OTC BB:HICO - news ... HitCom Announces Record Revenues for Its Fourth Quarter and Fiscal Year Ending December 31, 1998
ST. LOUIS--(BUSINESS WIRE)--June 1, 1999--HitCom Corporation (NASDAQ OTC BB:HICO - news) today announced record revenues for its fourth quarter and fiscal year ending December 31, 1998.
Revenue for the quarter ended December 31, 1998, grew 26% to a record $1,131,129, compared with revenues of $892,084 for the quarter ended December 31, 1997. For the fiscal year ended December 31, 1998, revenue grew by 39% to a record $3,683,354, as compared to $2,651,208 for the nine-month period ended December 31, 1997.
Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations was $267,973 in 1998, as compared to $291,293 in the nine-month period in 1997. Net loss from continuing operations was $121,515 in 1998, as compared to income of $172,337 in the nine-month period in 1997. Loss was primarily due to goodwill amortization of $233,199 in 1998 for the Channel Telecom Inc. (Channel) acquisition and increase in depreciation expense to $102,758 in 1998 from $57,487 in 1997.
''Overall, we were satisfied with the results of 1998 and the integration of Channel into HitCom,'' said Rajan Arora, President and Chief Executive Officer of HitCom. ''Our record revenues in the quarter and 1998 were due to the very strong growth of our prepaid-card operations. We have substantial momentum going into 1999, and most of the organizational and restructuring issues are now behind us.''
Fiscal Year 1998 Highlights
1998 was an exciting year for HitCom as it acquired Channel, a prepaid telecommunication service provider. The acquisition expanded the Company's services and provided access to the Canadian marketplace. Channel integrated well into the Company's operations and provided significant management expertise -- Rajan Arora assumed the position of President and CEO and Jeffrey Shier became Executive Vice President of HitCom. Ronald Mann, who acted as an investment banking consultant for Channel, joined HitCom's Board of Directors along with Rajan Arora and Jeffrey Shier.
During 1998, HitCom discontinued its Internet Service Provider (ISP) division, which lost $457,213 in 1998, as compared to $241,798 in the nine-month period in 1997. The ISP division could not attain the necessary customer base to provide a positive contribution; therefore, its elimination should improve the Company's profitability and working capital position in 1999.
The Company also improved its liquidity and working capital position through the issuance of $528,000 in convertible debentures, increase in bank line of credit and long-term bank borrowing.
For more information, please refer to the Company's annual report on Form 10-KSB for 1998 filed with the SEC which is available through EDGAR, or call investor relations at 1-800/565-7038, ext. 102, to receive a copy.
About HitCom
HitCom Corporation, is a facilities-based telecommunications company that provides enhanced communication services and technologies to businesses and consumers in the United States and Canada. Specifically, HitCom focuses on designing, developing and marketing Interactive Voice Response/Voice Processing Services, Prepaid/Postpaid Phone Cards and other Emerging Communication Services. HitCom markets its products through its subsidiaries Channel Telecom Inc. and One Plus Marketing Inc.
HitCom is traded on the NASDAQ Stock Exchange OTC Bulletin Board under the symbol HICO. HitCom can be found on the World Wide Web at www.hitcom.com
Statements contained in this news release regarding expected financial results and other planned events are forward-looking statements, subject to uncertainties and risks, including, but not limited to, the demand for HitCom's products and services, and the ability of the company to successfully implement its strategies, each of which may be impacted, among other things, by economic, competitive, or regulatory conditions.
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Contact:
HitCom Corporation
Jeffrey Shier, 1-800/565-7038
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