@Track Communications Announces Positive EBITDA For Third Quarter 2000.Business Editors RICHARDSON Richardson, city (1990 pop. 74,840), Dallas and Collins counties, N Tex., a suburb of Dallas; founded in the 1850s, inc. as a city 1956. Richardson manufactures telecommunications equipment, medical devices, supercomputers, computer chips, and fiber optics. , Texas--(BUSINESS WIRE)--Oct. 19, 2000 @Track Communications, Inc. (Nasdaq:ATRK), a leading provider of wireless-based vehicle fleet management and intelligent mobile-asset-tracking solutions, today reported financial results for the 2000 third quarter ended Sept. 30, including EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $1.7 million. Total revenues for the 2000 third quarter were $28.0 million, compared with $29.1 million for the 1999 third quarter. @Track reported a net loss of $2.8 million ($0.11 per share) for the 2000 third quarter, compared with a net loss, before $2.8 million in net non-recurring charges, of $3.4 million ($0.14 per share) for the third quarter of 1999. Including the non-recurring charges, the net loss for the 1999 third quarter was $6.2 million ($0.25 per share). For the first nine months of 2000, total revenues were $64.2 million, versus $79.4 million for the first nine months of 1999. The net loss for the first nine months of 2000 was $11.2 million ($0.44 per share), compared with a net loss, before $3.5 million in non-recurring income items, of $9.1 million ($0.36 per share) for the first nine months of 1999. Including the non-recurring income items, the net loss for the nine months of 1999 was $5.6 million ($0.22 per share). "As was the case in the 2000 second quarter, financial results for the third quarter were well in line with our expectations," said Jana JANA Journal of American Nutraceutical Association JANA Jamahiriyah News Agency JANA Joint Army-Navy-Air Force Ahlfinger Bell, president and chief executive officer. "This quarter's results were considerably improved from the 2000 second quarter, as we experienced a 26 percent growth in total revenues. "As we move into the fourth quarter of 2000, we believe that revenues for the year will be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $90 million. We anticipate the primary revenue growth in the fourth quarter will be driven by product revenue derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from ongoing installations of the remaining 16,000 units of approximately 28,000 units previously contracted for by member companies of SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. Communications, Inc. (NYSE NYSE See: New York Stock Exchange :SBC)," Bell added. "Looking to the future, we plan to continue under our vision of Tracking Things That Move(TM) by executing @Track's business and technology plans to integrate multiple wireless networks and mobile platforms," noted Bell. "We believe that our strategy will allow us to expand our product offerings and continue to reach into the rapidly growing Automatic Vehicle Location See mobile positioning. (AVL (Automatic Vehicle Location) See mobile positioning. ) market." Product revenue for the 2000 third quarter was $16.2 million, versus $16.3 million for the comparable 1999 quarter, and service revenue for the 2000 third quarter was $11.7 million, versus $12.8 million for the 1999 third quarter. As was the case in the second quarter, the lower service revenue level this quarter was primarily due to reduced personal calling revenues, lower average revenue per mobile unit with more regional service vehicle units in operation, and deactivations of two long-haul long haul n. 1. A long distance: It is a long haul from New York to Los Angeles. 2. A long period of time: Over the long haul the candidates performed well. customers for non-payment non-payment Noun failure to pay money owed non-payment n → Nichtzahlung f, Zahlungsverweigerung f non-payment n of services. The service revenue gross margin percentage for the 2000 third quarter was 37.3 percent, compared with 34.1 percent for the 1999 third quarter. The total installed base at Sept. 30, 2000, was 60,716 mobile units, compared with 52,424 at Sept. 30, 1999. Activations for the 2000 third quarter exceeded deactivations by 7,095 units. Third quarter highlights: -- @Track now has more than 60,000 mobile communications units in service on its wireless network, including over 26,000 service vehicle units for various SBC member companies. -- The company has announced agreements with Mesilla Valley Transportation Services, Inc. and Garner Transportation Group, Inc. to provide them with @Track's total trailer-tracking solution, TrackWare(TM). The company also began production of its loaded/unloaded and door open/shut sensors to provide enhanced TrackWare capabilities. -- The company also announced that T&M Express, Inc. has implemented the HighwayMaster(R) Series 5000 Solution across its fleet and signed a five-year contract for @Track's Platinum Service state-of-the-art fleet management solution. -- @Track also completed an integration of its HighwayMaster Series 5000 mobile communications system with TruckMate for Windows, a high-performance, end-to-end software communications solution designed for dispatch operations by Maddocks Systems, Inc. @Track provides intelligent wireless mobile communications, emergency dispatch A dispatch or dispatches can refer to:
(2) (Global Positioning S satellite location capabilities for vehicle fleet management. The company's mobile asset product, TrackWare, combines the technologies of GPS and wireless control channel messaging to track mobile assets. Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Webcast Information: @Track's conference call, scheduled for 10:00 a.m. CT on Thursday Thursday: see week. , Oct. 19, will also be webcast via the Internet through StreetFusion(TM) at http://www.streetfusion.com. To listen through the Internet, please access the StreetFusion website at least 15 minutes prior to the call to register and ensure your computer contains the proper software. The conference call also will be available for replay soon after the live call ends. Legal notice to investors: Certain matters discussed in this press release are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " intended to qualify for the safe harbors Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. from liability established by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "expects," "believes," "anticipates" or words of similar import. Similarly, statements that describe the Company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements generally involve known and unknown risks, uncertainties and other facts which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such factors include, among others, the following: ability to raise capital to fund technology and business plans; ability to convert pilot contracts into sales; customer's failure to issue purchase orders for and install the mobile units; ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution technology plan; general economic and business conditions; competition; ability to maintain margins; advertising and promotional efforts; acceptance of new product offerings; success of operating initiatives; research, development and operating costs operating costs npl → gastos mpl operacionales ; market conditions; changes in business strategy for development plans; business abilities and judgment of management and personnel; availability of qualified personnel. For a listing of risks applicable to the future prospects of the Company, please refer to the reports filed with the SEC, such as recent 10-K and 10-Q Reports. "@Track Communications," "TrackWare," "Tracking things that move," and the red orb logotype are trademarks and service marks of @Track Communications, Inc. "HighwayMaster" is a federally registered trademark and service mark of @Track Communications, Inc. - TABLES TO FOLLOW -
@TRACK COMMUNICATIONS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share)
Three months ended Nine months ended
September 30, September 30,
---------------------- ---------------------
2000 1999 2000 1999
---------- ----------- ---------- ----------
Revenues:
Product(1) $16,214 $16,321 $28,252 $39,857
Service(1) 11,744 12,783 35,939 39,526
---------- ----------- ---------- ----------
Total revenues 27,958 29,104 64,191 79,383
---------- ----------- ---------- ----------
Cost of revenues:
Product(1) 11,343 15,212(2) 19,434 32,910(2)
Service(1) 7,362 8,425 21,376 18,401(3)
---------- ----------- ---------- ----------
Total cost of
revenues 18,705 23,637 40,810 51,311
---------- ----------- ---------- ----------
Gross profit 9,253 5,467 23,381 28,072
---------- ----------- ---------- ----------
Expenses:
General and
administrative 2,883 4,065(4) 8,736 11,125(4)
Customer service 1,855 1,881 5,419 5,705
Sales and marketing 1,199 941 3,546 3,026
Engineering 1,158 767 2,732 2,140
Network services
center 433 315 1,102 1,121
Severance and
AutoLink
termination cost -- (189) -- (189)
Depreciation and
amortization 1,490 1,678 4,365 4,937
---------- ----------- ---------- ----------
9,018 9,458 25,900 27,865
---------- ----------- ---------- ----------
Operating income
(loss) 235 (3,991) (2,519) 207
Interest income 262 262 1,155 1,677
Interest expense (3,342) (3,342) (10,026) (10,080)
Other income -- 915(5) 142 2,618(6)
---------- ----------- ---------- ----------
Loss before
income taxes (2,845) (6,156) (11,248) (5,578)
Income tax provision -- -- -- --
---------- ----------- ---------- ----------
Net loss ($2,845) ($6,156) ($11,248) ($5,578)
========== =========== ========== ==========
Per share:
Basic and diluted
loss ($0.11) ($0.25) ($0.44) ($0.22)
========== =========== ========== ==========
Weighted average
number of shares
outstanding
Basic and diluted 25,327 24,987 25,279 24,967
========== =========== ========== ==========
Supplemental
information:
EBITDA $ 1,725 $ (1,398)(7) $ 1,988 $7,762(8)
========== =========== ========== ==========
Installed units
- beginning of period 53,621 52,751 50,825 47,657
Net additions 7,095 (327) 9,891 4,767
---------- ----------- ---------- ----------
Installed units
- end of period 60,716 52,424 60,716 52,424
========== =========== ========== ==========
(1)Amounts for 1999 have been reclassified for consistent
presentation.
(2)Includes warranty provision of $3,500.
(3)Includes non-recurring credits of $4,389.
(4)Includes bad debt expense of $358 related to a customer's
bankruptcy.
(5)Non-recurring gain from settlement of certain litigation
matters.
(6)Includes non-recurring income items associated with the
settlement of certain litigation matters and gain from
termination of customer contract.
(7)Excluding non-recurring income and unusual items EBITDA
would have been $1,361.
(8)Excluding non-recurring income and unusual items EBITDA
would have been $4,411.
@TRACK COMMUNICATIONS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
ASSETS
September 30, December 31,
2000 1999
---------------- ---------------
Current assets:
Cash and short-term investments $21,303 $17,768
Accounts receivable, net 14,246 13,341
Inventories 11,871 9,292
Pledged securities -- 12,705
Other current assets 2,019 2,588
---------------- ---------------
Total current assets 49,439 55,694
Network, equipment and software, net 13,290 15,703
Other assets, net 2,369 2,676
---------------- ---------------
Total assets $65,098 $74,073
================ ===============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $10,541 $2,431
Telecommunications costs payable 4,279 4,462
Accrued interest payable 541 3,784
Other current liabilities 6,395 9,357
---------------- ---------------
Total current liabilities 21,756 20,034
Senior notes payable 92,386 92,090
---------------- ---------------
Total liabilities 114,142 112,124
---------------- ---------------
Commitments and contingencies
Stockholders' equity (deficit):
Preferred Stock -- --
Common Stock 256 255
Common Stock - Class B -- --
Additional paid-in capital 149,996 149,742
Accumulated deficit (198,749) (187,501)
Treasury stock (547) (547)
---------------- ---------------
Total stockholders' equity
(deficit) (49,044) (38,051)
---------------- ---------------
Total liabilities and
stockholders' equity (deficit) $65,098 $74,073
================ ===============
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