Minorplanet Systems USA, Inc. Announces Financial Results For FY2002 Eight-Month Transition Period, Posting Improved Operating Results And Higher Cash Position
RICHARDSON, Texas--Nov. 5, 2002--Minorplanet Systems USA, Inc. , a leading provider of telematics-based management solutions for commercial fleets, today reported financial results for the eight-month transition period for fiscal 2002 ended Aug. 31. The transition period resulted from the board of directors' decision in May 2002 to change the company's fiscal year end from Dec. 31 to Aug. 31 to match the fiscal year end of its majority shareholder, Minorplanet Systems PLC.For the fiscal 2002 eight months, total revenues were $42.0 million, compared with total revenues of $52.7 million for the fiscal 2001 eight months. Minorplanet reported a net loss of $9.8 million ($0.20 loss per share on 48.2 million shares) for the fiscal 2002 eight months, compared with a net loss of $15.6 million ($0.88 loss per share on 17.6 million shares) in fiscal 2001, before an extraordinary gain of $59.5 million ($3.36 per share) arising from early extinguishment of $80 million of the company's Senior Note debt.
"The company's operating results and cash position improved primarily due to the positive effects of selling certain of our long-haul assets, as well as numerous other steps taken to reduce costs and enhance our future sales potential," said Michael Smith, executive vice president and chief financial officer.
Operating Highlights
| -- | For the fiscal 2002 eight months, the company sold over 3,600 VMI(TM) units to over 530 customers. |
| -- | Operating expenses, excluding sales and marketing, were reduced in every category for the 2002 eight-month period, compared with the first eight months of fiscal 2001. |
| -- | To date, VMI sales have contributed approximately $4 million in revenues to be recognized in future periods. |
| -- | Total net deferred revenues on the balance sheet resulting from all business transactions, after deferred product costs, have jumped to $10.1 million, almost quadruple the $2.6 million in net deferred revenues at Dec. 31, 2001. |
| -- | The company's cash position continued to strengthen, reaching $18.1 million at Aug. 31, 2002, up $2.1 million from $16.0 million at June 30, 2002, and up $3.2 million from $14.9 million at Dec. 31, 2001, primarily as a result of the company's March 31, 2002, sale of certain assets and license rights of its long-haul and asset-tracking business. |
| -- | Minorplanet Systems USA now has a sales presence in five metro areas: Los Angeles, Dallas/Fort Worth, Houston, Atlanta and Austin, Texas. |
About Minorplanet Systems USA, Inc.
Minorplanet Systems USA, Inc. (www.minorplanetusa.com) markets, sells and supports Vehicle Management Information(TM) (VMI), a state-of-the-art fleet management solution that contributes to higher customer revenues and improved operator efficiency. VMI combines global positioning system (GPS) and wireless vehicle telematics technologies to monitor vehicles, minute by minute, in real time. The company also markets, sells and supports a customized GPS-based fleet management solution for large fleets like SBC Communications, Inc., which has more than 37,000 installed vehicles.
Headquartered in Richardson, Texas, Minorplanet currently has a market presence in the Dallas/Fort Worth, Houston, Atlanta, Los Angeles and Austin, Texas, markets, with plans for other metro markets in the future.
Legal notice to investors: Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the company "expects," "believes," "anticipates" or words of similar import. Similarly, statements that describe the company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements generally involve known and unknown risks, uncertainties and other facts, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: acceptance of new product offerings; ability to enter into additional GSM wireless agent agreements, ability to achieve and maintain margins during periods of rapid expansion; availability of capital to fund expansion; market conditions; general economic and business conditions; business abilities and judgment of management and personnel; changes in business strategy and competition. For a listing of risks applicable to the future prospects of the company, please refer to the reports filed with the SEC, such as recent 10-K and 10-Q Reports.
"Minorplanet" is a federally registered trademark and service mark of Minorplanet Limited. "Vehicle Management Information," "VMI" and "Minorplanet Systems USA" are trademarks and service marks of Minorplanet Limited.
MINORPLANET SYSTEMS USA, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
Unaudited
ASSETS
August 31, December 31,
2002 2001
------------- ------------
Current assets:
Cash and short-term investments $18,090 $14,889
Accounts receivable, net 7,699 11,470
Inventories, net 1,581 2,913
Deferred product costs - current
portion 6,149 6,183
Other current assets 2,779 592
------------- ------------
Total current assets 36,298 36,047
Network, equipment and software, net 6,425 8,583
Deferred product costs - non-current
portion 1,496 4,516
License rights, net 36,100 37,848
Other assets, net 1,084 603
------------- ------------
Total assets $81,403 $87,597
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,875 $2,517
Telecommunications costs payable 3,268 3,584
Accrued interest payable 903 575
Deferred product revenues - current
portion 8,054 7,588
Deferred service revenues 6,872 -
Other current liabilities 5,989 9,297
------------- ------------
Total current liabilities 27,961 23,561
Deferred product revenues - non-current
portion 2,791 5,748
Senior notes and other notes payable 14,254 14,109
Other non-current liabilities 979 -
------------- ------------
Total liabilities 45,985 43,418
------------- ------------
Stockholders' equity:
Common Stock 484 481
Common Stock - Class B - -
Preferred Stock - Series E - -
Additional paid-in capital 218,509 217,495
Accumulated deficit (183,013) (173,235)
Treasury stock (562) (562)
------------- ------------
Total stockholders' equity 35,418 44,179
------------- ------------
Total liabilities and
stockholders' equity $81,403 $87,597
============= ============
MINORPLANET SYSTEMS USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share)
Eight months ended
August 31,
-----------------------
2002 2001
-----------------------
Revenues:
Product $5,074 $12,796
Ratable product 6,780 7,026
Service 30,102 32,844
-----------------------
Total revenues 41,956 52,666
-----------------------
Cost of revenues:
Product 3,996 9,810
Ratable product 5,213 5,814
Service 16,155 18,204
Provision for inventory reserve - -
Provision for settlement of
litigation 100 2,100
-----------------------
Total cost of revenues 25,464 35,928
-----------------------
Gross profit 16,492 16,738
-----------------------
Expenses:
General and administrative 7,943 8,349
Customer service 3,411 5,051
Sales and marketing 8,600 2,784
Engineering 1,374 4,107
Network services center 461 1,168
Depreciation and amortization 4,322 4,673
-----------------------
26,111 26,132
-----------------------
Operating loss (9,619) (9,394)
Interest income 457 420
Interest expense (1,411) (6,642)
Other income (loss) (183)
-----------------------
Loss before income taxes and
extraordinary item (10,756) (15,616)
Income tax (provision) benefit 978 -
-----------------------
Loss before extraordinary item (9,778) (15,616)
Extraordinary item, net - 59,461
-----------------------
Net income (loss) $(9,778) $43,845
=======================
Basic and diluted income (loss) per
share:
Loss before extraordinary item $(0.20) $(0.88)
Extraordinary item - 3.36
-----------------------
Net income (loss) per share $(0.20) $2.48
=======================
Weighted average number of shares
outstanding:
Basic and diluted 48,233 17,649
=======================
Supplemental information:
EBITDA $(5,480) $(4,721)
=======================
Service vehicle units - beginning
of period 39,781 33,853
Net additions (deactivations) 1,221 3,608
-----------------------
Service vehicle units - end of
period 41,002 37,461
=======================
Network units - beginning of
period 31,151 33,483
Net additions (deactivations) (3,933) (1,745)
-----------------------
Network units - end of period 27,218 31,738
=======================