Group Long Distance Announces Audited Results for Fiscal Year Ended April 30, 1999; Net Earnings of $3,567,598 or $1.02 Cents Per Share.Business Editors FORT LAUDERDALE Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla.--(BUSINESS WIRE)--Jan. 25, 2000 Group Long Distance, Inc. (&uot;Group Long Distance&uot; or the &uot;Company&uot;) (Pink Sheets:GLDI) announced today results of operations for the fiscal year ended April 30, 1999. The Company had a net income of $3,567,598, or net income of $1.02 per share, for the year ended April 30, 1999, as compared to net loss of $9,633,330, or $2.76 per share, for the year ended April 30, 1998. The Net income for the year ended April 30, 1999 was after taking into account the volume shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. charge of $1,100,000 Glenn Koach KOACH (from the Hebrew word "כח", meaning "strength") is the campus student organization for Conservative Judaism on many college and university campuses and in many in the United States and abroad. It is a project of the United Synagogue of Conservative Judaism. , President and Chief Executive Officer of the Company stated &uot;he was confident that the Company had finally put its troubles behind it, and was in an excellent position to build on these results&uot;. The volume shortfall charge for the year ended April 30, 1999 of $1.1 million is based on the Agreement with TALK.com, Inc. (&uot;TALK&uot;), of December December: see month. 8, 1999. The Company's agreements with TALK provided that the Company maintained certain monthly revenues (as defined in the agreements) to the carrier for services provided under the agreements. For the fiscal year ended April 30, 1999, the Company had an exposure for a monthly commitment for such revenues of $3 million (aggregate annual commitment of $36 million). Based on a settlement agreement (&uot;TALK Agreement&uot;) with TALK on December 8, 1999, the Company agreed to pay $1.1 million to resolve the shortfall charge and as part of the TALK Agreement, the Company received $2.9 million in cash held under the lockbox Lockbox A collection and processing service provided to firms by banks, which collect payments from a dedicated postal box to which the firm directs its customers to send payment to. arrangement and all future minimum monthly volume commitments were waived by TALK. &uot;This is an important step forward for the Company and now allows the Company more flexibility in its future business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets , and ends the uncertainties surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the monthly volume commitments,&uot; said Glenn Koach, President and Chief Executive Officer of the Company. The Company's sales were $22,837,340 for the year ended April 30, 1999, compared to $54,340,938 for the year ended April 30, 1998, a decrease of $31,503,598 or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 58%. The decrease in sales, was a result of the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of the previous telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. campaign and normal attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: of the customer base. Management believes that the attrition of the customer base is being experienced by other companies in the Industry that are positioned similarly to the Company. The Company is not currently marketing its products and services and therefore, the Company's revenues are likely to continue to decline. This is due to the competitive advantage held by facilities based carriers and Internet marketing See Internet advertising. enterprises. Cost of sales were $11,834,036 for the fiscal year ended April 30, 1999, compared to $38,118,173 for the fiscal year ended April 30, 1998, a decrease of $26,284,137 or approximately 69%. The decrease in cost of sales between comparative periods was due to the decrease in revenues as a result of customer attrition Customer attrition, also known as customer churn, customer turnover, or customer defection, is a business term used to describe loss of clients or customers. Selling, general and administrative expenses (&uot;SG&&uot;) were $3,463,625 for the fiscal year ended April 30, 1999 compared to $9,345,163 for the year ended April 30, 1998, a decrease of $5,881,538 or approximately 63%. This decrease in SG& was due to the reduced sales volumes, and a significant reduction in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as compared to the fiscal year ended April 30, 1998 The Company's gross accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying decreased by $7,271,137 during the fiscal year ended April 30, 1999 to $1,679,461 from $8,950,598 during the prior period. This decrease in receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed is a result of the reduction in sales from the prior fiscal year. Accounts payable decreased during the fiscal year ended April 30, 1999 by $15,340,422, to $476,084 from $15,816,506 as compared to the fiscal year ended April 30, 1998. This decrease in accounts payable is as a result of repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of debt. The Company continues to explore strategic opportunities, partnerships and business combinations. Certain of these options could involve the Company selling all or substantially all of its assets or capital stock. The Company has no current understandings, talks or agreements to sell all or any part of the Company. An Annual Shareholders Meeting to discuss the results of the year ended April 30, 1999 as well as the future plans of the Company will be held on March 14, 2000 at 10.30am at the Marriott Marriott has several meanings:
Roy Chapman Andrews Avenue, Fort Lauderdale, Florida Fort Lauderdale, known as the "Venice of America" due to its expansive and intricate canal system, is a city in Broward County, Florida, United States. The city's population is described as metropolitan, where diverse culture is commonplace. According to 2006 U.S. . Prior to the Annual Meeting, the Company anticipates filing all outstanding Quarterly Reports, and then re-applying to trade on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. once all the reporting forms have been filed. The Company is currently trading on pink sheets under the symbol GLDI. Group Long Distance is a long distance telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. provider. The Company utilizes special network service contracts to provide its customers with products and services through major nationwide providers of telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. . Group Long Distance is located at 6600 N. Andrews Avenue, Suite 140, Fort Lauderdale, FL 33309. Certain of the statements contained in this press release may be deemed 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. . Such statements, and other matters addressed in this press release involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from these statements and other matters, are the risks and other factors, detailed from time to time in the Company's reports filed with 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. Securities and Exchange Commission.
Group Long Distance, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
April 30,
ASSETS
1999 1998
-------- --------
Current assets
Cash $ 502,946 $ 303,962
Accounts receivable less allowance
for doubtful accounts of $388,000
and $472,000 at April 30, 1999 and
1998, respectively 1,291,461 8,478,598
Prepaid expenses and other current assets 6,155 98,710
---------- ----------
Total current assets 1,800,562 8,881,270
---------- ----------
Property and equipment, net 13,168 94,771
Customer acquisition costs, net -- 937,484
---------- ----------
Total assets $1,813,730 $ 9,913,525
========== ==========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Line of credit $ - $ 87,044
Volume shortfall charge payable, net 407,738 -
Accounts payable 476,084 15,816,506
Deferred revenue 3,012,244 -
Income taxes payable 1,769,900 -
Accrued expenses and other liabilities 511,953 632,600
Current portion of long-term debt - 1,196,882
---------- ----------
Total current liabilities 6,177,919 17,733,032
---------- ----------
Long-term debt, net of current portion - 112,280
---------- ----------
Total liabilities 6,177,919 17,845,312
---------- ----------
Stockholders' deficit
Preferred stock, no par value, 2,000,000
shares authorized; no shares issued and
outstanding - -
Common stock, no par value, 12,000,000
shares authorized; 3,500,402 and
3,502,783 shares issued and outstanding
as of April 30, 1999 and 1998,
respectively - -
Additional paid-in capital 5,913,988 5,913,988
Accumulated deficit (10,278,177) (13,845,775)
----------- -----------
Total stockholders' deficit (4,364,189) (7,931,787)
---------- ----------
Total liabilities and stockholders'
deficit $1,813,730 $ 9,913,525
========== ==========
Group Long Distance, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended April 30,
1999 1998
-------- --------
Sales $ 22,837,340 $ 54,340,938
Cost of sales 11,834,036 38,118,173
------------ ------------
Gross profit 11,003,304 16,222,765
Selling, general and administrative
expenses 3,463,625 9,345,163
Telemarketing expenses -- 26,570,215
Depreciation and amortization 1,019,087 2,369,410
Volume shortfall charge 1,100,000 --
------------ ------------
Income (loss) from operations 5,420,592 (22,062,023)
Gain on sale of investment -- 13,418,926
Interest expense, net 83,094 340,333
------------ ------------
Income (loss) before income
taxes 5,337,498 (8,983,430)
Income tax 1,769,900 649,900
------------ ------------
Net income (loss) $ 3,567,598 $ (9,633,330)
============ ============
Net income (loss) per common share
- basic $ 1.02 $ (2.76)
============ ============
Net income (loss) per common share
- diluted $ 1.00 $ (2.76)
============ ============
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