Arguss Holdings Announces Third 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)--Oct. 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 revenues and earnings for both the three months and nine months ended September September: see month. 30, 1999. 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. - 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 Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
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 18.5% and 16.0% for the three months and nine months ended September 30, 1999, respectively, compared to 17.4% and 15.5% for the same periods in 1998. ACG achieved EBITDA for three and nine months ended September 30, 1999 of $9,600,000 and $23,103,000, respectively, compared to $8,262,000 and $16,215,000 for the same periods in 1998. ACG realized EBITDA as a percentage of net construction sales of 19.5% and 17.7% for the three months and nine months ended September 30, 1999, respectively, compared to 19.5% and 17.7% for the same periods in 1998. Arguss reported consolidated net sales of $53,351,000 and $142,965,000 for the three and nine months ended September 30, 1999, respectively, compared to $45,908,000 and $104,741,000 for the same periods in 1998 and net income of $2,852,000 or $.22 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 $5,028,000 or $.39 per share (diluted), respectively, for the three and nine months ended September 30, 1999, compared to $2,166,000 or $.18 per share (diluted) and $2,559,000 or $.23 per share (diluted) in the same periods in 1998. The significant increases in consolidated net sales and income are due primarily to Arguss' acquisition of Underground Specialties 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 construction 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 results for the three months and nine months ended September 30, 1999 include Conceptronic as a continuing operation. In October October: see month. , Arguss retained the services of Mr. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack Almond almond, name for a small tree (Prunus amygdalus) of the family Rosaceae (rose family) and for the nutlike, edible seed of its drupe fruit. The "nuts" of sweet-almond varieties are eaten raw or roasted and are pressed to obtain almond oil. as the President of Conceptronic. Mr. Almond has thirty years of experience in manufacturing with nationally respected firms, including Texas Instruments See TI. (company) Texas Instruments - (TI) A US electronics company. A TI engineer, Jack Kilby invented the integrated circuit in 1958. Three TI employees left the company in 1982 to start Compaq. , Inc. ACG constructs and reconstructs, maintains and repairs telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. systems, 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 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 that it considers strategically important. 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. The following tables present unaudited consolidating and selected financial information for the three and nine months ended September 30, 1999 and 1998: -0-
Arguss Holdings, Inc.
Quarter September 30 1999 1998
Net sales $ 53,351,000 $ 45,908,000
Net income 2,852,000 2,166,000
Avg dil shs 13,169,000 12,068,000
Share earns (basic):
Net income $ .24 $ .20
Share earns (diluted):
Net income $ .22 $ .18
Nine Mos. September 30 1999 1998
Net sales $142,965,000 $104,741,000
Net income 5,028,000 2,559,000
Avg dil shs 12,935,000 11,359,000
Share earns (basic):
Net income $ .43 $ .24
Share earns (diluted):
Net income $ .39 $ .23
Arguss Holdings, Inc.
Unaudited Consolidating Income Statement
For the Three Months Ended September 30, 1999
Manufacturing Communications Consolidated
Net Sales $ 4,212,000 $49,139,000 $53,351,000
Cost of Sales
Excluding Depreciation 2,858,000 36,784,000 39,642,000
Gross Profit
Excluding Depreciation 1,354,000 12,355,000 13,709,000
Operating Expenses
Excluding Depreciation 1,055,000 2,333,000 3,388,000
Depreciation 53,000 2,142,000 2,195,000
Goodwill Amortization -- 1,208,000 1,208,000
Engineering & Development 322,000 -- 322,000
Net Interest and Other
Expense 63,000 864,000 927,000
Unallocated Net Corporate
Income -- -- 1,000
Net Corporate Expenses 15,000 500,000 515,000
Total Expenses 1,508,000 7,047,000 8,556,000
Income (Loss) Before Taxes
and Reversal of Loss on
Disposition ($ 154,000) $ 5,308,000 5,153,000
Income Taxes 2,483,000
Income Before Reversal of
Loss on Disposition 2,670,000
Reversal of Loss on
Disposition, Net of
Tax Expense 182,000
Net Income $ 2,852,000
Weighted Average
Shares Outstanding
- Diluted 13,169,000
Basic Net Income Per Share $ .24
Diluted Net Income Per Share $ .22
EBITDA 139,000 9,600,000 9,851,000
% to Sales 3.3% 19.5% 18.5%
Note: Conceptronic comprises the manufacturing segment, while White
Mountain, Can-Am, Schenck, TCS and USI combine to form the
communications group.
Arguss Holdings, Inc.
Unaudited Consolidating Income Statement
For the Nine Months Ended September 30, 1999
Manufacturing Communications Consolidated
Net Sales $ 12,163,000 $130,802,000 $142,965,000
Cost of Sales
Excluding Depreciation 8,154,000 99,302,000 107,456,000
Gross Profit
Excluding Depreciation 4,009,000 31,500,000 35,509,000
Operating Expenses
Excluding Depreciation 3,125,000 7,263,000 10,388,000
Depreciation 159,000 6,059,000 6,218,000
Goodwill Amortization -- 3,212,000 3,212,000
Engineering & Development 1,006,000 -- 1,006,000
Net Interest and Other
Expense 163,000 2,620,000 2,783,000
Unallocated Net Corporate
Expenses -- -- 5,000
Net Corporate Expenses 15,000 1,587,000 1,602,000
Total Expenses 4,468,000 20,741,000 25,214,000
Pre-Tax Income (Loss) $ (459,000) $ 10,759,000 10,295,000
Income Taxes 5,267,000
Net Income $ 5,028,000
Weighted Average
Shares Outstanding
- Diluted 12,935,000
Basic Net Income Per Share $ .43
Diluted Net Income Per Share $ .39
EBITDA (139,000) 23,103,000 22,893,000
% to Sales (1.1%) 17.7% 16.0%
Note: Conceptronic comprises the manufacturing segment, while White
Mountain, Can-Am, Schenck, TCS and USI combine to form the
communications group.
Arguss Holdings, Inc.
Selected Unaudited Financial Information
As of September 30, 1999
Manufacturing Communications Consolidated
ASSETS:
Corporate Cash $ -- $ -- $ 3,526,000
Cash 7,000 145,000 152,000
Restricted Cash for
Customer Advances -- 2,906,000 2,906,000
Accounts Receivable 3,476,000 34,020,000 37,496,000
Unbilled Receivables -- 13,876,000 13,876,000
Cost of Materials -- 13,774,000 13,774,000
Inventory 3,835,000 314,000 4,149,000
Property, Plant & Equipment 1,279,000 35,643,000 36,922,000
Goodwill -- 95,486,000 95,486,000
Other Corporate Assets -- -- 2,192,000
Other Assets 516,000 984,000 1,500,000
Total Assets $ 9,113,000 $197,148,000 $211,979,000
LIABILITIES:
Current Borrowings
and Maturities $ 1,263,000 $ 28,981,000 $ 30,244,000
Current Corporate
Borrowings -- -- 4,141,000
Trade Payables and
Expenses(1) 2,453,000 20,612,000 23,065,000
Due to Former Underground
Specialties Shareholders -- -- 11,745,000
Customer Advances -- 13,840,000 13,840,000
Corporate Accruals -- -- 10,906,000
Long Term Debt 942,000 20,260,000 21,202,000
Total Liabilities $ 4,658,000 $ 83,693,000 115,143,000
TOTAL STOCKHOLDERS' EQUITY 96,836,000
Total Liabilities
and Stockholders' Equity $211,979,000
(1) Excludes inter-company payables.
Arguss Holdings, Inc.
Unaudited Consolidating Income Statement
For the Three Months Ended September 30, 1998
Manufacturing Communications Consolidated
Net Sales $ 3,456,000 $42,452,000 $45,908,000
Cost of Sales
Excluding Depreciation 2,324,000 32,219,000 34,543,000
Gross Profit
Excluding Depreciation 1,132,000 10,233,000 11,365,000
Operating Expenses
Excluding Depreciation 1,027,000 1,762,000 2,789,000
Depreciation 55,000 1,613,000 1,668,000
Goodwill Amortization -- 687,000 687,000
Engineering & Development 362,000 -- 362,000
Non-cash Stock Option
Compensation -- 742,000 742,000
Net Interest and Other Expense 46,000 658,000 704,000
Unallocated Net Corporate
Income -- -- (11,000)
Net Corporate Expenses 28,000 328,000 356,000
Total Expenses 1,518,000 5,790,000 7,297,000
Pre-Tax Income (Loss) ($ 386,000) $ 4,443,000 4,068,000
Income Taxes 1,902,000
Net Income $ 2,166,000
Weighted Average
Shares Outstanding
- Diluted 12,068,000
Basic Net Income
Per Share $ .20
Diluted Net Income
Per Share $ .18
EBITDA (282,000) 8,262,000 7,992,000
% to Sales (8.2%) 19.5% 17.4%
Note: Conceptronic comprises the manufacturing segment, while White
Mountain, Can-Am, Schenck, TCS, USI and Rite combine to form the
communications group. Includes the results of USI from August 1, 1998
and the remaining divisions of the communications group for the entire
quarter.
Arguss Holdings, Inc.
Unaudited Consolidating Income Statement
For the Nine Months Ended September 30, 1998
Manufacturing Communications Consolidated
Net Sales $ 13,233,000 $ 91,508,000 $104,741,000
Cost of Sales
Excluding Depreciation 8,841,000 69,737,000 78,578,000
Gross Profit
Excluding Depreciation 4,392,000 21,771,000 26,163,000
Operating Expenses
Excluding Depreciation 3,347,000 4,792,000 8,139,000
Depreciation 164,000 4,299,000 4,463,000
Goodwill Amortization -- 1,992,000 1,992,000
Engineering & Development 905,000 -- 905,000
Non-cash Stock Option
Compensation -- 1,806,000 1,806,000
Net Interest and Other
Expense 138,000 1,855,000 1,993,000
Unallocated Net Corporate
Expenses -- -- 11,000
Net Corporate Expenses 195,000 1,066,000 1,261,000
Total Expenses 4,749,000 15,810,000 20,570,000
Pre-Tax Income (Loss) $ (357,000) $ 5,961,000 5,593,000
Income Taxes 3,034,000
Net Income $ 2,559,000
Weighted Average
Shares Outstanding - Diluted 11,359,000
Basic Net Income Per Share $.24
Diluted Net Income Per Share $.23
EBITDA (47,000) 16,215,000 16,207,000
% to Sales (0.4%) 17.7% 15.5%
Note: Conceptronic comprises the manufacturing segment, while White
Mountain, Can-Am, Schenck, TCS, USI and Rite combine to form the
communications group. Includes the results of USI from August 1, 1998
and the remaining divisions of the communications group for the entire
nine months.
Arguss Holdings, Inc.
Selected Unaudited Financial Information
As of September 30, 1998
Manufacturing Communications Consolidated
ASSETS:
Corporate Cash $ -- $ -- $ 613,000
Cash 83,000 894,000 977,000
Restricted Cash for
Customer Advances -- 3,189,000 3,189,000
Accounts Receivable 2,831,000 32,034,000 34,865,000
Unbilled Receivables -- 5,067,000 5,067,000
Cost of Materials -- 5,133,000 5,133,000
Inventory 4,466,000 4,702,000 9,168,000
Property, Plant & Equipment 1,318,000 25,885,000 27,203,000
Goodwill -- 53,714,000 53,714,000
Other Corporate Assets -- -- 229,000
Other Assets 457,000 742,000 1,199,000
Total Assets $ 9,155,000 $131,360,000 $141,357,000
LIABILITIES:
Current Borrowings
and Maturities $ 881,000 $ 16,429,000 $ 17,310,000
Trade Payables
and Expenses (1) 2,325,000 22,609,000 24,934,000
Customer Advances -- 7,000,000 7,000,000
Corporate Accruals -- -- 3,939,000
Long Term Debt 943,000 24,034,000 24,977,000
Total Liabilities $ 4,149,000 $ 70,072,000 $ 78,160,000
TOTAL STOCKHOLDERS' EQUITY 63,197,000
Total Liabilities and Stockholders' Equity $141,357,000
(1) Excludes inter-company payables.
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