ZMAX earnings just out. One to add to the lists.
ZMAX Announces 174% Revenue Growth In 1999; Evolves To An E-Value Chain Solutions Provider In 2000
GERMANTOWN, Md., Mar 7, 2000 (BUSINESS WIRE) -- ZMAX Corporation (NASDAQ:
ZMAX), a leading information technology company, today announced financial
results for the year and quarter ended December 31, 1999.
For the year, revenues increased from approximately $10 million in 1998 to
approximately $27 million in 1999, an increase of 174%. Earnings or loss before
interest, taxes, depreciation, amortization ("EBITDA"), and excluding
non-recurring charges, were $2.4 million, or $0.19 a share, in 1999 compared to
an EBITDA of $1.3 million, or $0.12 a share, in 1998.
Net income, excluding non-recurring charges, was $0.6 million, or $0.05 per
share, in 1999 compared to $0.3 million, or $0.02 per share, in 1998.
With the inclusion of the one-time, non-recurring charges associated with the
write-off of long-term intangible assets associated with the Company's
discontinuation of its prior Year 2000 related business operations, the Company
incurred a net loss for 1999 of $1.1 million, or $0.08 per share, as compared to
the net loss, inclusive of non-recurring charges, in 1998 of $0.3 million, or
$0.03 per share.
For the quarter ended December 31, 1999, revenues were approximately $7.0
million, compared to revenues of approximately $3.3 million in the same quarter
of 1998 - an increase of 110%. EBITDA for the fourth quarter of 1999 was a loss
of $0.6 million, or 0.04 per share, compared to the EBITDA of $0.5 million, or
$0.04 a share, for the fourth quarter of 1998.
The net loss for the fourth quarter of 1999, excluding the non-recurring
charges, was $1.1 million, or $0.09 per share, as compared to net income of $0.2
million, or $0.02 per share, in the fourth quarter of 1998.
Inclusive of the non-recurring charges, the net loss for the fourth quarter of
1999 was $2.9 million or $0.22 per share as compared to the net loss, inclusive
of non-recurring charges, for the fourth quarter of 1998 of $0.3 million or
$0.02 per share.
James T. McCubbin, ZMAX vice president and chief financial officer, stated, "In
1999, we used the solid revenue growth and operational profitability of the
Company to internally fund the consolidation of several business units into a
new operational entity named "WidePoint." The majority of the costs associated
with the growth, development and positioning of WidePoint, together with the
write-off of intangible assets associated with a prior line of business, have
been expensed in 1999. Thus, we enter 2000 as a leaner business with no
unnecessary capitalized costs or unrealizable intangible assets."
Michael C. Higgins, president and chief executive officer of ZMAX stated, "1999
was a very successful year. We achieved our goals in growth, acquisitions,
infrastructure, and most of all, the evolution of the Company to an e-value
chain solutions provider."
Higgins added, "I expect 2000 to exceed 1999 in success as we extend our
foothold in the e-value chain solutions marketplace through our three major
practice groups (Enterprise Resource Planning, Enterprise Application
Integration, and e-technologies), targeted strategic acquisitions, and the
expansion of our 'Best of Breed' partnerships. We are well-positioned to exploit
the vast opportunities that exist in a marketplace which is projected to be in
the hundreds of billions of dollars over the next 3 to 5 years."
The Company will host an investor conference call at 4:00 PM EST today (March
7). Investors in the U.S. can access the call by dialing 888/890-6817 prior to
the start of the call; international investors should call 847/619-6481.
A replay of the call will be available from 5:00 PM EST on March 7 until 5:00 PM
EST on Wednesday, March 8. U.S. investors can access the replay by calling
800/263-2251, and international investors should call 402/220-3781.
The reservation number for the replay is 2074047.
ZMAX Corporation focuses on e-value chain total solutions, including Internet
development and implementation, Enterprise Resource Planning (ERP), and
Enterprise Application Integration (EAI).
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 judgment 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 factors and others are discussed in the "Management's Discussion and
Analysis" section of ZMAX's Annual Report on Form 10-K for the fiscal year ended
December 31, 1998, to which reference should be made.
ZMAX Corporation and Subsidiaries
Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 1999
Three months ended Twelve months ended
December 31, December 31,
------------------ -------------------
1999 1998 1999 1998
Revenues $6,958,686 $3,308,034 $27,196,125 $9,916,276
Operating expenses:
Cost of sales 3,322,587 1,413,772 12,140,007 3,478,982
Sales, general &
administrative
expenses 4,215,856 1,361,993 12,644,440 5,179,301
Non-recurring
charges 1,703,825 534,384 1,703,825 534,384
Depreciation &
amortization 566,030 314,930 1,817,329 1,268,338
Loss from
operations (2,849,612) (317,045) (1,109,476) (544,729)
Other income
(expenses): (35,930) 61,196 51,071 262,018
Loss before income
taxes (2,885,542) (255,849) (1,058,405) (282,711)
Benefit from
provision for
income taxes (33,898) - 37,648 -
Net loss $(2,851,644) $(255,849) $(1,096,053) $(282,711)
Basic and diluted
net loss per
share $(0.22) $(0.02) $(0.08) $(0.03)
Basic and diluted
shares
outstanding 12,949,913 12,949,913 12,949,913 10,638,680
ZMAX Corporation and Subsidiaries
Consolidated Balance Sheets
As of December 31, 1999 and 1998
December 31, December 31,
1999 1998
------------ ------------
Assets
Cash and cash equivalents $4,226,434 $4,521,126
Accounts receivable, net 5,548,123 2,545,659
Prepaid expenses and other current assets 394,554 127,952
Total current assets 10,169,111 7,194,737
Property & equipment, net 705,445 477,870
Intangible assets 10,114,400 9,740,217
Other assets - 33,538
Total assets $20,988,956 $17,446,362
Liabilities & Shareholders' Equity
Current Liabilities $3,257,847 $1,631,593
Long-term liabilities 2,887,696 34,716
Total liabilities 6,145,543 1,666,309
Total shareholders' equity 14,843,413 15,780,053
Total liabilities & shareholders' equity $20,988,956 $17,446,362
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