TAVA Reports 75% Revenue Increase and Record Net Income
DENVER, Nov. 4 /PRNewswire/ -- TAVA Technologies, Inc. (Nasdaq: TAVA) today announced revenue for the
first quarter increased 75% to a record $19,802,000 from $11,319,000 recorded in the quarter ending
September 30, 1997. Gross profits for the quarter were $9,792,000 or 49.4% of revenue. Earnings before
interest, taxes, depreciation and amortization were $4,938,000 compared to $29,000 in the quarter ending
September 30,1997. The company recorded net income attributable to common shareholders of $3,446,000 or
$0.16 per basic share ($0.14 per diluted share) compared to a net loss of $605,000 or ($0.04) per basic share
(($0.04) per diluted share) for the quarter ending September 30,1997.
John Jenkins, CEO stated: "We are extremely pleased with the record results achieved this quarter. This
reflects the continued strong demand for the company's services and products. Revenue was up 33% over our
June 30, 1998 fourth quarter, diluted earnings per share were up by 366% and EBITDA increased to $4,938,000
from $1,759,000. Our earnings also include a solid contribution from the TAVA/RW Beck LLC. We are now
planning the extension of our successful utility market penetration to address post Y2K opportunities."
Doug Kelsall, CFO said, "We are beginning to see operating efficiencies from our investment in SG&A over the
last several quarters, with SG&A expenses decreasing to 27.8% of revenue in this quarter compared to 32.8%
of revenue in our fourth quarter of fiscal 1998." Kelsall added, "The quarter results include a positive income
contribution of $604,000 from the company's investment in TAVA/Beck, LLC in the quarter. This investment is
accounted for by the equity method and its income is reflected as "equity in earnings of unconsolidated
affiliate" on the income statement. No revenue or cost of the LLC are carried directly on the income statement."
Earnings Recap:
Numbers are in ($000's, except per share amounts)
Quarter Quarter
Ending Ending
September 30, 1998 September 30, 1997
Revenue $19,802 $11,319
Cost of Sales 10,010 7,494
Gross Margins 9,792 3,825
SG&A 5,498 3,815
Amort of Goodwill & Cap Sftwr + Depr. 1,139 439
Total Expenses 6,637 4,254
Equity in earnings of unconsolidated affiliate 604 --
Other Income (Expenses) (238) (146)
Income (loss) before tax 3,521 0
Income tax expense 75 0
Net Income (loss) $3,446 $(575)
Net Income (loss) applicable to comm. shldr. 3,446 (605)
Per share-basic 0.16 (0.04)
Per share-diluted 0.14 (0.04)
Weighted average shares - basic 22,039,775 15,030,634
Weighted average shares - diluted 24,166,294 15,030,634
EBITDA $4,938 $29
Balance Sheet Info: September 30, 1998
Assets Liabilities and Equity
Cash $4,348 Total Current Liabilities $12,077
Other Current 27,830 Long Term Liabilities 5,271
Total Current Assets 32,178 Total Liabilities 17,348
Other Assets 17,124 Shareholder's Equity 31,954
Total Liabilities and
Total Assets $49,302 Shareholder's Equity $49,302
Working Capital $20,101
Statements made in this Press Release that are not historical or current facts are "forward-looking statements"
made pursuant to the safe harbor provisions of federal securities laws. Forward-looking statements represent
management's best judgement as to what may occur in the future, but are subject to certain risks and
uncertainties that could cause actual results and events to differ materially from those presently anticipated or
projected. These risks and uncertainties include those discussed in the "Management's Discussion and
Analysis" section of the Company's Annual Report on Form 10-KSB for the fiscal year ended June 30, 1998
and in any subsequent reports filed with the Securities and Exchange Commission, to which reference should
be made.
SOURCE TAVA Technologies, Inc.
CONTACT: John Jenkins, CEO, or Doug Kelsall, CFO, of TAVA Technologies, Inc., 303-771-9794; or Investor
Relations: Scott Liolios of Pacific Consulting Group, Inc., 949-574-3860
Quote for referenced ticker symbols: TAVA
© 1998, PR Newswire |
