Give a glance at Best Voip Provider's Internet casino game pages. We are
dedicated to making your acquaintance with online casino games as
exciting and rewarding as possible. The gambling websites listed here
not only combine cutting-edge software and the most advanced security
measures available on the net, but also kind customer service. Thousands
of ardent poker games fans have already thanked us for the popular
poker rooms we've listed here. And, if it is exclusive quality and
reliability that your looking for, we advice you to check out our bingo
games section. Whatever your heart desires, we've got it! So, don't
hesitate any longer. You are just one click away from the online gaming
realm where the incredible action will sweep you of your feet!!! |
|
Talk America Reports First Quarter Results26 April 2005
Talk America (NASDAQ:TALK - News):
FIRST QUARTER HIGHLIGHTS
-- Customer lines on network of 28,000
-- Billed bundled lines of 624,000
-- New milestones in data services
-- Total revenue of $119.8 million
-- Bundled revenue of $107.7 million
-- EBITDA of $24.9 million
-- Net income of $9.5 million, or $0.34 per share on a diluted
basis
-- Cash balance of $57.2 million; total debt of $3.6 million
-- Cash flow from operations of $22.8 million
Talk America (NASDAQ:TALK - News) today announced results for the first quarter 2005. For the first quarter 2005, we reported net income of $9.5 million, or $0.34 per share on a diluted basis, as compared to net income of $8.3 million, or $0.29 per share on a diluted basis, for the first quarter 2004.
(Note: See the schedule accompanying this news release for reconciliation to generally accepted accounting principles (GAAP) for the non-GAAP financial measure mentioned in this release)
SUCCESSFUL EXECUTION OF NETWORKING PLAN
As of March 31, 2005, we had approximately 28,000 lines provisioned on our network and are on track for our target of 175,000 lines by year end 2005. Ed Meyercord, Chief Executive Officer and President of Talk America, commented "the investment we've made in the back office for UNE-L over the past 18 months is paying dividends as we scale our migration counts over the next several quarters. In the second quarter 2005, we'll migrate over 50,000 lines to our own network in Michigan. Currently, 48 of the 82 end offices in Detroit and Grand Rapids, Michigan where we plan to install our own equipment are either operational or will be by the end of the second quarter with applications approved and plans established for the remaining locations."
ACCELERATING ROLL OUT OF VoIP NETWORK IN GRAND RAPIDS
Since the installation of our soft switch in December, we have been testing the delivery of voice and data services to customers using VoIP technology. Our Grand Rapids collocation was configured with VoIP broadband loop controllers that carry packetized voice and data to our soft switch in Southfield, Michigan. During the first quarter 2005, we migrated an initial group of test customers to the new switch and have been pleased with the performance, reliability and cost of service. We are moving ahead with plans to build-out six end offices in the Grand Rapids market. Mr. Meyercord added, "the successful implementation of VoIP networking will substantially lower the customer concentration thresholds required for economic facilities investment."
BUSINESS PRODUCT LAUNCH SLATED FOR FOURTH QUARTER
With the development of the systems and processes required for UNE-L residential service substantially complete, our information technology and networking groups will begin development efforts for a suite of products for line level as well as high bandwidth integrated communications service offerings for small and medium sized businesses. We expect to be operational in the fourth quarter of this year with the rollout of these services through direct sales and agent channels.
DATA SERVICES GROWTH ON FORECAST
We finished the first quarter with 27,000 dial-up subscribers, up 23% from the end of 2004. We are moving out of the test phase of DSL and will begin marketing across all of our channels in the second quarter 2005, commencing in our networking footprint. We expect that by the end of the second quarter, we will be actively marketing DSL in 48 end offices in the Detroit area up from six today. We have found that customers who use our data service offerings have lower churn.
CASH FLOW REMAINS STRONG
During the first quarter 2005, our business generated $22.8 million of cash from operations, which more than funded our capital expenditures, including capitalized software, of $13.2 million during the quarter. We expect to continue to generate significant cash flow during 2005 that will fund the build-out of our network in Michigan and will provide us with significant financial flexibility.
FINANCIAL GUIDANCE
Our capital expenditure forecast, including capitalized software, for 2005 is $43 - $47 million. As a result of a reduction in the remaining useful lives of our long distance switches and additional capital expenditures related to our network build-out, we expect that our depreciation and amortization expense will increase to approximately $40 million in 2005. Our operational and financial targets for the second quarter 2005 and for the full year 2005 are as follows:
2005
---------------------------
Metrics Q2 2005 Previous Revised
------------- ------------- -------------
Lines on Network 75-85k 175k 175k
Total Revenue $103-$106 mm $375-$385 mm $380-$390 mm
EBITDA $19-$21 mm $68-$72 mm $73-$77 mm
CONFERENCE CALL
Talk America management will host a conference call to discuss the first quarter 2005 operating results at 5:00 p.m. ET on Tuesday, April 26, 2005. The call can be accessed by dialing the following: US 888-391-0231, International, 212-676-5404. A replay of the call will be available through 7:00 p.m. ET on May 3, 2005 by dialing the following: US 800-633-8284, International 402-977-9140. The reservation number for the replay is 21244516.
Additionally, a live web simulcast of the conference call will be available online at www.talkamerica.com and www.streetevents.com.
About Talk America
Talk America is a leading competitive communications provider that offers phone services and high speed internet access to both residential and business customers. Talk America delivers value in the form of savings, simplicity and quality service to its customers through its leading edge network and award-winning back office. For further information, visit us online at: http://www.talkamerica.com.
Please Note: Certain of the statements contained herein may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are identified by the use of forward-looking words or phrases, including, but not limited to, "estimates," "expects," "expected," "anticipates," "anticipated," "forecast," "guidance," and "targets". These forward-looking statements are based on our current expectations. Although we believe that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to have been correct. Forward-looking statements involve risks and uncertainties and our actual results could differ materially from our expectations. In addition to those factors discussed in the foregoing, important factors that could cause such actual results to differ materially include, among others, dependence on the availability and functionality of local exchange carriers' networks as they relate to the unbundled network element platform, failure to establish and deploy our own local network as we plan to do or to operate it in a profitable manner, increased price competition for long distance and local services, failure of the marketing of the bundle of local and long distance services and long distance services under our direct marketing channels to a smaller marketing footprint, attrition in the number of end users, failure to manage our collection management systems and credit controls for customers, interruption in our network and information systems, failure to provide adequate customer service, and changes in government policy, regulation and enforcement and/or adverse judicial or administrative interpretations and rulings relating to regulations and enforcement, including, but not limited to, the continued availability of the unbundled network element platform of the local exchange carriers network and unbundled network element pricing methodology.
For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the discussions contained in our Annual Report on Form 10-K for the year-ended December 31, 2004, filed March 16, 2005, as amended by our Form 10-K/A filed March 30, 2005, and any subsequent filings. We undertake no obligation to update our forward-looking statements.
-- Financial Tables To Follow--
TALK AMERICA HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(Unaudited)
Three Months Ended
March 31,
---------------------
2005 2004
---------- ----------
Revenue $119,835 $109,619
Costs and expenses:
Network and line costs excluding depreciation
and amortization (see below) 60,996 52,512
General and administrative expenses 18,120 16,870
Provision for doubtful accounts 5,588 3,421
Sales and marketing expenses 10,268 17,284
Depreciation and amortization 9,501 5,131
---------- ----------
Total costs and expenses 104,473 95,218
---------- ----------
Operating income 15,362 14,401
Other income (expense):
Interest income 308 101
Interest expense (25) (817)
Other expense, net (20) --
---------- ----------
Income before provision for income taxes 15,625 13,685
Provision for income taxes 6,155 5,397
---------- ----------
Net income $9,470 $8,288
========== ==========
Income per share - Basic:
---------- ----------
Net income per share $0.35 $0.31
========== ==========
Weighted average common shares outstanding 27,221 26,674
========== ==========
Income per share - Diluted:
---------- ----------
Net income per share $0.34 $0.29
========== ==========
Weighted average common and common equivalent
shares outstanding 27,816 28,130
========== ==========
TALK AMERICA HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)
(Unaudited)
March 31, December 31,
2005 2004
------------ ------------
Assets
Current assets:
Cash and cash equivalents $57,183 $47,492
Accounts receivable, trade (net of allowance
for uncollectible accounts of $16,840 and
$17,508 at March 31, 2005 and December 31,
2004, respectively) 43,083 48,873
Deferred income taxes 28,130 34,815
Prepaid expenses and other current assets 6,236 6,888
------------ ------------
Total current assets 134,632 138,068
Property and equipment, net 69,877 65,823
Goodwill 13,013 13,013
Intangible assets, net 1,266 1,966
Deferred income taxes 12,548 14,291
Capitalized software cost and other assets 8,873 8,567
------------ ------------
$240,209 $241,728
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $43,693 $43,439
Sales, use and excise taxes 9,588 11,179
Deferred revenue 14,272 15,321
Current portion of long-term debt and
capitalized lease obligations 2,541 2,529
Accrued compensation 1,843 6,690
Other current liabilities 5,575 5,426
------------ ------------
Total current liabilities 77,512 84,584
------------ ------------
Long-term debt and capitalized lease
obligations 1,076 1,717
Deferred income taxes 9,963 13,906
Commitments and contingencies
Stockholders' equity:
Preferred stock - $.01 par value, 5,000,000
shares authorized; no shares outstanding -- --
Common stock - $.01 par value, 100,000,000
shares authorized; 27,220,841 and 27,037,096
shares issued and outstanding at March 31,
2005 and December 31, 2005, respectively 285 284
Additional paid-in capital 357,075 356,409
Accumulated deficit (200,702) (210,172)
Treasury stock - at cost, 1,315,789 shares
at March 31, 2005 and December 31, 2004 (5,000) (5,000)
------------ ------------
Total stockholders' equity 151,658 141,521
------------ ------------
$240,209 $241,728
============ ============
TALK AMERICA HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
-------------------------
2005 2004
------------ ------------
Cash flows from operating activities:
Net income $9,470 $8,288
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for doubtful accounts 5,588 3,421
Depreciation and amortization 9,501 5,131
Non-cash compensation -- 9
Non-cash interest and amortization of
accrued interest liabilities -- (65)
Loss on sale and retirement of assets 20 --
Deferred income taxes 4,484 4,261
Changes in assets and liabilities:
Accounts receivable, trade 202 (5,760)
Prepaid expenses and other current
assets 652 (514)
Capitalized software and other assets 9 (13)
Accounts payable 254 4,174
Sales, use and excise taxes (1,591) (719)
Deferred revenue (1,049) 1,726
Accrued compensation (4,847) (6,983)
Other current liabilities 149 (1,084)
------------ ------------
Net cash provided by operating
activities 22,842 11,872
------------ ------------
Cash flows from investing activities:
Capital expenditures (12,221) (1,220)
Capitalized software development costs (1,010) (811)
Proceeds from sale of property and equipment 42 --
------------ ------------
Net cash used in investing activities (13,189) (2,031)
------------ ------------
Cash flows from financing activities:
Payments of borrowings -- (15,000)
Payments of capital lease obligations (629) (384)
Proceeds from exercise of options 667 50
------------ ------------
Net cash provided by (used in)
financing activities 38 (15,334)
------------ ------------
Net increase (decrease) in cash and cash
equivalents 9,691 (5,493)
Cash and cash equivalents, beginning of
period 47,492 35,242
------------ ------------
Cash and cash equivalents, end of period $57,183 $29,749
============ ============
TALK AMERICA HOLDINGS, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION
Non-GAAP Financial Measure:
The non-GAAP financial measure that we use in this news release is
listed below. We have included reconciliation of this non-GAAP
financial measure to the most directly comparable GAAP measures in our
financial statements.
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) is defined as operating income plus depreciation and
amortization.
EBITDA
($ in thousands) First Quarter
-----------------------
2005 2004
----------- -----------
Operating Income $15,362 $14,401
Depreciation and Amortization 9,501 5,131
----------- -----------
EBITDA $24,863 $19,532
=========== ===========
--------------------------------------------------------------------------------
Contact:
Talk America Holdings, Inc.
Jeff Schwartz, 215-862-1097
jschwartz@talk.com
--------------------------------------------------------------------------------
Source: Talk America Holdings, Inc.
Source: Business Wire
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Voip Articles
|
|
|
