GTS Announces Third Quarter Results, Reduction in Overhead and Restructuring.MARLTON Marlton can refer to several things:
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. Solutions, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: GTST GTST Goede Tijden, Slechte Tijden (Good Times, Bad Times; Dutch TV soap opera) GTST Grimsby Town Supporters Trust (Grimsby, UK) GTST Global Traffic Safety Trust , GTSTW)("GTS GTS abbr. gas turbine ship " or the "Company"), a leading provider of prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. telecommunication services, Tuesday Tuesday: see week. announced that it has taken
significant steps to reduce operating expenses Operating expensesThe amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in future periods. GTS also announced its third quarter and nine months operating results, including a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . During the third quarter, the Company took the following actions to reduce operating expenses during future periods: (1) The Company consolidated its operations into a new facility. As a part of the consolidation, the Company is closing its Philadelphia, Pa., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , N.Y., Moorestown, N.J., Jersey City, N.J. and Miami Fl. offices. This consolidation will result in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. savings of approximately $350,000. (2) The Company has reduced its senior management team from six to three executives. The remaining three senior executives have voluntarily reduced their salaries by approximately 30%. Combined, these two initiatives have reduced executive compensation from $980,000 per year to $325,000 per year resulting in annualized savings of $655,000. (3) The Company has reduced its workforce by 29 employees which will provide annualized savings of approximately $1 million. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter ended September 30, 1998 were $9,359,063 compared to $5,412,586 for the comparable 1997 period, a 73% year-to-year increase. The Company's net loss for the third quarter was $4,497,691 or $0.75 per share, compared to $2,158,783, or $0.47 per share for the same period during 1997. The Company's 1998 third quarter loss includes a one-time re-structuring charge of $891,436. The Company's operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. deficit (EBIDA EBIDA Earnings Before Interest, Depreciation And Amortization EBIDA Earnings Before Income taxes Depreciation and Amortization ) for the third quarter was $2,145,360 after deducting interest expense and non-cash financing costs of $947,822, depreciation and amortization expense of $513,073 and the one-time re-structuring charge of $891,436. Net sales for the nine months ended September 30, 1998 were $22,523,731 compared to $14,017,001 for the comparable 1997 period, a 60% year-to-year increase. The Company's net loss for the nine months ended September 30, 1998 was $12, 216,185 or $2.08 per share, compared to $6,305,299, or $2.20 per share for the same period during 1997. The Company's results for the 1998 third quarter and nine months ended September 30 include the first quarter acquisitions of Networks Around The World and Centerpiece Communications. Randy The name Randy generally derives from the names Randall or Randolph (meaning wolf with a shield). Randy is used as a given name primarily in the US and Canada. Men known as Randy
Mr. Cherkas continued, "I am committed to making whatever changes are necessary to turn this Company around. Our management team will take all reasonable steps to ensure that the Company moves toward reporting positive operational cash flow in future periods. The recent steps taken demonstrate our determination to bring about positive change and our commitment to the Company's stockholders." Mr. Shelly Finkel, the Company's Chairman of the Board, stated "I am very excited about the Company's progress during the short period of time Randy has been President. The positive strides we are taking are the tangible results we anticipated when we brought Randy in to lead the Company. Randy is executing our plan and we anticipate more positive strides during future periods." Global Telecommunication Solutions, Inc. is a facilities-based, global provider of prepaid phone cards that offer users reliable, convenient and cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. access to domestic and international telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. . The Company's core product line consists of traditional prepaid phone cards marketed domestically and internationally. The Company also offers custom-designed prepaid phone cards for business promotional use. Except for any historical information contained herein, the matters discussed in the press release contain 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. that involve risks and uncertainties which are described in the Company's SEC reports, including the Company's Form 10-KSB for the year ended December 31, 1997, Form 10-QSB for the periods ended March 31, 1998 and June 30, 1998, and Prospectus dated July 9, 1997. -0-
Global Telecommunication Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
------------------ -----------------
1998 1997 1998 1997
---- ---- ---- ----
Net sales $ 9,359,063 $ 5,412,586 $22,523,731 $14,017,001
Cost of sales 8,647,063 4,701,152 21,935,405 11,480,760
Selling, general
and administrative
expenses 2,857,360 2,154,245 8,249,375 6,613,909
----------- ----------- ----------- -----------
Recurring
operating
cash flow
(deficit) (2,145,360) (1,442,811) (7,661,049) (4,077,668)
Restructuring
Charge 891,436 - 891,436 -
Depreciation and
amortization 513,073 493,741 1,463,402 1,367,717
Interest expense
and non cash
financing costs 947,822 222,231 2,200,298 860,214
----------- ----------- ----------- -----------
Net loss $(4,497,691) $(2,158,783) $(12,216,185) $(6,305,599)
=========== =========== =========== ===========
Net loss per
share $ (0.75) $ (0.47) $ (2.08) $ (2.20)
=========== =========== =========== ===========
Weighted
average
shares
outstanding 5,993,916 4,604,832 5,873,128 2,860,616
=========== =========== =========== ===========
Global Telecommunication Solutions, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited) (Audited)
Sept. 30, Dec. 31,
1998 1997
----------- -----------
Current assets $ 6,364,692 $10,872,255
Other assets 17,660,812 5,380,603
----------- -----------
Total assets $24,025,504 $16,252,858
=========== ===========
Deferred revenues $ 3,757,012 $ 1,677,615
Notes payable, current 8,227,498 450,000
Other current liabilities 15,512,718 8,123,703
----------- -----------
Total current liabilities 27,497,228 10,251,318
Notes payable 500,000 4,486,732
----------- -----------
Total liabilities 27,997,228 14,738,050
Total stockholders' equity (3,971,724) 1,514,808
----------- -----------
Total liabilities and
stockholders' equity $24,025,504 $16,252,858
=========== ===========
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