Triangle Reports Third Quarter 1998; Reports Restructuring
Business Wire - November 17, 1998 13:54
COCONUT CREEK, Fla.--(BUSINESS WIRE)--Nov. 17, 1998--Triangle Imaging Group Inc. (OTC BB:TRIG) reported revenues and
earnings for the third quarter and nine month period ended Sept. 30, 1998.
Total revenue for the third quarter ended Sept. 30, 1998 was $2,411,727 which is an increase of 62% over the company's third
quarter ended Sept. 30, 1997 revenue of $1,487,382. Revenue for the nine months ended Sept. 30, 1998 totaled $6,286,172
versus the nine month period ended Sept. 30, 1997 of $4,076,340. The increased revenue for both periods is a result of new
acquisitions made during the second quarter, and the increased revenue generated by the company's expanded sales force.
The company generated a loss from continuing operations for the quarter ended Sept. 30, 1998 of $571,087, compared to a gain
of $269,664 for the corresponding period of last year. For the nine month period ended Sept. 30, 1998, loss from continuing
operations totaled $130,292 versus a gain of $549,326 for the nine month period ended Sept. 30, 1997. The losses are a result
of one-time costs associated with consolidating and integrating five acquisitions which were accomplished in the second quarter
of 1998, the continuing investment in EBS's expanding software product lines, the support of our increased professional sales
force at EBS, our wholly owned subsidiary, moving expenses incurred at our MultiTask and Credit Bureau Services facilities, the
consolidation of the Jacksonville credit agency, including the new fully paid for computer system and associated software and
installation costs at the Jacksonville facility and an R&D charge of approximately $100,000 for the development of our newly
released DESC software program at EBS. Also included in one-time expenses is a charge for an increase in the allowance for
doubtful accounts in the amount of $80,000. These one-time expenses will benefit the company in future quarters as we
complete the infrastructure for the development of EBS, QuickCREDIT and MultiTask.
During the third quarter, the company rescinded the TriMax Systems Inc. acquisition and reported a loss from discontinued
operations of $289,162. All shares of the company's common stock that were issued in the TriMax acquisition were returned to
the company and canceled. Including the discontinued operations loss, total loss for the third quarter, 1998 was $860,249 versus
a gain of $269,664 for the third quarter of 1997.
In an effort to reduce its overhead expenses, at the end of the third quarter the company established a provision for a
restructuring reserve to cover costs associated with the reduction in force at EBS. As a results of this action, the company will
realize an annual reduction in expenses exceeding $360,000. Additionally, the company eliminated several temporary technical
positions, discontinued the guaranteed compensation for the sales organization and returned the on-going software
development and maintenance to our own development team. These changes were completed so that on-going expenses will
be significantly reduced without any material disruption in the course of our day to day business.
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
1998 1997 1998 1997
Revenues $2,411,727 $1,487,382 $6,286,172 $4,076,340
Income from
Operations (593,128) 286,489 168,775 691,838
Net Income (860,249) 269,664 (350,292) 549,326
(Loss) from discontinued
operations (289,162) -- (220,000) --
Weighted Agv. Shrs.
Outstanding 13,015,073 9,330,665 11,638,225 7,766,832
Net Income Per
Share (0.07) 0.03 (0.03) 0.07
Triangle is the parent of its wholly owned subsidiaries, Engineered Business Systems Inc., QuickCREDIT Corp., and MultiTask
Computer Systems Inc., whose corporate resources include some of the leading figures in the computer, computer software,
mortgage, finance, credit reporting and insurance fields, with both U.S. and global experience.
For more information contact Vito Bellezza, CEO at 954/968-2080, or send e-mail to stock@trig.com, or visit our web site at
trig.com.
This release may include forward-looking statements from the company that may or may not materialize. Additional factors that
could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange
Commission.
CONTACT: Triangle Imaging Group Inc., Coconut Creek
Vito Bellezza, CEO
954/968-2080 |
