Teletouch Reports Financial Results for First Quarter Fiscal 2006
November 22 2005 - 6:30AM
Business Wire
Teletouch Communications, Inc. (AMEX:TLL) today reported financial
information relating to its results for the first quarter ended
August 31, 2005. Total revenues for the first quarter of fiscal
2006 declined approximately 14.7% to $5.5 million compared with
$6.4 million in the first quarter of fiscal 2005. Cash and Cash
Equivalents nearly doubled to approximately $1.2 million at the end
of the first quarter, compared to $0.6 million in the comparable
period for fiscal 2004, but were down slightly from fiscal 2005
year-end at $1.3 million. Total Paging revenues for the first
quarter declined 17.1% to approximately $4.2 million, compared with
$5.0 million in the prior-year period. Two-way radio services and
product sales for the first quarter 2005 were approximately the
same as last year's $1.2 million. Total Other service revenues
increased approximately 26.5% to $43,000 in the first quarter of
2006, compared to $34,000 through the same period in 2005. Within
the Other segment, Telemetry product sales decreased approximately
65.2% to $49,000 in the first quarter of 2006, compared to $141,000
through the same period in 2005. Teletouch recorded an operating
loss of $0.32 million for the first quarter of fiscal 2006 compared
with $0.16 million in the first quarter of fiscal 2005. The decline
in operating income was primarily due to the steady decline in
service revenues from fewer pagers in service against the service
provision costs. Pagers in service declined to 131,700 at
quarter-end compared with 179,200 at last year's quarter-end. The
Company recorded a net loss of $0.43 million, or $0.09 per share in
the fiscal first quarter of 2006 compared with a net loss of $0.22
million, or $0.05 per share in the first quarter fiscal 2005.
Discussing the quarter-end financial results, Teletouch CEO, T. A.
"Kip" Hyde, Jr. stated, "With this fiscal 2006 quarterly report
complete, we have completed all of the items required by our
previously submitted and approved plan to regain compliance with
the AMEX listing requirements before November 28, 2005. We are now
current on all of our financial reports filings with the SEC and
expect that the Company will regain its full listing with the
American Stock Exchange ("AMEX") in the near future." Hyde
concluded, "We believe that the continued downward trend in the
paging revenue reported this quarter underscores the underlying
rationale behind our sale of the paging business. As previously
announced, we plan to ask Teletouch shareholders to approve the
sale of the paging business and other matters at a special
shareholders meeting expected to be scheduled before the end of the
third quarter of fiscal 2006. We further expect to use the proceeds
from this sale to focus on new high-growth opportunities, either
through internal growth, acquisitions or both." About Teletouch
Teletouch offers telemetry and GPS-location based mobile asset
monitoring, cellular, two-way radio communications and wireless
messaging services throughout the United States. Teletouch's common
stock is traded on the American Stock Exchange under stock symbol:
TLL. Additional business and financial information on Teletouch is
available at www.Teletouch.com. All statements in this news release
that are not based on historical fact are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and the provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended (which Sections were
adopted as part of the Private Securities Litigation Reform Act of
1995). While management has based any forward-looking statements
contained herein on its current expectations, the information on
which such expectations were based may change. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties, and other factors, many of which are outside of our
control, that could cause actual results to materially differ from
such statements. Such risks, uncertainties, and other factors
include, but are not necessarily limited to, those set forth under
the caption "Additional Factors That May Affect Our Business" in
the Company's most recent Form 10-K and 10-Q filings, and
amendments thereto. In addition, we operate in a highly competitive
and rapidly changing environment, and new risks may arise.
Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results. We
disclaim any intention to, and undertake no obligation to, update
or revise any forward-looking statement. -0- *T TELETOUCH
COMMUNICATIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (in thousands, except shares and per share amounts)
Three Months Ended August 31, 2005 2004 ---------- ----------
Operating revenues: Service, rent, and maintenance revenue $4,579
$5,342 Product sales revenue 919 1,103 ---------- ---------- Total
operating revenues 5,498 6,445 ---------- ---------- Operating
expenses: Cost of service, rent and maintenance (exclusive of
depreciation and amortization included below) 2,651 2,782 Cost of
products sold 673 998 Selling and general and administrative 1,730
1,971 Depreciation and amortization 761 905 Gain on disposal of
assets (1) (54) ---------- ---------- Total operating expenses
5,814 6,602 ---------- ---------- Operating loss (316) (157)
Interest expense, net (115) (103) ---------- ---------- Loss before
income tax benefit (431) (260) Income tax expense (benefit) -- (38)
---------- ---------- Net loss $(431) $(222) ========== ==========
Basic and diluted loss per share $(0.09) $(0.05) ==========
========== Weighted average number of common shares outstanding
4,880,558 4,546,980 ========== ========== TELETOUCH COMMUNICATIONS,
INC. Selected Balance Sheet Highlights (In thousands) August 31,
May 31, 2005 2005 ---------- ---------- Cash and cash equivalents
$1,172 $1,283 Current portion of long-term debt and redeemable
common stock 352 426 Long-term debt and redeemable common stock,
net of current portion 2,368 2,290 *T
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