Sergio, IFCI Reports outstanding Q2 results.
Sunday August 16, 1:59 am Eastern Time
Company Press Release
International FiberCom Inc. Reports Record Revenues and Earnings for the Second Quarter and First Six Months
Second Quarter Sales Increase By 123% To $18 Million; EPS Increases By 125%; EBITDA Increases By 347%
PHOENIX--(BUSINESS WIRE)--Aug. 17, 1998-- New Contracts Announced In The First Six Months of 1998 Totaled More Than $55 Million
International FiberCom Inc. (NASDAQ: IFCI; PHLX: IFC) and its Chairman & Chief Executive Officer, Joseph Kealy, Monday announced record operating results for the second quarter and six months ended June 30, 1998.
The company reported a record profit of $1,916,741, or $.10 basic earnings per share and $.09 diluted weighted earnings per share, on record revenues of $18,052,395 for the second quarter ended June 30, 1998.
These results compare to a profit of $447,485, or $.06 basic earnings per share and $.04 diluted weighted earnings per share for the second quarter ended June 30, 1997. Gross profit margins increased to 34% during the quarter versus 27% for the same period a year ago.
The company reported a record profit of $3,083,948, or $.17 basic earnings per share and $.14 diluted weighted earnings per share, on record revenues of $30,928,477 for the first six months ended June 30, 1998. These results compare to a profit of $957,088, or $.14 basic earnings per share and $.07 diluted weighted earnings per share for the six months ended June 30, 1997.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $4,100,632 versus $917,287 in the second quarter of 1997, an increase of 347%, and EDITDA increased to $6,673,907 versus $1,839,387 in the first six months of 1997, an increase of 263%.
The 125% increase in fully diluted EPS and the rise in revenues, 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 and the acquisition of Riley Communications Inc. which the company completed in April, 1998.
During the first six months of the year, the company announced new contracts totaling more than $55 million, far surpassing the amount of new contacts announced during any six month period in the company's history.
The company also completed the acquisition of Riley Communications Inc., a California based company specializing in the design, installation and maintenance of fiber-optic and other cable services for the telecommunications and cable industries.
Over the past two months, IFCI announced its intent to acquire three other telecom equipment suppliers which, on a preliminary unaudited basis, recorded combined 1997 sales in excess of $30 million. All three pending acquisitions are scheduled to close on or about Sept. 1, 1998.
Commenting on the record performance, Kealy stated, ''These results illustrate the progress we continue to make in all segments of our business model: revenues, margins, earnings and cash flow. The second quarter produced results that we believe the company can not only maintain, but expand upon in the coming quarters.
''Most impressive with these results is that we are still integrating and consolidating the most recent acquisitions and have yet to fully realize the benefits from synergies and economies that we feel are possible. We have also just begun to experience some of the cross-selling opportunities that exist between our various integrated business units.
''Contract activity remains extremely brisk, and we expect to be announcing a significant number of 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.''
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.
International FiberCom is a fully integrated ''one stop shopping'' outsource provider for the telecom and CATV industries. Through its four subsidiaries, IFCI provides a range of high level engineering, 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.
Its Kleven Communications and Riley Communications subsidiaries specialize in the design, installation and maintenance of fiber-optic and other cable services for the telecommunications and cable industries.
Its Tennessee based 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 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.
International FiberCom Inc.
Consolidated Statements of Operations
3 Months 3 Months
Ended Ended
6/30/98 6/30/97(a)
Contract Revenues $ 18,052,395 $ 8,110,394
Cost of Revenues (11,848,034) (5,940,603)
Gross Profits 6,204,361 2,169,791
G & A Expenses (3,159,266) (1,559,406)
Other Income (Expense) (78,213) (95,223)
Preferred Stock Dividends (15,375) (67,837)
Provision For Taxes (1,034,766) 160
Net Income Attributed To
Common Shareholders $ 1,916,741 $ 447,485
EBITDA $ 4,100,632 $ 917,287
Interest & Financial
Expenses on Convertible
Debentures (net income tax) (103,577) (19,500)
Earnings Per Share:
Basic Earnings Per Share $ .10 $ .06
Basic Average Shares Out 19,131,382 6,934,053
Fully Diluted Earnings Per
Share(b) $ .09 $ .04
Fully Diluted Weighted
Average Shares Out 23,567,998 14,621,799
6 Months 6 Months
Ended Ended
6/30/98 6/30/97(a)
Contract Revenues $ 30,928,477 $ 16,495,951
Cost of Revenues (20,370,446) (12,613,550)
Gross Profits 10,558,031 3,882,401
G & A Expenses (5,605,144) (2,790,551)
Other Income (Expense) (164,260) (21,859)
Preferred Stock Dividends (38,285) (113,063)
Provision For Taxes (1,666,394) 160
Net Income Attributed To
Common Shareholders $ 3,083,948 $ 957,088
EBITDA $ 6,673,907 $ 1,839,387
Interest & Financial
Expenses on Convertible
Debentures (net income tax) (103,577) 0
Earnings Per Share:
Basic Earnings Per Share $ .17 $ .14
Basic Average Shares Out 18,102,201 6,899,220
Fully Diluted Earnings Per
Share(b) $ .14 $ .07
Fully Diluted Weighted
Average Shares Out 23,124,075 14,521,004
(a) Adjusted to reflect operations of Compass Communications due to
pooling of interest acquisition
(b) Includes Preferred Stock Dividends and Interest & Financial
Expenses on Convertible Debentures (net income tax)
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Contact:
International FiberCom Inc., Phoenix
Joseph P. Kealy, 602/941-1900
or
Liviakis Financial Communications Inc.
Robert B. Prag, 916/448-6084 |
