Printer Friendly

CENTEX TELEMANAGEMENT REPORTS NEARING COMPLETION OF INFRASTRUCTURE INVESTMENTS AND REDUCED FOURTH QUARTER EARNINGS

 SAN FRANCISCO, Feb. 11 /PRNewswire/ -- Centex Telemanagement Inc. (NASDAQ: CNTX) today reported that billings and total clients served reached record highs for the year ended Dec. 31, 1992.
 Client billings in the latest quarter increased to $47,652,000, a 22-percent gain over $39,117,000 in 1991. Fourth quarter billings, however, were down $992,000 from the previous quarter. Total clients served rose to 11,117 at the end of the year.
 Operating income for the quarter was $1,697,000, compared with operating income of $4,145,000 in the year-earlier quarter. Net income in the fourth quarter totaled $862,000, or 5 cents per share compared with $2,684,000, or 14 cents per share, in the same period of 1991.
 Client billings for all 1992 rose to a record $187,012,000, a 28-percent gain over $146,627,000 in 1991. Net income for all 1992 was $8,777,000, or 46 cents per share, compared with $11,340,000, or 58 cents per share, for 1991. Operating income for 1992 totaled $13,893,000, compared with $16,770,000 in the prior year.
 Centex reported that its balance sheet at the end of 1992 remained extremely strong, with $21.4 million in cash equivalents and no corporate debt. During the year, the company also bought back in the open market 795,000 shares of stock at a cost of $10.2 million -- part of an ongoing stock buyback program.
 Peter A. Howley, Centex chairman, president and chief executive, said, "Centex experienced strong growth in client billings and total clients in 1992 in the face of a deeply troubled California economy and a national economy barely resuming growth. Our record billings and client base in these difficult times clearly demonstrates that Centex offers a valuable telecommunications management service to our clients."
 Howley added, "Most importantly, the company will have largely put in place in 1993 a foundation of management, equipment and systems designed to support significant growth and cost control. These programs include large-scale advancements in our billing and management information systems, as well as steps designed to further enhance the delivery of client services and our clients' recognition of the value of these services." He added, "As these programs become fully effective, we look forward to beginning to see their benefits as the year progresses.
 "While we were very pleased with our progress last year, the fourth quarter financial results were disappointing and resulted from several factors," Howley said. These factors included a greater than expected seasonal decrease in client usage, which resulted in reductions in our total billings for telecommunications costs and management fees, a reduction in estimated refunds from carriers for incorrect charges for services used by our clients and an increase in our income tax provision reflecting higher state income taxes outside California attributable to expansion.
 The executive said Centex continued its expansion in 1992, opening a new branch in Downers Grove, Ill., outside Chicago, that quickly has become one of the company's larger operations. "Another measure of expansion is that we now manage the telecommunications needs of clients served by 80 local telephone company switches nationwide, up from 69 last year," Howley noted.
 Howley stated that, "Our strategy for 1993 is two-pronged. First, we are continuing to increase our Eastern and Midwestern operations. The expansion includes a new branch in Baltimore, that opened this month, giving Centex 21 branches in nine states. One important reflection of the expanded Eastern sales and marketing effort is the more than doubling of sales staff in this region between the third quarter of 1992 and early 1993." The executive continued, "Second, we continue to enhance our management service to clients in California -- and our clients' understanding of the value of that service -- as we prepare for the sweeping changes that are expected in local telephone company regulation there."
 The California Public Utilities Commission is expected to issue an order later this year changing the regulatory structure for local telephone operating companies. This change is expected to allow competition for the local California toll-calling market which today is largely served by the regulated telephone monopolies. These changes should also mean significantly lower rates available to Centex and to its clients in California. Howley added, "The changing regulatory environmental in California lends an air of uncertainty, challenge and opportunity for the telecommunications industry generally as well as for our business specifically. Our goal remains to be the premier source for helping smaller businesses in California deal with these changes and uncertainties."
 Centex Telemanagement is a pioneer in providing comprehensive telecommunications management services to small- and medium-size 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 TELEMANAGEMENT INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except for per share amounts)
 Three Months Twelve Months
 Ended Dec. 31: 1992 1991 1992 1991
 Billings to clients $ 47,652 $ 39,117 $187,012 $146,627
 Costs and expenses
 Telecommunications
 service costs 33,627 25,901 127,670 97,353
 Client acquisition
 expenses 7,105 5,098 25,209 18,819
 General and administrative
 expenses 5,223 3,973 20,240 13,685
 Total costs and expenses 45,955 34,972 173,119 129,857
 Operating income 1,697 4,145 13,893 16,770
 Interest income, net 151 280 779 1,355
 Income before income tax 1,848 4,425 14,672 18,125
 Income taxes (986) (1,741) (5,895) (6,785)
 Net income $ 862 $ 2,684 $ 8,777 $ 11,340
 Net income per share $ 0.05 $ 0.14 $ 0.46 $ 0.58
 Shares used in computing
 net income per share 18,661 19,783 19,137 19,670
 CONSOLIDATED BALANCE SHEETS
 (in thousands)
 Dec. 31, Sept. 30, Dec. 31,
 1992 1992 1991
 Assets
 Cash and short-term
 investments $21,420 $22,564 $24,481
 Accounts receivable,
 net 36,760 37,071 31,321
 Other current assets 3,144 3,602 2,518
 Total current assets 61,324 63,237 58,320
 Fixed assets 19,518 17,785 12,128
 Accumulated depreciation
 and amortization (5,518) (4,769) (3,456)
 Net fixed assets 14,000 13,016 8,672
 Other assets 3,021 2,736 2,270
 Total assets $78,345 $78,989 $69,262
 Liabilities and equity
 Accounts payable $21,674 $23,352 $16,195
 Other current
 liabilities 3,050 2,923 1,624
 Total current
 liabilities 24,724 26,275 17,819
 Deferred income taxes 1,437 1,142 1,042
 Common stock 102 101 100
 Paid in capital 42,875 41,464 39,698
 Retained earnings 34,037 33,175 25,260
 Cost of reacquired
 stock (24,830) (23,168) (14,657)
 Total liabilities
 and equity $78,345 $78,989 $69,262
 -0- 2/11/93
 /CONTACT: Peter A. Howley, chairman, president and chief executive officer of Centex, 415-882-2300/
 (CNTX)


CO: Centex Telemanagement ST: California IN: TLS SU: ERN

SG-GT -- SF006 -- 5872 02/11/93 16:34 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 11, 1993
Words:1227
Previous Article:BRAVO BRINGS DELFEAYO MARSALIS TO SCULLERS JAZZ CLUB IN BOSTON FOR VIP PERFORMANCE ON FEB. 18; PUBLIC PERFORMANCES FEB. 19 AND 20
Next Article:THE LIMITED WINS COURT CASE FOR VICTORIA'S SECRET'S NEW RAPTURE PERFUME
Topics:


Related Articles
CENTEX TELEMANAGEMENT REPORTS RECORD SECOND QUARTER 1992 RESULTS
CENTEX TELEMANAGEMENT INC. REPORTS RECORD HIGH BILLINGS IN THIRD QUARTER 1992 RESULTS
CENTEX TELEMANAGEMENT REPORTS RECORD FIRST QUARTER 1993 BILLINGS AND HIGHER EARNINGS
CENTEX TELEMANAGEMENT INC. REVIEWS THIRD QUARTER OUTLOOK
CENTEX TELEMANAGEMENT INC. REPORTS THIRD QUARTER 1993 EARNINGS AND RECORD GEOGRAPHIC EXPANSION
CENTEX TELEMANAGEMENT REPORTS 1993 RESULTS AND INITIATES RESTRUCTURING STRATEGY
MFS COMMUNICATIONS REPORTS 45% REVENUE GAIN IN FIRST QUARTER FOR TELECOMMUNICATIONS SERVICES
MFS COMMUNICATIONS REPORTS IMPRESSIVE SECOND QUARTER REVENUE GAINS
MER Telemanagement Solutions Ltd. Reports Second Quarter Results; Revenues Increase 15% to $2.44 Million; EPS of $0.10 Per Share
MER Telemanagement Solutions Ltd., Reports Fourth Quarter Results

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters