Andersen Group, Inc. Reports Fourth Quarter and Year End Results and Offers First Quarter Guidance.Business Editors NEW YORK--(BUSINESS WIRE)--May 31, 2001 Andersen Group, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : "ANDR ANDR Anhydrite (lithological term) ANDR Additional National Design Requirement ") today announced the results of its operations for the year ended February 28, 2001. For the year, the Company incurred a net loss applicable to common shareholders of $1,927,000, or $0.94 per share, basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , as compared to the prior fiscal year's results for which the Company reported a net loss applicable to common shares of $1,349,000, or $0.70 per share, basic and diluted. Revenues in the current year totaled $40,158,000, which represents a 32.5% increase over the revenues reported in the prior fiscal year. The increase in losses in this year is due primarily to the fact that this is the first time that the Company is reporting its equity interest in the losses of Moscow Broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). Communication Limited, which is 25% owned by Andersen Group and whose results of operations include the start-up Start-up The earliest stage of a new business venture. losses of its 50% owned subsidiary, ComCor-TV. Andersen's equity in these losses for the year ended February 28, 2001 totaled $730,000, or approximately $0.36 per share. For the quarter ended February 28, 2001, Andersen Group reported a loss applicable to common shareholders of $1,044,000, or $0.51 per share basic and diluted on revenues of $10,715,000. Included in this amount is $211,000 of its equity in the reported losses of Moscow Broadband. In the prior fiscal year's fourth quarter, the Company reported a loss applicable to common shares of $941,000, or $0.48 per share, basic and diluted, on revenues of $8,256,000. Francis E. Baker, Chairman and Secretary of Andersen Group stated, "Despite current losses which we anticipated, as previously reported, Moscow Broadband has made great progress during the year. ComCor-TV, in which MBC (Multimedia Benchmark Committee) A graphics benchmark that provides MPEG-2 and other tests. See GPC. holds a fifty percent interest along with its Russian Russian associated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. partner, Moscow Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. Corporation (ComCor), received over $19.2 million (US) in additional funding in the form of cash, licenses and shares of IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. , a Moscow-based telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. company, during the previous fiscal year, and continued with the buildout The construction and implementation of a system. For example, "network buildout" implies constructing the network and going online. of its last mile network in key areas of the Moscow region. ComCor-TV also commenced marketing to 90,000 homes that have already been cabled. As of this date, ComCor-TV has approximately 12,500 subscribers, of which more than 850 also have chosen to sign up for its 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 services. The Moscow Fiber Optic Network on which ComCor-TV has exclusive HFC 1. (networking) HFC - Hybrid Fiber Coax. 2. (hardware) HFC - hydrofluorocarbon. (Hybrid Fiber Coax (networking) Hybrid Fiber Coax - (HFC) A kind of physical connection used in networks for audio, video, and data. DVB (Digital Video Broadcast) is used in Europe and DOCSIS is used in N America. ) rights was extended by 50% during the year. ComCor-TV can now substantially reduce its costs to provide last mile access to additional Moscow homes and offices. As we previously reported, ComCor-TV has also been requested by the Mayor of Moscow to accelerate its presence in Moscow's Central Administrative District Noun 1. administrative district - a district defined for administrative purposes administrative division, territorial division borough - one of the administrative divisions of a large city canton - a small administrative division of a country in light of difficulties being experienced by Moscovites who have relied on antiquated broadcast systems as well as certain other cable providers. Although we are recording our share of the losses of ComCor-TV through our investment in Moscow Broadband, we believe the value of our investment is being enhanced daily as construction continues and subscriber growth is achieved." Mr. Baker continued: "During the past fiscal year, The JM Ney Company took decisive actions to reduce its inventory levels as well as its operating costs operating costs npl → gastos mpl operacionales . The results of these actions are evidenced in the financial reports which accompany this statement. As a result, it is in a stronger position in the upcoming year, both financially and operationally, to absorb the effects of any economic slowdowns, and at the same time to accommodate the expected growth from automotive, telecommunications and industrial customers for its parts. New technologies to reduce the palladium palladium, chemical element palladium [Gr. Pallas, goddess of wisdom], metallic chemical element; symbol Pd; at. no. 46; at. wt. 106.42; m.p. 1,554°C;; b.p. 2,970°C;; sp. gr. 12.02 at 20°C;; valence +2, +3, or +4. content of many of its products are being utilized by the Company and should result in JM Ney's products being more cost efficient for its customers' needs." Mr. Baker added, "In our first fiscal quarter which ends on May 31, 2001, we expect to report a realized pre-tax gain at JM Ney of approximately $1 million from the permanent reduction of certain precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. inventory levels. Most of this gain will be realized from the decrease in its palladium levels, although reductions in precious metals levels are being noted for gold, platinum and silver as well. This inventory reduction has allowed JM Ney to further reduce its short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings and to increase its cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. ." About Andersen Group Andersen Group, Inc. is a US-based company quoted on NASDAQ (ANDR), which has a 25 percent ownership interest in and, voting control of, Moscow Broadband Communication Limited, a Cyprus-based limited liability company that has a 50 percent ownership interest in ComCor-TV. Andersen Group provides management and financial advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal . ComCor-TV is a broadband cable operator in Moscow licensed to provide video, Internet and telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. to up to 1.5 million homes and businesses and is also currently planning a new Moscow Internet portal. Andersen Group consolidates its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , The J.M. Ney Company, a precious metals and precision parts manufacturer located in Bloomfield, CT. Safe Harbor 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. Statement Under 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 The statements contained in this press release that are not historical information 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. that relate to future events or our future financial performance, including statements regarding the Company's and its consolidated and unconsolidated subsidiaries' expectations, beliefs, plans, estimates, intentions or strategies for the future. Forward-looking statements include statements regarding the operations, financing and/or inventory of the Company or its consolidated and unconsolidated subsidiaries and affiliates. All forward-looking statements included in this release are based upon information available to the Company as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and it assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. Potential risks and uncertainties include, but are not limited to, the Company's historical and future losses and fluctuations in its quarterly revenues and operating results, and in the case of the Company's Russian activities, risks inherent in dealing within the Russian Federation Russian Federation: see Russia. , including, for example, changes in the economic and political environment within which Western-initiated capital investment and business activities are conducted. These and other factors are discussed in Company filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. .
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ANDERSEN GROUP, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
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Three months ended Twelve months ended
Feb. 28, 2001 Feb. 29, 2000 Feb. 28, 2001 Feb. 29, 2000
-----------------------------------------------------
Sales and revenues:
Net sales $10,366 $7,862 $39,462 $28,844
Investment and
other income 349 394 696 1,467
-------- -------- -------- ----------
10,715 8,256 40,158 30,311
-------- -------- -------- ----------
Costs and expenses:
Cost of sales 8,783 6,591 30,679 21,181
Selling, general
and administrative 1,400 2,018 6,078 6,815
Research and
development 531 554 2,348 2,203
Restructuring costs 256 - 256 -
Interest expense 431 514 1,971 1,725
-------- ------- -------- ---------
11,401 9,677 41,332 31,924
-------- ------- -------- ---------
Loss from operations
before equity
in losses of
unconsolidated
subsidiary and
income taxes (686) (1,421) (1,174) (1,613)
Equity in losses of
Moscow Broadband
Communication, Ltd. (211) - (730) -
------- ------- -------- -------
(897) (1,421) (1,904) (1,613)
Income tax expense
(benefit) 71 (553) (281) (626)
------- ------- -------- -------
Net loss (968) (868) (1,623) (987)
Preferred dividends (76) (73) (304) (362)
------- ------- -------- -------
Loss applicable
to common shares ($1,044) ($941) ($1,927) ($1,349)
========== ========= ========== ==========
(Loss)per common share
Basic and diluted ($0.51) ($0.48) ($0.94) ($0.70)
========== ========= ========== ==========
Weighted average
common and
common equivalent
shares outstanding 2,065,043 1,946,575 2,048,118 1,932,406
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ANDERSEN GROUP, INC.
Consolidated Balance Sheets
(In thousands)
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Feb. 28, Feb. 29,
2001 2000
------- --------
ASSETS
Current assets:
Cash and cash equivalents $1,217 $1,854
Marketable securities 96 926
Accounts and other receivables
less allowances of $77 and $111,
respectively 5,475 4,657
Inventories 6,614 8,019
Prepaid expenses and other assets 767 468
------- -------
Total current assets 14,169 15,924
Property, plant and equipment, net 9,345 10,148
Prepaid pension expense 4,809 4,917
Investment in Moscow Broadband
Communication Ltd. 3,354 4,084
Other assets 1,399 2,045
------- -------
$33,076 $37,118
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of
long-term debt $734 $521
Short-term borrowings 1,500 3,054
Accounts payable 833 1,015
Accrued liabilities 1,861 1,674
Deferred income taxes 877 456
------- -------
Total current liabilities 5,805 6,720
------- -------
Long-term debt, less
current maturities 2,654 3,190
Note payable to officer, net of
unamortized discount 971 933
Subordinated note payable, net of
unamortized discount 7,388 7,358
Other long-term obligations 1,895 1,973
Deferred income taxes 915 1,682
------- -------
Total liabilities 19,628 21,856
------- -------
Commitments and contingencies
Stockholders' equity:
Cumulative convertible
preferred stock 3,742 4,033
Common stock 21 20
Additional paid-in capital 6,315 6,141
Accumulated other
comprehensive loss (47) -
Retained earnings 3,417 5,344
Treasury stock - (276)
------- -------
Total stockholders' equity 13,448 15,262
------- -------
$33,076 $37,118
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