Arguss Holdings Announces Annual Results.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)--March 18, 1999--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) announced 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 , revenues and earnings for both the twelve and three months ended December December: see month. 31, 1998. Arguss Holdings, Inc. operates as a holding company conducting its operations through its wholly owned subsidiaries 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. - Arguss Communications Group ("ACG ACG American College of Gastroenterology; angiocardiography; apexcardiogram. AcG accelerator globulin (coagulation factor V). AcG accelerator globulin (clotting factor V). ") and Conceptronic, Inc. ("Conceptronic"). 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 $20,966,000 or 14.4% of consolidated 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 twelve months ended December 31, 1998, compared to $6,160,000 or 11.6% of consolidated net sales for the twelve months ended December 31, 1997. ACG achieved $21,344,000 of EBITDA or 16.7% of telecom construction net sales for the twelve months ended December 31, 1998, compared to $6,051,000 or 17.4% of telecom construction net sales for the twelve months ended December 31, 1997. EBITDA for the three months ended December 31, 1998 was $4,796,000 or 12.1% of consolidated net sales, compared to $1,273,000 or 7.3% of consolidated net sales for the three months ended December 31, 1997. ACG reported $5,158,000 of EBITDA or 14.5% of telecom construction net sales for the three months ended December 31, 1998, compared to $1,115,000 or 8.9% of telecom construction net sales for the three months ended December 31, 1997. Consolidated net sales for the twelve months ended December 31, 1998 were $145,017,000, compared to $53,284,000 in 1997. Net income for the twelve months ended December 31, 1998 was $2,995,000 or $.26 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 $1,805,000 or $.22 per share (diluted) in 1997. The significant increases in consolidated net sales and net income are due primarily to Arguss' acquisitions of telecom construction companies during 1998, as well as the commencement of the 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 and 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 construction projects in 1998. Arguss reported consolidated net sales of $39,707,000 for the three months ended December 31, 1998, compared to $17,458,000 for the three months ended December 31, 1997. Net income for the three months ended December 31, 1998 was $436,000 or $.04 per share (diluted), compared to a net loss of $197,000 or $.02 per share (diluted) for the three months ended December 31, 1997. Fourth quarter results are seasonally lower than the second and third quarter results due to the effect of winter weather, as well as reduced daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). hours. During 1998, Arguss acquired three cable construction companies - Can-Am Construction ("Can-Am") (January January: see month. 1998), Schenck Communications ("Schenck") (January 1998) and Underground Specialties ("USI") (August 1998). The respective acquisitions' financial results are included from their dates of purchase. ACG constructs and reconstructs, and maintains and repairs telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. systems, and cable television and data systems. ACG provides aerial aerial: see antenna, in electronics. and underground construction services and splicing splicing /splic·ing/ (spli´sing) 1. the attachment of individual DNA molecules to each other, as in the production of chimeric genes. 2. RNA s. of both fiber optic optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. and coaxial co·ax·i·al adj. Having or mounted on a common axis. coaxial Adjective 1. Electronics (of a cable) transmitting by means of two concentric conductors separated by an insulator cable to major telecommunications customers. Conceptronic manufactures and sells highly advanced computer-controlled equipment used in the surface mount technology, circuit assembly industry. Arguss continues to actively pursue acquisitions in industry sectors, which it considers strategically important. 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 consolidating, selected and unaudited financial information for the twelve and three months ended December 31, 1998. -0-
Arguss Holdings, Inc.
Consolidating Income Statement
For the Twelve Months Ended December 31, 1998
Telecom
Manufacturing Construction Consolidated
Net Sales $ 17,277,000 $127,740,000 $145,017,000
Cost of Sales
Excluding Depreciation 11,547,000 99,256,000 110,803,000
Gross Profit
Excluding Depreciation 5,730,000 28,484,000 34,214,000
Operating Expenses
Excluding Depreciation 4,608,000 6,323,000 10,931,000
Research and Development 1,096,000 -- 1,096,000
Depreciation 207,000 5,990,000 6,197,000
Goodwill Amortization -- 2,754,000 2,754,000
Non-Cash Stock Option
Compensation -- 2,163,000 2,163,000
Net Interest and Other Expense 178,000 2,544,000 2,722,000
Unallocated Corporate Expenses -- -- 276,000
Net Corporate Expenses 205,000 1,172,000 1,377,000
Total Expenses 6,294,000 20,946,000 27,516,000
Pre-Tax Income (Loss) ($ 564,000) $ 7,538,000 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
EBITDA $ 21,344,000 $ 20,966,000
% to Net Sales 16.7% 14.4%
Note: Conceptronic comprises the manufacturing segment, while White
Mountain, TCS, Can-Am, Schenck and USI combine to form the telecom
construction segment. Includes the results of USI from its date of
acquisition of August 1, 1998.
Arguss Holdings, Inc.
Unaudited Consolidating Income Statement
For the Three Months Ended December 31, 1998
Telecom
Manufacturing Construction 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 1,050,000 1,531,000 2,581,000
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
Unallocated Corporate Expenses -- -- 265,000
Net Corporate Expenses 10,000 106,000 116,000
Total Expenses 1,545,000 5,136,000 6,946,000
Pre-Tax Income (Loss) ($ 207,000) $ 1,577,000 1,105,000
Tax Expense 669,000
Net Income $ 436,000
Diluted Weighted Average
Shares Outstanding 12,190,000
Basic Earnings Per Share $ .04
Diluted Earnings Per Share $ .04
EBITDA $ 5,158,000 $ 4,796,000
% to Net Sales 14.5% 12.1%
Note: Conceptronic 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
construction segment.
Arguss Holdings, Inc.
Selected Financial Information
As of December 31, 1998
Telecom
Manufacturing Construction Consolidated(2)
ASSETS:
Corporate Cash $ 506,000
Cash $ 10,000 $ 1,303,000 1,313,000
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 -- 8,707,000 8,707,000
Inventory 4,385,000 1,272,000 5,657,000
Property, Plant &
Equipment, Net 1,289,000 29,831,000 31,147,000
Goodwill -- 53,032,000 71,728,000
Deferred Tax Asset -- -- 1,844,000
Other Assets 165,000 1,038,000 1,399,000
Total Assets $ 9,237,000 $128,036,000 $158,542,000
LIABILITIES:
Current Borrowings
and Maturities $ 1,317,000 $ 18,472,000 $ 19,467,000
Trade Payables and
Accrued Expenses (1) 2,437,000 15,017,000 21,644,000
Customer Advances -- 7,000,000 7,000,000
Due to Former Schenck
Shareholders -- -- 18,696,000
Deferred Tax Liability -- 1,831,000 3,675,000
Long-Term Debt 928,000 22,259,000 23,187,000
Total Liabilities $4,682000 $ 64,579,000 93,669,000
TOTAL STOCKHOLDERS' EQUITY 64,873,000
Total Liabilities and
Stockholders' Equity $158,542,000
(1) Excludes inter-company payables.
(2) Telecom construction and manufacturing segments do not add across
due to corporate and unallocated amounts being included in the
consolidated total.
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