And this just in...
International Fibercom Inc. Reports Record Revenues and Earnings for the First Quarter
PHOENIX--(BUSINESS WIRE)--May 14, 1998--
First Quarter Sales Increase By 54% To $12,800,000; Margins Increase To 34%
International FiberCom Inc. (NASDAQ: IFCI; Boston Stock Exchange: IFC) and its Chairman & Chief Executive Officer, Joseph Kealy, Thursday announced record operating results for the first quarter ended March 31, 1998.
The company reported a record profit of $1,167,207, or $.07 basic earnings per share and $.05 diluted weighted earnings per share, on record revenues of $12,876,081 for the first quarter ended March 31, 1998. These results compare to a profit of $509,602, or $.07 basic earnings per share and $.03 diluted weighted earnings per share for the first quarter ended March 31, 1997.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $2,349,965 versus $847,832 in the first quarter of 1997. Gross profit margins increased to 34% during the quarter versus 20% for the same period a year ago.
The 54% increase in revenues and the rise in gross margins and EBITDA, as compared to the same period in 1997, was attributed to a strengthening in the company's core business as well as the acquisition of Southern Communications Products Inc., which the company completed in the fourth quarter of 1997.
During the first quarter, the company's Concepts In Communications systems integration unit was awarded a contract from the State of Tennessee which is expected to generate at least $25 million in revenue over the 5-year life of the contract. Concepts posted record revenues and profits in each of the three months of the first quarter.
Commenting on the record performance, Kealy stated, "These results illustrate the progress we continue make in all segments of our business model: revenues, margins, earnings and cash flow. The first quarter is typically our slowest quarter of the year due to seasonal factors, and we anticipate this will prove to be the case again in 1998.
"Contract activity remains extremely brisk, and we expect to be announcing new awards in the very near future. We also plan on continuing to augment internal growth with additional strategic acquisitions that will add to our depth of customers, personnel, technical expertise and geographic capabilities." -0-
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. These forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. 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 filed on Form 10-KSB and Form 10-QSB with the Securities and Exchange Commission. The company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements. -0-
International FiberCom 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.
Its telecommunications engineering subsidiary, Compass Communications, specializes in designing broadband video, voice and data networks systems. Southern Communications Products is a leader in a fast growing niche business within the telecommunications equipment sector. -0- *T
INTERNATIONAL FIBERCOM INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
3 Months Ended 3 Months Ended
3/31/98 3/31/97(a)
Contract Revenues $12,876,081 $8,385,556 Cost of Revenues (8,512,443) (6,672,946)
Gross Profits $4,363,638 $1,712,610
G & A Expenses (2,455,593) (1,231,147)
Other Income (Expense) (109,210) 28,139
Provision For Taxes (631,628) 0
Net Income Attributed To Common Shareholders $1,167,207 $509,602
EBITDA $2,349,965 $847,832
Earnings Per Share:
Basic Earnings Per Share $.07 $.07
Basic Average Shares Out 17,077,540 6,895,442
Fully Diluted Earnings
Per Share $.05 $.03
Fully Diluted Weighted Avg.
Shares Out 22,580,105 14,848,360
(a) Adjusted to reflect operations of Compass Communications due to pooling of interest acquisition *T
CONTACT:
International FiberCom Inc.
Joseph P. Kealy, 602/941-1900
or
Liviakis Financial Communications Inc.
Robert Prag, 916/448-6084
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