Condor Technology Solutions Announces Third Quarter 2001 Results.Business Editors/Hi-Tech Writers BALTIMORE--(BUSINESS WIRE)--Oct. 24, 2001 Condor Technology Solutions Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). Pink Sheets:CNDR CNDR Conductor (railroads) CNDR Consiliul National al Dizabilitatii din Romania (Romanian) ), a leading provider of technology and communications services, today reported continued improvement in financial results for the quarter ended Sept. 30, 2001. On third quarter revenues of $16 million, the company reported earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
After deducting interest and other expense ($56,000) and non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for depreciation ($518,000) and amortization ($486,000), the Company had a third quarter 2001 net loss of ($414,000). Net loss per share was down to ($.03), as opposed to last quarter's loss of ($.74). Cash generated from operations in the third quarter 2001 was $685,000. The decline in service revenue in the third quarter of 2001, relative to the second quarter, was largely the result of the sale of the Company's Global Core Strategies division in August. Product sales declines were largely the result of a lack of orders following September September: see month. 11. Orders now appear to be returning to prior levels. "Third quarter EBITDA improved more than $1 million over the previous quarter", said Jim Huitt, Condor president 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. . "The third quarter EBITDA is the first positive earnings contribution in six quarters and reflects improving operations, the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. settlement of some litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and the impact of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). programs implemented as part of our turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. effort. I am also forecasting positive EBITDA for the fourth quarter of this year. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings in the fourth quarter will continue to be subject to large non-cash depreciation and amortization charges resulting from high acquisition prices paid for companies and assets in prior years. Some divestitures this year and changes in accounting rules effective on January 1, 2001 will likely result in our earnings more closely tracking EBITDA in 2002." Condor previously announced a four-year restructuring with its lender group whereby the banks will convert approximately $12 million of debt into equity. "This is an extraordinary accomplishment and vote of confidence from our banks and was an absolute prerequisite pre·req·ui·site adj. Required or necessary as a prior condition: Competence is prerequisite to promotion. n. to our continuation as a Company," said Huitt. The bank restructuring plan will be on the agenda for approval at the Company's annual meeting planned for December 2001. Huitt concluded by saying, "The board, our management and I look forward to meeting the shareholders in December and reporting our substantial progress this year." An announcement on the date and agenda for the meeting is expected early next week. Condor Technology Solutions Inc. Condor Technology Solutions is a technology and communications company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. specializing in the organization, analysis and creative distribution of business information. The company's business practices include Web development, business intelligence, contact center services, infrastructure support and marketing communications Marketing communications (or marcom) are messages and related media used to communicate with a market. Those who practice advertising, branding, direct marketing, graphic design, marketing, packaging, promotion, publicity, sponsorship, public relations, sales, sales . Condor Technology Solutions was founded in 1998. It is headquartered in Baltimore, Maryland "Baltimore" redirects here. For the surrounding county, see Baltimore County, Maryland. For other uses, see Baltimore (disambiguation). Baltimore is an independent city located in the state of Maryland in the United States. , with offices and operations throughout the Northeast. The company's Web site is www.cndr.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statements in this press release that are not strictly historical are "forward looking" statements that are subject to risk and uncertainty. Factors that could cause actual results to differ materially include, but are not limited to, managing risks associated with client projects, competition, acquisitions, acquisition integration, retention of clients of acquired companies, attracting and retaining highly skilled employees, revenue and earnings assumptions based on assumptions about continued growth and margins, as well as other risks detailed in company reports filed with the Securities and Exchange Commission, including its prospectus, 10-K and 10-Q filings.
CONDOR TECHNOLOGY SOLUTIONS, INC.
QUARTERS ENDED SEPT. 30, 2001 AND JUNE 30, 2001
STATEMENT OF OPERATIONS DATA (UNAUDITED):
3Q01 3Q01 2Q01 2Q01
($000) % ($000) %
-------- -------- -------- --------
IT Service
revenues $ 11,146 69.7% $ 12,370 69.8%
Product revenues 4,842 30.3% 5,345 30.2%
-------- -------- -------- --------
Total revenues 15,988 100.0% 17,715 100.0%
Cost of IT
Services 6,585 59.1% 7,750 62.7%
Cost of Products 3,813 78.7% 4,867 91.1%
-------- --------
Total cost of
revenues 10,398 65.0% 12,617 71.2%
-------- --------
Gross profit 5,590 35.0% 5,098 28.8%
Selling, general
and
administrative 4,969 31.1% 5,538 31.3%
Other (A) (25) (0.1)% (72) (0.4)%
-------- -------- -------- --------
Earnings (loss)
before Interest,
Taxes,
Depreciation and
Amortization and
Impairment of
Long-lived
Assets 646 4.0% (368) (2.1)%
Impairment of
Long-lived
Assets -- -% 9,400 53.1%
Depreciation 518 3.2% 776 4.4%
Amortization 486 3.0% 572 3.2%
-------- -------- -------- --------
Operating loss (358) (2.2)% (11,116) (62.8)%
Interest and
other expense,
net (56) (0.4)% (149) (0.8)%
-------- -------- -------- --------
Loss before taxes (414) (2.6)% (11,265) (63.6)%
Income tax
provision -- -% -- -%
-------- -------- -------- --------
Net loss $ (414) (2.6)% $(11,265) (63.6)%
-------- -------- -------- --------
Shares
Outstanding -
Basic (000's) 15,299 15,299
-------- --------
Shares
Outstanding -
Diluted (000's) 15,299 15,299
-------- --------
Net loss per
share - Basic $ (0.03) $ (0.74)
-------- --------
Net loss per
share - Diluted $ (0.03) $ (0.74)
-------- --------
(A) Other costs include the following charges in 3Q01, gain on sale of
subsidiaries of ($0.45 million); lease termination costs of $0.56
million including writeoff of fixed assets of $0.2 million; net
proceeds from litigation of $(0.15 million); and other costs of
$0.01 million; in 2Q01, gain on sale of subsidiary of ($0.96
million) and other costs of $0.24 million.
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