a day late and a dollar short ...
ha ha.
OmniAmerica Reports Financial Results for Fourth Quarter and Fiscal Year
September 29, 1998 10:08 AM
ALBUQUERQUE, New Mexico--(BUSINESS WIRE)--September 29, 1998--OmniAmerica, Inc. (XMIT), a leading full-service national transmission tower company, today reported financial results for its fiscal year and fourth quarter ended June 30, 1998.
Revenues for the fiscal year ended June 30, 1998 were $62,799,071, a 4.3% decrease from revenues of $65,626,000 during the year ended June 30, 1997. Net earnings were $977,112, $0.11 per basic share and $0.10 per diluted share, compared to $3,547,242, $0.50 per basic share and $0.47 per diluted share, during the previous year. The company's EBITDA (earnings before interest, taxes, depreciation and amortization) for the year was $6,233,786, adjusted for non-cash compensation expense related to the cashless exercise of stock options, compared to $8,091,872 during the previous year.
Revenues for the fourth quarter ended June 30, 1998 increased 23.1 % to $17,772,317 over revenues of $14,442,109 during the quarter ended June 30, 1997. The Company's net loss was $1,635,749, $0.12 per basic and diluted share, compared to a loss of $168,250, $0.02 per basic and diluted share, during the comparable 1997 period, and EBITDA was a loss of $340,840 compared to EBITDA of $387,873 during the 1997 fourth quarter.
The year's and quarter's revenues and EBITDA were negatively impacted by the previously indicated slowdown in third-party communications tower building and implementation activity that occurred as wireless carriers evaluated the merits of outsourcing and build-to-suit options. Revenue and EBITDA were also impacted by $2.1 million in capitalized costs related to the utilization of construction and site acquisition personnel as the Company began to give strategic emphasis in the fourth quarter to building sites for its own account in addition to the work that it does on behalf of third party clients. Additionally, EBITDA was effected by costs related to several acquisitions that the Company completed during the year and merger integration costs related to the merger of OmniAmerica and Specialty Teleconstructors, which was completed on April 23; and a significant increase in SG&A expenses during the fourth quarter, intended to create an organizational foundation for long-term growth.
Carl E. Hirsch, President and Chief Executive Officer of OmniAmerica, said: "In the short period of time since the merger of OmniAmerica and Specialty Teleconstructors on April 23, we have made considerable progress towards building a leading full-service tower company, national in scope. In addition to our substantial capability to provide outside construction and site implementation services for our third party clients, the Company has begun to focus on a strategy of accumulating owned and managed sites for its own account through utilization of our site acquisition and construction resources to take advantage of build-to-suit projects. We believe strongly that, in the future, wireless service providers and broadcasters will increasingly seek to outsource their tower requirements. With upwards of 800 towers under ownership, agreement to purchase or in developmental stages we have taken considerable steps to meet that increased demand.
"While this additional focus in our strategy had a deliberate negative impact on financial results during the recently concluded fourth quarter and fiscal year, it is consistent with our business plan and we are confident that the investments we have made significantly enhance OmniAmerica's ability to generate and grow long-term recurring revenue and shareholder value. Moreover, we now have in place a seasoned management team with the collective expertise and experience to address all of our clients' business needs in an innovative manner and, in turn, to add value to their businesses," Mr. Hirsch concluded.
At June 30, 1998, OmniAmerica had 183 sites in the development stage, with written or oral lease commitments from five different wireless carriers for build-to-suit mandates.
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