CCC GlobalCom Reports 2002 First Quarter Results.Business Editors/High-Tech Writers HOUSTON--(BUSINESS WIRE)--May 22, 2002 CCC CCC A very speculative grade assigned to a debt obligation by a rating agency. Such a rating indicates default or considerable doubt that interest will be paid or principal repaid. Also called Caa. GlobalCom Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CCGC CCGC Canadian Coast Guard College CCGC Canadian Coast Guard Cutter ), an emerging leader in high value telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. solutions, announced today, reported results for the first quarter ended March 31, 2002. For the quarter-ended March 31, 2002, total revenue increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $6,655,000 to approximately $7,061,000 from approximately $406,000 for the prior-quarter period in 2001. The significant jump in sales largely reflects new customers gained from the company's roll-up roll-up A master limited partnership in which a number of existing limited partnerships are pooled into a single partnership. of integrating the assets from three acquisitions made during 2001, which include assets from Equalnet Communications Corp., Omniplex Omniplex may mean:
LLC - Logical Link Control , and Incomnet Communications Corp. The net loss for the quarter-end March 31, 2002 was approximately $5,400,000 or $(0.15) per 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. share, from net loss of approximately $700,000, or $(0.02) per diluted share for the prior-quarter period, ended March 31, 2001. Net loss for the 2002 quarter-end period is a direct result of the expenses associated with the integration of three significant asset acquisitions made in the last quarter of 2001, whereby the comparative results between 2002 and 2001 are not a meaningful indication of current trends or future results. Z.A. Hakim, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CCC GlobalCom Corporation, stated, "The strategic asset acquisitions completed in 2001 provided CCC GlobalCom with significant revenue and customer growth. We have made significant progress on the roll-up phase of our business plan. We also worked towards reducing our levels of G&A and improving our overall margins during 2001. This effort will continue to be our focus in 2002. We believe that the benefits from these acquisitions and the focus on cost control and margin improvement will put us in a better position to successfully obtain a larger market share in the future." CCC GlobalCom Corporation is an Integrated Communications Provider (ICP (1) (Internet Cache Protocol) A protocol used by one proxy server to query another for a cached Web page without having to go to the Internet to retrieve it. See CARP and proxy server. ) headquartered in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; . CCC GlobalCom Corporation offers a full range of communications services to commercial and residential customers while providing a single point of contact through bundled bun·dle n. 1. A group of objects held together, as by tying or wrapping. 2. Something wrapped or tied up for carrying; a package. 3. Biology A cluster or strand of closely bound muscle or nerve fibers. billing services. CCC GlobalCom Corporation provides local, long distance, high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. data, 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 , paging, and other enhanced communications services in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . In addition, CCC GlobalCom Corporation has franchise operations in 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. and is in the process of finalizing certain agreements for telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. services in South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. and Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. . CCC GlobalCom Corporation is actively engaged in discussions and negotiations to acquire existing telecommunication service providers, customer bases and major telecommunication switching equipment to be deployed worldwide. For additional information on CCC GlobalCom Corporation, please visit www.cccglobalcom.com. Statements in this release, which express a belief, expectation, or intention, as well as those that are not historical fact, 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. . They involve a number of risks and uncertainties, which may cause actual results to differ materially from 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. . These risks and uncertainties include factors detailed from time to time in the Company's filings with the Securities and Exchange Commission.
CCC GlobalCom Corporation
Consolidated Balance Sheet
March 31, 2002
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $382,849
Restricted cash 775,360
Accounts receivable, net of
allowance of $2,330,886 4,457,379
Prepaid expenses 213,015
-----------
Total current assets 5,828,603
Property and equipment, net 5,907,602
Intangibles, net 2,338,374
Other 482,456
-----------
$14,557,035
-----------
Liabilities and Stockholders' Deficit
Current liabilities:
Line of credit $17,192,235
Accounts payable 8,825,933
Accrued compensation and other 444,689
Current portion of long-term debt 1,236,892
Excise taxes payable 1,954,586
Accrued expenses 1,305,426
Deferred income 298,417
-----------
Total current liabilities 31,258,178
Long-term debt 870,693
-----------
Total liabilities 32,128,871
-----------
Commitments and contingencies --
Stockholders' deficit:
Common stock, $.001 par value,
authorized 100,000,000 shares;
issued and outstanding 35,163,918
shares 35,164
Additional paid-in capital 9,101,206
Accumulated deficit (26,708,206)
-----------
Total stockholders' deficit (17,571,836)
-----------
$14,557,035
-----------
Should be read in conjunction with Notes to Consolidated Financial
Statements contained in the Form 10-QSB issued on May 15, 2002.
CCC GlobalCom Corporation
Consolidated Statement of Operations
(Unaudited)
Three Months Ended March 31,
---------------------------
2002 2001
----------- -----------
Net sales $7,061,117 $405,846
Cost of services (5,891,253) (321,400)
Selling, general and administrative
expenses (5,196,354) (733,909)
Depreciation and amortization expense (1,015,811) (53,735)
----------- -----------
Loss from operations (5,042,301) (703,198)
----------- -----------
Other income (expense):
Interest income 4,551 457
Interest expense (344,485) (1,474)
Other, net (18,230) 4,046
----------- -----------
(358,164) 3,029
----------- -----------
Loss before benefit for
income taxes (5,400,465) (700,169)
Income taxes -- --
----------- -----------
Net loss $(5,400,465) $(700,169)
----------- -----------
Loss per share - basic and diluted $(.15) $(.02)
----------- -----------
Weighted average shares - basic
and diluted 35,048,000 32,283,000
----------- -----------
Should be read in conjunction with Notes to Consolidated Financial
Statements contained in the Form 10-QSB issued on May 15, 2002.
CCC GlobalCom Corporation
Consolidated Statement of Cash Flows
(Unaudited)
Three Months Ended March 31,
---------------------------
2002 2001
----------- -----------
Cash flows from operating activities:
Net loss $(5,400,465) $(700,169)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization 1,015,811 53,735
Bad debt expense 623,159 --
Interest and fees added to line
of credit 160,879 --
(Increase) decrease in:
Restricted cash (365,029) --
Accounts receivable 238,047 143,045
Prepaid expenses 415,581 1,393
Other assets (158,673) (235,294)
Increase (decrease) in:
Accounts payable 3,079,530 (4,089)
Accrued compensation and other (168,510) --
Excise taxes payable 711,848 --
Accrued expenses 251,257 59,586
Deferred income 11,535 (86,852)
----------- -----------
Net cash provided by (used in)
operating activities 414,970 (768,645)
----------- -----------
Cash flows from investing activities:
Capital expenditures (44,901) (14,382)
----------- -----------
Net cash used in investing activities (44,901) (14,382)
----------- -----------
Cash flows from financing activities:
Payments on debt (26,151) (10,000)
Net decrease in line of credit (703,830) --
Proceeds from issuance of stock -- 281,529
----------- -----------
Net cash (used in) provided by
financing activities (729,981) 271,529
----------- -----------
Net decrease in cash (359,912) (511,498)
Cash, beginning of period 742,761 1,113,759
----------- -----------
Cash, end of period $382,849 $602,261
----------- -----------
Should be read in conjunction with Notes to Consolidated Financial
Statements contained in the Form 10-QSB issued on May 15, 2002.
CCC GlobalCom Corporation
Consolidated Statement of Cash Flows
Continued
(Unaudited)
Three Months Ended March 31,
---------------------------
2002 2001
----------- -----------
Supplemental disclosure of cash
flow information:
Cash paid during the period for:
Interest $24,500 $1,474
Income taxes $ -- $ --
During the three months ended March 31, 2002, the Company:
-- Increased common stock and additional paid in capital by $366,496
upon the issuance of 112,768 shares of common stock and decreased
accounts payable by the same amount. The services were provided in
2001.
-- RFC Capital Corp. exercised a warrant and received 125,000 shares
of company stock for a $500,000 reduction in the line of credit.
-- Purchased software financed with a $441,119 capital lease.
Should be read in conjunction with Notes to Consolidated Financial
Statements contained in the Form 10-QSB issued on May 15, 2002.
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