Arguss Communications Announces Record Third Quarter Results.Business/Technology Editors ROCKVILLE Rockville, city (1990 pop. 44,835), seat of Montgomery co., W central Md., a NW suburb of Washington, D.C.; settled c.1760s, inc. as a city 1860. It has several scientific research and technology laboratories that focus on the aerospace, electronics, nuclear energy, , Md.--(BUSINESS WIRE)--Oct. 23, 2000 Arguss Communications, 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 : ARGX) today announced results from operations for the three months and nine months ended September September: see month. 30, 2000. Arguss Communications, Inc. ("Arguss") is a leading provider of telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. infrastructure services including project management, design, engineering, construction and maintenance for 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 , telecommunications, wireless and broadband service providers An ISP, telephone company, cable company or other carrier that offers high-speed communications to homes and businesses, typically for Internet access. Cable modems, DSL and T1 lines are the common technologies. See broadband, cable modem, DSL and T1. , through its Arguss Communications Group subsidiary ("ACG ACG American College of Gastroenterology; angiocardiography; apexcardiogram. AcG accelerator globulin (coagulation factor V). AcG accelerator globulin (clotting factor V). "). Among Arguss Communications, Inc.'s 2000 third quarter operating highlights were the: -- Growth in third quarter net income by 62% to $4,608,000, or $.31 per share (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. ), from $2,852,000, or $.22 per share (diluted), for the third quarter of 1999. -- Growth in Earnings Before Interest, Taxes, Depreciation, Amortization and stock option expense ("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 ") per share to $1.09 (diluted) for the third quarter of 2000 from $.76 (diluted) for the third quarter of 1999. -- Improvement in ACG EBITDA margins for the third quarter of 2000 to 22.7% from 19.8% for the third quarter of 1999. -- Rise in earnings exclusive of goodwill amortization expense to $.43 per share (diluted) for the third quarter of 2000 from $.31 per share (diluted) for the third quarter of 1999. -- 47% increase in net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight to $78,532,000 in the third quarter of 2000 from $53,351,000 in the third quarter of 1999. ACG reported $16,679,000 of EBITDA or 22.7 % of telecom services net sales for the three months ended September 30, 2000, compared to $9,708,000 or 19.8% of telecom services net sales for the three months ended September 30, 1999. Arguss reported consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: EBITDA for the three months ended September 30, 2000 of $16,302,000 or 20.8% of consolidated net sales, compared to $9,669,000 or 18.1% of consolidated net sales for the three months ended September 30, 1999. For the nine months ended September 30, 2000, ACG reported $37,196,000 of EBITDA or 20.2% of telecom services net sales, compared to $23,030,000 or 17.6% of telecom services net sales for the nine months ended September 30, 1999. Arguss reported consolidated EBITDA for the nine months ended September 30, 2000 of $36,433,000 or 18.2% of consolidated net sales, compared to $22,893,000 or 16.0% of consolidated net sales for the nine months ended September 30, 1999. Arguss reported consolidated net sales of $78,532,000 for the three months ended September 30, 2000, compared to $53,351,000 for the three months ended September 30, 1999. Net income for the three months ended September 30, 2000 was $4,608,000 or $.31 per share (diluted), compared to net income of $2,852,000 or $.22 per share (diluted) for the three months ended September 30, 1999. For the nine months ended September 30, 2000, Arguss reported consolidated net sales of $200,685,000, compared to $142,965,000 for the nine months ended September 30, 1999. Net income for the nine months ended September 30, 2000 was $9,302,000 or $.63 per share (diluted), compared to net income of $5,028,000 or $.39 per share (diluted) for the nine months ended September 30, 1999. Certain statements contained herein are "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements (as such term is defined in 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). Because such statements include risks and uncertainties, actual results may differ materially from those 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 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. . Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission. A tele-conference call will be held at 10:00 am, EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT , Tuesday Tuesday: see week. , October October: see month. 24, 2000. To connect, call 1-800-450-0821 and request "Arguss Earnings Report". A replay of the tele-conference will be available from 11:45 am, EDT, Tuesday, October 24, 2000 through 11:59 pm, EST EST electroshock therapy. EST abbr. electroshock therapy Tuesday October 31, 2000 by calling 1-800-745-6701, and entering access code # 540844. The following tables present unaudited selected financial information for the three months and nine months ended September 30, 2000 and 1999:
Arguss Communications, Inc.
Quarter September 30 2000(a) 1999(a)
Net sales $ 78,532,000 $ 53,351,000
Net income 4,608,000 2,852,000
Avg dil shs 14,908,000 13,169,000
Share earns (basic):
Net income $ .32 $ .24
Share earns (diluted):
Net income $ .31 $ .22
Nine Mos. September 30 2000(a) 1999(a)
Net sales $200,685,000 $142,965,000
Net income 9,032,000 5,028,000
Avg dil shs 14,343,000 12,935,000
Share earns (basic):
Net income $ .66 $ .43
Share earns (diluted):
Net income $ .63 $ .39
(a) Includes the results of acquired telecom services companies from
their effective dates of acquisition.
The following tables present unaudited selected financial
information for the three months and nine months ended September 30,
2000 and 1999.
Arguss Communications, Inc.
Consolidating Income Statement
For the Three Months Ended September 30, 2000
Telecom Corporate/
Manufacturing Services Other Consolidated
Net Sales $ 5,042,000 $73,490,000 -- $ 78,532,000
Cost of Sales
Excluding
Depreciation 3,969,000 52,292,000 -- 56,261,000
Gross Profit
Excluding
Depreciation 1,073,000 21,198,000 -- 22,271,000
Operating Expenses
Excluding
Depreciation 1,150,000 4,644,000 -- 5,794,000
Research and
Development 309,000 -- -- 309,000
Depreciation 40,000 2,974,000 2,000 3,016,000
Goodwill
Amortization -- 1,786,000 -- 1,786,000
Non-Cash Stock
Compensation
expense -- 79,000 114,000 193,000
Net Interest
and Other Expense 77,000 1,879,000 -- 1,956,000
Total Expenses 1,576,000 11,362,000 116,000 13,054,000
Pre-Tax Income
(Loss) ($ 503,000) $ 9,836,000 ($ 116,000) 9,217,000
Tax Expense 4,609,000
Net Income $ 4,608,000
Diluted Weighted
Average Shares
Outstanding 14,908,000
Basic Earnings Per
Share $ .32
Diluted Earnings
Per Share $ .31
Diluted Earnings
Per Share,
exclusive
of goodwill
amortization
expense $ .43
EBITDA $ 16,679,000 $16,302,000
% to Net Sales 22.7% 20.8%
Arguss Communications, Inc.
Consolidating Income Statement
For the Nine Months Ended September 30, 2000
Telecom Corporate/
Manufacturing Services Other Consolidated
Net Sales $ 16,367,000 $184,318,000 -- $200,685,000
Cost of Sales
Excluding
Depreciation 12,613,000 134,960,000 -- 147,573,000
Gross Profit
Excluding
Depreciation 3,754,000 49,358,000 -- 53,112,000
Operating
Expenses
Excluding
Depreciation 3,724,000 12,546,000 -- 16,270,000
Research and
Development 809,000 -- -- 809,000
Depreciation 119,000 7,999,000 9,000 8,127,000
Goodwill
Amortization -- 4,874,000 -- 4,874,000
Non-Cash Stock
Compensation
expense -- 141,000 191,000 332,000
Net Interest
and Other
Expense 193,000 4,443,000 -- 4,636,000
Total
Expenses 4,845,000 30,003,000 200,000 35,048,000
Pre-Tax
Income (Loss) ($ 1,091,000) $ 19,355,000 ($ 200,000) 18,064,000
Tax Expense 9,032,000
Net Income $ 9,032,000
Diluted Weighted
Average Shares
Outstanding 14,343,000
Basic Earnings
Per Share $ .66
Diluted Earnings
Per Share $ .63
Diluted Earnings
Per Share,
exclusive of
goodwill
amortization
expense $ .97
EBITDA $ 37,196,000 $ 36,433,000
% to Net Sales 20.2% 18.2%
Arguss Communications, Inc.
Consolidating Balance Sheet
As of September 30, 2000
Telecom Corporate/
Manufacturing Services Other Consolidated
ASSETS:
Cash $ 6,000 $ 2,866,000 $ 10,000 $ 2,882,000
Restricted
Cash for
Customer
Advances -- 219,000 -- 219,000
Accounts
Receivable 4,273,000 66,189,000 -- 70,462,000
Costs and
Earnings in
Excess of
Billings -- 21,449,000 -- 21,449,000
Inventory 4,729,000 569,000 -- 5,298,000
Property, Plant
& Equipment,
Net 1,164,000 45,574,000 15,000 46,753,000
Goodwill -- 129,413,000 -- 129,413,000
Deferred Tax
Asset 375,000 -- 1,454,000 1,829,000
Other Assets 165,000 1,361,000 952,000 2,478,000
Total Assets $10,712,000 $267,640,000 $ 2,431,000 $280,783,000
LIABILITIES:
Current
Borrowings
and Maturities $ 1,958,000 $ 81,293,000 $ 1,170,000 $ 84,421,000
Trade Payables
and Accrued
Expenses 6,350,000 24,014,000 11,339,000 41,703,000
Billings in
Excess of Cost
and Earnings -- 2,638,000 -- 2,638,000
Amt Due to
Former
Shareholder of
Acquired
Company -- 995,000 -- 995,000
Deferred Tax
Liability -- 2,357,000 2,327,000 4,684,000
Long-Term Debt 850,000 13,662,000 -- 14,512,000
Total
Liabilities $ 9,158,000 $124,959,000 $ 14,836,000 148,953,000
TOTAL
STOCKHOLDERS'
EQUITY 131,830,000
Total Liabilities
and Stockholders'
Equity $280,783,000
Arguss Communications, Inc.
Consolidating Income Statement
For the Three Months Ended September 30, 1999
Telecom Corporate/
Manufacturing Services Other Consolidated
Net Sales $ 4,212,000 $ 49,139,000 -- $ 53,351,000
Cost of Sales
Excluding
Depreciation 2,858,000 36,784,000 -- 39,642,000
Gross Profit
Excluding
Depreciation 1,354,000 12,355,000 -- 13,709,000
Operating
Expenses
Excluding
Depreciation 1,070,000 2,833,000 1,000 3,904,000
Research and
Development 322,000 -- -- 322,000
Depreciation 53,000 2,142,000 -- 2,195,000
Goodwill
Amortization -- 1,208,000 -- 1,208,000
Net Interest
and Other
Expense 63,000 864,000 927,000
Total
Expenses 1,508,000 7,047,000 1,000 8,556,000
Pre-Tax
Income (Loss) ($ 154,000) $ 5,308,000 ($ 1,000) 5,153,000
Tax Expense 2,301,000
Net Income $ 2,852,000
Diluted
Weighted
Average
Shares
Outstanding 13,169,000
Basic
Earnings Per
Share $ .24
Diluted
Earnings Per
Share $ .22
Diluted Earnings
Per Share,
exclusive
of goodwill
amortization
expense $ .31
EBITDA $ 9,708,000 $ 9,669,000
% to Net Sales 19.8% 18.1%
Arguss Communications, Inc.
Consolidating Income Statement
For the Nine Months Ended September 30, 1999
Telecom Corporate/
Manufacturing Services Other Consolidated
Net Sales $ 12,163,000 $130,802,000 -- $142,965,000
Cost of Sales
Excluding
Depreciation 8,154,000 99,302,000 -- 107,456,000
Gross Profit
Excluding
Depreciation 4,009,000 31,500,000 -- 35,509,000
Operating
Expenses
Excluding
Depreciation 3,140,000 8,850,000 -- 11,990,000
Research
and Development 1,006,000 -- -- 1,006,000
Depreciation 159,000 6,059,000 1,000 6,219,000
Goodwill
Amortization -- 3,211,000 -- 3,211,000
Net Interest
and Other
Expense 163,000 2,617,000 8,000 2,788,000
Total
Expenses 4,468,000 20,737,000 9,000 25,214,000
Pre-Tax
Income (Loss) ($ 459,000) $ 10,763,000 ($ 9,000) 10,295,000
Tax Expense 5,267,000
Net Income $ 5,028,000
Diluted Weighted
Average Shares
Outstanding 12,935,000
Basic Earnings
Per Share $ .43
Diluted Earnings
Per Share $ .39
Diluted Earnings
Per Share,
exclusive
of goodwill
amortization
expense $ .64
EBITDA $23,030,000 $ 22,893,000
% to Net Sales 17.6% 16.0%
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion