PHOENIX--(BUSINESS WIRE)--Nov. 12, 1997--International FiberCom
Inc. (NASDAQ:IFCI)(BSE:IFC) and its chairman and chief executive
officer Joseph Kealy Wednesday announced record operating results
for the third quarter and first nine months ended Sept. 30, 1997.
The company reported a record profit of $500,986 or 6 cents per
share on record revenues of $7,265,758 for the third quarter,
compared to a loss of ($471,251) or (8 cents) per share, on revenues
of $2,792,804 for the same period in 1996.
The company reported a record profit of $1,266,218 or 18 cents
per share on record revenues of $20,362,396 for the first nine months
of the year, compared to a loss of ($588,549) or (10 cents) per
share, on revenues of $9,158,640 for the same period in 1996.
The 160 percent increase in revenues for the third quarter and
122 percent increase in revenues for the first nine months was
attributed to a strengthening in the company's core business as well
as the acquisition of Concepts In Communications in the first
quarter of 1997.
During the first 10 months of the year, the company announced a
record amount of new contracts totaling more than $25 million,
including an $8 million award for fiber optic upgrade projects with
Cox Communications and a $4.9 million national contract award from
GAMBRO Healthcare Patient Services to perform on-site systems
integration and sophisticated data cabling installation services.
Other contracts were announced during the first 10 months with
US West, Lucent Technologies, Columbia/HCA Healthcare, Nike, Kimberly
Clark, Ingram Micro and Caterpillar Financial.
During the third quarter, International FiberCom announced it
had signed a definitive agreement to acquire a privately-held
telecommunications equipment company headquartered in the southeast
United States. The target company recorded 1996 pretax profits in
excess of $7 million on revenues of approximately $15 million and
has also recorded profits in each of the nine years of its
existence.
IFCI also announced it had signed a letter of intent to acquire
a privately-held leading telecommunications engineering firm which
specializes in designing broadband video, voice and data networks.
Both acquisitions, which are expected to close in the fourth quarter
and are contingent upon the completion of due diligence, financing
and certain other items.
Commenting on the record performance, Joseph Kealy, CEO, stated,
"The operating results for the first nine months of 1997 are due
largely to the continued impressive turnaround in our core
fiber-optic services subsidiary, Kleven Communications.
"We are very encouraged with the increase in our gross profit
margins, which have improved to 25 percent in the third quarter of
1997 versus 4 percent for the same period in 1996.
"We are anxious to close our two pending acquisitions which will
make IFCI a unique enterprise having the ability to provide a
one-stop shopping solution for the telecommunications marketplace by
offering a broad range of high level engineering, consulting and
broadband network systems design, installation of structured cable
and fiber-optic networks, and complete telecommunications systems
integration services with LAN's and WAN's expertise and
capabilities."
This press release contains forward looking statements which are
based largely on the company's expectations and are subject to
various business risks and uncertainties, certain of which are beyond
the company's control. Actual results could differ materially from
these forward looking statements as a result of such risks.
In light of these risks and uncertainties, there can be no
assurance that the forward looking statements contained herein will
in fact transpire or prove to be accurate. A more complete listing
of cautionary statements and risk factors is contained in the
company's reports file on Form 10-KSB and 10-QSB with the Securities
and Exchange Commission.
International FiberCom Inc. specializes in the design,
installation and maintenance of fiber-optic and other cable services
for the telecommunications and cable industries. Its wholly-owned
subsidiary, Concepts In Communications, provides systems integration
services, including design, engineering, installation and maintenance
of structured cable systems, network hardware and software,
workstation peripherals and intercommunications systems.
Concepts maintains value added reseller and/or partner
agreements with Lucent Technologies, 3Com, Bay Networks, Novell, WIN
Communications, BellSouth, Compaq, Dell Computers and Hewlett
Packard.
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International FiberCom Inc.
Consolidated Statements of Operations (Unaudited)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
Sept. 30, Sept. 30 Sept. 30, Sept. 30,
1997 1996 1997 1996
Contract
Revenues $7,265,758 $2,792,804 $20,362,396 $9,158,640
Cost of Revenues 5,462,064 2,676,120 15,638,747 7,909,219
Gross Profits $1,803,694 $116,684 $4,723,649 $1,249,421
G & A Expenses 1,153,688 509,010 3,191,547 1,638,387
Other ($149,020) ($78,925) ($265,884) ($199,583)
Net Income
Attributed to
Common
Shareholders $500,986 ($471,251) $1,266,218 ($588,549)
Earnings Per Share:
Primary
Earnings per
Share $.06 ($.08) $.18 ($.10)
Primary Weighted
Avg. Shares Out 8,530,197 6,059,639 7,134,717 6,059,639
Fully Diluted
Earnings per
Share $.03 - $.08 -
Fully Diluted
Weighted Avg.
Shares Out 16,152,004 - 15,860,068 - |
