CCC GlobalCom Reports 2002 Second Quarter Results.Business Editors/High-Tech Writers HOUSTON--(BUSINESS WIRE)--Aug. 19, 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 second quarter ended June June: see month. 30, 2002. For the quarter-ended June 30, 2002, total revenue increased $4,486,596 to $7,309,824 from $2,823,228 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 June 30, 2002 was $4,553,193 or $(0.13) 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 $1,209,431, or $(0.04) per diluted share for the prior-quarter period, ended June 30, 2001. Net loss for the 2002 quarter-end period is a direct result of the expenses including selling, general and administrative 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. Hakim, chairman 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 Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. - 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. . CCC GlobalCom Corporation offers services into 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. that include the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of calls, such as phone-to-phone, fax, data, unified messaging Having access to e-mail, voice mail and faxes via a common computer application or by telephone. For example, unified messaging may send faxes and digitized voice mail to a mail server that turns them into e-mail attachments. services, short message service, email, voicemail See voice mail. and other enhanced services Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; , as well as pre-paid calling card service. In addition, CCC GlobalCom Corporation has been named as the preferred clearinghouse clearinghouse Institution established by firms engaged in similar activities to enable them to offset transactions with one another in order to limit payment settlements to net balances. for VoIP traffic terminating in Indonesia. CCC GlobalCom Corporation is actively seeking opportunities to acquire existing 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. 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
June 30, 2002
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 818,251
Restricted cash 500,371
Accounts receivable, net of allowance of $1,639,821 4,403,519
Prepaid expenses 287,628
--------------
Total current assets 6,009,769
Property and equipment, net 5,589,299
Intangibles, net 1,939,374
Other 483,360
--------------
$ 14,021,802
--------------
Liabilities and Stockholders' Deficit
Current liabilities:
Line of credit $ 16,661,202
Accounts payable 12,383,777
Accrued compensation and other 552,947
Current portion of long-term debt 1,093,674
Excise taxes payable 2,614,959
Accrued expenses 1,075,682
Deferred income 457,644
--------------
Total current liabilities 34,839,885
Long-term debt 816,447
--------------
Total liabilities 35,656,332
--------------
Commitments and contingencies -
Stockholders' deficit:
Common stock, $.001 par value, authorized 100,000,000
shares; issued and outstanding 36,213,918 shares 36,215
Additional paid-in capital 9,590,655
Accumulated deficit (31,261,400)
--------------
Total stockholders' deficit (21,634,530)
--------------
$ 14,021,802
--------------
Should be read in conjunction with Notes to Consolidated Financial
Statements contained in the Form 10-QSB issued on August 19, 2002.
CCC GlobalCom Corporation
Consolidated Statement of Operations
(Unaudited)
Three Months Ended June 30,
---------------------------
2002 2001
---------------------------
Net sales $ 7,309,824 $ 2,823,228
Cost of services (5,246,683) (1,532,630)
Selling, general and administrative expenses (5,276,909) (1,913,942)
Depreciation and amortization expense (957,013) (467,221)
--------------------------
Loss from operations (4,170,781) (1,090,565)
--------------------------
Other income (expense):
Interest income 7,154 786
Interest expense (333,594) (138,921)
Other, net (45,367) 19,269
--------------------------
(371,807) (118,866)
--------------------------
Loss before provision for income
taxes (4,542,588) (1,209,431)
Income taxes (10,605) -
--------------------------
Net loss $(4,553,193) $(1,209,431)
--------------------------
Loss per share - basic and diluted $ (0.13) $ (0.04)
--------------------------
Weighted average shares - basic and diluted 35,852,000 32,334,000
--------------------------
Should be read in conjunction with Notes to Consolidated Financial
Statements contained in the Form 10-QSB issued on August 19, 2002.
CCC GlobalCom Corporation
Consolidated Statement of Cash Flows
(Unaudited)
Six Months Ended June 30,
--------------------------
2002 2001
--------------------------
Cash flows from operating activities:
Net loss $(9,953,658) $(1,909,600)
Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
Depreciation and amortization 1,972,824 520,956
Bad debt expense 805,167 64,526
Stock issued for services 300,000 -
Interest and fees added to line of
credit 600,826 -
Loss on sale of fixed assets - 5,805
(Increase) decrease in:
Restricted cash (90,040) -
Accounts receivable 109,900 (153,366)
Prepaid expenses 340,969 (312,080)
Other assets (159,576) 14,625
Increase (decrease) in:
Accounts payable 6,586,110 101,345
Accrued compensation and other (60,252) -
Excise taxes payable 1,372,221 -
Accrued expenses 21,511 546,598
Deferred income 170,762 (83,376)
--------------------------
Net cash provided by (used in) operating
activities 2,016,764 (1,204,567)
--------------------------
Cash flows from investing activities:
Capital expenditures (122,112) (1,371,786)
--------------------------
Net cash used in investing activities (122,112) (1,371,786)
--------------------------
Cash flows from financing activities:
Payments on debt (144,352) (10,000)
Net decrease in line of credit (1,674,810) 153,769
Proceeds from issuance of stock - 2,343,176
--------------------------
Net cash (used in) provided by financing
activities (1,819,162) 2,486,945
--------------------------
Net increase (decrease) in cash 75,490 (89,408)
Cash, beginning of period 742,761 1,113,759
--------------------------
Cash, end of period $ 818,251 $ 1,024,351
--------------------------
Should be read in conjunction with Notes to Consolidated Financial
Statements contained in the Form 10-QSB issued on August 19, 2002.
CCC GlobalCom Corporation
Consolidated Statement of Cash Flows
Continued
(Unaudited)
Six Months Ended June 30,
-------------------------
2002 2001
-------------------------
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Interest $ 43,300 $ -
---------------------
Income taxes $ - $ -
---------------------
During the six months ended June 30, 2002, the Company:
-- Satisfied a payable with common stock for $394,496.
-- Issued common stock to an employee for compensation totaling
$300,000.
-- Converted $500,000 of the RFC line of credit to common stock
pursuant to the warrant agreement with RFC.
-- Issued common stock in exchange for equipment totaling
$162,500.
-- Financed the purchase of software with debt totaling $441,119.
During the six months ended June 30, 2001, the Company:
-- Purchased the assets of EqualNet Communications Corporation
for $500,000 cash and assumption of $7,661,511 of debt.
Should be read in conjunction with Notes to Consolidated Financial
Statements contained in the Form 10-QSB issued on August 19, 2002.
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