CCC GlobalCom Reports Third Quarter Results.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers HOUSTON--(BUSINESS WIRE)--Nov. 15, 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 third quarter ended Sept. 30, 2002. For the quarter ended Sept. 30, 2002, revenue increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.7 million to $6.8 million from $3.1 million for the prior-quarter period in 2001. The large increase in sales was the result of new customers gained in the acquisition of EqualNet Communications Corp., Omniplex Omniplex may mean:
LLC - Logical Link Control and Incomnet Communications Corp. acquisitions in 2001. The net loss for the quarter ended Sept. 30, 2002 was $5.8 million or $(0.16) 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 compared to a net loss of $2.2 million or $(0.07) per diluted share for the prior-quarter period ended Sept. 30, 2001. The net loss for the 2002 quarter-ended period is the result of (a) increased direct carrier cost, (b) selling, general and administrative expenses related to the increased customer base from the acquisitions and (c) a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. $2.3 million non-cash write off of certain leasehold improvements Leasehold Improvement Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. . These assets, which were part of the Incomnet acquisition, were written off as a result of the closing of the Irvine Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif., facility. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. E. Licata Licata (lēkä`tä), city (1991 pop. 41,300), S Sicily, Italy, on the Mediterranean Sea at the mouth of the Salso River. Licata is a seaport, seaside resort, and commercial and industrial center. , chief executive officer of CCC GlobalCom Corporation, stated, "We have completed the integration of the assets acquired during 2001. These acquisitions provided a significant amount of growth and increased revenue. Our focus now is on reducing our carrier cost and general and administrative expenses. We believe the focus on these fundamentals will position the company for 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. growth and increased market share." 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 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. Statements in this release, which express a belief, expectation, or intention, as well as those, which 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. For additional information on CCC GlobalCom Corporation, please visit www.cccglobalcom.com.
CCC GLOBALCOM CORPORATION
CONSOLIDATED BALANCE SHEET
SEPT. 30, 2002
(UNAUDITED)
Assets
------
Current assets:
Cash and cash equivalents $957,399
Restricted cash 564,638
Accounts receivable, net of allowance
of $1,507,137 4,607,133
Prepaid expenses 167,946
------------
Total current assets 6,297,116
Property and equipment, net 2,791,465
Intangibles, net 1,440,374
Other 446,445
------------
Total assets $10,975,400
------------
Liabilities and Stockholders' Deficit
-------------------------------------
Current liabilities:
Line of credit $16,598,304
Accounts payable 14,471,699
Accrued compensation and other 563,667
Current portion of long-term debt 1,166,549
Excise taxes payable 3,135,910
Accrued expenses 1,260,980
Deferred income 426,570
------------
Total current liabilities 37,623,679
Long-term debt 685,732
------------
Total liabilities 38,309,411
------------
Commitments and contingencies -
Stockholders' deficit:
Common stock, $.001 par value, authorized
100,000,000 shares; issued and outstanding
37,214,098 shares 37,215
Additional paid-in capital 9,709,655
Accumulated deficit (37,080,881)
------------
Total stockholders' deficit (27,334,011)
------------
$10,975,400
------------
See accompanying Notes to Consolidated Financial Statements.
CCC GLOBALCOM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT. 30 SEPT. 30
------------------------ -------------------------
2002 2001 2002 2001
------------ ----------- ------------- -----------
Net sales $6,836,281 3,087,026 $21,207,222 6,316,100
Cost of services (4,916,818) (2,007,495) (16,054,755) (3,861,525)
SG&A expenses (4,179,905) (2,444,111) (14,653,167) (5,091,962)
Depreciation and
amortization
expenses (893,392) (633,805) (2,866,216) (1,154,761)
------------ ----------- ------------- -----------
------------ ----------- ------------- -----------
Loss from
operations (3,153,834) (1,998,385) (12,366,916) (3,792,148)
------------ ----------- ------------- -----------
Other income
(expense):
Interest income 73 445 11,778 1,688
Interest expense (349,149) (240,096) (1,027,228) (380,491)
Loss on
abandonment of
fixed assets (2,312,266) - (2,312,266) -
Other, net (4,655) 1,038 (68,252) 24,353
------------ ----------- ------------- -----------
(2,665,997) (238,613) (3,395,968) (354,450)
------------ ----------- ------------- -----------
Loss before
provision
for income taxes: (5,819,831) (2,236,998) (15,762,884) (4,146,598)
Income taxes 350 - (10,255) -
------------ ----------- ------------- -----------
Net loss $(5,819,481) (2,236,998) $(15,773,139) (4,146,598)
------------ ----------- ------------- -----------
Loss per share -
basic and diluted $(0.16) (0.07) $(0.44) (0.13)
------------ ----------- ------------- -----------
Weighted average
shares -
basic and diluted 36,671,000 32,766,000 35,863,000 32,766,000
------------ ----------- ------------- -----------
See accompanying Notes to Consolidated Financial Statements.
CCC GLOBALCOM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
NINE MONTHS ENDED
SEPT. 30,
--------------------------
2002 2001
--------------------------
Cash flows from operating activities:
Net loss $(15,773,139) $(4,146,598)
Adjustments to reconcile net loss
to net cash provided by (used in)
operating activities:
Depreciation and amortization 2,866,216 1,154,761
Bad debt expense 1,260,767 177,444
Stock issued for services 420,000 -
Interest and fees added to
line of credit 993,072 -
Loss on sale/Abandonment of
fixed assets 2,312,266 5,805
(Increase) decrease in:
Restricted cash (154,307) (375)
Accounts receivable (22,204) (672,359)
Prepaid expenses 460,651 (338,485)
Other assets (122,662) 19,242
Increase (decrease) in:
Accounts payable 8,257,170 1,272,371
Accrued compensation and
other (49,532) 554,481
Excise taxes payable 1,893,172 -
Accrued expenses 206,810 -
Deferred income 139,688 (75,915)
--------------------------
Net cash provided by (used in)
operating activities 2,687,968 (2,049,628)
--------------------------
Cash flows from investing activities:
Purchase of property and equipment (130,936) (104,608)
Acquisition of customer base - (26,000)
Purchase of Equalnet assets - (500,000)
Purchase of Omniplex assets - (173,704)
Purchase of switching equipment - (750,000)
Proceeds from sale of equipment - 1,851
--------------------------
Net cash used in investing activities (130,936) (1,552,461)
--------------------------
Cash flows from financing activities:
Payments on debt (212,440) (10,000)
Net increase (decrease) in line of
credit (2,129,954) 326,596
Proceeds from issuance of stock - 2,343,176
--------------------------
Net cash (used in) provided by
financing activities (2,342,394) 2,659,772
--------------------------
Net increase (decrease) in
cash 214,638 (942,317)
CCC GLOBALCOM CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Cash, beginning of period 742,761 1,113,759
--------------------------
Cash, end of period $957,399 $171,442
--------------------------
See accompanying Notes to Consolidated Financial Statements.
CCC GLOBALCOM CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
CONTINUED
(UNAUDITED)
NINE MONTHS ENDED
SEPT. 30,
------------------------
2002 2001
------------------------
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Interest $61,674 $380,491
------------------------
Income taxes $0.00 $0.00
------------------------
During the nine months ended Sept. 30, 2002, the Company:
-- Satisfied payables with the issuance of common stock for
$442,496.
-- Issued common stock to employees for compensation totaling
$371,200.
-- 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.
-- Satisfied a carrier payable with the transfer of customer base
for $100,000.
During the nine months ended Sept. 30, 2001, the Company:
-- Purchased the assets of EqualNet Communications Corporation
for $500,000 cash and assumption of $7,661,511 of debt.
-- Purchased the assets of Omniplex Communications Corporation
for $173,704 cash and assumption of $8,125,000 of debt.
See accompanying Notes to Consolidated Financial Statements.
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