Shared Technologies Fairchild reports record fourth quarter and year-end results; 52% increase in pro forma revenues and 29% increase in pro forma EBITDA.WETHERSFIELD Wethersfield (wĕth`ərzfēld), town (1990 pop. 25,651), Hartford co., central Conn., on the Connecticut River, adjoining Hartford on the north; settled 1634 by colonists from Watertown, Mass.; inc. 1637. , Conn.--(BUSINESS WIRE)--April 1, 1996--SHARED TECHNOLOGIES FAIRCHILD Companies named Fairchild include:
Antonym: dec. . (STF STF Supremo Tribunal Federal STF Summary Tape File (US Census) STF Special Task Force STF Svenska Turistföreningen STF Saskatchewan Teachers Federation STF Save the Tiger Fund STF Sony Talk Forum ) (Nasdaq NM Symbol: STCH STCH Store High Conditions ) today announced financial results for its fourth quarter and year ended December 31, 1995. The Company noted that on a combined pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis for the year ended December 31, 1995, Shared Technologies Fairchild Inc. had revenues of approximately $175 million with an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (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.
Prior to the merger, the Company's results were as follows: Revenues for the Company for the fiscal year ended December 31, 1995 increased to $47,086,000, compared to $35,150,000 (exclusive of Shared Technologies Cellular, Inc. no longer included in revenue as explained below) reported for the year ended December 31, 1994. Revenues for the Company's Services Division (formerly called STS (Synchronous Transport Signal) The electrical equivalent of the SONET optical signal. In SDH, the European counterpart of SONET, STS is known as STM (Synchronous Transport Module). ) increased $6,509,000 from $28,667,000 in the year ended December 31, 1994 to $35,176,000 in the year ended December 31, 1995. Revenues for the Company's Systems Division (formerly Facilities Management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. Division) increased $5,427,000 from $6,483,000 to $11,910,000 for the same periods. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the year ended December 31, 1995, excluding STC STC Supplemental Type Certificate (FAA) STC Society for Technical Communication STC Subject to Change STC Surf the Channel (website) STC Sound Transmission Class STC Singapore Turf Club , was $2,026,000, compared to $1,635,000 for the year ended December 31, 1994. Revenues for the Company (exclusive of STC) for the fourth quarter ended December 31, 1995 increased $1,316,000 from $11,256,000 in the quarter ended December 31, 1994 to $12,572,000 in the quarter ended December 31, 1995. Fourth Quarter revenues for the Company's Services Division increased $1,711,000 from $8,217,000 in the fourth quarter of 1994 to $9,928,000 in the fourth quarter of 1995. Revenues for the Company's Systems Division decreased $495,000 from $3,039,000 in the fourth quarter of 1994 to $2,644,000 for the fourth quarter of 1995. Operating income for the quarter ended December 31, 1995 was $465,000, compared to operating income of $431,000 for the quarter ended December 31, 1994. Notably, STF was not able to consolidate the results of operations from STC in 1995. On a comparable basis, operating income increased by approximately $403,000 and EBITDA increased approximately $1,200,000 to $6,000,000 from $4,800,000 in 1994. In 1994, STC contributed approximately $700,000 to operating income. Beginning with the quarter ended December 31, 1995, the Company now accounts for STC on an equity basis. Using this method, STC generated and contributed to STF a loss of $1,700,000 in 1995. Including the effects of STC, the net loss applicable to common stock for the quarter ended December 31, 1995 was $1,246,000, or $(0.14) per common share, compared to net income applicable to common stock of $595,000, or $0.06 per common share, reported for the quarter ended December 31, 1994. This loss was attributed to the Company's interest in STC, which contributed a loss of $1,341,000, based on the equity method. Net income applicable to common stock for the year ended December 31, 1995 was $529,000, or $0.06 per common share, compared to net income of $1,807,000, or $0.27 per common share, for the year ended December 31, 1994. This decline in net income was due to a $2,269,000 decrease in earnings for the Company's cellular subsidiary. Commenting on the announcement, Anthony D. Autorino, chairman and chief executive officer of STF stated, "We are very excited about the Company's outlook for fiscal 1996 and beyond as we take advantage of the many opportunities that lie before us in the rapidly changing telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry. Our revenue and EBITDA growth position us as a major factor in the changing world of telecommunications. As a result of the recently completed acquisition of Fairchild Communications Services Company, STF is now the largest provider of shared telecommunications systems and services 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. . Additionally, the transaction has significantly enhanced the Company's market presence and geographic reach as well as provided a solid and predictable EBITDA. As we stated during our successful roadshow for the debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay , the Company estimates that EBITDA for fiscal 1996 will approach $47 million on approximately $200 million in revenues." We are confident that Shared Technologies Fairchild will increase its penetration in existing buildings in 1996 as well as enter new buildings. We will maintain our leadership position by continuing to offer customers the latest in telecommunications technology and services, such as internet access See how to access the Internet. , audio and video conferencing See videoconferencing. (communications) video conferencing - A discussion between two or more groups of people who are in different places but can see and hear each other using electronic communications. and wireless services, as well as unparalleled service and equipment." -0-
SHARED TECHNOLOGIES FAIRCHILD
Consolidated Statement of Operations
(in thousands except per share data)
12/31/95 12/31/94(a)
Revenues
Shared Telecommunications Services 35,176 28,667
Telecommunications Systems 11,910 6,483
Total Revenues 47,086 35,150
Cost of Revenues:
Shared Telecommunications Services 19,473 15,717
Telecommunications Systems 9,399 5,161
Total Cost of Revenues 28,872 20,878
Gross Margin 18,214 14,272
38.68% 40.60%
S, G & A 16,188 12,637
Operating Income 2,026 1,635 Minority Interest -- (43) Gain on sale of subsidiary stock 1,375 -- Equity in loss of STC (1,752) 517 Interest Expense (net) (677) (311) Income Taxes (45) 487 Net Income 927 2,285 Preferred stock dividends (398) (478) Net income per common share 529 1,807 Income per common share 0.06 0.27 Weighted average common shares outstanding 8,648 6,792 Depreciation and amortization 3,967 3,123 EBITDA 5,993 4,758(a) 1994 results have been adjusted to reflect STC results of operations under the equity method for purposes of comparison. CONTACT: Jeffrey Volk LIPPERT/HEILSHORN & ASSOCIATES, INC. 212-838-3777 or Company Contact: Vincent DiVincenzo Chief Financial Officer 203-258-2400 |
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