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CENTEX TELEMANAGEMENT REPORTS RECORD SECOND QUARTER 1992 RESULTS

CENTEX TELEMANAGEMENT REPORTS RECORD SECOND QUARTER 1992 RESULTS
 SAN FRANCISCO, July 31 /PRNewswire/ -- Centex Telemanagement Inc. (NASDAQ: CNTX) today reported record billings, operating and net income, and clients served in the second quarter of 1992.
 Client billings in the latest quarter were $46,737,000 representing a 30 percent gain over $35,879,000 in the second quarter 1991 period. Operating income for the period reached $4,761,000 compared with operating income of $4,276,000 for the same period in the prior year. Net income in the quarter ended June 30 rose to $3,090,000, or $.16 per share, from $2,944,000, or $.15 per share, in the year-earlier quarter.
 Peter A. Howley, Centex chairman, president and chief executive, said, "We continue to be extremely pleased by the fundamental strengths of the company's business. In the face of substantial internal investments for our future and the sluggish recovery throughout the nation from the recession, we are reporting the best quarter in our history." He added, "I believe we are beginning to see the payoff of our significant internal investments in people, systems and procedures."
 Howley pointed out that the record second quarter results were achieved despite a number of factors. Among these were ongoing investments in a major multiyear overhaul of several key Centex processes and procedures, including enhanced billing and information systems and a company-wide plan for enhanced delivery of client services that is expected to become fully effective in 1993. Also among these factors were falling interest rates, which reduced interest income from Centex's large cash investments. "Despite the shorter-term impact of these factors on earnings, along with a sluggish economy, we achieved record results," the executive said.
 Centex also continued to see a wide acceptance by its clients of value-added services with these now representing 19.2 percent of total billings in the second quarter, up from 6 percent as recently as 1990. "While the change in the mix of services used by our clients toward a higher percentage of value-added services is a highly positive trend for the future, it has dampened short-term profitability," Howley noted.
 Centex's net client total increased by the end of the second quarter to a record 10,764 clients served, compared with 8,526 a year earlier. Howley added that the gross gain in new clients for the second quarter was in line with record first quarter 1992 results but that "there was a more modest gain in net client growth due generally to our credit, collection and related efforts which I believe reflect the underlying soft economy."
 In the first quarter this year Centex increased its provision for doubtful accounts to reflect slower payments and bankruptcy flings by some clients. "During the second quarter, Centex significantly stepped up collection efforts, improving the aging of accounts receivable and the processing of client claims," Howley said. "While we continue to incur expenses for doubtful accounts above prior years' levels resulting from the sluggish economy, we believe we have improved the quality of our accounts receivable and client base."
 The executive pointed to Centex's balance sheet as a good indicator of the company's strong foundation for future growth. "As we've noted n the past, we have substantial financial resources, a sizeable unsecured line of credit and no debt," Howley said. Cash equivalents at the end of the second quarter totaled $23,115,000. During the quarter, Centex purchased 275,000 shares of Centex's common stock on the open market.
 Centex continues to invest in geographic expansion. The company is in the process of expanding its Midwestern operations with the opening of a new branch in Elk Grove, Ill., a Chicago suburb, in the third quarter. "This expansion strengthens our base in what we believe is a significant market," Howley said.
 The company continued to strengthen its management team in the second quarter, among other things, appointing a new senior vice president and chief financial officer and a vice president for information services. It also created the new post of vice president for service quality and technology management. "We now have an exceptionally capable management team that I believe could manage a much larger company and will allow us to manage our anticipated future growth," Howley said.
 Summing up, Howley commented, "The first half of 1992 demonstrated the solid progress we are making to grow our business. We remain confident that the sound decisions and investments we have made in processes and systems will be the platform for further gains in the balance of the year and beyond."
 Centex Telemanagement 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 multivendor 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 Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Billings to clients $46,737 $35,879 $90,716 $69,567
 Costs and expenses
 Telecommunications
 service costs 31,523 24,238 60,801 46,728
 Client acquisition
 expenses 5,841 4,516 11,389 8,779
 General and
 administrative
 expenses 4,612 2,849 9,703 5,716
 Total costs and
 expenses 41,976 31,603 81,893 61,223
 Operating income 4,761 4,276 8,823 8,344
 Interest income, net 223 348 472 781
 Income before income
 tax 4,984 4,624 9,295 9,125
 Income taxes (1,894) (1,680) (3,532) (3,358)
 Net income $3,090 $2,944 $5,763 $5,767
 Net income per share $0.16 $0.15 $0.30 $0.29
 Shares used in
 computing net
 income per share 19,316 19,668 19,499 19,703
 CENTEX TELEMANAGEMENT INC.
 Consolidated Balance Sheet
 (in thousands)
 June 30, Dec. 31,
 1992 1991
 Assets
 Cash and short-term
 investments $23,115 $24,481
 Accounts
 receivable, net 35,904 31,321
 Other current assets 2,968 2,518
 Total current assets 61,987 58,320
 Fixed assets 16,192 12,128
 Accumulated
 depreciation
 and amortization (4,286) (3,456)
 Total 11,906 8,672
 Other assets 2,585 2,270
 Total assets $76,468 $69,262
 Liabilities and equity
 Accounts payable $20,900 $16,195
 Other current liabilities 3,006 1,624
 Total current
 liabilities 23,906 17,819
 Deferred income taxes 1,084 1,042
 Common stock 101 100
 Paid-in capital 41,064 39,698
 Retained earnings 31,022 25,260
 Cost of reacquired stock (20,709) (14,657)
 Total liabilities and
 equity $76,468 $69,262
 -0- 7/31/92
 /CONTACT: Peter A. Howley, chairman, president and CEO of Centex Telemanagement, 415-882-2300/
 (CNTX) CO: Centex Telemanagement Inc. ST: California IN: TLS SU: ERN


MM-JL -- SF002 -- 5411 07/31/92 06:01 EDT
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