Financial: Able Telcom Holding Corp. Reports July 31, 1998 Nine Month Period and Quarter Results – Company Financial Information
Able Telcom Holding Corp. (NASDAQ:ABTE) Tuesday released operating results for the nine months and quarter ended July 31, 1998.
Revenues increased 87.2 percent to $114.5 million for the nine months ending July 31, 1998 from $61.2 million for the same period in 1997. Revenues for the quarter ended July 31, 1998 increased 162.5 percent to $57.7 million in 1998, from $21.9 million in the prior year.
Income from operations for the nine months ended July 31, 1998 increased by 96.5 percent to $7.7 million or, on a diluted basis, $.74 per share compared to $3.9 million or $.46 per share during the same period in 1997. For the quarter ended July 31, 1998, income from operations increased $3.7 million from $1.0 million or, on a diluted basis of $.12 per share to $4.8 million or $.41 per share.
For the nine months ended July 31, 1998, before a reduction for the non-cash charge for the discount attributable to beneficial conversion of preferred stock (the accretive dividend) and preferred dividends, net income totaled $2.6 million or $.25 per share compared to $2.3 million or $.27 per share for the comparable period in 1997. Total weighted average shares and common stock equivalents outstanding at July 31, 1998 and 1997 were 10,367,155 and 8,531,490 respectively. Net income for the quarter ended July 31, 1998 before the accretive and preferred dividends was $1.4 million or $.13 per share compared to $.9 million or $.11 per share for the same period in 1997. Total weighted average shares and common stock equivalents for the quarter ended July 31, 1998 and 1997 were 11,601,558 and 8,559,306 respectively.
Income applicable to common stock for the nine months ended July 31, 1998 and 1997 was $1.7 million or $.18 per share and $1.2 million or $.14 per share. Income attributable to common stock for the quarter ended July 31, 1998 was $.8 million or $.07 per share compared to $.5 million or $.06 per share for the quarter ended July 31, 1997.
Net income and income applicable to common stock was impacted in the quarter ended July 31, 1998 by charges related to the loan cost which were written off in association with the MFSNT acquisition of $.3 million, cost expensed that were incurred as part of the acquisition of MFSNT of $.3 million, non-cash charges related to compensation recognized on stock options and warrants of $.2 million and a non-cash charge for earn out consideration of $.1 million. These expenses totaled in excess of $.9 million or approximately $.05 per share after tax on a diluted basis for the quarter and nine month period ending July 31, 1998.
“Able’s management has focused on finalizing the MFS Network Technologies transaction. We dedicated countless hours negotiating the best possible terms for our shareholders, while developing a solid working relationship with a company that is now one of our largest customers.
“Our approximate backlog has increased from $150 million to $1 billion. Our balance sheet has grown from total assets of $83 million to in excess of $230 million. We have experienced revenue growth of 87 percent and operating income growth of 96 percent. Our nine month EBITDA is approximately $13 million compared to a total EBITDA for all fiscal 1997 of approximately $9 million.
“We are now focusing our attention on merging MFS Network Technologies and Able into a strong functional organization dedicated to protect and improve our shareholders equity. We will continue to concentrate our efforts to improve our shareholders value and Able’s future. We specifically thank those who have continued their support for Able during the past quarter,” stated Frazier Gaines, President and CEO, Able Telcom Holding Corp.
“I want to commend MFS Network Technologies and Able employees for their support in concluding the merger. With Able’s professional construction skills and MFS Network Technologies project management leadership, we expect to improve our market share,” stated Gideon Taylor, Chairman of the Board.
Able Telcom Holding Corp., through its subsidiaries, provides design, installation, maintenance and systems integration services for advanced voice, data and video communications networks throughout the United States and internationally, primarily in Latin America.
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