Frontline Communications Restates Second Quarter 2003 Results; Quarterly losses decline from $942,000 to $266,000.Business Editors PEARL RIVER Pearl River, uninc. village (1990 pop. 15,314), Rockland co., SE N.Y., near the N.J. line. It is a residential suburb of New York City, and a computer and telecommunications research and development center. Pearl River River, central Mississippi, U. , N.Y.--(BUSINESS WIRE)--Oct. 6, 2003 Frontline Communications Corp. (AMEX AMEX See: American Stock Exchange : FNT FNT Font (File Name Extension) FNT Front FNT Fontana (postal locality, Malta) FNT Fascinating New Thing (song) FNT Flint, MI, USA - Bishop Int'l Airport ), www.fcc.net, restated its three-month and six-month results ending June 30, 2003. The changes involved the reversing of a $750,622 non-cash charge 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. taken in the second quarter for the issuance of certain preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Provo acquisition, and the decrease in the outstanding number of shares of common stock from 46,781,511 to 10,141,126 for the three months ended June 30, 2003. The reported number of shares in its original filing of August 19, 2003, reflected the conversion into common stock of all preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. issued in the Provo acquisition. The revised number of 10,141,126 does not give effect to those conversions, which will not be accounted for until shareholder approval. As a result of these adjustments, the revised numbers follow, and include the April 3, 2003, acquisition of all of the issued and outstanding stock of Proyecciones y Ventas Organizadas, S.A. de C.V. ("Provo"). Revenues for the three months ended June 30, 2003 increased by 1,498.5% to $20,571,986 compared with revenues of $1,286,961 for the three months ended June 30, 2002. For the three months ended June 30, 2003, after recognizing a $449,850 gain on debt settlement, the net loss decreased by $13,694 to $190,922 compared to a net loss of $204,616 in the comparable period in 2002. For the three-months ended June 30, 2003, after adjusting for preferred stock dividends, the net loss available to common shareholders was $265,389 or $.03 per common share compared to $280,051 or $.03 in the comparable period in 2002. Revenues for the six months ended June 30, 2003 increased by 719.9% to $21,638,113 compared with revenues of $2,639,230 for the six months ended June 30, 2002. For the six months ended June 30, 2003, after recognizing a $449,850 gain on settlement, the net loss decreased by $30,051 to $388,749 compared to a net loss of $418,800 in the comparable period in 2002. For the six months ended June 30, 2003, after adjusting for preferred stock dividends, the net loss available to common shareholders was $537,683 or $.06 per common share compared to $573,300 or $.06 in the comparable period in 2002. About Frontline Frontline Communications Corporation, founded in 1995, is a technology company currently focused on the sale of prepaid phone cards and cellular phone airtime air·time n. 1. The time during which a radio or television station is broadcasting. Also called airspace. 2. The time at which a radio or television program is broadcast. , as well as Internet access See how to access the Internet. , Website design, hosting, long distance voice services, and related products. Frontline will soon begin marketing cash cards, payroll cards, and other forms of payroll and money transfer transactions tailored to Latin American communities 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. . Recently, Frontline closed on the acquisition of Proyecciones y Ventas Organizadas, S.A. de C.V. (Provo), a Mexican corporation established in 1995, that maintains a dominant position within the prepaid calling card and cellular phone airtime markets in Mexico. The Company is the largest reseller for Telmex, the largest telecommunications carrier in Mexico. In addition, Frontline has entered into an agreement to acquire InterMR S.A. de C.V. (InterMR), a company focused on ATM and Electronic Money Transfer equipment and transactions. This acquisition fulfills the hardware, distribution, and service components of the Company's soon-to-be-launched cash and payroll products and services. The statements which are not historical facts contained in this press release are forward looking statements that involve certain known and unknown risks and uncertainties, including but not limited to, changes in the market for Internet services, regulatory and technological changes, economic factors, increased competition, and the nature of supplier and customer arrangements which become available to the Company in the future. The Company's actual results may differ materially from the results discussed in, or implied by, any forward-looking statement 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. . The words "intend," "expect," "should," "project," and "anticipate," and similar expressions identify forward looking statements. Readers are cautioned not to place undue reliance on these forward looking statements which speak only as of the date they were made. |
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