Monday May 3, 5:00 am Eastern Time
Company Press Release
International FiberCom, Inc. Announces Quarterly Results for March 31, 1999
Revenue Up 29% Over Prior Year
PHOENIX--(BUSINESS WIRE)--May 3, 1999--International Fibercom, Inc. (Nasdaq:IFCI - news) and its Chairman and CEO Joseph P. Kealy today announced its earnings for the quarter ended March 31, 1999.
Sales increased 29% to $27,865,337 from $21,667,979 reported for the first quarter of 1998. Net income rose 6% to $2,231,974 from $2,110,292 reported in 1998. Diluted earnings per share for the 1999 and 1998 quarters were each $0.08 per share. The results for the first quarter of 1998 have been adjusted to reflect acquisitions on a pro forma basis.
Joseph P. Kealy, CEO and Chairman commented, ''This past quarter has been most successful and extremely exciting for IFCI; one in which the value of our diversity has become apparent as the Company is realizing its mission statement to become a one stop shopping opportunity for the internet, information, CATV and telecommunications industries.
''Our infrastructure development division, composed of Riley Communications and Kleven Communications, had revenues that more than tripled in the first quarter of 1999 compared to 1998. This division was a large contributor to the first quarter profitability of IFCI. The equipment resale division was the only division of the Company that experienced a decline in revenues for the quarter while remaining strongly profitable. Management changes, already in effect, are expected to improve this division's performance for the remainder of the year.
''Our engineering company, Compass Communications, more than doubled its revenue from that reported for the first quarter of 1998 and contributed significantly to profitability as well. The systems integration subsidiary, Concepts In Communications, continues to be our most consistently profitable performer. And our new acquisition, AeroComm, contributed positively to the quarter. Every IFCI division experienced first quarter profitability.
''We see the development of the internet and broadband deployment as our most immediate compelling opportunity and have been rapidly building up our resources in response. Our recent acquisition of All Star Telecom, based in Sacramento, demonstrates our continued commitment to growth within both our infrastructure development and engineering services divisions. Demand for systems integration services continues at a rapid pace. AeroComm's wireless technology and expertise is in high demand.''
A summary of operating results follows:
Summary of Quarterly Results:
For the First Quarter Ended March 31,
1999 1998
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Sales $27,865,337 $21,667,979
Operating income 4,001,068 3,656,480
Net Income $ 2,231,974 $ 2,110,292
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Earnings per share:
Basic $ 0.08 $ 0.10
Diluted $ 0.08 $ 0.08
Shares outstanding:
Basic 26,976,948 20,331,540
Diluted 29,081,368 25,834,105
This press release contains certain forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, by their very nature, include risks and uncertainties. Accordingly, the Company's actual results could differ materially from those discussed in this release.
A wide variety of factors could cause or contribute to such differences and could adversely impact revenues, profitability, cash flows and capital needs.
Such factors, many of which are beyond the control of the Company, include the following: the Company's success in obtaining new contracts; the volume and type of work orders that are received under such contracts; the accuracy of the cost estimates for projects; the Company's ability to complete its projects on time and within budget; levels of, and ability to collect accounts receivable; availability of trained personnel and utilization of the Company's capacity to complete work; the Company's ability to complete proposed acquisitions and, upon their completion, to integrate the acquisitions into its organization and manage its growth; competition and competitive pressures on pricing; and economic conditions in the United States and in the regions served by the Company.
A more complete listing of cautionary statements and risk factors is contained in the Company's report on Form 10-KSB for the year ended December 31, 1998 filed with the Securities and Exchange Commission.
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Contact:
International FiberCom, Inc.
Joseph P. Kealy, 602/941-1900
Douglas N. Kimball, 602/941-1900
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