Boston Communications Group reports third quarter results.WOBURN, Mass.--(BUSINESS WIRE)--Oct. 30, 1996--Boston Communications Group, Inc (Nasdaq:BCGI BCGI Boston Communications Group Inc ) today reported financial results for the third quarter and nine months ended September 30, 1996. Net revenues for the third quarter increased 38% to $13,913,000 from $10,093,000 reported in the third quarter of 1995. Net income available to common shareholders was $331,000, or $0.03 per share, compared with net income available to common shareholders of $427,000, or $0.05 per share reported in last year's third quarter. (Per share results for 1995 reflect the accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of dividends on redeemable preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of $237,000.) The weighted average number of shares outstanding was 13,135,000 and 9,178,000 in 1996 and 1995, respectively. For the nine month period ended September 30, 1996, the Company reported net revenues of $37,906,000, a 55% increase over $24,524,000 reported in the same period last year. The net income available to common shareholders was $453,000, or $0.04 per share, compared with a net income of $212,000, or $0.02 per share reported in the same period last year. (Per share results for both periods reflect the accretion of dividends on redeemable preferred stock of $451,000 in 1996 and $712,000 in 1995.) The weighted average number of shares outstanding was 10,601,000 and 9,178,000 in 1996 and 1995, respectively. Boston Communications through its distributor, Wireless Americas Corp. recently entered into a contractual relationship to install a prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. wireless system in Mexico to provide service to Monterrey and
Mexico City Mexico CitySpanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi representing approximately 28 million POPS. The sale of the system provides the company with both system sale revenues and ongoing usage-based royalty payments. In addition, Boston Communications has exercised its option to increase its ownership to 80% of Wireless Americas Corp. with a four year option to buy the remaining interest beginning November, 1998. This agreement will allow management to focus its strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. beyond Mexico into Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . "We are very excited to report another quarter of on-track results," commented George Hertz hertz (hûrts) [for Heinrich R. Hertz], abbr. Hz, unit of frequency, equal to 1 cycle per second. The term is combined with metric prefixes to denote multiple units such as the kilohertz (1,000 Hz), megahertz (1,000,000 Hz), and gigahertz , President and Chief Executive Officer of Boston Communications. "In addition to our recent agreement to provide prepaid service for AirTouch Cellular, we are in active negotiations with other carriers for product rollout. Further, we continued to invest heavily in the deployment of the C2C (Client to Client) An earlier term for peer-to-peer (P2P), in which one user communicates with another user without going through a server in between. See peer-to-peer. prepaid wireless network, which has had a significant impact on operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in 1996 versus 1995." Boston Communications Group bcgi develops products and services that enable wireless operators to fully realize the potential of their networks. bcgi's Access Management, Billing, Payment and Network Solutions help operators rapidly deploy and manage innovative voice and data services for subscribers. , Inc. develops, markets and provides innovative call processing In telecommunication, the term call processing has the following meanings:
This press release contains, in addition to historical information, 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. that involve risks and uncertainties. Such statements are based on management s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Among the important factors that would cause actual results to differ materially from those indicated by such forward-looking statements are significant decreases in business from major customers, declines in demand for the Company's services, lack of acceptance of the prepaid wireless service, general economic conditions, and the risk factors detailed from time to time in the Company's periodic reports and registration statement filed with the Securities and Exchange Commission. -0-
BOSTON COMMUNICATIONS GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
9/30/96 9/30/95 9/30/96 9/30/95
Service revenues:
Calling service revenues $ 8,873 $ 7,387 $ 24,414 $18,572
Carrier support service revenues 3,272 2,706 10,422 5,952
Prepaid network services 42 -- 111 --
Prepaid and other system revenues 1,726 -- 2,959 --
13,913 10,093 37,906 24,524
Total operating expenses 13,640 9,283 36,556 23,172
Operating income 273 810 1,350 1,352
Interest income (expense), net 341 (46) 260 (97)
Income from continuing operations
before income taxes 614 764 1,610 1,255
Provision for income taxes 283 100 706 165
Income from continuing operations 331 664 904 1,090
Loss from discontinued operations -- -- -- (166)
Net income $331 $664 $904 $924
Accretion of dividends on redeemable
preferred stock -- (237) (451) (712)
Net income available to common
shareholders $331 $427 $453 $212
Net income available to common
shareholders per common share:
Continuing operations $0.03 $0.05 $0.04 $0.04
Net income $0.03 $0.05 $0.04 $0.02
Shares used in computing net income
per common share 13,135 9,178 10,601 9,178
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
9/30/96 12/31/95
Cash and short-term investments $ 26,246 $ 253
Property & equipment (net) 10,735 4,884
Total assets 52,986 13,614
Redeemable preferred stock --- 15,896
Shareholders' equity (deficit) 43,574 (8,698)
CONTACT: Boston Communications Group, Woburn Fritz von Mering, 617/692-7000 or Morgen-Walke Associates, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Naomi Rosenfeld/Andrea Kaimowitz Press: Lee Foley 212-850-5600 |
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