HUGE rise in earnings!
Monday March 30, 8:27 am Eastern Time
Company Press Release
SOURCE: Applied Cellular Technology, Inc.
Applied Cellular Technology, Inc. Reports Record 1997 Revenues and Earnings
NIXA, Mo., March 30 /PRNewswire/ -- Applied Cellular Technology, Inc. (Nasdaq: ACTC - news), a successful builder of infrastructure services and
solutions for the communications industry, reported record revenues for calendar 1997 of $103.2 million, up $83.3 million or 419% from $19.9 million in
1996. Net income increased by 262% to $2.3 million from $626,000 a year earlier. Operating earnings were 31 cents per share before a one-time charge of
$1.7 million or 13 cents per share, as a result of the Company's decision to exit the retail cellular business in the fourth quarter of 1997. After the one-time
charge, basic earnings per share were 18 cents per share in 1997, compared to 19 cents per share in 1996. Diluted earnings per share, after the one-time
charge, were 15 cents per share in 1997, equaling 1996 per share results. The weighted average number of shares outstanding increased by 279% from 1996
to 1997.
Richard J. Sullivan, Chairman and CEO, said, ''Excluding the effect of the fourth quarter charge related to the Company's decision to exit the retail cellular
business, we achieved increased profitability versus the prior year. With the completion of 14 acquisitions in 1997, each of our business segments reported
significantly increased sales and orders. The Company is moving forward into 1998 with greater financial strength and a balance sheet that continues to
reflect significantly improved stockholders' equity, cash and cash equivalents of over $7.6 million and very low debt. Stockholders' equity rose 340% to
$36.3 million from $8.3 million in 1996. At December 31, 1997, the Company's debt to equity ratio was 0.22 compared to 0.70 in 1996. The current and
quick ratios, both measurements of liquidity, were 1.97 and 1.35, respectively, compared to 1.14 and 0.63 in 1996.
Mr. Sullivan also stated that although he is happy with the strength of the balance sheet and the continued growth of revenue and earnings, he is dissatisfied
with the current price of the Company's common stock. ''Because of the continued undervaluation of the Company's shares, the excellent performance of the
Company's core group of companies, by themselves, is being hidden from the investing public. Excluding one-time charges, our increased earnings per
share justifies a higher share price, and the Company is reviewing with its financial advisors alternatives to increase the share price to an amount that more
fairly reflects the true value of the Company.''
TABLE FOLLOWS.
Applied Cellular Technology, Inc. and Subsidiaries
Consolidated Statements Of Operations
Year Ended Three Months Ended
December 31, December 31,
1997 1996 1997 1996
(Audited) (Unaudited)
Net Operating
Revenue $103,159,114 $19,883,400 $31,093,470 $12,280,693
Cost Of Goods Sold 69,407,816 10,523,594 22,068,646 6,360,434
Gross Profit 33,751,298 9,359,806 9,024,824 5,920,259
Selling, General And
Administrative
Expenses(a) 29,839,044 8,104,754 9,593,505 5,193,213
Operating Income
(Loss) 3,912,254 1,255,052 (568,681) 727,046
Gain On Sale
Of Assets 1,679,627 -- 1,679,627 --
Interest Income 192,646 125,935 58,743 58,307
Interest Expense (978,339) (200,291) (238,677) (125,140)
Income Before
Provision For Income
Taxes And Minority
Interest 4,806,188 1,180,696 931,012 660,213
Provision For Income
Taxes 1,768,679 362,146 373,626 228,444
Income Before
Minority Interest 3,037,509 818,550 557,386 431,769
Minority Interest 697,200 132,331 243,054 52,318
Net Income (a) 2,340,309 626,219 314,332 379,451
Preferred Stock
Dividends 72,000 60,000 18,000 18,000
Net Income Applicable
To Common
Stockholders $2,268,309 $626,219 $296,332 $361,451
Net Income Per
Common Share
Basic (a) $0.18 $0.19 $0.02 $0.07
Diluted (a) $ 0.15 $ 0.15 $ 0.01 $ 0.05
Weighted Average Number
Of Common Shares
Outstanding:
Basic 12,632,130 3,329,099 19,563,111 5,216,536
Diluted 15,245,183 4,640,773 23,426,903 7,980,702
(a) Includes a one-time non-recurring charge of $1.7m to exit the retail
cellular business in the year-to-date and 4th quarter of 1997.
Selected Balance Sheet Data (Audited) 12/31/97 12/31/96
Cash And Cash Equivalents $7,656,850 $809,711
Total Current Assets 39,574,608 13,886,689
Total Assets 61,281,576 33,208,093
Total Current Liabilities 20,112,442 12,214,536
Total Liabilities, Minority
Interest and Redeemable
Preferred Stock 24,996,947 24,956,277
Stockholders' Equity 36,284,629 8,251,816
Total Liabilities and
Stockholders' Equity 61,281,576 33,208,093
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than
historical facts are ''forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements
be subjected to the safe harbors created thereby. Since these forward-looking statements involve risks and uncertainties and are subject to change at any time,
the Company's actual results could differ materially from expected results.
SOURCE: Applied Cellular Technology, Inc. |
