Arguss Communications Announces Second Quarter Results.Business 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)--July 23, 2001 Arguss Communications, Inc. (NYSE NYSE See: New York Stock Exchange : ACX ACX Available Chemicals Exchange ACX Advanced Combat Experimental ACX Asynchronous Cross Connect ) today announced results from operations for the three months and six months ended June June: see month. 30, 2001. Arguss, 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). "), owns companies that provide infrastructure services to the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry. ACG reported $6,324,000 of Earnings Before Interest, Taxes, Depreciation, Amortization and stock compensation 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 ) or 13.6% of telecom services 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 for the three months ended June 30, 2001, compared to $13,212,000 or 21.6% of telecom services net sales for the three months ended June 30, 2000. 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 June 30, 2001 of $5,188,000 or 10.7% of consolidated net sales, compared to $13,174,000 or 19.6% of consolidated net sales for the three months ended June 30, 2000. For the six months ended June 30, 2001, ACG reported $9,863,000 of EBITDA or 10.7% of telecom services net sales, compared to $20,511,000 or 18.5% of telecom services net sales for the six months ended June 30, 2000. Arguss reported consolidated EBITDA for the six months ended June 30, 2001 of $7,917,000 or 8.1% of consolidated net sales, compared to $20,130,000 or 16.5% of consolidated net sales for the six months ended June 30, 2000. Arguss reported consolidated net sales of $48,463,000 for the three months ended June 30, 2001, compared to $67,109,000 for the three months ended June 30, 2000. Net loss for the three months ended June 30, 2001 was $2,872,000 or $.20 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. ), compared to net income of $3,776,000 or $.26 per share (diluted) for the three months ended June 30, 2000. For the six months ended June 30, 2001, Arguss reported consolidated net sales of $97,437,000, compared to $122,153,000 for the six months ended June 30, 2000. Net loss for the six months ended June 30, 2001 was $4,740,000 or $.33 per share (diluted), compared to net income of $4,423,000 or $.32 per share (diluted) for the six months ended June 30, 2000. The decline in sales and resulting impact on earnings were due to a number of factors. The most significant factor was the well-publicized slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in construction spending Construction Spending An economic indicator that measures the amount of spending towards new construction. Released monthly by the U.S. Department of Commerce's Census Bureau, it looks at residential and non-residential construction in the private sector, and state and federal at in the telecom industry. In particular, ACG's largest customer, AT&T, temporarily halted a number of large infrastructure projects. As a result, AT&T represented only 13% of ACG's revenue for the six months ended June 30, 2001, compared to 40% in the first six months one year ago. Although ACG has been able to develop revenues from new and existing customers, AT&T remains an important relationship for ACG. Rainer The name Rainer comes from the Germanic name Reginar, composed of the two elements ragin ("advice") and heri ("army"). The name was brought to Britain by the Normans. Bosselmann, Chairman and Chief Executive Officer of Arguss said, "Fortunately, Arguss services an increasingly diverse customer base including several of the leading local exchange carriers who now represent more than 16% of ACG's revenue base. We also have a broad geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge reach, which helps to offset weaknesses in certain regions." "We feel well prepared to restore strong revenue growth when our industry recovers. For the near term however, sales will continue to be impacted by the ongoing industry-wide telecom construction slowdown." About Arguss Communications, Inc. Arguss provides infrastructure services for the leading telecommunications and cable companies. Services include project management, design, engineering, construction, and maintenance of aerial aerial: see antenna, in electronics. , underground, wireless and premise facilities. Arguss serves a broad customer base throughout 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 blue chip customers include AT&T, WorldCom The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard Ebbers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. , McLeod USA, AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. Time Warner, RCN RCN n abbr (= Royal Canadian Navy) → kanadische Marine Corp., Adelphia A`del´phi`a n. 1. (Bot.) A "brotherhood," or collection of stamens in a bundle; - used in composition, as in the class names, Monadelphia, Diadelphia, etc. s> , and Charter Communications Charter Communications NASDAQ: CHTR is an American company providing cable television, high-speed Internet, and telephone services to more than 5.7 million customers in 29 states. It is the third-largest publicly traded cable operator in the U.S. . Arguss also owns Conceptronic, Inc., which designs, manufactures and sells highly advanced, computer-controller equipment used in the surface mount electronics circuit assembly industry. Further information is available on the company's Web site at www.arguss.net. The company has scheduled an investor conference call for 9:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT on Tuesday Tuesday: see week. , July July: see month. 24. The dial-in number for the conference call will be 212-346-7471. There will be a live webcast on the investor relations Investor relations The process by which the corporation communicates with its investors. page of the Arguss Web site at www.arguss.net and on www.streetevents.com. For those who cannot listen to the live broadcast, an audio replay of the call will be available on the above Web sites for 30 days. A telephone replay of the call will also be available for one week, starting at 12:00 noon on July 24. To listen to the telephone replay, dial 800-633-8284 (858-812-6440 outside the U.S.) and enter reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 1932868. 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.
The following tables present unaudited selected financial
information for the three months and six months ended June 30, 2001
and 2000:
Arguss Communications, Inc.
Quarter June 30 2001 2000a
--------------- ---- -----
Net sales $48,463,000 $67,109,000
Net income (loss) (2,872,000) 3,776,000
Avg dil shs. 14,489,000 14,553,000
Share earns (basic):
Net income (loss) ($.20) $.27
Share earns (diluted):
Net income ($.20) $.26
Six Mos. June 30 2001 2000a
---------------- ---- -----
Net sales $ 97,437,000 $122,153,000
Net income (loss) (4,740,000) 4,423,000
Avg dil shs. 14,458,000 13,968,000
Share earns (basic):
Net income (loss) ($.33) $.33
Share earns (diluted):
Net income (loss) ( $.33) $.32
a: Includes the results of acquired telecom services companies
from their effective dates of acquisition.
The following tables present selected unaudited financial
information for the three and six months ended June 30, 2001 and 2000.
Arguss Communications, Inc.
Consolidating Income Statement
For the Three Months Ended June 30, 2001
Telecom Corporate/
Services Manufacturing Other Consolidated
----------- ------------- ---------- ------------
Net Sales $46,505,000 $ 1,958,000 - $ 48,463,000
Cost of Sales
Excluding
Depreciation 34,978,000 1,944,000 - 36,922,000
----------- ------------ -- ------------
Gross Profit
Excluding
Depreciation 11,527,000 14,000 - 11,541,000
Operating Expenses
Excluding
Depreciation 5,259,000 809,000 209,000 6,277,000
Research and
Development - 154,000 - 154,000
Depreciation 3,177,000 27,000 5,000 3,209,000
Goodwill
Amortization 1,798,000 - - 1,798,000
Non-Cash Stock
Compensation
expense 5,000 - - 5,000
Net Interest and
Other Expense 1,341,000 72,000 (18,000) 1,395,000
----------- ------------ -- ------------
Total Expenses 11,580,000 1,062,000 196,000 12,838,000
----------- ------------ -------- ----------
Pre-Tax Loss ($53,000) ($1,048,000) ($196,000) (1,297,000)
=========== ============ =========
Tax Expense 1,575,000
---------
Net Loss ($ 2,872,000)
=============
Diluted Weighted
Average Shares
Outstanding 14,489,000
=============
Basic Loss Per
Share ($.20)
Diluted Loss Per
Share ($.20)
Diluted Loss Per
Share, exclusive
of goodwill
amortization
expense ( $.07)
EBITDA $ 6,324,000 $ 5,188,000
=========== ===========
% to Net Sales 13.6% 10.7%
===== =====
Arguss Communications, Inc.
Consolidating Income Statement
For the Six Months Ended June 30, 2001
Telecom Corporate/
Services Manufacturing Other Consolidated
----------- ------------- ---------- ------------
Net Sales $91,800,000 $5,637,000 - $97,437,000
Cost of Sales
Excluding
Depreciation 72,168,000 5,198,000 - 77,366,000
----------- ------------ -- ------------
Gross Profit
Excluding
Depreciation 19,632,000 439,000 - 20,071,000
Operating Expenses
Excluding
Depreciation 9,977,000 1,835,000 211,000 12,023,000
Research and
Development - 367,000 - 367,000
Depreciation 6,369,000 55,000 8,000 6,432,000
Goodwill
Amortization 3,597,000 - - 3,597,000
Non-Cash Stock
Compensation
Expense- 100,000 - 76,000 176,000
Net Interest and
Other Expense 2,792,000 149,000 (18,000) 2,923,000
----------- ------------ --------- ------------
Total Expenses 22,835,000 2,406,000 277,000 25,518,000
----------- ------------ --------- ------------
Pre-Tax Loss ($3,203,000) ($1,967,000) ($277,000) (5,447,000)
=========== ============ ========== ============
Tax Expense
(Benefit) (707,000)
---------
Net Loss ($4,740,000)
===========
Diluted Weighted
Average Shares
Outstanding 14,458,000
==========
Basic Loss Per
Share ($.33)
Diluted Earnings
Per Share ($.33)
Diluted Earnings
Per Share,
exclusive of
goodwill
amortization
expense ($.08)
EBITDA $ 9,863,000 $ 7,917,000
============ ============
% to Net Sales 10.7% 8.1%
===== ====
Arguss Communications, Inc.
Consolidating Balance Sheet
As of June 30, 2001
Telecom Corporate/
Services Manufacturing Other Consolidated
----------- ------------- ---------- ------------
ASSETS:
Cash $ 84,000 $ 246,000 $ 1,000 $ 331,000
Restricted Cash for
Customer Advances 25,000 - - 25,000
Accounts Receivable 40,899,000 2,421,000 279,000 43,599,000
Costs and Earnings
in Excess of
Billings 12,380,000 - - 12,380,000
Inventory 352,000 4,234,000 - 4,586,000
Property, Plant &
Equipment, Net 43,354,000 1,100,000 7,000 44,461,000
Goodwill 123,797,000 - - 123,797,000
Other Assets 663,000 278,000 1,046,000 1,987,000
----------- ------------ --------- ------------
Total Assets $221,554,000 $ 8,279,000 $1,333,000 $231,166,000
============ =========== ========== ============
LIABILITIES:
Current Borrowings
and Maturities $ 58,430,000 $2,933,000 $4,060,000 $ 65,423,000
Trade Payables and
Accrued Expenses 14,050,000 4,846,000 3,958,000 22,854,000
Billings in Excess
of Cost and
Earnings 69,000 - - 69,000
Deferred
Tax Liability - - 4,606,000 4,606,000
Long-Term Debt 8,338,000 790,000 - 9,128,000
----------- ------------ --------- ------------
Total
Liabilities $ 80,887,000 $8,569,000 $12,624,000 102,080,000
============ =========== ===========
TOTAL STOCKHOLDERS'
EQUITY 129,086,000
-----------
Total Liabilities
and Stockholders'
Equity $231,166,000
============
Arguss Communications, Inc.
Consolidating Income Statement
For the Three Months Ended June 30, 2000
Telecom Corporate/
Services Manufacturing Other Consolidated
----------- ------------- ---------- ------------
Net Sales $61,257,000 $ 5,852,000 - $ 67,109,000
Cost of Sales
Excluding
Depreciation 43,966,000 4,398,000 - 48,364,000
----------- ------------ --------- ------------
Gross Profit
Excluding
Depreciation 17,291,000 1,454,000 - 18,745,000
Operating Expenses
Excluding
Depreciation 4,139,000 1,234,000 (2,000) 5,371,000
Research and
Development - 264,000 - 264,000
Depreciation 2,702,000 40,000 2,000 2,744,000
Goodwill
Amortization 1,661,000 - - 1,661,000
Non-Cash Stock
Compensation
expense 59,000 - 77,000 136,000
Net Interest and
Other Expense 1,603,000 52,000 - 1,655,000
----------- ------------ --------- ------------
Total Expenses 10,164,000 1,590,000 77,000 11,831,000
----------- ------------ --------- ------------
Pre-Tax Income
(Loss) $ 7,127,000 ($136,000) ($77,000) 6,914,000
=========== ========= =========
Tax Expense 3,138,000
---------
Net Income $ 3,776,000
============
Diluted Weighted
Average Shares
Outstanding 14,553,000
==========
Basic Earnings Per
Share $.27
Diluted Earnings
Per Share $.26
Diluted Earnings
Per Share,
exclusive of
goodwill
amortization
expense $.37
EBITDA $13,212,000 3,174,000
=========== =========
% to Net Sales 21.6% 19.6%
===== =====
Arguss Communications, Inc.
Consolidating Income Statement
For the Six Months Ended June 30, 2000
Telecom Corporate/
Services Manufacturing Other Consolidated
----------- ------------- ---------- ------------
Net Sales $110,828,000 $11,325,000 - $122,153,000
Cost of Sales
Excluding
Depreciation 82,668,000 8,644,000 - 91,312,000
----------- ------------ --------- ------------
Gross Profit
Excluding
Depreciation 28,160,000 2,681,000 - 30,841,000
Operating Expenses
Excluding
Depreciation 7,908,000 2 ,574,000 (6,000) 10,476,000
Research and
Development - 501,000 - 501,000
Depreciation 5,026,000 79,000 5,000 5,110,000
Goodwill
Amortization 3,087,000 - - 3,087,000
Non-Cash Stock
Compensation
expense 62,000 - 77,000 139,000
Net Interest and
Other Expense 2,564,000 117,000 1,000 2,682,000
----------- ------------ --------- ------------
Total Expenses 18,647,000 3,271,000 77,000 21,995,000
----------- ------------ --------- ------------
Pre-Tax Income
(Loss) $ 9,513,000 ($590,000) ($77,000) 8,846,000
=========== ========== =========
Tax Expense 4,423,000
---------
Net Income $ 4,423,000
============
Diluted Weighted
Average Shares
Outstanding 13,968,000
==========
Basic Earnings Per
Share $.33
Diluted Earnings
Per Share $.32
Diluted Earnings
Per Share, exclusive
of goodwill
amortization
expense $.54
EBITDA $ 20,511,000 $ 20,130,000
============ ============
% to Net Sales 18.5% 16.5%
===== =====
Arguss Communications, Inc.
Consolidating Balance Sheet
As of June 30, 2000
Telecom Corporate/
Services Manufacturing Other Consolidated
----------- ------------- ---------- ------------
ASSETS:
Cash $ 226,000 $ 4,000 $ - $ 230,000
Restricted Cash
for Customer
Advances 227,000 - - 227,000
Accounts
Receivable 55,262,000 4,628,000 - 59,890,000
Costs and Earnings
in Excess of
Billings 17,460,000 - - 17,460,000
Inventory 657,000 4,870,000 - 5,527,000
Property, Plant &
Equipment, Net 43,803,000 1,201,000 19,000 45,023,000
Goodwill 127,480,000 - - 127,480,000
Deferred Tax Asset - 375,000 1,454,000 1,829,000
Other Assets 1,268,000 243,000 977,000 2,488,000
----------- ------------ --------- ------------
Total Assets $246,383,000 $11,321,000 $2,450,000 $260,154,000
============ =========== ========== ============
LIABILITIES:
Current Borrowings
and Maturities $ 76,647,000 $1,760,000 $1,010,000 $ 79,417,000
Trade Payables and
Accrued Expenses 18,939,000 6,632,000 7,538,000 33,109,000
Billings in Excess
of Cost and
Earnings 2,067,000 - - 2,067,000
Customer Advances 19,000 - - 19,000
Deferred Tax
Liability 2,357,000 - 2,327,000 4,684,000
Long-Term Debt 15,505,000 873,000 - 16,378,000
----------- ------------ --------- ------------
Total
Liabilities $115,534,000 $9,265,000 $10,875,000 135,674,000
============ ========== ===========
TOTAL STOCKHOLDERS'
EQUITY 124,480,000
-----------
Total
Liabilities
and
Stockholders'
Equity $260,154,000
============
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