Arguss Holdings Announces First 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)--April 19, 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 three months ended March 31, 2000. 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 Holdings, 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 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. . ACG's operations historically have seasonally weaker results in the quarter ended March 31 due to the effect of winter weather on outside plant activities in the northern areas served by them.
Among Arguss Holdings, Inc.'s 2000 first quarter operating highlights
were the:
-- Growth in first quarter net income by 541% to $647,000 for the
first three months of 2000 from $101,000 for the first three
months of 1999.
-- Growth in EBITDA per share to $.51 (diluted) for the first three
months of 2000 from $.36 (diluted) for the first three months of
1999.
-- Improvement in 2000 EBITDA margin for ACG to 14.7% from 12.2%.
-- Rise in earnings exclusive of goodwill amortization expense to
$.15 per share (diluted) in the first three months of 2000 from
$.08 per share (diluted) in the first three months of 1999.
-- 32% increase in net sales to $55,044,000 in the first three months
of 2000 from $41,735,000 in the first three months of 1999.
-- Expansion of telecom infrastructure services backlog to $350
million at March 31, 2000.
ACG reported $7,299,000 of 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 ) or 14.7% 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 March 31, 2000, compared to $4,604,000 or 12.2% of telecom services net sales for the three months ended March 31, 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 March 31, 2000 of $6,956,000 or 12.6% of consolidated net sales, compared to $4,582,000 or 11.0% of consolidated net sales for the three months ended March 31, 1999. Arguss reported consolidated net sales of $55,044,000 for the three months ended March 31, 2000, compared to $41,735,000 for the three months ended March 31, 1999. Net income for the three months ended March 31, 2000 was $647,000 or $.05 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 $101,000 or $.01 per share (diluted) for the three months ended March 31, 1999. 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 ended March 31, 2000 and 1999:
Arguss Holdings, Inc.
Quarter March 31 2000 1999
Net sales $55,044,000 $41,735,000
Net income 647,000 101,000
Avg dil shs 13,549,000 12,668,000
Share earns (basic):
Net income $ .05 $ .01
Share earns (diluted):
Net income $ .05 $ .01
The following tables present unaudited selected financial information
for the three months ended March 31, 2000 and 1999.
Arguss Holdings, Inc.
Consolidating Income Statement
For the Three Months Ended March 31, 2000
Telecom Corporate/
Manufacturing Services Other Consolidated
Net Sales $ 5,474,000 $49,570,000 -- $55,044,000
Cost of Sales
Excluding
Depreciation 4,246,000 38,702,000 -- 42,948,000
Gross Profit
Excluding
Depreciation 1,228,000 10,868,000 -- 12,096,000
Operating Expenses
Excluding
Depreciation 1,340,000 3,768,000 (2,000) 5,106,000
Research and
Development 236,000 -- -- 236,000
Depreciation 40,000 2,324,000 2,000 2,366,000
Goodwill
Amortization -- 1,427,000 -- 1,427,000
Non-cash Stock
Compensation
expense -- 3,000 1,000 4,000
Net Interest
and Other Expense 65,000 960,000 -- 1,025,000
Total Expenses 1,681,000 8,482,000 1,000 10,164,000
Pre-Tax
Income (Loss) ($453,000) $ 2,386,000 ($1,000) 1,932,000
Tax Expense 1,285,000
Net Income $ 647,000
Diluted Weighted
Average Shares Outstanding 13,549,000
Basic Earnings Per Share $.05
Diluted Earnings Per Share $.05
Earnings exclusive
of goodwill amortization
expense Per Share (Diluted) $.15
EBITDA $ 7,299,000 $ 6,956,000
% to Net Sales 14.7% 12.6%
Arguss Holdings, Inc.
Consolidating Balance Sheet
As of March 31, 2000
Telecom Corporate/
ASSETS: Manufacturing Services Other Consolidated
Cash $ 30,000 $ 311,000 $ 45,000 $ 386,000
Restricted Cash
for Customer
Advances - 175,000 - 175,000
Accounts
Receivable 4,658,000 41,023,000 - 45,681,000
Costs and
Earnings in
Excess of Billings - 14,470,000 - 14,470,000
Inventory 4,891,000 274,000 - 5,165,000
Property, Plant
& Equipment, Net 1,237,000 36,356,000 21,000 37,614,000
Goodwill - 106,565,000 - 106,565,000
Deferred Tax Asset 375,000 - 1,454,000 1,829,000
Other Assets 203,000 1,128,000 1,012,000 2,343,000
Total Assets $11,394,000 $200,302,000 $2,532,000 $214,228,000
LIABILITIES:
Current Borrowings
and Maturities $1,580,000 $50,255,000 941,000 $52,776,000
Trade Payables and
Accrued Expenses 6,723,000 20,709,000 4,969,000 32,401,000
Deferred Tax
Liability - 2,098,000 2,327,000 4,425,000
Long-Term Debt 897,000 16,821,000 - 17,718,000
Total Liabilities $9,200,000 $89,883,000 $8,237,000 107,320,000
TOTAL STOCKHOLDERS' EQUITY 106,908,000
Total Liabilities and Stockholders' Equity $214,228,000
Arguss Holdings, Inc.
Consolidating Income Statement
For the Three Months Ended March 31, 1999
Telecom Corporate/
Manufacturing Services Other Consolidated
Net Sales $ 3,929,000 $37,806,000 -- $41,735,000
Cost of Sales
Excluding
Depreciation 2,481,000 30,581,000 -- 33,062,000
Gross Profit
Excluding
Depreciation 1,448,000 7,225,000 -- 8,673,000
Operating
Expenses
Excluding
Depreciation 1,111,000 2,644,000 41,000 3,796,000
Research and
Development 328,000 -- -- 328,000
Depreciation 53,000 1,898,000 -- 1,951,000
Goodwill
Amortization -- 948,000 -- 948,000
Net Interest and
Other Expense 48,000 831,000 (6,000) 873,000
Total Expenses 1,540,000 6,321,000 35,000 7,896,000
Pre-Tax Income (Loss) ($92,000)$ 904,000 ($35,000) 777,000
Tax Expense 676,000
Net Income $ 101,000
Diluted Weighted
Average Shares Outstanding 12,668,000
Basic Earnings Per Share $ .01
Diluted Earnings Per Share $ .01
Earnings exclusive of goodwill
amortization expense $ .08
EBITDA $ 4,605,000 $ 4,582,000
% to Net Sales 12.2% 11.0%
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