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A+ COMMUNICATIONS REPORTS RECORD THIRD QUARTER REVENUES

 NASHVILLE, Tenn., Nov. 2 /PRNewswire/ -- A+ Communications, Inc. (NASDAQ: ACOM) announced today results for its third quarter, which included record revenues and improved operating cash flow.
 For the quarter ended Sept. 30, 1993, net revenues were $7,941,000, an increase of 10 percent compared with net revenues of $7,176,000 during the same period a year ago. For the first nine months, net revenues were $23,383,000, up 20 percent from revenues of $19,339,000 during the first nine months of 1992.
 Operating cash flow, or earnings before interest, income taxes, depreciation and amortization (EBITDA), which is the key financial performance measure in the paging and telecommunications industries, for the third quarter was $954,000, an increase over operating cash flow of $31,000 during the same period last year. For the nine months, reported operating cash flow was $2,704,000, an increase of 92 percent compared with $1,409,000 in the comparable period last year.
 Operating cash flow in the company's core markets, consisting of all paging operations in Tennessee, Mississippi, Alabama and Louisiana and all telemessaging operations in Tennessee, Alabama and Kentucky, rose 45 percent to $1,312,000 during the quarter, from $907,000 in the comparable period of 1992, while the operating cash flow deficit in the company's expansion markets, including new mobile communications operations in North Carolina and South Carolina and telemessaging operations in North Carolina and Maryland, declined to $358,000, from an operating cash flow deficit of $876,000 in the expansion markets for the same quarter in 1992.
 On a pro forma basis, operating cash flow for the company's core markets, giving effect to the acquisition of the South Central Bell paging networks (Tennessee and Mississippi have been completed while Alabama is awaiting final regulatory approval) for the entire period, would have been $1,687,000 for the quarter and $5,291,000 for the nine- month period.
 Pager and voicemail units in service grew 31 percent to 113,000 units at the end of the third quarter, as compared with 86,500 units for the same period a year ago. This growth was generated entirely through internal growth without the benefit of any acquisitions.
 The net loss for the quarter was $337,000, or $.09 per share, before an extraordinary charge of $236,000, or $.06 per share, to write off loan origination fees associated with the company's bank debt, compared with a net loss of $797,000, or $.33 per share, during the same quarter a year ago. These extraordinary charges were the result of repaying the indebtedness in full under the Amended Loan Agreements with a portion of the proceeds from the company's initial public offering.
 For the nine months, A+ had a net loss of $1,491,000, or $.52 per share (including the extraordinary charge), compared with a net loss of $1,190,000, or $.49 per share, for the first nine months of 1992.
 "Our financial results reflect the implementation of our aggressive expansion program and are in line with our expectations," said Elliott H. Singer, chairman of the board and chief executive officer. "We are very pleased with the progress being shown in our six expansion markets in North and South Carolina, where start-up costs have temporarily depressed consolidated operating cash flow and cash flow margins since the middle of 1992. These markets are rapidly moving toward positive cash flow, within the originally anticipated time frame.
 "The repayment of all of our bank debt has left A+ with an exceptionally strong balance sheet. We are one of the most unleveraged companies in our industry, with less than $3 million in non-bank debt and $13 million in proceeds still available from our recent initial public offering," Singer said.
 The results for the third quarter are the first to be announced since A+ completed a successful initial public offering of stock on Aug. 24, 1993. In the fully subscribed offering, the company received proceeds of $35.5 million from the sale of 3,540,000 shares at $11 per share.
 During the fourth quarter, A+ expects to initiate a new mobile communications operation in Columbia, S.C., and to further expand its South Carolina operations, which will offer paging, voicemail and cellular telephone services.
 "Throughout this eight-state region in which we operate, demand for paging and mobile communications services remains very strong," said Singer. "We expect to see annualized growth of 30 percent or better in these segments in the year ahead, which will be better than the industry average."
 A+ Communications, headquartered in Nashville, is a regional provider of paging, mobile communications and telemessaging services through 31 offices operating in eight states throughout the Southeast.
 A+ COMMUNICATIONS, INC. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 9/30/93 12/31/92
 ASSETS (unaudited)
 CURRENT ASSETS:
 Cash and cash equivalents $14,072,083 $ 207,103
 Accounts receivable -- net 3,528,334 3,526,408
 Inventory 806,073 658,894
 Prepaid expenses 480,150 365,536
 Other current assets 349,845 340,929
 Total current assets 19,236,485 5,098,870
 Equipment and fixtures, net 17,215,995 14,793,634
 Intangible and other assets 7,936,816 1,305,338
 Total $44,389,296 $21,197,842
 LIABILITIES AND STOCKHOLDERS' EQUITY
 CURRENT LIABILITIES:
 Accounts payable 1,750,183 3,484,991
 Accrued payroll related costs 923,807 519,611
 Accrued liabilities 526,475 703,057
 Deferred revenues and customer
 deposits 2,500,948 2,027,578
 Current maturities of long-term
 debt 798,276 935,323
 Total current liabilities 6,499,689 7,670,560
 Long-term debt 1,813,168 11,467,325
 STOCKHOLDERS' EQUITY:
 Preferred stock -- $.01 par value;
 authorized, 1,000,000 shares; issued
 and outstanding, none --- ---
 Common stock -- $.01 par value;
 authorized, 15,000,000 shares;
 2,424,200 and 5,964,303 shares
 issued and outstanding in 1992 and
 1993, respectively 59,643 24,242
 Additional paid-in caa?l 38,688,435 3,215,938
 Accumulated deficit (2,671,639) (1,180,223)
 Total 36,076,439 2,059,957
 Total $44,389,296 $21,197,842
 A+ COMMUNICATIONS, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (unaudited)
 3 mos. ended 9/30/93(c) 9/30/92
 REVENUES:
 Mobile communication services
 and sales $ 6,442,802 $ 5,403,382
 Less cost of equipment sales (896,285) (860,698)
 Mobile communications -- net 5,546,517 4,542,684
 Telemessaging services 2,394,272(a) 2,633,339
 Net revenues 7,940,789 7,176,023
 COSTS AND EXPENSES:
 Operating expenses, exclusive
 of depreciation and
 amortization 4,091,053 4,376,516
 Depreciation & amortization 1,071,192 930,387
 Selling expenses 1,711,232 1,740,990
 General & administrative 1,184,385(b) 1,027,196
 Total costs and expenses 8,057,862 8,075,089
 Operating loss (117,073) (899,066)
 Equity in loss of affiliate --- (52,554)
 Interest expense (220,232) (150,502)
 Loss before income taxes and
 extraordinary item (337,305) (1,102,122)
 Income tax benefit --- 305,500
 Net loss before extraordinary
 item (337,305) (796,622)
 Extraordinary item (236,241) ---
 Net loss $ (573,546) $ (796,622)
 LOSS PER SHARE:
 Loss before extraordinary item $ (0.09) $ (0.33)
 Extraordinary item $ (0.06) $ ---
 Net loss $ (0.15) $ (0.33)
 Avg. number of shares
 outstanding (in thousands) 3,741 2,424
 9 mos. ended 9/30/93 9/30/92
 REVENUES:
 Mobile communication services
 and sales $18,672,545 $14,349,698
 Less cost of equipment sales (2,916,781) (1,878,355)
 Mobile communications -- net 15,755,764 12,471,343
 Telemessaging services 7,627,071 6,867,162
 Net revenues 23,382,835 19,338,505
 COSTS AND EXPENSES:
 Operating expenses, exclusive
 of depreciation and
 amortization 12,683,000 11,009,783
 Depreciation & amortization 3,122,906 2,529,743
 Selling expenses 4,739,385 4,117,937
 General & administrative 3,256,205 2,801,611
 Total costs and expenses 23,801,496 20,459,074
 Operating loss (418,661) (1,120,569)
 Equity in loss of affiliate --- (187,828)
 Interest expense (836,514) (375,623)
 Loss before income taxes and
 extraordinary item (1,255,175) (1,684,020)
 Income tax benefit --- 494,000
 Net loss before extraordinary
 item (1,255,175) (1,190,020)
 Extraordinary item (236,241) ---
 Net loss $(1,491,416) $(1,190,020)
 LOSS PER SHARE:
 Loss before extraordinary item $ (0.44) $ (0.49)
 Extraordinary item $ (0.08) $ ---
 Net loss $ (0.52) $ (0.49)
 Avg. number of shares
 outstanding (in thousands) 2,868 2,424
 (a) Telemessaging revenues declined due to expiration of the Sears
 contract assumed as part of a 1992 acquisition.
 (b) Includes $110 accrual of stock option expense associated with
 stock appreciation rights due to the increase in the stock price
 since the completion of the public offering.
 (c) Includes one month benefit of ownership of the Tennessee and
 Mississippi paging assets, the pro forma impact assuming the
 benefit of these acquisitions including Alabama from the
 beginning of the period would have been $304.
 -0- 11/2/93
 /CONTACT: Elliott H. Singer of A+ Communications, 615-385-4500/
 (ACOM)


CO: A+ Communications, Inc. ST: Tennessee IN: TLS SU: ERN

BR-TG -- AT002 -- 9508 11/02/93 09:03 EST
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