agree with my assessment and have been buying stock.
We look forward with confidence to the New Year.
Yours truly,
Christopher Vizas
Chairman and Chief Executive Officer
The Company's management will be available for a conference call on Tuesday, December 23, 1998 at 11:30 A.M. (EST). The call in number for the conference call is (312)461-9173.
Certain statements in this press release are "forward looking statements; within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from the results, performance or achievements express or implied by the forward looking statement. Factors that impact such forward looking statements include, among others, the ability of the Company to attract additional business, changes in expectations regarding restructurings and reductions in cost, possible changes in collections of accounts receivable, risks of competition, price and margin trends, changes in worldwide general economic conditions, changes in interest rates, currency rates and worldwide competition.
-End-
For further information please call Dawn L. Van Zant toll free at 888.368.8704 or Heidi E. Hirst toll free at 888.368.8703. |
