More info for BILL
Thursday November 19, 10:20 am Eastern Time
Company Press Release
SOURCE: Billing Concepts Corp.
Billing Concepts Announces Strong Year End Results,
Closing of an Acquisition and a New Identity
Year End Revenue and Earnings Per Share Increase Significantly Over Prior Year End Numbers
* Operating Revenue increases 31% * Net Income increases 28% * Earnings Per Share increases
19%
SAN ANTONIO, Nov. 19 /PRNewswire/ -- Billing Concepts Corp. (Nasdaq: BILL - news) today reported operating revenue for
the fourth quarter ended September 30, 1998 of $41.1 million, which is 15% greater than revenue of $35.7 million reported for the
same period in 1997. Net income for the quarter, without 1998's special charges, increased from $6.3 million in 1997 to $6.8
million. Diluted earnings per share, without special charges, were $0.20 compared to $0.18 for the same period in 1997. With
special charges, net income was $4.8 million and diluted earnings per share were $0.14 for the fourth quarter ended September 30,
1998. A $2 million special charge in the quarter ended September 30, 1998 represented research and development costs from the
Company's acquisition of 22% of Princeton TeleCom Corporation's common stock.
For the year ended September 30, 1998, the Company reported operating revenue of $160.8 million, which is 31% greater than
revenue of $122.8 million reported for 1997. Net income for the year, without special charges, increased from $21.9 million in 1997
to $27.9 million, a 28% increase. Without special charges, diluted earnings per share for 1998 were $0.80 compared to $0.67 for
1997, a 19% increase. With special charges, net income was $25.9 million and diluted earnings per share were $0.74 for the year
ended September 30, 1998. The $21.3 million special charge that occurred in 1997 related to the acquisition of the Company's
software subsidiary and the abandonment of a direct billing system for a service bureau operation being developed by an outside
vendor.
In addition, the Company reported that in October it finalized the acquisition of Expansion Systems Corporation (''ESC'') for
170,000 shares of the Company's common stock. ESC is headquartered in Glendale, California and sells billing and registration
systems to Internet Service Providers (''ISPs'') under its flagship products TotalBill and InstantReg.
According to Parris H. Holmes, Jr., Chairman and CEO, ''The results of the fourth quarter are in line with our expectations
expressed in the press release on June 8, 1998. At that time, we discussed the impact that 'slamming' and 'cramming' issues were
having on the Local Exchange Carrier (''LEC'') billing business and that we needed more time to fully assess any future impact of
these issues. Since then, we have played a very active role in assisting certain local telephone companies, the Federal
Communications Commission (''FCC'') and certain Public Utilities Commissions (''PUCs'') in providing the best solution to
eliminate these issues from the telecommunications industry. Billing Concepts will continue to adhere to the Best Billing Practices,
and we are determined to work with the local telephone companies to reduce the level of consumer complaints. As a proactive
measure, we are taking action against certain customers that will include, but is not limited to, the cessation of billing for certain
new or existing products. While it is still unclear what monetary impact these actions will have on the LEC billing business in the
future, it is clear that there is still much work to do to bring the nature and level of complaints to acceptable levels. Consequently,
we believe that growth in the LEC billing business could be minimal in 1999. While there are opportunities outside these
parameters, there are too many uncertainties surrounding these opportunities to factor them into any type of forecast.''
Holmes added, ''We are making great strides in growing our software business. Although systems revenue for the quarter appears
low, the $2 million license fee for the recent IBM contract will be recognized over the five-year life of the contract. We continue
to receive strong interest in the Modular Business Applications (''MBA'') platform, and the professional services that surround this
system are adding a base of recurring revenue. The addition of TotalBill for ISPs and the completion of the anticipated merger
with CommSoft will create a suite of the most comprehensive billing software products in the industry. We are pleased with our
position today and believe that 1999 will be a very fruitful year for us and our customers.''
Mr. Holmes also stated, ''In conjunction with these product additions, we also will attempt to raise the visibility of Billing Concepts
and its role in the telecommunications software industry through a higher level of marketing. Accordingly, we have changed the
Company logo and much of our marketing collateral and messaging. We have created a stronger look and focus to make it easier
to identify and brand the Billing Concepts name and products.''
About Billing Concepts Corp.
Billing Concepts is one of the largest third-party providers of billing clearinghouse and information services to the
telecommunications industry. In addition to processing call records, the Company provides a wide range of other services,
including billing inquiry services, data processing, tax filings, accounting services and an advance funding program. Billing
Concepts offers convergent business support solutions combining Modular Business Applications, which supports multiple services
such as local service, long distance, cellular, PCS, paging, and Internet with industry expertise offered via its professional staff.
Certain statements contained herein are ''forward-looking'' statements (as such term is defined in the Private Securities Litigation
Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those
expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the
Company with the Securities and Exchange Commission.
BILLING CONCEPTS CORP.
Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
Unaudited
Quarter Ended September 30,
As Reported Without
Special Charges As Reported
1998 1998 1997
LEC billing revenues $37,733 $37,733 $34,018
Systems revenues 3,361 3,361 1,724
Operating revenues 41,094 41,094 35,742
Cost of revenues 25,469 25,469 21,872
Gross profit 15,625 15,625 13,870
Selling, general and administrative 5,240 5,240 4,052
Research and development 637 637 382
Advance funding program income (1,557) (1,557) (1,811)
Advance funding program expense 32 32 36
EBITDA and special charges 11,273 11,273 11,211
Depreciation and amortization 1,754 1,754 1,375
Special charges 0 2,000 0
Operating income 9,519 7,519 9,836
Other income, net 1,613 1,613 244
Income before income taxes 11,132 9,132 10,080
Income tax expense (4,307) (4,307) (3,819)
Net income $6,825 $4,825 $6,261
Diluted earnings per share (a) $0.20 $0.14 $0.18
Weighted average commons shares
and common share equivalents
outstanding (a) 34,691 34,691 34,048
(a) On January 30, 1998, the Company distributed a one-for-one stock
dividend to shareholders of record at the close of business on
January 20, 1998. Earnings per share and weighted average common
shares and common share equivalents outstanding for the quarters
ended September 30, 1998 and 1997 have been adjusted to give effect
to this dividend.
BILLING CONCEPTS CORP.
Consolidated Statements Of Income
(In Thousands, Except Per Share Amounts)
Year Ended Year Ended
September 30, September 30,
As Reported Without
Special Charges As Reported
1998 1997 1998 1997
LEC billing revenues $147,542 $120,451 $147,542 $120,451
Systems revenues 13,220 2,385 13,220 2,385
Operating revenues 160,762 122,836 160,762 122,836
Cost of revenues 98,894 76,662 98,894 76,662
Gross profit 61,868 46,174 61,868 46,174
Selling, general and
administrative 20,111 13,565 20,111 13,565
Research and development 2,030 688 2,030 688
Advance funding program income (7,919) (7,255) (7,919) (7,255)
Advance funding program expense 126 688 126 688
EBITDA and special charges 47,520 38,488 47,520 38,488
Depreciation and amortization 6,494 3,797 6,494 3,797
Special charges 0 0 2,000 21,252
Operating income 41,026 34,691 39,026 13,439
Other income, net 4,450 552 4,450 552
Income before income taxes 45,476 35,243 43,476 13,991
Income tax expense (17,529) (13,381) (17,529) (10,284)
Net income $27,947 $21,862 $25,947 $3,707
Diluted earnings per share (a) 0.80 0.67 0.74 0.11
Weighted average common shares
and common share equivalents
outstanding (a) 34,908 32,518 34,908 32,518
(a) On January 30, 1998, the Company distributed a one-for-one stock
dividend to shareholders of record at the close of business on
January 20, 1998. Earnings per share and weighted average common
shares and common share equivalents outstanding for the quarters
ended September 30, 1998 and 1997 have been adjusted to give effect
to this dividend.
BILLING CONCEPTS CORP.
Consolidated Balance Sheets
(In Thousands)
September 30,
1998 1997
ASSETS
Current assets:
Cash and cash equivalents $118,291 $41,444
Accounts receivable, net 33,748 25,919
Purchased receivables 64,477 70,175
Prepaids and other 3,776 3,196
Total current assets 220,292 140,734
Property and equipment, net 22,032 18,156
Equipment held under capital leases, net 441 606
Other assets, net 8,299 7,516
Investment in equity affiliate 8,000 0
Total assets $259,064 $167,012
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $17,757 $19,223
Accounts payable - billing customers 118,599 75,166
Accrued liabilities 25,358 17,728
Current portion of long-term debt 606 606
Current portion of capital lease obligations 251 441
Total current liabilities 162,571 113,164
Long-term debt, less current portion 1,668 2,324
Obligations under capital leases,
less current portion 29 290
Deferred income taxes 1,668 2,048
Other liabilities 797 499
Stockholders' equity:
Common stock 342 324
Additional paid-in capital 60,039 42,916
Retained earnings 32,344 6,397
Deferred compensation (394) (950)
Total stockholders' equity 92,331 48,687
Total liabilities and stockholders' equity $259,064 $167,012
For information contact: Terri A. Hunter, Director, Investor Relations of
Billing Concepts Corp., 210-949-7020, or
terri.hunter@billingconcepts.com
SOURCE: Billing Concepts Corp.
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