Arguss Holdings Announces Second Quarter 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)--July 17, 1998--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 revenues and earnings for both the three months and six months ended June June: see month. 30, 1998. Arguss Holdings, Inc. ("Arguss") 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. - White Mountain Cable Construction Corp. ("White Mountain") and Conceptronic, Inc. ("Conceptronic"). White Mountain operates through its divisions - White Mountain, Can-Am Construction, Schenck Communications, TCS (Transportation Control System) A widely used integrated information system for railroad transportation developed by the Missouri Pacific Railroad Company in the late 1960s and early 1970s. It was later implemented by Union Pacific when the companies merged. Communications and Rite Cable. 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: 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 of $35,163,000 and $59,402,000 for the three and six months ended June 30, 1998, respectively, compared to $12,682,000 and $21,658,000 for the same periods in 1997 and net income of $1,166,000 or $.11 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. ) and $393,000 or $.04 per share (diluted), respectively, for the three and six months ended June 30, 1998, compared to $774,000 or $.10 per share (diluted) and $1,392,000 or $.18 per share (diluted) in 1997. Arguss' results for the second quarter of 1998 reflect White Mountain's ramping up several significant, regional, multiple-year contracts with major telecommunications companies See telecom company. . Consolidated net sales, as well as operating results, were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted during the three months ended June 30, 1998 as several of these contracts realized increased levels of revenue. During the three and six months ended June 30, 1998, Arguss incurred transition costs to relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. crews and equipment and set up operations in several new locations nationwide, which reduced both the three and six months' net income. In the third quarter, Arguss expects to continue to realize increasing profitability from maturing regional projects, but will also continue to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. transition costs during the start-up Start-up The earliest stage of a new business venture. phase of certain large West Coast contracts. Certain statements contained herein are "forward looking" 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. White Mountain constructs, reconstructs, 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. White Mountain provides aerial aerial: see antenna, in electronics. , underground and premise 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 SMT (1) (Surface Mount Technology) See surface mount. (2) (Station ManagemenT) An FDDI network management protocol that provides direct management. Only one node requires the software. SMT - Station Management circuit assembly industry. Arguss continues to actively pursue acquisitions in industry sectors which it considers strategically important. The following tables present unaudited consolidating, selected and pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma financial information for the three and six months ended June 30, 1998 and 1997: -0-
Arguss Holdings, Inc.
Unaudited Consolidating Income Statement
For the Three Months Ended June 30, 1998
Quarter June 30 1998a 1997
Net Sales $35,163,000 $12,682,000
Net Income 1,166,000 774,000
Avg. Shares Diluted 11,103,000 7,595,000
Share Earns (Basic):
Net Income $.11 $.11
Share Earns (Diluted):
Net Income $.11 $.10
Arguss Holdings, Inc.
Unaudited Consolidating Income Statement
For the Six Months Ended June 30, 1998
Six Mos. June 30 1998a 1997
Net Sales $59,402,000 $21,658,000
Net Income 393,000 1,392,000
Avg. Shares Diluted 11,041,000 7,558,000
Share Earns (Basic):
Net Income $.04 $.19
Share Earns (Diluted):
Net Income $.04 $.18
a: Includes the results of Can-Am Construction, Inc. acquired
effective January 1, 1998 and Schenck Communications, Inc., acquired
effective January 1, 1998.
Arguss Holdings, Inc.
Unaudited Consolidating Income Statement
For the Three Months Ended June 30, 1998
Manufacturing Communications Consolidated
Net Sales $ 4,728,000 $30,435,000 $35,163,000
Cost of Sales
Excluding Depreciation 3,078,000 22,736,000 25,814,000
Gross Profit, Excluding
Depreciation 1,650,000 7,699,000 9,349,000
Operating Expenses
Excluding Depreciation 1,474,000 1,605,000 3,079,000
Depreciation 54,000 1,417,000 1,471,000
Goodwill Amortization -- 651,000 651,000
Non-cash Stock Option
Compensation -- 678,000 678,000
Net Interest and Other
Expense 46,000 615,000 661,000
Unallocated Net Corporate
Expenses -- -- 3,000
Net Corporate Expenses 75,000 353,000 428,000
Total Expenses 1,649,000 5,319,000 6,971,000
Pre-Tax Income $1,000 $2,380,000 2,378,000
Income Taxes 1,212,000
Net Income $1,166,000
Weighted Average
Shares Outstanding 11,103,000
Basic Net Income Per Share $.11
Diluted Net Income Per Share $.11
Note: Conceptronic comprises the manufacturing segment, while White
Mountain, Can-Am, Schenck, TCS and Rite combine to form the
communications group.
Arguss Holdings, Inc.
Unaudited Consolidating Income Statement
For the Six Months Ended June 30, 1998
Manufacturing Communications Consolidated
Net Sales $ 9,777,000 $49,625,000 $59,402,000
Cost of Sales
Excluding Depreciation 6,517,000 38,087,000 44,604,000
Gross Profit, Excluding
Depreciation 3,260,000 11,538,000 14,798,000
Operating Expenses
Excluding Depreciation 2,863,000 3,030,000 5,893,000
Depreciation 109,000 2,686,000 2,795,000
Goodwill Amortization -- 1,305,000 1,305,000
Non-cash Stock Option
Compensation -- 1,064,000 1,064,000
Net Interest and Other
Expense 92,000 1,197,000 1,289,000
Unallocated Net Corporate
Expenses -- -- 22,000
Net Corporate Expenses 167,000 738,000 905,000
Total Expenses 3,231,000 10,020,000 13,273,000
Pre-Tax Income $29,000 $1,518,000 1,525,000
Income Taxes 1,132,000
Net Income $393,000
Weighted Average
Shares Outstanding 11,041,000
Basic Net Income Per Share $.04
Diluted Net Income Per Share $.04
Note: Conceptronic comprises the manufacturing segment, while
White Mountain, Can-Am, Schenck, TCS and Rite combine to form the
communications group. Includes the results of all divisions of the
communications group for the entire six months.
Arguss Holdings, Inc.
Selected Unaudited Financial Information
As of June 30, 1998
Manufacturing Communications Consolidated
ASSETS:
Corporate Cash $ -- $ -- $ 569,000
Cash 161,000 871,000 1,032,000
Restricted Cash for
Customer Advances -- 8,647,000 8,647,000
Accounts Receivable 4,023,000 24,213,000 28,236,000
Unbilled Receivables -- 6,281,000 6,281,000
Inventory 4,468,000 -- 4,468,000
Property, Plant & Equipment 1,333,000 21,827,000 23,160,000
Goodwill -- 50,439,000 50,439,000
Other Corporate Assets -- -- 185,000
Other Assets 385,000 875,000 1,260,000
Total Assets $10,370,000 $113,153,000 $124,277,000
LIABILITIES:
Current Borrowings
and Maturities $1,480,000 $14,896,000 $16,376,000
Trade Payables and
Expenses (1) 2,610,000 13,034,000 15,644,000
Customer Advances -- 10,500,000 10,500,000
Corporate Accruals -- -- 1,866,000
Deferred Tax Liability -- 1,549,000 1,549,000
Long Term Debt 957,000 19,612,000 20,569,000
Total Liabilities $5,047,000 $59,591,000 66,504,000
TOTAL STOCKHOLDERS' EQUITY 57,773,000
Total Liabilities and Stockholders' Equity $124,277,000
(1) Excludes inter-company payables.
Arguss Holdings, Inc.
Unaudited Pro forma Income Statements
For the Six Months June 30, 1997
Manufacturing Communications Consolidated
Net Sales $8,729,000 $40,336,000 $49,065,000
Cost of Sales,
Excluding Depreciation 5,898,000 29,897,000 35,795,000
Gross Profit,
Excluding Depreciation 2,831,000 10,439,000 13,270,000
Operating Expenses,
Excluding Depreciation 2,784,000 3,037,000(A) 5,821,000
Depreciation 118,000 1,646,000 1,764,000
Goodwill Amortization - 1,305,000(B) 1,305,000
Stock Option Expense - 56,000 56,000
Net Interest and Other Expense 60,000 1,020,000(C) 1,080,000
Net Corporate Expenses 207,000 207,000 414,000
Total Expenses 3,169,000 7,271,000 10,440,000
Pre-Tax Income (Loss) $(338,000) $3,168,000 2,830,000
Income Tax Benefit 1,654,000
Net Income $1,176,000
Diluted Weighted Average
Shares Outstanding 10,565,000
Basic Net Income Per Share $.11
Diluted Net Income Per Share $.11
NOTES:
A. Compensation expense adjusted to reflect current salary
arrangements.
B. Amortization of $52.7 million of goodwill over 20 years.
C. An adjustment is made for imputed interest expense on financing of
$12,000,000 for Can-Am, $3,016,000 for Schenck and $1,600,000 for
Rite.
Debt financing was not utilized for the acquisition of TCS.
Basis for Presentation: White Mountain, Can-Am, Schenck, TCS and Rite
are included in the above unaudited pro forma for the entire quarter.
Arguss Holdings, Inc.
Unaudited Pro forma Income Statements
For the Three Months June 30, 1997
Manufacturing Communications Consolidated
Net Sales $ 5,147,000 $22,599,000 $27,746,000
Cost of Sales,
Excluding Depreciation 3,382,000 16,698,000 20,080,000
Gross Profit,
Excluding Depreciation 1,765,000 5,901,000 7,666,000
Operating Expenses,
Excluding Depreciation 1,398,000 1,518,000(D) 2,916,000
Depreciation 56,000 916,000 972,000
Goodwill Amortization -- 651,000(E) 651,000
Stock Option Expense -- 56,000 56,000
Net Interest and Other Expense 52,000 534,000(F) 586,000
Net Corporate Expenses 158,000 158,000 316,000
Total Expenses 1,664,000 3,833,000 5,497,000
Pre-Tax Income $101,000 $2,068,000 2,169,000
Income Tax Benefit 1,128,000
Net Income $1,041,000
Diluted Weighted Average
Shares Outstanding 10,602,000
Basic Net Income Per Share $.10
Diluted Net Income Per Share $.10
NOTES:
D. Compensation expense adjusted to reflect current salary
arrangements.
E. Amortization of $52.7 million of goodwill over 20 years.
F. An adjustment is made for imputed interest expense on financing of
$12,000,000 for Can-Am, $3,016,000 for Schenck and $1,600,000 for
Rite.
Debt financing was not utilized for the acquisition of TCS.
Basis for Presentation: White Mountain, Can-Am, Schenck, TCS and Rite
are included in the above unaudited pro forma for the entire quarter.
-0- CONTACT: Arguss Holdings, Inc. Arthur Arthur, king of Britain: see Arthurian legend. Arthur king and hero of Scotland, Wales, and England. [Arthurian Legend: Parrinder, 28] See : Heroism Trudel, 301-315-0027 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion