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CENTEX TELEMANAGEMENT REPORTS FULL-YEAR AND FOURTH QUARTER 1991 RESULTS

 CENTEX TELEMANAGEMENT REPORTS FULL-YEAR AND
 FOURTH QUARTER 1991 RESULTS
 SAN FRANCISCO, Calif., Feb. 13 /PRNewswire/ -- Centex Telemanagement Inc. (NASDAQ: CNTX) today reported financial results for the year and fourth quarter ended Dec. 31, 1991.
 Net income for the year totaled a record $11,340,000, or $.58 per share, a 16.6 percent increase over the $9,730,000, or $.50 per share, Centex earned in 1990. Centex's 1990 per share earnings have been restated to reflect a two-for-one stock split during the second quarter of 1991. Operating income for the year reached a new high of $16,770,000, a 22 percent increase over 1990's $13,752,000. Client billings for the year rose to a record $146,627,000, a 28.1 percent gain over 1990's $114,427,000.
 Net income in the fourth quarter totaled $2,683,000, or $.14 per share, as compared to $2,606,000, or $.13 per share, earned in the same quarter of 1990. Operating income for the quarter reached $4,144,000, a 6.5 percent increase over operating income of $3,890,000 in the year-earlier quarter. Client billings in the quarter increased to $39,120,000, a 27.1 percent increase over 1990's $30,791,000.
 Peter A. Howley, Centex chairman, president and chief executive, said, "Centex clearly demonstrated in 1991 its ability to continue to grow materially despite the severe national recession by providing valuable, high-quality cost efficient telecommunications management services to clients."
 Howley said, "Four aggressive decisions made early in the year have extremely positive implications for the present and future. The first was to increase the sales force 30 percent along with corresponding increases in service and headquarters support personnel; the second was to continue a major investment in analyzing and enhancing our processes and procedures, including new management information support systems; the third was a further successful effort to increase sales of value-added services, such as Centex 800 and International Management Services and Centex Voice Exchange voice messaging; and the fourth was additional expansion into Eastern markets.
 "For example," Howley noted, "sales of value-added services grew to 14 percent of total billings last year up from 6 percent in 1990 and only 1 percent in 1989. These services, which initially may constrain earnings to some degree, better position Centex to increase sales, expand our client base and more fully meet client needs."
 Howley added, "The soundness of these decisions and of Centex's value to our clients is evidenced in the growth of the total client base to a record 9,744 clients at year's end, up 22.2 percent from a year earlier. In addition, Centex opened two new branches during 1991, one in Southfield, Mich., and the other in Riverside, Calif., bringing total branches to 19. Of those, 16 were profitable at the end of 1991, before allocation of corporate overhead."
 As for 1992, Howley said, "We enter the new year with confidence and enthusiasm. Our strategic decisions outlined earlier are already beginning to pay off and should do so increasingly in 1992 and beyond. Most importantly, we are putting in place this year the enhancements from a long-range plan for far-reaching developments and expansions in service delivery to our clients and potential clients."
 Howley continued, "Centex also enters 1992 with, as one analyst put it, a 'rock solid' balance sheet with no debt. This has not only allowed us to make the investments discussed earlier, while remaining cash positive, but to buy back, as part of a continuing stock repurchase program, 449,000 shares of stock costing us $7,271,000 in 1991 for reissuance under stock incentive plans and other corporate purposes."
 Centex Telemanagement Inc. is a pioneer in providing comprehensive telecommunications management services to small- and medium-sized businesses. Centex provides a single point of contact for smaller businesses, which face increasing complexity and confusion resulting from the expanding number of local and long distance telecommunications options. In exchange for a management fee, Centex provides a broad range of sophisticated management services, such as multi-vendor coordination and management, equipment analysis, call- routing optimization and accounting, and voice messaging.
 Centex analyzes the telecommunications needs of its clients and selects the best mix of services from various third-party providers to be shared by its clients under Centex management. Centex clients receive these high-quality telecommunications services at significant labor and cost savings. Centex currently serves more than 9,700 clients through 19 branch offices in eight states.
 CENTEX TELEMANAGEMENT INC.
 Consolidated Statements of Operations
 (in thousands, except for per share amounts)
 Three months Ended Year Ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Billings to clients $39,120 $30,791 $146,627 $114,427
 Costs and expenses
 Telecommunications
 service costs 25,901 19,922 97,353 74,021
 Client acquisition
 expenses 5,101 4,054 18,819 15,619
 General and
 administrative
 expenses 3,974 2,925 13,685 11,035
 Total costs and
 expenses 34,976 26,901 129,857 100,675
 Operating income 4,144 3,890 16,770 13,752
 Interest income, net 280 393 1,355 1,611
 Income before income
 tax 4,424 4,283 18,125 15,363
 Income taxes (1,741) (1,677) (6,785) (5,633)
 Net income $2,683 $2,606 $11,340 $9,730
 Net income per share $.14 $.13 $.58 $.50
 Shares used in
 computing net income
 per share 19,783 19,340 19,670 19,402
 NOTE: 1990 has been restated to reflect a 2-for-1 stock split.
 CENTEX TELEMANAGEMENT INC.
 Consolidated Balance Sheets
 (in thousands)
 Dec. 31 Sept. 30 Dec. 31
 1991 1991 1990
 Assets
 Cash and short term
 investments $24,481 $23,204 $23,518
 Accounts receivable, net 31,321 31,956 24,009
 Other current assets 2,518 2,131 1,769
 Total current assets 58,320 57,291 49,296
 Furniture, fixtures and
 equipment 12,127 10,409 7,364
 Accumulated depreciation
 and amortization (3,455) (3,007) (2,171)
 Other assets 2,270 1,695 921
 Total assets $69,262 $66,388 $55,410
 Liabilities and Equity
 Accounts payable $16,196 $17,587 $14,584
 Other current liabilities 1,624 1,639 1,449
 Total current
 liabilities 17,820 19,226 16,033
 Deferred income taxes 1,042 465 302
 Common stock 100 99 96
 Paid in capital 39,697 37,065 32,445
 Retained earnings 25,260 22,577 13,920
 Cost of reacquired stock (14,657) (13,044) (7,386)
 Total liabilities and
 equity $69,262 $66,388 $55,410
 -0- 2/13/92
 /CONTACT: Peter A. Howley or Henry P. Huff, of Centex Telemanagement Inc., 415-882-2300/
 (CNTX) CO: Centex Telemanagement ST: California IN: TLS SU: ERN


RM -- SF001 -- 9542 02/13/92 08:05 EST
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