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Eltrax Projects Profitability for Fourth Quarter
SOUTHFIELD, Mich.--(BUSINESS WIRE)--Sept. 15, 1998--Southfield, MI - Eltrax Systems, Inc. (Nasdaq SmallCap: ELTX) released today additional information regarding its previously announced acquisition of Encore Systems, Inc. and affiliated companies. The acquisition cost was approximately $8.5 million in cash and 465,000 shares of Eltrax common stock. The cash portion of the acquisition price was funded with existing cash on hand, a new $4.0 million term loan and the Company's revolving line of credit, which was also renegotiated and extended until September 2001.
The Encore group, with an approximately $12 million in annual revenue and over $2 million in net income, will have an immediate positive impact on Eltrax's financial results when combined with the performance of the existing managed network service operations of Eltrax. The Company expects to report a net profit during the fourth quarter, its first full quarter of combined operations.
Some of the preceding statements in this press release constitute "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the Company intends that such forward-looking statements be subject to the safe harbors created thereby. Examples of words indicating forward-looking statements are "expects" and "will." These forward-looking statements reflect the Company's current views with respect to future events and financial performance, but are subject to many uncertainties and factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Please see the section entitled "Certain Important Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 1997, which is incorporated by reference in this press release, for a list of such uncertainties and factors. The Company undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise.
Eltrax Systems, Inc. is a nationwide managed network services company, providing communications products and services for enterprise-wide networks, serving private, public and government customers. The Company's shares are traded on the Nasdaq SmallCap market under the symbol ELTX. The Company's website is www.eltrax.com.
CONTACT:
Eltrax Systems, Inc., Southfield
William P. O'Reilly, (248) 358-1699
BW1382 SEP 15,1998
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