AMNEX announces record first quarter revenue and EBITDA.NEW YORK--(BUSINESS WIRE)--May 15, 1997--AMNEX Inc. (NASDAQ-AMXI) today announced record revenue of $31,326,000 for the three months ended March 31, 1997, a 37% increase from the comparable period last year. The company also announced a net loss after taxes for the three months ended March 31, 1997 of ($1,310,000) as compared to net income of $521,000 for the comparable period last year. The current year period includes a one time restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , as previously announced, of $1,400,000 while the first quarter of 1996 results included a one time gain of $1,500,000. If not for these one time items, operating results would have improved by $1,269,000 in the first quarter of 1997 as compared to the first quarter of 1996. Ken Baritz, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "AMNEX continued to see improved operational results from its acquisition and diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. strategy. In addition to the substantial increase in revenues, the company enjoyed improved cash flows from operations of approximately $870,000 for the first quarter, which historically has been our weakest quarter. Also, adjusted for the one time items, our 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 grew by over 250% from $845,000 in 1996 to approximately $3 million 1997. We were able to accomplish these results despite the anticipated continued shrinkage Shrinkage The amount by which inventory on hand is shorter than the amount of inventory recorded. Notes: The missing inventory could be due to theft, damage, or book keeping errors. of our domestic operator services A variety of telephone services that require human intervention, including person-to-person calls, collect calls, credit card billing and directory and dialing assistance. Such services are performed by LECs, IXCs and alternative operator services (AOS), organizations that are used by business, which contribution to total revenues fell from 85.2% in 1996 to 50.2% in 1997 for the comparable period." Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Stoun, senior vice president finance, stated, "The first quarter results include a one time charge of approximately $1.4 million, which resulted from a plan of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). the company embarked upon during the first quarter. The restructuring plan is designed to streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. the company's provision to telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. , improve efficiencies and increase competitiveness. In addition to the savings already demonstrated in the results for the first quarter, the company believes that the restructuring plan will result in further reductions in selling, general and administrative expenses in future." -0-
AMNEX INC.
Consolidated Statements of Operations
For the Three Months Ended March 31, 1997 and 1996
(in thousands, except share data)
(Unaudited)
1997 1996
Revenues $31,326 $22,832
Costs and expenses:
Cost of sales and services 25,789 19,411
Selling, general and
administrative 2,556 2,576
Depreciation and amortization 2,011 1,144
Restructuring charge 1,400 --
31,853 23,161
Operating loss (430) (299)
Interest expense 835 545
Other (income) -- (1,500)
Income (loss) before income
taxes and minority interest (1,265) 656
Minority interest of
unconsolidated subsidiaries 5 --
Income (loss) before income
taxes (1,260) 656
Provision for income taxes 50 135
Net income (loss) ($1,310) $521
Preferred Share dividend 154 154
Net income (loss) available
for Common Shares ($1,464) $367
Earnings (loss) per
Common Share ($ 0.05) $ 0.02
Weighted average number of
shares outstanding used
in computing earnings (loss)
per common share 28,683,709 20,392,032
CONTACT: AMNEX INC. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Kenneth G. Baritz, 212/867-0166 |
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