Teletrac Reports 1999 Third Quarter Results
10 November 1999
Teletrac Reports 1999 Third Quarter Results; Fleet Management Company Reports Significant Improvement in Cash Flow On Higher Revenues
SAN DIEGO--Nov. 9, 1999--Teletrac Inc., the market leader in wireless metropolitan location and information management services, today reported record Third Quarter results.Total revenues for the three months ended Sept. 30, 1999 increased three percent to $7.4 million from $7.2 million in the third quarter of 1998. Service revenues for the quarter increased 15 percent to $5.3 million from $4.6 million last year, due primarily to an increase in average revenue per vehicle to $29.75 in September 1999 from $24.56 in September 1998. Total revenues for the nine months ended September 30, 1999 increased 22 percent to $25.3 million from $20.7 million for the same period of 1998, while service revenues also increased 22% to $15.7 million from $12.9 million in 1998.
"We are encouraged at the significant improvement in service revenues since the beginning of the year and, in particular, the increase in average revenue per vehicle which reflects the strong value that we deliver to our customers," said Steven D. Scheiwe, chief executive officer of Teletrac.
Operating expenses decreased 40% or $6.2 million for the third quarter of 1999 versus the same period in 1998. Operating expenses for the first nine months decreased 23% or $10.1 million over last year. Earnings before interest, taxes and depreciation or EBITDA improved to a loss of $489,000 in the third quarter of 1999, as compared to an EBITDA loss of $6.2 million for the same period in 1998. EBITDA for the first nine months of 1999 was a loss of $3.4 million compared to an EBITDA loss of $17.2 million in 1998, showing an improvement of $13.8 million year over year.
"Teletrac has made significant gains in improving service revenues and cash flow in 1999. With our financial restructuring now behind us, we believe that we are on the right track to see further improvements over the next year. We are excited about our new products and services including our new relationship with AT&T for CDPD services to expand our footprint and mobile data capabilities," said Scheiwe.
With more than a decade of experience and over 3,200 commercial fleet customers, Teletrac has been at the forefront of providing comprehensive location and communication solutions to improve fleet productivity. Teletrac currently has intelligent wireless networks in major metropolitan areas across the U.S., serving approximately 74,000 vehicles. A wide variety of businesses and organizations comprise the company's customer list, including Emery Air Freight Inc., Brinks Incorporated, the City of Houston, Tele-Communications Inc., and the Dallas Independent School District. For more information, visit the company's Web site at www.teletrac.net
The statements in this press release that relate to future plans, events or performance are forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Readers are, accordingly, cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. Additional information about these risks and uncertainties is set forth in the company's most recent report on Form 10-Q. Teletrac undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect results, events or circumstances after the date hereof.
TELETRAC INC. (Predessor)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollar amounts stated in thousands)
Nine Months Ended Three Months Ended
Sept. 30, Sept. 30,
1998 1999 1998 1999
Unaudited Unaudited Unaudited Unaudited
Operating revenues:
Service revenue $ 12,942 $ 15,741 $ 4,598 $ 5,305
Equipment revenue 7,803 6,801 2,620 2,120
Other Revenues -- 2,794 -- 16
Total operating
revenues 20,745 25,336 7,218 7,441
Operating expenses:
Cost of revenues 2,947 2,537 1,113 780
Cost of equipment
revenue 5,959 4,649 2,042 1,442
Selling, general
and administrative 22,270 16,848 7,862 4,396
Engineering 6,743 4,761 2,411 1,312
Research & Development 1,091 2 321 --
Refrequency Costs 390 -- -- --
Depreciation and
Amortization 3,872 4,341 1,612 1,249
----- ----- ----- -----
Total operating
expenses 43,272 33,138 15,361 9,179
------ ------ ------ -----
Operating income
(loss) (22,529) (7,802) (8,143) (1,738)
Interest Expense (10,784) (7,735) (3,668) (43)
Interest and other
income 2,449 913 687 268
----- --- --- ---
Earning (loss) before
Reorg costs and
Debt Discharge (30,863) (14,624) (11,124) (1,513)
Reorg costs and
(Gain) of Debt Discharge -- (122,375) -- (123,414)
Income (loss) before
Income Taxes (30,863) 107,751 (11,124) 121,901
Income tax provision -- -- -- --
Net Income (loss) (30,863) 107,751 (11,124) 121,901
Preferred Dividends 3,713 3,553 1,238 --
----- ----- ----- -------
Income (Loss)
Applicable to Common
Stock (34,576) 104,198 (12,362) 121,901
Supplemental Information
EBITDA (17,176)(1) (3,459)(2) (6,210)(2) (489)
(1) Excludes refrequency costs and research and development
expenditures totaling $1,481.
(2) Excludes research and development expenditures.