CCC GlobalCom Reports Fourth Quarter/Twelve Months Results.Business Editors HOUSTON--(BUSINESS WIRE)--April 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 (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: 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, reported results for the fourth quarter and twelve months ended December 31, 2001. For the year-ended December 31, 2001, total revenue increased 554% to approximately $11.9 million from approximately $1.8 million for the prior-year period in 2000. The significant increase in sales largely reflects new customers gained from the company's successful roll-up roll-up A master limited partnership in which a number of existing limited partnerships are pooled into a single partnership. of assets from three acquisitions made during 2001, which include assets from Equalnet Communications Corp., Omniplex Communications Group, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , and Incomnet Communications Corp. Net loss for the 2001 year-end was approximately $18.8 million, or $(0.57) 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 $1.8 million, or $(0.06) per diluted share, for the prior-year period. Net loss for the 2001 year-end period is primarily a result of the expenses associated with the integration of three significant asset acquisitions made in 2001; therefore, the comparative results between 2001 and 2000 are not a meaningful indication of current success 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, "2001 was a year of remarkable achievement for CCC GlobalCom, marked by key operational milestones. We carved carve v. carved, carv·ing, carves v.tr. 1. a. To divide into pieces by cutting; slice: carved a roast. b. even deeper inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ into the telecommunications market through integration of the assets of three acquisitions, (April 2001 to November 2001) where we have significantly expanded our customer base, increasing our access lines from 7,000 to approximately 137,000. Accordingly, this strategic investment immediately benefited the company with unprecedented revenue growth in 2001. And with our current focus on customer retention, we are confident in a prosperous, long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. relationship with our customers. "Looking ahead, we are rigorously advancing the momentum built in 2001. We successfully penetrated California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Texas and Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. in
2001 and we will selectively expand local services into new states and
under-served, high-return niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector.By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. . Also, we will continue leveraging our direct and indirect sales channels to grow and retain our customer base as well as expand our product offerings. Equally important, we will continue to deploy voice switches, such as our most recent deployment in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , which dramatically reduced regional telecom service costs by approximately 20%-30% and lowered rates to Pac-Rim and Latin American countries List of American countries Nations:
"Overall, we successfully built a solid foundation in 2001 for greater future growth in 2002 and beyond. We have plans to provide service in the Florida, New York Florida is the name of some places in the U.S. state of New York:
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. CCC GlobalCom Corporation offers a full range of communications services to commercial and residential customers while providing a single point of contact through bundled billing services. CCC GlobalCom Corporation provides local, long distance, high-speed data, Internet, 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. . 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. 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
Financial Highlights
For the Three Months Ended For the Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
2001 2000 2001 2000
------------- ------------- ------------- -------------
Net sales $ 5,626,695 $ 547,906 $ 11,942,795 $ 1,827,364
Cost of
services (4,428,026) (500,600) (8,289,551) (1,425,260)
Selling,
general and
administrative
expenses (7,036,893) (742,882) (12,124,613) (2,090,071)
Depreciation
and
amortization
expense (1,433,534) (61,324) (2,592,537) (128,934)
------------- ------------- ------------- -------------
Loss from
operations (7,271,758) (756,900) (11,063,906) (1,816,901)
------------- ------------- ------------- -------------
Other income
(expense):
Interest
income 7,201 8,286 8,889 15,956
Interest
expense (453,696) 2,191 (834,187) (384)
Impairment
loss (6,896,170) - (6,896,170) -
Other, net (29,346) 14,579 (4,993) 11,762
------------- ------------- ------------- -------------
(7,372,011) 25,056 (7,726,461) 27,334
------------- ------------- ------------- -------------
Loss before
benefit for
income
taxes (14,643,769) (731,844) (18,790,367) (1,789,567)
Income taxes - - - -
------------- ------------- ------------- -------------
Net loss $(14,643,769) $ (731,844) $(18,790,367) $ (1,789,567)
------------- ------------- ------------- -------------
Loss per share
- basic and
diluted $ (.43) $ - $ (.57) $ (.06)
------------- ------------- ------------- -------------
Weighted
average shares
- basic and
diluted 34,046,058 - 32,999,123 31,384,000
------------- ------------- ------------- -------------
CCC GLOBALCOM CORPORATION
Consolidated Balance Sheets
December 31, December 31,
2001 2000
Assets
Current assets:
Cash and cash equivalents $ 742,761 $ 1,113,759
Restricted cash 410,331 -
Accounts receivable, net of
allowance for doubtful accounts of
$2,381,125 and $20,671,
respectively 5,318,586 365,554
Prepaid expenses 628,597 4,445
------------ ------------
Total current assets 7,100,275 1,483,758
Property and equipment, net 6,038,393 116,391
Intangibles, net 2,737,373 407,627
Other 323,783 15,000
------------ ------------
$16,199,824 $ 2,022,776
------------ ------------
Liabilities and Stockholders' Deficit
Current liabilities:
Line of credit $18,235,186 $ -
Accounts payable 6,019,341 106,873
Accrued compensation and other 613,199 -
Current portion of long-term debt 1,216,792 10,000
Excise taxes payable 1,242,738 -
Accrued expenses 1,054,171 77,366
Deferred income 286,882 172,553
------------ ------------
Total current liabilities 28,668,309 366,792
Long-term debt 569,384 8,025
------------ ------------
Total liabilities 29,237,693 374,817
------------ ------------
Commitments and contingencies - -
Stockholders' deficit:
Common stock, $.001 par value,
authorized 100,000,000 shares;
issued and outstanding 34,926,150
and 32,325,710 shares, respectively 34,926 32,326
Additional paid-in capital 8,234,947 4,133,008
Accumulated deficit (21,307,742) (2,517,375)
------------ ------------
Total stockholders' deficit (13,037,869) 1,647,959
------------ ------------
$16,199,824 $ 2,022,776
------------ ------------
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