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CENTEX TELEMANAGEMENT INC. REPORTS RECORD HIGH BILLINGS IN THIRD QUARTER 1992 RESULTS

 CENTEX TELEMANAGEMENT INC. REPORTS RECORD HIGH BILLINGS
 IN THIRD QUARTER 1992 RESULTS
 SAN FRANCISCO, Nov. 5 /PRNewswire/ -- Centex Telemanagement Inc. (NASDAQ: CNTX) today reported record high billings and number of clients served for the third quarter of 1992, representing the 20th consecutive quarter as a public company that it has recorded record highs for these areas.
 Client billings in the third quarter were $48,644,000 representing a 28 percent gain over the $37,943,000 recorded in the corresponding 1991 period. Operating income for the current quarter was $3,373,000, compared with $4,280,000 for the corresponding period a year earlier. Net income for the quarter was $2,153,000, or $.11 per share, compared to $2,888,000, or $.15 per share, in the year-earlier period. The quarterly results include a one-time $1,180,000 expense, or $.04 per share adjustment, resulting from the combination of a change in the timing of sales commission payments, and a billings and processing issue related to one of the services its clients receive.
 For the first nine months of 1992, net income totaled $7,916,000, or $.41 per share, compared with $8,658,000, or $.44 a share, a year earlier. Operating income for the current nine months was $12,196,000, compared with $12,627,000 in the corresponding 1991 period.
 Peter A. Howley, Centex chairman, president and chief executive, said, "The uninterrupted growth to record levels of both billings and clients served in the third quarter demonstrates once again the fundamental strengths of the company's business, especially in view of the continued poor recovery in the economy. It is clear we have developed a high-quality and competitively differentiated management service that has been widely received in the eight states in which we operate."
 He added, "Total clients served grew by 236 to a record 10,683 clients served following a downward adjustment in the total number of clients served by 329 to correct a database error detected as we continued the current process of expanding our infrastructure systems." He continued, "As we announced in 1991, we continue to expand our infrastructure, at the expense of earnings, to increase our capacity to serve smaller businesses throughout the U.S., a move we think will position us for future growth."
 Howley said, "I'm very confident about our progress as we put in place the elements that will enable us to meet our goals of creating a much larger and better service company. The fact that we are now profitable, before corporate overhead, in 19 of our 20 branch offices only adds to that confidence."
 The first of the unusual expenses in the third quarter included a billing and processing issue related to the management of 800 service on behalf of Centex clients, equal to a $.025 per share reduction in earnings, where the ratio of billed services to costs did not conform to historical and projected relationships. The company believes that this issue is largely resolved, does not currently anticipate a recurrence of the issue and is actively completing its investigation.
 The second such expense arose from a policy change to pay commissions on a current rather than deferred basis. As a result, Centex paid its sales personnel in the third quarter under both the old and new plans, giving rise to a one-time transitional expense equal to approximately $.015 per share. The policy change was directly tied to infrastructure improvements and provides more timely and accurate information to management to make marketing adjustments. The improved information, combined with earlier commission payments, also enhances sales employee motivation.
 Centex's balance sheet continues to reflect the company's strong basic resources. Centex has no debt, and its cash equivalents at the end of the third quarter totaled $22.6 million. The company increased its purchase of Centex shares on the open market, buying 620,500 shares in the first nine months, compared with 449,000 shares in all of 1991. "With Centex stock, in our opinion, substantially underpriced in the market at the moment, we believe our increased purchases represent a good use of our substantial cash to enhance shareholder value," Howley stated.
 Centex Telemanagement is a pioneer in providing comprehensive telecommunications management services to small- and medium-sized businesses. Centex provides a single point of contact for smaller businesses, which face increasing complexity and confusion resulting from the expanding number of local and long distance telecommunications options. In exchange for a management fee, Centex provides a broad range of sophisticated management services, such as multivendor coordination and management, equipment analysis, call routing optimization and accounting and voice messaging.
 Centex analyzes the telecommunications needs of its clients and selects the best mix of services from various third-party providers to be shared by its clients under Centex management.
 CENTEX TELEMANAGEMENT INC.
 Consolidated Statements of Operations
 (In thousands, except for per share amounts)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Billings to clients $48,644 $37,943 $139,360 $107,508
 Costs and expenses
 Telecommunications
 service costs 33,242 24,727 94,043 71,452
 Client acquisition
 expenses 6,714 4,940 18,103 13,718
 General and
 administrative
 expenses 5,315 3,996 15,018 9,711
 Total costs and
 expenses 45,271 33,663 127,164 94,881
 Operating income 3,373 4,280 12,196 12,627
 Interest income, net 156 295 628 1,075
 Income before income
 tax 3,529 4,575 12,824 13,702
 Income taxes (1,376) (1,687) (4,908) (5,044)
 Net income $2,153 $2,888 $7,916 $8,658
 Net income per share $0.11 $0.15 $0.41 $0.44
 Shares used in
 computing net
 income per share 18,885 19,522 19,288 19,636
 CENTEX TELEMANAGEMENT INC.
 Consolidated Balance Sheet
 (In thousands)
 Sept. 30, Dec. 31,
 1992 1991
 Assets
 Cash and short-term
 investments $22,564 $24,481
 Accounts receivable, net 37,342 31,321
 Other current assets 3,331 2,518
 Total current assets 63,237 58,320
 Fixed assets 17,785 12,128
 Accumulated depreciation
 and amortization (4,769) (3,456)
 Net fixed assets 13,016 8,672
 Other assets 2,736 2,270
 Total assets $78,989 $69,262
 Liabilities and Equity
 Accounts payable $23,352 $16,195
 Other current liabilities 2,923 1,624
 Total current liabilities 26,275 17,819
 Deferred income taxes 1,142 1,042
 Common stock 101 100
 Paid-in capital 41,464 39,698
 Retained earnings 33,175 25,260
 Cost of reacquired stock (23,168) (14,657)
 Stockholders' equity 51,572 50,401
 Total liabilities and
 equity $78,989 $69,262
 -0- 11/5/92
 /CONTACT: Peter A. Howley, chairman, president and CEO of Centex Telemanagement, 415-882-2300/
 (CNTX) CO: Centex Telemanagement Inc. ST: California IN: TLS SU: ERN


JL-JB -- LA014 -- 2782 11/05/92 06:31 EST
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