Arguss Holdings Announces 115% Increase in Annual Net Income.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)--Feb. 23, 2000 Arguss Holdings, 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 year ended December December: see month. 31, 1999. 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). "), 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 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. . Among Arguss Holdings, Inc.'s 1999 annual operating highlights were the: -- Growth in net income by 115% to $6,450,000 in 1999 from $2,995,000 in 1998. -- Growth in 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 $2.35 (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. ) in 1999 from $1.82 (diluted) in 1998. -- Improvement in 1999 EBITDA margin for Arguss Communications Group to 17.2% from 16.7%, which is among the highest reported in the industry. -- Rise in cash earnings (net income excluding goodwill amortization expense) to $.85 per share (diluted) in 1999 from $.50 per share (diluted) in 1998. -- 36% 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 $197,408,000 in 1999 from $145,017,000 in 1998. -- Increase in cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses by more than four and one-half times to $22,293,000 or $1.71 per share in 1999, which is primarily due to an increase in earnings and a reduction of days sales receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed outstanding. -- Expansion of telecom infrastructure services backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. to $300 million at the end of 1999 from $150 million at the end of 1998. 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: Earnings Before Interest Taxes Depreciation and Amortization Noun 1. Earnings Before Interest Taxes Depreciation and Amortization - income before interest and taxes and depreciation and amortization have been subtracted; an indicator of a company's profitability that is watched by investors (especially in leveraged buyouts) , adjusted for stock option expense (EBITDA) of $30,570,000 or 15.5% of consolidated net sales for 1999, compared to $20,966,000 or 14.5% of consolidated net sales for 1998. ACG achieved $31,063,000 of EBITDA or 17.2% of telecom services net sales for 1999, compared to $21,334,000 or 16.7% of telecom services net sales for 1998. EBITDA for the three months ended December 31, 1999 was $7,677,000 or 14.1% of consolidated net sales, compared to $4,796,000 or 12.1% of consolidated net sales for the three months ended December 31, 1998. ACG reported $8,044,000 of EBITDA or 16.2% of telecom services net sales for the three months ended December 31, 1999, compared to $5,158,000 or 14.5% of telecom services net sales for the three months ended December 31, 1998. Consolidated net sales for 1999 were $197,408,000, compared to $145,017,000 in 1998. Net income for 1999 was $6,450,000 or $.50 per share (diluted), compared to $2,995,000 or $.26 per share (diluted) in 1998. The significant increases in consolidated net sales and net income are due primarily to Arguss' acquisition of Underground Specialties ("USI") effective August 1, 1998, as well as the maturation maturation /mat·u·ra·tion/ (mach-u-ra´shun) 1. the process of becoming mature. 2. attainment of emotional and intellectual maturity. 3. in 1999 of projects started during 1998 in Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , CO, Orlando Orlando, city, United States Orlando (ôrlăn`dō), city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world's most visited vacation spots. , FL and Portland Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , OR. Arguss reported consolidated net sales of $54,443,000 for the three months ended December 31, 1999, compared to $39,707,000 for the three months ended December 31, 1998. Net income for the three months ended December 31, 1999 was $1,422,000 or $.11 per share (diluted), compared to net income of $436,000 or $.04 per share (diluted) for the three months ended December 31, 1998. ACG is a leading provider of telecommunications infrastructure services including project management, design, engineering, construction and maintenance for Internet, telecommunications and broadband service providers. 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 twelve months ended December 31, 1999 and 1998:
Arguss Holdings, Inc.
Quarter December 31 1999 1998
Net sales $54,443,000 $39,707,000
Net income 1,422,000 436,000
Avg dil shs. 13,340,000 12,191,000
Share earns (basic):
Net income $.11 $.04
Share earns (diluted):
Net income $.11 $.04
Twelve Mos. December 31 1999 1998
Net sales $197,408,000 $145,017,000
Net income 6,450,000 2,995,000
Avg dil shs. 13,004,000 11,537,000
Share earns (basic):
Net income $.54 $.28
Share earns (diluted):
Net income $.50 $.26
The following tables present unaudited selected financial
information for the twelve and three months ended December 31, 1999.
Arguss Holdings, Inc.
Consolidating Income Statement
For the Twelve Months Ended December 31, 1999
Telecom Corporate/
Manufacturing Services Other Consolidated
Net Sales $16,876,000 $180,532,000 197,408,000
Cost of Sales
Excluding
Depreciation 11,529,000 137,570,000 149,099,000
Gross Profit
Excluding
Depreciation 5,347,000 42,962,000 48,309,000
Operating Expenses
Excluding
Depreciation 4,596,000 12,338,000 16,934,000
Research and
Development 1,253,000 -- 1,253,000
Depreciation 157,000 8,240,000 10,000 8,407,000
Goodwill
Amortization -- 4,568,000 4,568,000
Net Interest
and Other
Expense 222,000 3,773,000 (8,000) 3,987,000
Total Expenses 6,228,000 28,919,000 2,000 35,149,000
Pre-Tax
Income (Loss) ($ 881,000) $ 14,043,000 ($ 2,000) 13,160,000
Tax Expense 6,710,000
Net Income $6,450,000
==========
Diluted Weighted
Average Shares
Outstanding 13,004,000
Basic Earnings
Per Share $.54
Diluted Earnings
Per Share $.50
Cash Earnings
Per Share
(Diluted) (1) $.85
EBITDA $31,063,000 $30,570,000
% to Net Sales 17.2% 15.5%
Note: Conceptronic, Inc., a subsidiary of Arguss Holdings, Inc.
comprises the manufacturing segment, while White Mountain, TCS,
Can-Am, Schenck, USI and Aspen combine to form the telecom services
segment. Includes the results of Aspen from its date of acquisition of
November 1, 1999.
(1) Cash earnings is net income excluding goodwill amortization
expense.
Arguss Holdings, Inc.
Consolidating Income Statement
For the Three Months Ended December 31, 1999
Telecom Corporate/
Manufacturing Services Other Consolidated
Net Sales $ 4,714,000 $49,729,000 $54,443,000
Cost of
Sales
Excluding
Depreciation 3,374,000 38,269,000 41,643,000
Gross Profit
Excluding
Depreciation 1,340,000 11,460,000 12,800,000
Operating
Expenses
Excluding
Depreciation 1,456,000 3,488,000 4,944,000
Research and
Development 246,000 -- 246,000
Depreciation -- 2,188,000 1,000 2,189,000
Goodwill
Amortization -- 1,356,000 1,356,000
Net Interest and
Other Expense 58,000 1,134,000 8,000 1,200,000
Total Expenses 1,760,000 8,166,000 9,000 9,935,000
Pre-Tax
Income (Loss) ($420,000) $ 3,294,000 ($9,000) 2,865,000
Tax Expense 1,443,000
Net Income $ 1,422,000
Diluted Weighted
Average Shares
Outstanding 13,340,000
Basic Earnings
Per Share $ .11
Diluted Earnings
Per Share $ .11
Cash Earnings
Per Share
(Diluted) (1) $ .21
EBITDA $ 8,044,000 $ 7,677,000
% to Net Sales 16.2% 14.1%
Note: Conceptronic, Inc., a subsidiary of Arguss Holdings, Inc.
comprises the manufacturing segment, while White Mountain, TCS,
Can-Am, Schenck, USI and Aspen combine to form the telecom services
segment. Includes the results of Aspen from its date of acquisition of
November 1, 1999.
(1) Cash earnings is net income excluding goodwill amortization
expense.
Arguss Holdings, Inc.
Consolidating Balance Sheet
As of December 31, 1999
Telecom Corporate/
Manufacturing Services Other Consolidated
ASSETS:
Cash $ 11,000 $ 310,000 $ 5,177,000 $ 5,498,000
Restricted
Cash for
Customer
Advances -- 1,752,000 1,752,000
Accounts
Receivable 4,508,000 33,267,000 37,775,000
Costs and
Earnings
in Excess
of Billings -- 6,825,000 6,825,000
Inventory 4,315,000 219,000 4,534,000
Property, Plant
& Equipment,
Net 1,273,000 35,756,000 19,000 37,048,000
Goodwill -- 102,208,000 -- 102,208,000
Deferred Tax
Asset 375,000 -- 1,454,000 1,829,000
Other Assets 142,000 915,000 675,000 1,732,000
Total Assets $ 10,624,000 $181,252,000 $ 7,325,000 $199,201,000
LIABILITIES:
Current Borrowings
and Maturities $ 1,600,000 $ 34,831,000 5,909,000 $ 42,340,000
Trade Payables
and Accrued
Expenses 5,461,000 18,752,000 3,834,000 28,047,000
Customer
Advances -- 1,201,000 -- 1,201,000
Due to Former
Aspen
Shareholders -- -- 650,000 650,000
Deferred Tax
Liability -- 2,098,000 2,327,000 4,425,000
Long-Term Debt 917,000 18,506,000 -- 19,423,000
Total
Liabilities $ 7,978,000 $ 75,388,000 $ 12,720,000 $ 96,086,000
TOTAL STOCKHOLDERS' EQUITY 103,115,000
Total Liabilities
and Stockholders'
Equity $199,201,000
Note: Conceptronic, Inc., a subsidiary of Arguss Holdings, Inc.
comprises the manufacturing segment, while White Mountain, TCS,
Can-Am, Schenck, USI and Aspen combine to form the telecom services
segment.
The following tables present unaudited selected financial
information for the twelve and three months ended December 31, 1998.
Arguss Holdings, Inc.
Consolidating Income Statement
For the Twelve Months Ended December 31, 1998
Telecom Corporate/
Manufacturing Services Other Consolidated
Net Sales $ 17,277,000 $127,740,000 $145,017,000
Cost of
Sales
Excluding
Depreciation 11,547,000 99,256,000 110,803,000
Gross Profit
Excluding
Depreciation 5,730,000 28,484,000 34,214,000
Operating
Expenses
Excluding
Depreciation 4,508,000 7,505,000 240,000 12,253,000
Research and
Development 1,401,000 -- -- 1,401,000
Depreciation 207,000 5,980,000 10,000 6,197,000
Goodwill
Amortization -- 2,754,000 2,754,000
Non-Cash
Stock Option
Compensation -- 2,163,000 41,000 2,204,000
Net Interest
and Other Expense 178,000 2,544,000 (15,000) 2,707,000
Total Expenses 6,294,000 20,946,000 276,000 27,516,000
Pre-Tax
Income (Loss) ($564,000)$ 7,538,000 ($276,000) 6,698,000
Tax Expense 3,703,000
Net Income $ 2,995,000
Diluted Weighted
Average Shares
Outstanding 11,537,000
Basic Earnings
Per Share $ .28
Diluted Earnings
Per Share $ .26
Cash Earnings
Per Share
(Diluted) (1) $ .50
EBITDA $ 21,334,000 $ 20,966,000
% to Net Sales 16.7% 14.5%
Note: Conceptronic, Inc., a subsidiary of Arguss Holdings, Inc.
comprises the manufacturing segment, while White Mountain, TCS,
Can-Am, Schenck and USI combine to form the telecom services segment.
Includes the results of USI from its date of acquisition of August 1,
1998.
(1) Cash earnings is net income excluding goodwill amortization
expense.
Arguss Holdings, Inc.
Consolidating Income Statement
For the Three Months Ended December 31, 1998
Telecom Corporate/
Manufacturing Services Other Consolidated
Net Sales $ 4,044,000 $35,663,000 $39,707,000
Cost of
Sales
Excluding
Depreciation 2,706,000 28,950,000 31,656,000
Gross Profit
Excluding
Depreciation 1,338,000 6,713,000 8,051,000
Operating
Expenses
Excluding
Depreciation 1,060,000 1,637,000 265,000 2,962,000
Research and
Development 402,000 -- 402,000
Depreciation 43,000 1,691,000 1,734,000
Goodwill
Amortization -- 762,000 762,000
Non-Cash Stock
Option
Compensation -- 357,000 357,000
Net Interest and
Other Expense 40,000 689,000 729,000
Total Expenses 1,545,000 5,136,000 265,000 6,946,000
Pre-Tax
Income (Loss) ($207,000) $ 1,577,000 ($265,000) 1,105,000
Tax Expense 669,000
Net Income $ 436,000
Diluted Weighted
Average Shares
Outstanding 12,191,000
Basic Earnings
Per Share $ .04
Diluted Earnings
Per Share $ .04
Cash Earnings
Per Share
(Diluted) (1) $ .10
EBITDA $ 5,158,000 $ 4,796,000
% to Net Sales 14.5% 12.1%
Note: Conceptronic, Inc., a subsidiary of Arguss Holdings, Inc.
comprises the manufacturing segment, while White Mountain, TCS, Rite,
Can-Am, Schenck and USI whose results are included for the entire
quarter, combine to form the telecom services segment.
(1) Cash earnings is net income excluding goodwill amortization
expense.
Arguss Holdings, Inc.
Consolidating Balance Sheet
As of December 31, 1998
Telecom Corporate/
Manufacturing Services Other Consolidated
ASSETS:
Cash $ 10,000 $ 1,303,000 $ 506,000 $ 1,819,000
Restricted
Cash for
Customer
Advances -- 978,000 978,000
Accounts Receivable 3,388,000 31,875,000 35,263,000
Costs and
Earnings
in Excess
of Billings -- 3,087,000 3,087,000
Inventory 4,385,000 1,272,000 5,657,000
Property, Plant
& Equipment,
Net 1,289,000 29,831,000 27,000 31,147,000
Goodwill -- 53,032,000 18,696,000 71,728,000
Deferred Tax
Asset -- -- 1,844,000 1,844,000
Other Assets 165,000 1,038,000 196,000 1,399,000
Total Assets $ 9,237,000 $122,416,000 $21,269,000 $152,922,000
LIABILITIES:
Current Borrowings
and Maturities $ 1,317,000 $ 18,150,000 $ 19,467,000
Trade Payables
and Accrued
Expenses 3,465,000 16,849,000 1,330,000 21,644,000
Customer
Advances -- 1,380,000 -- 1,380,000
Due to Former
Schenck
Shareholders -- -- 7,604,000 7,604,000
Deferred Tax
Liability -- 2,226,000 1,449,000 3,675,000
Long-Term Debt 928,000 22,259,000 23,187,000
Total Liabilities $ 5,710,000 $ 60,864,000 10,383,000 76,957,000
TOTAL STOCKHOLDERS' EQUITY 75,965,000
Total Liabilities and
Stockholders' Equity $152,922,000
Note: Conceptronic, Inc., a subsidiary of Arguss Holdings, Inc.
comprises the manufacturing segment, while White Mountain, TCS, Rite,
Can-Am, Schenck and USI combine to form the telecom services segment.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion