Yahoo - International FiberCom reports Record Third Quarter, Nine-Month
biz.yahoo.com
Wednesday November 3, 7:33 am Eastern Time
Company Press Release
International FiberCom reports Record Third Quarter, Nine-Month Revenues
Revenue up 83 Percent For the Quarter
61 Percent For First Nine Months
PHOENIX--(BUSINESS WIRE)--Nov. 3, 1999--International FiberCom Inc. (Nasdaq/NM:IFCI - news) Wednesday announced record revenues for its third quarter and nine months ended Sept. 30, 1999.
Revenues for the third quarter rose 83 percent to a new quarterly high of $47 million, with net income of $571,000, or $0.02 per basic and diluted share. This compares with last year's third quarter revenues of $25.7 million and net income of $2.4 million, or $0.09 per basic and diluted share after non-recurring acquisition costs.
As announced at the end of September, net income for the 1999 third quarter was adversely affected by charges related to temporary and unexpected delays in contracting execution schedules, as well as significant, unanticipated cost overruns with a certain, non-core municipal utility installation contract.
For the first nine months of 1999, revenue increased 61 percent to a record $115.6 million, compared with $71.8 million for the first nine months of last year. Net income for the first nine months of 1999 was $5.1 million, or $0.18 per basic share and $0.17 per diluted share, compared with $8.2 million, or $0.36 per basic share and $0.31 per diluted share after non-recurring acquisition costs for the same period last year.
EBITDA for the third quarter and first nine months of 1999 was $4.8 million and $16.5 million, respectively, compared with EBITDA of $4.3 million and $13.9 million for the year-earlier respective periods.
Chairman and Chief Executive Officer Joseph P. Kealy commented: ``The growth in revenue from continuing operations is a validation of our strategic plan to provide a wide range of services for the telecom, information and cable TV industries. As previously announced, the temporary decline of our margins in the third quarter was directly attributable to certain contract delays and a shortfall in a municipal utility contract.
``We have begun work on the contracts that were delayed, and we have taken the necessary steps and added the controls needed to help prevent this type of profit shortfall in the future. We have strengthened our management team to position the company for significant continued growth,' Kealy said.
``Chip Wiltse has been promoted to president of our Infrastructure Development Division,' he continued. ``We have already begun to see the positive results of Chip's influence on this key division, as evidenced by the more than $35 million in new contracts we have obtained with AT&T Local Services, Next Link Communications, Comcast Communications and Cox Communications.
``These contracts were in addition to the Oakland design/build services award for the upgrade of more than 1,000 miles of cable for AT&T Broadband and Internet Services. We are confident in Chip's ability to grow the revenues of this division and drive profits as we continue to secure new and larger contracts from both established and new customers,' Kealy said.
In other key management moves, Douglas N. Kimball, 44, was promoted to executive vice president of mergers and acquisitions from COO. Kimball will spearhead the identification of companies to support International FiberCom's continued growth allowing the company to expand its geographic reach in selected markets.
Anthony T. Baumann, 33, was named COO and has been responsible for instituting many of the recent controls to support the company's continued growth. Prior to joining International FiberCom in May 1998 as corporate controller, Baumann served for six years as a CPA at Ernst & Young in the public accounting field.
Gregory B. Hill, 31, will serve as corporate controller for the company. Hill was formerly CFO for All Star Telecom, which International FiberCom acquired earlier this year. Hill is a CPA and his experience includes seven years of public accounting with Price Waterhouse in Sacramento, Calif., serving companies in the communications and high-technology industries.
International FiberCom is a leading provider of a wide range of engineering, development and maintenance services for fiber-optic, broadband networks, public telephone networks, local and wide area networks, and specialized wireless applications. With a number of recent strategic acquisitions that complement and enhance existing services and products, International FiberCom has positioned itself as a ``one-stop shop' for the telecom, information and cable TV industries.
This news 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 Dec. 31, 1998, filed with the Securities and Exchange Commission.
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