American Telesource Reports Year End and ATSI/Genesis Pro Forma Results.Business Editors & High Tech Writers SAN ANTONIO--(BUSINESS WIRE)--Nov. 10, 2000 American TeleSource International, Inc. "ATSI ATSI Aboriginal and Torres Strait Islander (Australia) ATSI Association of Thai Software Industry ATSI Association of TeleServices International ATSI American Transmission Systems, Inc. " (AMEX AMEX See: American Stock Exchange :AI) -- Pro forma annual revenues of $64.8 million -- GlobalSCAPE revenues advance 94% -- 14% increase in consolidated revenues ATSI TO HOLD EARNINGS CONFERENCE CALL Friday, November 10 at 10:00 a.m. Central Time Zone (see details below) American TeleSource International, Inc. "ATSI" (AMEX:AI) today reported results for the year ended July 31, 2000, as well as unaudited pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results for the past two years related to its pending acquisition of Genesis Communications International, Inc. A table summarizing these results is included at the end of this release. Arthur L. Smith, ATSI's Chairman and Chief Executive Officer, stated, "In complying with U.S. accounting principles, we will include pro forma results in our Form 10K for the year. The pro forma results validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data our previously stated strategic initiative to emphasize a retail-oriented strategy in the U.S. We look forward to the anticipated additional benefits to be derived from reduced interconnection in·ter·con·nect v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects v.intr. To be connected with each other: The two buildings interconnect. v.tr. rates and our network buildout The construction and implementation of a system. For example, "network buildout" implies constructing the network and going online. in Mexico. Although we have not closed the Genesis transaction, the Companies have in many ways been working together as one, and specific headcount reductions have already taken place or have been planned related to the integration of the two companies." For the year ended July 31, 2000, ATSI produced revenues of $39.4 million, an increase of 14% over the $34.5 million produced in fiscal 1999. On a pro forma basis, ATSI and Genesis would have produced $64.8 million in revenues in fiscal 2000, and $56.4 million in the prior year. On a stand-alone basis, ATSI produced an 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 loss of $3.2 million for fiscal 2000, compared to an EBITDA loss of $1.8 million in the prior year. On a pro forma basis, ATSI and Genesis would have produced positive EBITDA in both years. ATSI's Internet software subsidiary, GlobalSCAPE, Inc., produced record revenues of $5.1 million for the year ended July 31, 2000, an increase of 94% over the $2.6 million produced in fiscal 1999. The net loss for ATSI for fiscal 2000 before preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) was $10.1 million, compared to $6.7 million in the prior year. On a pro forma basis, the net loss before preferred dividends would have been reduced to approximately $8.5 million in fiscal 2000 and $6.5 million in fiscal 1999. The Company recorded approximately $855,000 and $7.1 million of non-cash preferred dividends almost exclusively related to beneficial conversion features associated with issuances of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. during 1999 and 2000, respectively. As a result, the net loss to common shareholders for fiscal 2000 was $17.1 million, or $0.30 per share, as compared to a loss of $7.6 million, or $0.16 per share in fiscal 1999. Although accounting rules dictate TO DICTATE. To pronounce word for word what is destined to be at the same time written by another. Merlin Rep. mot Suggestion, p. 5 00; Toull. Dr. Civ. Fr. liv. 3, t. 2, c. 5, n. 410. that beneficial conversion features are to be expensed, there is ultimately no impact on cash flows or consolidated shareholder equity from the application of this rule." The Company invested significant amounts of resources related to non-recurring events designed to produce additional shareholder value during the year. Among those events were the Company's listing on The American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. , the securing of a long distance concession in Mexico, the pending acquisition of Genesis, the search and hiring of a Chief Executive Officer for GlobalSCAPE and the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of a portion of its ownership in GlobalSCAPE. In addition, GlobalSCAPE incurred significant costs related to the development of new products such as CuteMX(R), which was re-released on November 6, 2000. Mr. Smith added, "As a result of the changing face of the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. market in Mexico and regulatory and technological advances made by the Company, we continued to experience a shift during the year away from traditional postpaid post·paid adj. With the postage having been paid in advance. postpaid Adverb, adj with the postage prepaid Adj. 1. and satellite-based private network services toward carrier and integrated prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. communication
services. Key events were either completed or set in motion during the
year that I expect to result in increased value for our shareholders
going forward. I look forward to discussing these in greater detail
during our conference call later today."American TeleSource International, Inc. is an emerging international carrier serving the rapidly expanding niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. in and between Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company's borderless strategy includes the deployment of a "next generation" network for more efficient and cost effective service offerings of domestic and international voice and data. ATSI has clear advantages over the competition through its corporate framework consisting of unique licenses, interconnection and service agreements, network footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. , and extensive retail distribution. ATSI's Internet software subsidiary, GlobalSCAPE, Inc. ( www.globalscape.com ) is a leader in the development, marketing, distribution and support of award winning Internet-based software in a broad array of categories including file management, multimedia utilities and Web site development tools. This news release contains forward looking statements. These statements describe management's beliefs and expectations about the future. We have identified forward looking statements by using words such as "expect," "believe," and "should." Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties, and these statements may turn out not to be true. More detailed information about American TeleSource International, Inc. is available in the Company's public filings with the Security and Exchange Commission. ATSI EARNINGS CONFERENCE CALL The conference call will be held on Friday, November 10, at 10:00 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. . To participate in the conference call dial 800/275-3210 (Domestic callers) or 973/633-1010 (International callers). For your convenience, you may listen to the replay of the discussion by dialing 402/220-0469. This service will be available beginning at 12:00 noon CST, Friday, November 10, through 5:00 p.m. CST, Saturday, November 11. A transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record of the call will be also available on the ATSI website at www.atsi.net beginning at 12:00 noon CST, Friday, November 10. The following table presents summarized audited results for ATSI for the years ended July 31, 2000 and 1999, as well as unaudited pro forma results for the same years related to the pending acquisition of Genesis. Although the Company believes the pending transaction may qualify for treatment as a pooling-of-interests, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting the following pro forma results were prepared assuming the transaction was accounted for as a purchase.
AMERICAN TELESOURCE INTERNATIONAL, INC.
AND SUBSIDIARIES
(In thousands, except per share amounts)
Consolidated Pro Forma Statements
Statements of of Operations for
Operations ATSI/Genesis
For the Years For the Years
Ended July 31, Ended July 31,
2000 1999 2000 1999
-------- -------- -------- --------
(audited) (audited) (unaudited) (unaudited)
Network services
Carrier $ 22,191 $ 14,123 $ 21,746(A) $ 14,123(A)
Private network 2,538 5,127 2,538 5,127
Call services
Integrated prepaid 5,949 5,424 5,949 5,424
Postpaid 3,623 7,202 3,623 7,202
Genesis -- -- 25,825 21,864
Internet e-commerce 5,128 2,642 5,128 2,642
-------- -------- -------- --------
Total operating revenues 39,429 34,518 64,809 56,382
Cost of services 26,798 21,312 41,394(A) 34,361(A)
-------- -------- -------- --------
Gross margin 12,631 13,206 23,415 22,021
Selling, general and
administrative 15,782 14,998 23,322(B) 21,872(B)
-------- -------- -------- --------
EBITDA (3,151) (1,792) 93 149
Depreciation and
amortization 4,681 3,248 5,820(C) 4,304(C)
-------- -------- -------- --------
Operating loss (7,832) (5,040) (5,727) (4,155)
Other expense, net (2,221) (1,696) (2,755) (2,350)
-------- -------- -------- --------
Net loss ($10,053) ($ 6,736) ($ 8,482) ($ 6,505)
Less: preferred dividends (7,085) (855) (7,085) (855)
-------- -------- -------- --------
Net loss to common
shareholders ($17,138) ($ 7,591) ($15,567) ($ 7,360)
======== ======== ======== ========
Basic and diluted loss
per share ($ 0.30) ($ 0.16) ($ 0.23) ($ 0.13)
======== ======== ======== ========
Weighted average
common shares outstanding 56,851 47,467 66,403(D) 57,019(D)
======== ======== ======== ========
Notes:
(A) Reflects the elimination of approximately $445,000 and $0 of ATSI
carrier services revenues and Genesis costs in fiscal 2000 and
1999, respectively.
(B) Reflects the elimination of approximately $1.7 million and
$649,000 of payroll related reductions due to planned headcount
reductions in fiscal 2000 and 1999, respectively and professional
fees of approximately $352,000 associated with the merger in
fiscal 2000.
(C) Reflects amortization expense of approximately $716,000 related to
goodwill for both fiscal 2000 and 1999.
(D) Assumes the issuance of approximately 9,552,000 common shares for
the acquisition of Genesis.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion