Chris; News
Thursday October 22, 4:01 pm Eastern Time
Company Press Release
SOURCE: Metro One Telecommunications, Inc.
Metro One Telecommunications Announces Strong
Third Quarter Results
Record Quarterly Revenues Up 60%
PORTLAND, Ore., Oct. 22 /PRNewswire/ -- Metro One Telecommunications, Inc. (Nasdaq: MTON - news), a leading
provider of Enhanced Directory Assistance(R) (EDA) to the telecommunications industry, today reported financial results for
the third quarter ended September 30, 1998.
Revenues for the third quarter of 1998 increased to a record $11,312,000, up 60% from $7,055,000 in the year earlier
period. Net income for the third quarter increased 23% to $916,000, or $0.08 per share, from $744,000, or $0.07 per share,
for the same period one year ago. Weighted average shares outstanding at September 30, 1998 were 11,062,000, as
compared to 10,964,000 at September 30, 1997.
Revenues for the nine months ended September 30, 1998 grew 84% to a record $31,280,000 from $17,009,000 for the
comparable period in 1997. Net income for the first nine months of 1998 increased 448% to $2,026,000, or $0.18 per share,
versus net income of $370,000, or $0.03 per share, for the same period in 1997.
''We are very pleased with this quarter's strong results which exhibit solid growth across all of our carrier customers,''
commented Timothy A. Timmins, president and chief executive officer of Metro One. He continued, ''As anticipated,
increased expenses were in line with our expectations as we continue to invest in the necessary infrastructure to support current
and anticipated increases in call volume.''
''The strong fundamentals of the wireless industry are evidenced by the growth of our carrier customers, who continue to
expand their subscriber base in existing markets as well as add service in new geographic markets,'' continued Mr. Timmins.
''In addition, Metro One has been able to attract new carriers seeking our value-added services, as illustrated by our new
business signings during the quarter. We believe that our nationwide call center presence and enhanced feature technologies
position Metro One for continued future growth.''
Metro One Telecommunications, Inc. is an independent developer and provider of Enhanced Directory Assistance services for
the telecommunications industry. The company operates call centers located throughout the U.S. Revenue for the full year
1997 was $26.1 million. The company handled approximately 42 million requests for directory assistance on behalf of its
carrier customers for the full year 1997 and 50 million requests for directory assistance during the first nine months of 1998.
For more information, visit the Metro One Telecommunications web site at metro1.com.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of The Private
Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from the forward-looking statements, including, but not limited to, increased competition,
expiration of EDA contracts, the rapidly changing telecommunications market, changes in pricing policies by the company or its
competitors, lengthy sales cycles, lack of market acceptance or delays in the introduction of new versions of the company's
products or features, the timing of the initiation of wireless services in new market areas by telecommunications customers, the
timing and expense of the company's expansion of its nationwide call center network and other factors detailed in the
Company's Securities and Exchange Commission filings, including its reports on Form 10-KSB for the year ended December
31, 1997 and on Form 10-QSB for the quarter ended June 30, 1998. The forward-looking statements should be considered
in light of these risks and uncertainties.
METRO ONE TELECOMMUNICATIONS, INC.
Statements of Operations
(Dollar in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
9/30/98 9/30/97 9/30/98 9/30/97
Revenues $11,312 $7,055 $31,280 $17,009
Costs and expenses:
Direct operating 5,786 3,419 16,104 8,550
General and
administrative 4,622 2,953 13,099 8,159
10,408 6,372 29,203 16,709
Income from operations 904 683 2,077 300
Other income 102 139 248 332
Interest and loan fees (75) (78) (255) (262)
27 61 (7) 70
Income before provision
for income taxes 931 744 2,070 370
Income tax provision 15 -- 44 --
Net income $916 $744 $2,026 $370
Income per share
Basic and Diluted $0.08 $0.07 $0.18 $0.03
Shares used in per share
calculation
Basic 11,062 10,822 11,039 10,789
Diluted 11,062 10,964 11,229 10,926
METRO ONE TELECOMMUNICATIONS, INC.
Balance Sheets
(Dollars in thousands)
9/30/98 12/31/97
(unaudited)
Cash and cash equivalents $8,247 $8,554
Accounts receivable 5,459 4,629
Prepaid costs and other current assets 735 694
Total current assets 14,441 13,877
Furniture, fixtures and equipment, net 17,349 14,632
Other assets 619 616
Total assets $32,409 $29,125
Accounts payable $1,892 $1,302
Accrued liabilities 1,007 992
Accrued payroll and related costs 1,874 1,023
Current portion of capital lease obligations 342 638
Current portion of long-term debt 240 78
Total current liabilities 5,355 4,033
Capital lease obligations, less
current portion 203 549
Long-term debt, less current portion 683 867
Total liabilities 6,241 5,449
Common stock 37,980 37,514
Accumulated deficit (11,812) (13,838)
Shareholders' equity 26,168 23,676
Total liabilities & shareholders' equity $32,409 $29,125
SOURCE: Metro One Telecommunications, Inc.
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