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    SAN FRANCISCO, Aug. 5 /PRNewswire/ -- Centex Telemanagement Inc. (NASDAQ: CNTX) today reported improved earnings and record high client billings for the second quarter of 1993.
    Client billings for the quarter were $51.1 million a 9.4 percent gain over the $46.7 million recorded for the second quarter of 1992, and a gain of $1.6 million in billings over the previous quarter.  Net income for the quarter was $2.2 million, or 12 cents per share, up from the $1.8 million, or 10 cents per share, of the previous quarter but under the record $3.1 million, or 16 cents per share, recorded for the second quarter of 1992.  Centex's financial position remained exceptionally strong, with no debt and cash and cash equivalents of $24.0 million on June 30, 1993.  At the end of the quarter, Centex's client list included 11,250 clients.
    Centex Chairman, President and Chief Executive Officer Peter A. Howley said, "I'm very pleased with Centex's performance in the second quarter, which was right on track with our expectations.  Our net earnings growth of 22.5 percent over the previous quarter was achieved despite the costs associated with our planned infrastructure enhancements and the continued softness in the California and national economy.  I believe these results are a good indication of our ability to implement planned internal advancements while expanding our geographic market reach in a soft economy."
    Regarding the expansion of Centex's Eastern and Midwestern operations during the second quarter, Howley said, "Our Baltimore office, opened during the first quarter of 1993, has achieved one of the fastest start-ups of a new branch in our history.  It follows on the heels of successful branch openings in suburban Chicago, Southfield, Mich. and Pittsburgh.  Our newest four branches, all outside of California, are part of our ongoing strategic expansion plans for aggressively pursuing opportunities for future growth."
    Howley noted that Centex is also well positioned to benefit from highly publicized changes that are taking place in the telecommunications industry.  One of these is the Federal Communication Commission's ruling, effective May 1, allowing toll-free 800 number subscribers to retain their existing numbers when switching their service to other carriers.  This "portability" enables Centex to manage clients' 800 service more profitably and without necessitating an 800 number change, further expanding the size of the market that the company can address.
    Another change is the long-awaited proposed decision issued by the California Public Utilities Commission (CPUC) on July 16, 1993, affecting the California intrastate toll-calling market.  As was expected, the proposed decision would introduce broader competition in the California service area long distance market, which would, for example, decrease the intraLATA long distance rates of Pac Bell an average of 43 percent while raising other telephone rates -- principally those for local basic business and residential services.  A final CPUC decision is expected in September, with implementation to become effective Jan. 1, 1994.  "As we've stated previously, these changes create even more user uncertainty," commented Howley, "which, in turn, creates ever more need for, and therefore more opportunities for, Centex.  Our expertise and buying power, coupled with the infrastructure and marketing improvements we made during the last year, position us to benefit from these regulatory developments."
    Centex Telemanagement pioneered the telecommunications management concept in 1985 and today is the largest provider of outsource telecommunications management services for small and medium-sized businesses.  The company presently serves more than 11,000 clients through 21 branch offices in nine states.
    Centex provides a single point of management to cost-effectively analyze, select and manage all of the telecommunications activities of its clients.  Centex's industry-leading array of services includes customized management reports for clients, multi-vendor coordination and management, equipment analysis, and call routing optimization and accounting.
                     CENTEX TELEMANAGEMENT INC.
                Consolidated Statements of Operations
             (in thousands, except for per-share amounts)
                             Three Months Ended     Six Months Ended
                                 June 30                June 30
                             1993       1992        1993      1992
    Billings to clients     $51,124    $46,737    $100,694   $90,716
    Costs and expenses
      service costs          34,242     31,523      67,872    60,801
     Client acquisition
      expenses                7,521      5,841      14,451    11,389
     General and administrative
      expenses                5,728      4,612      11,796     9,703
     Total costs and
      expenses               47,491     41,976      94,119    81,893
    Operating income          3,633      4,761       6,575     8,823
    Interest income, net        161        223         324       472
    Income before income
     tax                      3,794      4,984       6,899     9,295
    Income taxes             (1,593)    (1,894)     (2,901)   (3,532)
    Net income              $ 2,201    $ 3,090    $  3,998   $ 5,763
    Net income per share    $  0.12    $  0.16    $   0.22   $  0.30
    Shares used in computing
     net income per share    18,439     19,316      18,525    19,499
                        Consolidated Balance Sheets
                              (in thousands)
                                         June 30,    Dec. 31,
                                          1993         1992
    Cash and short term investments    $ 24,006     $ 21,420
    Accounts receivable, net             37,372       36,760
    Other current assets                  3,048        3,144
      Total current assets               64,426       61,324
    Fixed assets                         23,900       19,518
    Accumulated depreciation and
     amortization                        (7,074)      (5,518)
    Other assets                          3,473        3,021
      Total assets                     $ 84,725     $ 78,345
    Liabilities and Stockholders' Equity
    Accounts payable                   $ 25,054     $ 21,674
    Other current liabilities             4,611        3,050
      Total current liabilities          29,665       24,724
    Deferred income taxes                 1,654        1,437
      Total liabilities                  31,319       26,161
    Common stock                            102          102
    Paid in capital                      43,323       42,875
    Retained earnings                    38,035       34,037
    Cost of reacquired stock            (28,054)     (24,830)
      Total stockholders' equity       $ 53,406     $ 52,184
       Total liabilities and
       stockholders' equity            $ 84,725     $ 78,345
    -0-             08/05/93
    CONTACT:  Peter A. Howley, chairman, president and chief executive officer of Centex Telemanagement, 415-882-2300

-- SF005 -- X022 08/05/93
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Publication:PR Newswire
Date:Aug 5, 1993

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