Followers | 784 |
Posts | 128093 |
Boards Moderated | 9 |
Alias Born | 09/26/2011 |
![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Monday, September 17, 2012 8:43:59 AM
Date: Wed, Aug 29, 2012 8:00 AM EDT
http://finance.yahoo.com/news/teletouch-reports-fiscal-2012-results-120000566.html
Teletouch Communications, Inc. (TLLE), a leading U.S. cellular services provider and consumer electronics distributor, reported its audited consolidated results on Form 10-K for the 2012 fiscal year ended May 31, 2012.
Fiscal Year 2012 Financial Highlights
* Total operating revenues of $34.42 million
* Income from operations of $6.32 million
* EBITDA of $7.48 million
* Net income of $4.17 million
* Basic Earnings Per Share of $0.09
* Diluted Earnings Per Share of $0.08
* Reduced total liabilities by $6.59 million
4th Quarter Results – Highlights
* Total operating revenues of $8.30 million
* Income from operations of $0.65 million
* EBITDA of $0.91 million
* Net income of $0.16 million
Other Fiscal 2012 & Recent Events Highlights
1st Quarter
* Two-Way Radio/Public Safety Equipment business breakout quarter, with segment revenues increasing to just over $2.9 million in the first quarter, an approximately $1.8 million or 164% increase over the same quarter last year;
* Fundamental change of Company ownership and long-term stock voting control as result of former parent company, TLL Partners, LLC debt restructuring (see related detail in 8-K, filed August 18, 2011);
2nd Quarter
* Settled the AT&T litigation, resulting in the realization of material initial, as well as additional ongoing cash compensation, new iPhone and iPad sales agreements, with 3-Yr distribution contract extensions, and new 6-yr Dealer agreements (see related detail in 8-K, filed November 28, 2011);
* Settlement included AT&T non-interference clause, paving way for renewed Company-direct manufacturer distribution relationships;
3rd Quarter
* Fulfilled hundreds of iPhone deliveries to customers waiting for AT&T litigation end;
* Received the State of Texas’ computations from its ongoing sales and use tax audit of Company’s wholly owned subsidiary, Progressive Concepts, Inc. (“PCI”) through October 2009, resulting in an accrual of a $1.88 million estimated sales tax liability. In addition, the Company recorded a sales tax liability of approximately $0.3 million related to similar tax issues that are believed to have continued beyond the current tax audit period, for a total accrual in the period of $2.18 million;
* Teletouch’s senior lender, Thermo Credit LLC (“Thermo”) advised Company that it had to exit the Company’s $12 million revolving credit facility prior to the original term because of certain issues it had with its own lender;
* Amended Thermo senior debt agreement, deferring repayment of remaining note balance until May 2012, or August 2012, assuming certain criteria were met by Company, in exchange for a $2 million payment in March 2012 towards the outstanding loan balance;
4th Quarter
* Received extensions from both of the Company’s current real estate lenders which extended the maturity dates from May 2012 to August 2012;
* Entered into distribution agreements with a variety of cellular accessory manufacturers, including, Monster Digital, Concept 101, Pure Gear®, Boston Amplifier, Cellphone-Mate, Skunk Juice®, Digital Innovations, Dicotta Cases, Wilson Electronics®, among others;
* Expanded consumer electronics/12-volt audio product lines by entering into direct distribution agreements with manufacturers including Cadence Acoustics, Cerwin Vega®, Diamond Audio and Lightning Audio®;
* Returned Company to profitability, having positive EBITDA and net income for the fourth quarter (EBITDA is a non-GAAP measure; see “Disclosure of Non-GAAP Financial Measures” below).
Events Subsequent to Year End
* In June 2012, signed National Distribution Agreement with TCT Mobile Multinational Ltd to sell Alcatel OneTouch® branded cellular handsets. Initial inventory expected to be available by mid-October 2012;
* Sold legacy two way radio and public safety equipment business to Irving, Texas-based DFW Communications, Inc. for approximately $1.5 million in August 2012;
* Completed negotiating and executed term sheet with prospective new lender for senior revolving and term credit facilities to replace current credit facility with Thermo Credit. Although the term sheet is non-binding, diligence process started in late August 2012, with closing targeted for mid- to late September 2012.
“As we look back and reflect on all of the events that transpired during fiscal 2012, what becomes readily apparent is the total mass of activity, both set-backs and accomplishments, that has set the stage for the Company’s future direction for the next several years,” stated T. A. "Kip" Hyde, Jr., President, Chief Operating Officer and Director of Teletouch. “From geometric growth in our two-way radio/PSE unit, to favorably settling the AT&T litigation, to a change of control in our stock holders, to our senior credit provider, Thermo Credit LLC, having its own difficulties and pulling our credit line, to a material sales tax assessment related to issues not identified in any State of Texas sales tax audits of the Company in any prior years, to satisfying the pent-up demand for the iPhone in our customer base, to completing our first direct handset manufacturer distribution agreement and a nearly a dozen other distribution agreements, we’ve been busy. To put it mildly, this past fiscal year has been a wild ride.”
Hyde continued, “Then add, since the end of the May 2012, the recent sale of that same two-way radio/PSE business, going through a road-show presentation process, with the subsequent term sheet negotiations and then signing, with due diligence now in process with a potential new lender, our high levels of activity continue, but are now all focused on furthering future growth for the Company. While we still have a few remaining challenges, returning Teletouch to operating profitability has been foremost among our goals, and we achieved that for the fourth quarter and year as a whole. All in all, it has been a great way to start fiscal 2013.”
FEATURED Element79 Gold Corp Announces 2024 Clover Work Plans & Nevada Portfolio Updates • Sep 10, 2024 11:00 AM
North Bay Resources Announces Mt. Vernon Gold Mine Bulk Sample, Sierra County, California • NBRI • Sep 11, 2024 9:15 AM
One World Products Issues Shareholder Update Letter • OWPC • Sep 11, 2024 7:27 AM
Kona Gold Beverage Inc. Reports $1.225 Million in Revenue and $133,000 Net Profit for the Quarter • KGKG • Sep 10, 2024 1:30 PM
Nightfood Holdings Inc. Completes Major Step on Uplist Journey by Closing Strategic All-Stock Acquisition of CarryoutSupplies.com • NGTF • Sep 10, 2024 8:15 AM
Element79 Gold Corp. Announces Sale of 100% Interest in Elder Creek, North Mill Creek, and Elephant Projects to 1472886 B.C. Ltd. • ELEM • Sep 9, 2024 9:34 AM