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CENTEX TELEMANAGEMENT REPORTS RECORD FIRST QUARTER 1992 BILLINGS AND CLIENTS SERVED

 CENTEX TELEMANAGEMENT REPORTS RECORD FIRST QUARTER 1992 BILLINGS
 AND CLIENTS SERVED
 SAN FRANCISCO, May 1 /PRNewswire/ -- Centex Telemanagement, Inc. (NASDAQ: CNTX), today reported record client billings and clients served in the first quarter of 1992. Client billings increased to $43,979,000, a 30.5 percent gain over the $33,688,000 recorded in the corresponding 1991 period, and the number of clients served increased 26 percent, surpassing 10,000 for the first time.
 Earnings for the quarter ended March 31 totaled $2,673,000, or 14 cents per share, compared to $2,824,000 or 14 cents per share in the same period of 1991. A management decision to increase the provision for doubtful accounts by approximately $853,000 to reflect the bankruptcy filings of a number of larger clients during the quarter and slower payments by certain other clients reduced earnings by approximately $529,000, or 2 cents per share. Operating income for the quarter of $4,063,000, compared to $4,069,000 in the corresponding period of the prior year, was also affected by the increase in the provision for doubtful accounts. Per-share results for the 1991 period are restated to reflect a two-for-one stock split in the second quarter of 1991.
 Peter A. Howley, Centex chairman, president and chief executive, commented, "First quarter billings and other record results clearly demonstrate that we are already seeing the benefits of the strategic decisions made in 1991 to increase our sales and support groups, and prove Centex's ability to grow significantly even in a sluggish economy. The value to small businesses of the company's telecommunications management services is further demonstrated by our large first quarter growth in net new clients, bringing our client base to 10,375 at the end of the quarter, up from 8,219 a year earlier. The company set record highs in the first quarter of 1992 in dollar value for new sales and installations as well."
 The increase in the provision for doubtful accounts, Howley said, resulted from a detailed review initiated by the company of slower-than- normal client payments, reflecting the impact of the national recession. "We took a proactive and conservative approach in increasing our provision for such doubtful accounts," he added.
 Howley noted, "Earnings in the first quarter also continued to reflect the additional costs of major programs initiated in 1991 aimed at insuring the company's strong long-term growth." Among these ongoing programs are a multi-year expansion of Centex's information and billing systems and a company-wide program for enhancing client service delivery and communications.
 Howley also reported on the progress of Centex's February 1991 management service offering called Centex Unified Access, which makes it more attractive for smaller businesses to subscribe to Centex management services even at a somewhat higher management fee. "Despite the national recession, approximately 1,800 clients, or 17 percent of total clients, have signed up with Centex under this program since its relatively recent inception," Howley said.
 Howley added, "An important measure of our success in the midst of the current national economic recession is our healthy balance sheet, which benefits by our action in the first quarter to add to our provision for doubtful accounts. We have exceptionally strong financial resources and no debt. Cash equivalents at the end of the first quarter totaled $24,578,000. We actively and continuously explore ways to use these resources to build shareholder value."
 Howley concluded, "We are very pleased with first quarter operating results and the ongoing basic strength of the company. Our strategic decisions made in 1991 are clearly beginning to pay off and should do so increasingly in 1992 and beyond."
 In a separate, unrelated announcement, Centex said that William M. Smartt, who joined the company in January 1992 as chief financial officer, has recently left the company. Howley said that the company intends to fill the position shortly.
 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 then selects and manages 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 cost savings.
 CENTEX TELEMANAGEMENT, INC.
 Consolidated Statements of Operations
 (In thousands, except for per share amounts)
 Three months ended March 31 1992 1991
 Billings to clients $43,979 $33,688
 Costs and expenses:
 Telecommunications service costs 29,278 22,487
 Client acquisition expenses 5,548 4,265
 General and administrative expenses 5,090 2,867
 Total costs and expenses 39,916 29,619
 Operating income 4,063 4,069
 Interest income, net 248 433
 Interest before income tax 4,311 4,502
 Income taxes (1,638) (1,678)
 Net income $ 2,673 $ 2,824
 Net income per share $.14 $.14
 Shares used in computing net
 income per share 19,697 19,720
 Consolidated Balance Sheet
 (in thousands)
 3/31/92 12/31/91
 Assets
 Cash and short term investments $24,578 $24,481
 Accounts receivable, net 33,607 31,321
 Other current assets 2,953 2,518
 Total current assets 61,138 58,320
 Fixed assets 14,382 12,128
 Accumulated depreciation and amortization (3,848) (3,456)
 Other assets 2,428 2,270
 Total assets $74,100 $69,262
 Liabilities and Equity
 Accounts payable $18,307 $16,195
 Other current liabilities 2,706 1,624
 Total current liabilities 21,013 17,819
 Deferred income taxes 1,063 1,042
 Common stock 101 100
 Paid in capital 40,919 39,698
 Retained earnings 27,933 25,260
 Cost of reacquired stock (16,929) (14,657)
 Total liabilities and equity $74,100 $69,262
 -0- 5/1/92
 /CONTACT: Peter A. Howley, chairman, president and chief executive officer of Centex Telemanagement, 415-882-2300/
 (CNTX) CO: Centex Telemanagement, Inc. ST: California IN: TLS SU: ERN


GK-TS -- NY005 -- 5295 05/01/92 08:09 EDT
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Date:May 1, 1992
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