Hi Fred,
Good news on Golden Genesis. (What's in a name?)
Friday April 24, 9:00 am Eastern Time
Company Press Release
SOURCE: Golden Genesis Company
Golden Genesis Company Announces Record First Quarter Revenues
GOLDEN, Colo., April 24 /PRNewswire/ -- Photocomm, Inc., (Nasdaq: PCOM - news) doing business as Golden Genesis
Company, today announced first quarter net sales of $9.8 million, an increase of 53% as compared to the same three month
period of 1997 with net sales of $6.4 million. Earnings per diluted common share of $0.004 were reported for the first quarter
of 1998 as compared to a loss of $0.01 for the same three month period of 1997.
Strong sales performance in the industrial market including two large projects shipped to the Middle East and Africa along
with domestic projects of recently acquired Utility Power Group contributed to the company's top-line growth for the quarter.
In total, the industrial markets reported top line growth of 130%, while the domestic distribution market grew at a modest rate
of 10% during the quarter. Operating income for the quarter was $170,000 as compared to an operating loss of $168,000 for
the same three month period of 1997.
John Coors, President and Chief Executive Officer remarked, ''We continue to be pleased with our sales performance across
the company. The delivery of projects to the Middle East and Africa and the projects of Utility Power Group certainly led the
way this quarter. In addition, I'm particularly pleased that one of these projects shipped to a customer we obtained when we
purchased certain assets and contracts from Integrated Power Company. Another area of progress this quarter was operating
costs as a percentage of sales. For the first quarter, operating costs as a percentage of sales improved from 26% in 1997 to
18% in 1998. Although we can not predict the same magnitude of improvement each reporting period, we feel confident that
our strategy of consolidation has begun to take hold, positioning us for improved bottom line performance. In addition, we are
pleased to announce that we have recently moved our manufacturing, operations, administration and distribution sales activities
to a new and larger facility in Scottsdale, AZ. We believe that this change will help provide a foundation for growth,
underpinned by improved quality and performance across the delivery chain to our customers.''
Mr. Coors added, ''As previously announced, we are pleased with a recent contract award for another significant solar
electric power project in support of communications infrastructure development which is scheduled to ship in the second
quarter this year. This project, worth a total of $2 million is more evidence that as the telecommunications and oil & gas
industries continue to expand their reach around the world, there is a growing need for electrical services to power new
infrastructure development. For this and many other applications around the world there is a lack of reliable conventional
power. In these instances solar electricity is often found to be the most economic and reliable solution for power. Finally, last
week we participated in the dedication of a new solar power generating system in the state of Arizona. This system was
installed by our recently acquired subsidiary, Utility Power Group, and provides electricity to customers in the region who
desire clean and environmentally friendly power generation. Currently all power generated by this system has been subscribed
by customers who are willing to pay for clean electricity, reinforcing our belief that as utility companies provide a choice to
consumers this new market will emerge ''.
Golden Genesis Company, headquartered in Golden, Colorado, is one of the nation's largest publicly-owned integrator and
marketer of wireless solar electric power systems. The Company's stock is listed on the Nasdaq system under the symbol
PCOM.
Certain statements in this press release constitute ''forward-looking statements'' which involve uncertainties and factors that
may cause actual results to be materially different from those that may be implied by any forward-looking statements
contained in this press release. Specifically, continued growth is dependent upon, 1) general economic conditions, such as the
position of the US Dollar in relation to other currencies, 2) business conditions remaining stable, or growing, within our chosen
markets, 3) retaining major customers, 4) the supply of critical materials including solar modules, 5) the impact of competitive
technologies, products and services, 6) customer requested delays in shipments, and 6) other risks detailed in the Company's
filing with the Securities and Exchange Commission.
A conference call to discuss first quarter earnings is scheduled for Friday, April 24, 1998 at 2:00pm EST. Interested parties
should dial (212) 896-6017 to be connected.
Golden Genesis Company
Condensed Consolidated Statement Of Operations
Three months ended
March 31,
1998 1997
Net sales $9,792,325 $6,369,950
Cost of sales 7,903,914 4,874,889
Gross profit 1,888,411 1,495,061
Selling, general and
administrative expenses 1,718,337 1,662,840
Income (loss)
from operations 170,074 (167,779)
Other income (expense):
Interest expense (88,498) (14,196)
Other, net (13,309) (5,773)
Income (loss) before taxes 68,267 (187,748)
Income taxes -- --
Net income (loss) 68,267 (187,748)
Preferred stock dividend 1,169 14,519
Net income (loss) applicable
to common stockholders $67,098 $(202,267)
Net income (loss) per basic
share of common stock -- $(0.01)
Weighted average shares
outstanding - Basic 16,547,266 16,164,722
Net income (loss) per diluted
share of common stock -- $(0.01)
Weighted average shares
outstanding - Diluted 16,961,825 16,164,722
All earnings per share data presented have been adjusted for the adoption of Statement of Financial Accounting Standards
No. 128, ''Earnings Per Share.''
Certain reclassifications have been made in the 1997 financial statements to conform to the classifications used in 1998.
Golden Genesis Company
Condensed Consolidated Balance Sheet
March 31, December 31,
1998 1997
ASSETS
Current assets:
Cash and cash equivalents $597,156 $1,182,307
Accounts receivable, net 8,708,749 7,276,527
Inventories 6,511,186 5,810,400
Property held for sale, net 1,017,779
Deferred tax asset 193,343 193,343
Other current assets 179,403 221,546
Total current assets 17,207,616 14,684,123
Property and equipment, net 1,760,361 2,701,339
Deferred tax asset 156,657 156,657
Other assets, net 3,113,494 1,962,523
Total assets $22,238,128 $19,504,642
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $5,033,588 $3,648,187
Long-term debt, less
current installments 4,881,252 4,150,479
Total liabilities 9,914,840 7,798,666
Total stockholders' equity 12,323,288 11,705,976
Total liabilities and
stockholders' equity $22,238,128 $19,504,642
GOLDEN GENESIS COMPANY
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Three months ended
March 31,
1998 1997
Cash flows from operating activities:
Net income (loss) $68,267 $(187,748)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Depreciation and amortization 160,729 121,761
Change in current assets
and current liabilities (883,373) (276,595)
Net cash used in
operating activities (636,377) (342,582)
Cash flows from investing activities:
Purchase of property and equipment (155,581) (136,491)
Cash paid for acquisitions and
other assets, net of cash acquired (369,948) (7,982)
Net cash used in
investing activities (525,529) (144,473)
Cash flows from financing activities:
Repayments of debt (196,643) (498,884)
Proceeds from issuance of debt 750,000 102,250
Proceeds from issuance of common stock 23,398 56,889
Cash dividends on preferred stock (14,519)
Net cash provided (used) by
financing activities 576,755 (354,264)
Net decrease in cash and
cash equivalents (585,151) (841,319)
Cash and cash equivalents at
beginning of period 1,182,307 1,377,898
Cash and cash equivalents
at end of period $597,156 $536,579
SOURCE: Golden Genesis Company
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