-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TrRaeuJuu/GykTNL9fwiI8jLrrUOqt4cLAj1H8WVko/INyIyptuxj+AGGKsAR24x n3r6H0m+6239YOOwBqekHg== 0000890566-99-000214.txt : 19990217 0000890566-99-000214.hdr.sgml : 19990217 ACCESSION NUMBER: 0000890566-99-000214 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990216 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BILLING CONCEPTS CORP CENTRAL INDEX KEY: 0001013706 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MANAGEMENT CONSULTING SERVICES [8742] IRS NUMBER: 742781950 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-28536 FILM NUMBER: 99541832 BUSINESS ADDRESS: STREET 1: 9311 SAN PEDRO STREET 2: STE 400 CITY: SAN ANTONIO STATE: TX ZIP: 78216 BUSINESS PHONE: 2105256017 MAIL ADDRESS: STREET 1: 7411 JOHN SMITH DRIVE STREET 2: STE 200 CITY: SAN ANTONIO STATE: TX ZIP: 78229 FORMER COMPANY: FORMER CONFORMED NAME: BILLING INFORMATION CONCEPTS CORP DATE OF NAME CHANGE: 19960722 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------- FORM 10-Q (Mark One) |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1998 or |_| TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-28536 ----------- BILLING CONCEPTS CORP. (Exact name of registrant as specified in its charter) DELAWARE (State or other jurisdiction of 74-2781950 incorporation or organization) (IRS Employer ID No.) 7411 JOHN SMITH DRIVE, SUITE 200 SAN ANTONIO, TEXAS 78229 (Address of principal executive offices) (Zip code) (210) 949-7000 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. |X| Yes |_| No Indicated below is the number of shares outstanding of the registrant's only class of common stock at February 5, 1999: NUMBER OF SHARES TITLE OF CLASS OUTSTANDING -------------- ----------- Common Stock, $.01 par value 37,069,515 BILLING CONCEPTS CORP. AND SUBSIDIARIES INDEX
PAGE ---- PART I FINANCIAL INFORMATION Item 1. Interim Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets - December 31, 1998 and September 30, 1998......................................................... 3 Condensed Consolidated Statements of Operations - For the Three Months Ended December 31, 1998 and 1997........................................... 4 Condensed Consolidated Statements of Cash Flows - For the Three Months Ended December 31, 1998 and 1997........................................... 5 Notes to Interim Condensed Consolidated Financial Statements............... 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations................................................................. 9 Item 3. Quantitative and Qualitative Disclosure about Market Risk.................. 15 PART II OTHER INFORMATION Item 1. Legal Proceedings.......................................................... 16 Item 2. Changes in Securities...................................................... 16 Item 6. Exhibits and Reports on Form 8-K........................................... 17 SIGNATURE........................................................................... 18
2 PART I FINANCIAL INFORMATION ITEM 1. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS BILLING CONCEPTS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED) ASSETS DECEMBER 31, SEPTEMBER 30, 1998 1998 --------- --------- Current assets: Cash and cash equivalents ........................ $ 149,248 $ 120,972 Accounts receivable, net ......................... 37,417 36,214 Purchased receivables ............................ 48,190 64,477 Prepaids and other ............................... 3,365 3,855 --------- --------- Total current assets ........................... 238,220 225,518 Property and equipment, net ....................... 23,492 23,446 Equipment held under capital leases, net .......... 370 441 Other assets, net ................................. 8,940 9,059 Investment in equity affiliates ................... 7,800 8,000 --------- --------- Total assets ................................... $ 278,822 $ 266,464 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable .......................... $ 17,437 $ 19,053 Accounts payable - billing customers ............ 131,175 118,599 Accrued liabilities ............................. 25,034 26,557 Current portion of long-term debt ............... 0 760 Current portion of obligations under capital leases ................................ 82 251 --------- --------- Total current liabilities ...................... 173,728 165,220 Long-term debt, less current portion .............. 164 2,439 Obligations under capital leases, less current portion ................................. 36 29 Other liabilities ................................. 1,705 1,635 Deferred income taxes ............................. 2,867 2,949 --------- --------- Total liabilities .............................. 178,500 172,272 Commitments and contingencies (Note 4) Stockholders' equity: Preferred stock, $0.01 par value, 10,000,000 shares authorized; no shares issued or outstanding at December 31 or September 30 ...... 0 0 Common stock, $0.01 par value, 75,000,000 shares authorized; 36,916,215 shares issued and outstanding at December 31; 36,642,890 shares issued and outstanding at September 30 .......... 369 349 Additional paid-in capital ........................ 60,837 60,045 Retained earnings ................................. 39,447 34,192 Deferred compensation ............................. (331) (394) --------- --------- Total stockholders' equity ..................... 100,322 94,192 --------- --------- Total liabilities and stockholders' equity ..... $ 278,822 $ 266,464 ========= ========= The accompanying notes are an integral part of these condensed consolidated financial statements. 3 BILLING CONCEPTS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) THREE MONTHS ENDED DECEMBER 31, --------------------- 1998 1997 -------- -------- Operating revenues ................................... $ 47,912 $ 40,861 Cost of revenues ..................................... 28,686 24,926 -------- -------- Gross profit ......................................... 19,226 15,935 Selling, general and administrative expenses ......... 7,555 5,126 Research and development ............................. 774 514 Advance funding program income ....................... (1,239) (2,056) Advance funding program expense ...................... 31 32 Depreciation and amortization expense ................ 2,228 1,594 -------- -------- Income from operations ............................... 9,877 10,725 Other income (expense): Interest income ..................................... 1,787 723 Interest expense .................................... (5) (102) Equity in net loss of investee ...................... (200) 0 Other, net .......................................... (71) 52 -------- -------- Total other income, net ............................ 1,511 673 -------- -------- Income before provision for income taxes ............. 11,388 11,398 Provision for income taxes ........................... (4,384) (4,393) -------- -------- Net income ........................................... $ 7,004 $ 7,005 ======== ======== Earnings per common share - basic (See Note 2) ....... $ 0.19 $ 0.20 Earnings per common share - diluted (See Note 2) ..... $ 0.19 $ 0.19 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 BILLING CONCEPTS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED) THREE MONTHS ENDED DECEMBER 31, --------------------- 1998 1997 --------- -------- Cash flows from operating activities: Net income ........................................... $ 7,004 $ 7,005 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ...................... 2,228 1,594 Deferred compensation .............................. 63 166 Equity in net loss of investee ..................... 200 0 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable ......... (1,123) 2,188 (Increase) decrease in prepaids and other .......... 496 (166) Decrease in accounts payable ....................... (1,966) (2,316) Increase in accrued liabilities .................... 1,903 3,601 Increase in other liabilities ...................... 70 8 Increase in deferred taxes ......................... 0 72 --------- -------- Net cash provided by operating activities ............. 8,875 12,152 Cash flows from investing activities: Purchases of property and equipment .................. (1,402) (1,220) Collections of (payments for) purchased receivables from billing customers, net ........................ 16,287 (20,060) Collections of proceeds due to billing customers, net 12,576 35,712 Collections of (payments for) sales taxes due on behalf of billing customers, net ................... (5,154) 6,068 Other investing activities ........................... (262) 11 --------- -------- Net cash provided by investing activities ............. 22,045 20,511 Cash flows from financing activities: Proceeds from issuance of long-term debt ............. 0 242 Payments on long-term debt ........................... (3,035) (294) Payments on capital leases ........................... (162) (119) Proceeds from issuance of common stock ............... 553 1,684 --------- -------- Net cash provided by (used in) financing activities ... (2,644) 1,513 --------- -------- Net increase in cash and cash equivalents ............. 28,276 34,176 Cash and cash equivalents, beginning of period ........ 120,972 42,826 --------- -------- Cash and cash equivalents, end of period .............. $ 149,248 $ 77,002 ========= ======== The accompanying notes are an integral part of these condensed consolidated financial statements. 5 BILLING CONCEPTS CORP. AND SUBSIDIARIES NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1. BASIS OF PRESENTATION The interim condensed consolidated financial statements included herein have been prepared by Billing Concepts Corp. ("BCC," formerly known as Billing Information Concepts Corp. or "BIC") and subsidiaries (collectively referred to as the "Company"), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Company's management, the accompanying interim condensed consolidated financial statements reflect all adjustments that are necessary for a fair presentation of the Company's financial position, results of operations and cash flows for such periods. All such adjustments are of a normal recurring nature. It is recommended that these interim condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 1998. Results of operations for interim periods are not necessarily indicative of results that may be expected for any other interim periods or the full fiscal year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 2. EARNINGS PER SHARE Earnings per share for all periods have been restated to reflect the adoption of Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share," which established standards for computing and presenting earnings per share ("EPS") for entities with publicly held common stock or potential common stock. SFAS No. 128 requires dual presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures. Basic EPS were computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted EPS differs from basic EPS due to the assumed conversions of potentially dilutive options and warrants that were outstanding during the period. The following is a reconciliation of the numerators and the denominators of the basic and diluted per-share computations for net income.
FOR THE QUARTER ENDED DECEMBER 31, 1998 -------------------------------------- INCOME SHARES PER-SHARE (NUMERATOR) (DENOMINATOR) AMOUNT ---------- ---------- --------- BASIC EPS Net income available to common stockholders ......................... $7,004,000 36,866,000 $0.19 ===== EFFECT OF POTENTIALLY DILUTIVE SECURITIES Stock options ....................................................... 874,000 DILUTED EPS Net income available to common stockholders including assumed conversions .................................... $7,004,000 37,740,000 $0.19 ========== ========== =====
6 BILLING CONCEPTS CORP. AND SUBSIDIARIES NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE QUARTER ENDED DECEMBER 31, 1997 -------------------------------------- INCOME SHARES PER-SHARE (NUMERATOR) (DENOMINATOR) AMOUNT ---------- ---------- --------- BASIC EPS Net income available to common stockholders ........................ $7,005,000 35,029,000 $0.20 ========== ========== ===== EFFECT OF POTENTIALLY DILUTIVE SECURITIES Warrants ........................................................... 215,000 Stock options ...................................................... 1,923,000 DILUTED EPS Net income available to common stockholders including assumed conversions ................................... $7,005,000 37,167,000 $0.19 ========== ========== =====
Certain options to purchase 2,126,000 shares of common stock at prices ranging from $14.00 to $29.00 per share and certain options to purchase 14,500 shares of common stock at prices ranging from $21.50 to $24.38 per share were outstanding for a portion of the quarters ended December 31, 1998 and 1997, respectively. They were not included in the computation of the diluted EPS because the options' exercise price was greater than the average market price of the common shares. NOTE 3. ACQUISITIONS Effective October 1, 1998, the Company acquired Expansion Systems Corporation ("ESC"), a privately held company headquartered in Glendale, California that develops and markets billing and registration systems to Internet Service Providers ("ISPs") under its flagship products TOTALBILL and INSTANTREG. An aggregate of 170,000 shares of the Company's common stock was issued in connection with this transaction, which has been accounted for as a pooling of interests combination. The consolidated financial statements for periods prior to the combination have not been restated to include the accounts and results of operations of ESC due to the transaction not having a significant impact on the Company's prior period financial position or results of operations. In December 1998, the Company completed the merger of Communications Software Consultants, Inc. ("CommSoft") in consideration of 2,492,759 shares of the Company's common stock. CommSoft was a privately held, international software development and consulting firm specializing in the telecommunications industry. The business combination has been accounted for as a pooling of interests. The consolidated financial statements for periods prior to the combination have been restated to include the accounts and results of operations of CommSoft. The operating revenues and net income of CommSoft that have been included in the unaudited condensed consolidated financial statements of income for the quarters ended December 31, 1998 and 1997 were as follows: THREE MONTHS ENDED DECEMBER 31, ------------- 1998 1997 ---- ---- (IN THOUSANDS) Operating revenues........... $5,756 $2,613 Net income .................. $ 636 $ 152 7 BILLING CONCEPTS CORP. AND SUBSIDIARIES NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 4. COMMITMENTS AND CONTINGENCIES The Company is involved in various claims, legal actions and regulatory proceedings arising in the ordinary course of business. The Company believes it is unlikely that the final outcome of any of the claims or proceedings to which the Company is a party will have a material adverse effect on the Company's financial position or results of operations; however, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on the Company's results of operations for the fiscal period in which such resolution occurred. NOTE 5. RELATED PARTY TRANSACTIONS From time to time, the Company has made advances to or was owed amounts from certain officers of the Company. The highest aggregate amount outstanding of advances to officers during the three months ended December 31, 1998 was $263,000. The Company had a $258,000 note receivable bearing interest at 7.0% from a certain officer of the Company at December 31, 1998. As of January 31, 1999, the principal balance of this note receivable was $165,000. The Company also had a $149,000 note bearing interest at 10.0% payable to a certain officer of the Company at December 31, 1998. 8 ITEM 2. THIS QUARTERLY REPORT ON FORM 10-Q CONTAINS CERTAIN "FORWARD-LOOKING" STATEMENTS AS SUCH TERM IS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INFORMATION RELATING TO THE COMPANY AND ITS SUBSIDIARIES THAT ARE BASED ON THE BELIEFS OF THE COMPANY'S MANAGEMENT AS WELL AS ASSUMPTIONS MADE BY AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT. WHEN USED IN THIS REPORT, THE WORDS "ANTICIPATE," "BELIEVE," "ESTIMATE," "EXPECT" AND "INTEND" AND WORDS OR PHRASES OF SIMILAR IMPORT, AS THEY RELATE TO THE COMPANY OR ITS SUBSIDIARIES OR COMPANY MANAGEMENT, ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS REFLECT THE CURRENT RISKS, UNCERTAINTIES AND ASSUMPTIONS RELATED TO CERTAIN FACTORS INCLUDING, WITHOUT LIMITATIONS, COMPETITIVE FACTORS, GENERAL ECONOMIC CONDITIONS, CUSTOMER RELATIONS, RELATIONSHIPS WITH VENDORS, THE INTEREST RATE ENVIRONMENT, GOVERNMENTAL REGULATION AND SUPERVISION, SEASONALITY, DISTRIBUTION NETWORKS, PRODUCT INTRODUCTIONS AND ACCEPTANCE, TECHNOLOGICAL CHANGE, CHANGES IN INDUSTRY PRACTICES, ONETIME EVENTS AND OTHER FACTORS DESCRIBED HEREIN AND IN OTHER FILINGS MADE BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION. BASED UPON CHANGING CONDITIONS, SHOULD ANY ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALIZE, OR SHOULD ANY UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED HEREIN AS ANTICIPATED, BELIEVED, ESTIMATED, EXPECTED OR INTENDED. THE COMPANY DOES NOT INTEND TO UPDATE THESE FORWARD-LOOKING STATEMENTS. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL The following is a discussion of the consolidated financial condition and results of operations of the Company for the quarters ended December 31, 1998 and 1997. It should be read in conjunction with the Interim Condensed Consolidated Financial Statements of the Company, the notes thereto and other financial information included elsewhere in this report, and the Company's Annual Report on Form 10-K for the year ended September 30, 1998. For purposes of the following discussion, references to yearly periods refer to the Company's fiscal year ended September 30 and references to quarterly periods refer to the Company's fiscal quarter ended December 31. RESULTS OF OPERATIONS The following table presents certain items in the Company's Condensed Consolidated Statements of Income as a percentage of total revenues: THREE MONTHS ENDED DECEMBER 31, --------------------- 1998 1997 ------ ------ Operating revenues ............................... 100.0% 100.0% Cost of revenues ................................. 59.9 61.0 ------ ------ Gross profit ..................................... 40.1 39.0 Selling, general and administrative expenses ..... 15.8 12.5 Research and development ......................... 1.6 1.3 Advance funding program income ................... (2.6) (5.0) Advance funding program expense .................. 0.1 0.1 Depreciation and amortization expense ............ 4.7 3.9 ------ ------ Income from operations ........................... 20.6 26.2 Other income, net ................................ 3.2 1.6 ------ ------ Income before provision for income taxes ......... 23.8 27.9 Provision for income taxes ....................... (9.2) (10.8) ------ ------ Net income ....................................... 14.6% 17.1% ====== ====== 9 OPERATING REVENUES The Company's revenues are derived primarily from the provision of billing clearinghouse and information management services to direct dial long distance carriers and operator services providers ("Local Exchange Carrier billing" or "LEC billing"). Revenues are also derived from enhanced billing services provided to companies that offer 900 services or other non-regulated telecommunications equipment and services. LEC billing fees charged by the Company include processing and customer service inquiry fees. Processing fees are assessed to customers either as a fee charged for each telephone call record or other transaction processed or as a percentage of the customer's revenue that is submitted by the Company to local telephone companies for billing and collection. Processing fees also include any charges assessed to the Company by local telephone companies for billing and collection services that are passed through to the customer. Customer service inquiry fees are assessed to customers either as a fee charged for each record processed by the Company or as a fee charged for each billing inquiry made by end users. The Company also develops, sells, and supports convergent billing systems for telecommunications service providers and provides direct billing outsourcing services through its wholly owned subsidiary, Billing Concepts Systems, Inc. ("BCS"). In addition to license and maintenance fees charged by the Company for the use of its billing software applications, fees are also charged on a time and materials basis for software customization and programming services. Processing fees for direct billing services provided through the Company's service bureau are assessed to customers based on volume. Billing systems revenues also include retail sales of computer hardware and third party software. Total revenues for the quarter ended December 31, 1998 were $47.9 million, an increase of 17.3% from $40.9 million for the comparable prior year quarter. Billing systems sales and related services revenues increased 132.0% to $11.8 million in the first quarter of 1999, from $5.1 million in the first quarter of 1998. The increase in billing systems revenues was primarily attributable to the growth of outsourcing services revenues from the prior year. The remaining increase in revenues from the prior year quarter was attributable to LEC billing services. Despite the overall increase in LEC billing services revenue from the prior quarter, revenue growth from the prior quarter was negatively impacted by "slamming" and "cramming" issues that have occurred in the long distance industry. These "slamming and cramming" issues have caused some of the larger LECs to affect the ability of certain of the Company's customers to market certain services. Also, as a proactive measure, the Company has taken action against certain customers that include, but is not limited to, the cessation of billing for certain new or existing products. Consequently, the number of call records processed for billing decreased from the prior quarter. Telephone call record volumes were as follows: THREE MONTHS ENDED DECEMBER 31, -------------------- 1998 1997 ---- ---- (IN MILLIONS) Direct dial long distance services ............. 152.3 160.3 Operator services .............................. 24.5 36.9 Enhanced billing services ...................... 1.4 3.2 Billing management services .................... 53.2 96.9 Although billing management records decreased significantly from the prior quarter, the impact on revenues was minimal because revenue per record for billing management customers, who have their own billing and collection agreements with the local telephone companies, is significantly less than revenue per record for the Company's other customers. 10 COST OF REVENUES Cost of revenues includes billing and collection fees charged to the Company by local telephone companies and related transmission costs, as well as all costs associated with the customer service organization, including staffing expenses and costs associated with telecommunications services. Billing and collection fees charged by the local telephone companies include fees that are assessed for each record submitted and for each bill rendered to its end-user customers. The Company achieves discounted billing costs due to its aggregated volumes and can pass these discounted costs on to its customers. Cost of revenues also includes the cost of computer hardware and software sold, and the salaries and benefits of software development, technical, service bureau and client service personnel who generate revenue from hourly billings. The gross profit margin of 40.1% reported for the quarter ended December 31, 1998 increased from 39.0% in the comparable prior year quarter. This increase was primarily a result of a changing revenue mix as revenues from the higher margin billing systems business doubled to 25% of total revenues from the prior year quarter. The increase from the billing systems contribution was partially offset by a decrease in LEC billing gross margin due to the loss of certain higher margin LEC billing revenue as a result of slamming and cramming issues. The Company currently believes that its gross profit margin could increase in subsequent periods as a result of the potential addition of higher gross margin billing systems sales and related services revenues, however, no such assurances can be made. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative ("SG&A") expenses are comprised of all selling, marketing and administrative costs incurred in direct support of the business operations of the Company. SG&A expenses for the first quarter of 1999 were $7.6 million, representing 15.8% of revenues, compared to $5.1 million for the first quarter of 1998, or 12.5% of revenues. The increase was primarily attributable to the changing mix of businesses as the billing systems business incurs a higher level of SG&A as a percentage of revenue than the LEC billing business. Systems revenues have increased as a percentage of total revenues, and the overall SG&A percentage has increased correspondingly. Higher marketing and legal expenses also contributed to the increase. RESEARCH AND DEVELOPMENT Research and development expenses are comprised of the salaries and benefits of the employees involved in software development and related expenses. Research and development expenses in the first quarter of 1999 were $774,000 compared to $514,000 in the first quarter of 1998. The Company intends to continue its research and development efforts in the future and anticipates spending up to $6 million during 1999 for such expenses. ADVANCE FUNDING PROGRAM INCOME AND EXPENSE Advance funding program income decreased 39.7% to $1.2 million for the first quarter of 1999 from $2.1 million for the first quarter of 1998. The decrease was primarily the result of financing a lower level of customer receivables under the Company's advance funding program. The monthly average balance of purchased receivables was $57.5 million and $79.6 million for the quarters ended December 31, 1998 and 1997, respectively. Advance funding program expense was flat at $31,000 and $32,000 for the first quarter of 1999 and 1998, respectively. The Company financed all customer receivables during both quarters with internally generated funds rather than with funds borrowed through the Company's revolving credit facility. The expense recognized during both 1999 and 1998 represents unused credit facility fees and is the minimum expense that the Company could have incurred during these periods. 11 DEPRECIATION AND AMORTIZATION Depreciation and amortization expenses are incurred with respect to certain assets, including computer hardware, software, office equipment, furniture, leasehold improvements, costs incurred in securing contracts with local telephone companies, goodwill and other intangibles. Asset lives range between three and fifteen years. Depreciation and amortization expense was $2.2 million in the first quarter of 1999 compared with $1.6 million in the first quarter of 1998. Depreciation and amortization expense as a percentage of revenues was 4.7% and 3.9% in the first quarter of 1999 and 1998, respectively. The increase as a percentage of revenues from the prior year quarter is attributable to increased capital expenditures made in order to provide the infrastructure needed to support the growth of the Company's employee base and the anticipated expansion of the Company's business. Management does not expect that depreciation and amortization expense will continue to increase as a percentage of revenues in subsequent periods, however, no such assurances can be made. INCOME FROM OPERATIONS Income from operations in the first quarter of 1999 was $9.9 million, or 20.6% of revenues, compared to income from operations of $10.7 million, or 26.2% of revenues, in the first quarter of 1998. The decrease in income from operations as a percentage of revenues from the prior year quarter is attributable to higher SG&A and depreciation expenses as a percentage of revenues and lower advance funding income as a percentage of revenue, offset partly by a higher gross profit margin. OTHER INCOME Net other income of $1.5 million in the first quarter of 1999 compares to net other income of $673,000 in the first quarter of 1998. The increase from the prior year quarter was primarily due to increased interest income from short-term investments due to higher cash reserves. Interest expense was also lower in the first quarter of 1999 due to the paydown of long-term debt. LIQUIDITY AND CAPITAL RESOURCES The Company's cash balance increased to $149.2 million at December 31, 1998 from $121.0 million at September 30, 1998. Large fluctuations in daily cash balances are normal due to the large amount of customer receivables that the Company collects on behalf of its customers. The Company's working capital position increased to $64.5 million at December 31, 1998 from $60.3 million at September 30, 1998. Net cash provided by operating activities was $8.9 million and $12.2 million in the first quarter of 1999 and 1998, respectively. The Company has a $50.0 million revolving line of credit facility with certain lenders primarily to draw upon to advance funds to its billing customers prior to collection of the funds from the local telephone companies. This credit facility terminates on December 20, 1999. Borrowings under the credit facility are limited to a portion of the Company's eligible receivables. Management believes that the capacity under the credit facility will be sufficient to fund advances to its billing customers for the foreseeable future. No amounts were borrowed by the Company under its credit facility to finance the advance funding program at either December 31, 1998 or September 30, 1998. At December 31, 1998, the amount available under the Company's receivable financing facility was $50.0 million. Under certain of its credit agreements, the Company is prohibited from paying dividends on its common stock, is required to comply with certain financial covenants and is subject to certain limitations on the issuance of additional secured debt. The Company was in compliance with all required covenants at December 31, 1998. Capital expenditures amounted to approximately $1.4 million in the first quarter of 1999 and related primarily to purchases of computer equipment and software. The Company anticipates capital expenditures before acquisitions of up to $12 million in the next nine months of 1999. The Company believes that it will be able to fund expenditures with internally generated funds and borrowings, but there can be no assurance that such funds will be available or expended. 12 The Company's cash requirements consist principally of working capital requirements, requirements under its advance funding program, scheduled payments of principal on its outstanding indebtedness and capital expenditures. The Company believes that it has the ability to continue to secure long-term equipment financing and that this ability, combined with cash flows generated from operations and periodic borrowings under its receivable financing facility, will be sufficient to fund capital expenditures, advance funding requirements, working capital needs and debt repayment requirements for the foreseeable future. Effective October 1, 1998, the Company acquired Expansion Systems Corporation ("ESC"), a privately held company headquartered in Glendale, California that develops and markets billing and registration systems to Internet Service Providers ("ISPs") under its flagship products TOTALBILL and INSTANTREG. An aggregate of 170,000 shares of the Company's common stock was issued in connection with this transaction, which has been accounted for as a pooling of interests combination. The consolidated financial statements for periods prior to the combination have not been restated to include the accounts and results of operations of ESC due to the transaction not having a significant impact on the Company's prior period financial position or results of operations. In December 1998, the Company completed the merger of Communications Software Consultants, Inc. ("CommSoft") in consideration of 2,492,759 shares of the Company's common stock. CommSoft was a privately held, international software development and consulting firm specializing in the telecommunications industry. The business combination was accounted for as a pooling of interests. The consolidated financial statements for periods prior to the combination have been restated to include the accounts and results of operations of CommSoft. Presented below are supplemental unaudited Condensed Consolidated Statements of Income of the Company on a quarterly and annual basis for 1998 that include the accounts and historical results of operations of CommSoft: BILLING CONCEPTS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
THREE MONTHS ENDED YEAR ----------------------------------------------------- ENDED DEC. 31, MAR. 31, JUNE 30, SEPT. 30, SEPT. 30, 1997 1998 1998 1998 1998 -------- -------- -------- -------- --------- Operating revenues .......................... $ 40,861 $ 44,167 $ 43,538 $ 47,457 $ 176,023 Cost of revenues ............................ 24,926 27,066 27,815 28,774 108,581 -------- -------- -------- -------- --------- Gross profit ............................... 15,935 17,101 15,723 18,683 67,442 Selling, general and administrative expenses 5,126 5,932 5,850 6,933 23,841 Research and development .................... 514 307 572 637 2,030 Advance funding program income .............. (2,056) (2,271) (2,035) (1,557) (7,919) Advance funding program expense ............. 32 31 31 32 126 Depreciation and amortization expense ....... 1,594 1,733 1,837 1,934 7,098 Special charges ............................. 0 0 0 2,000 2,000 -------- -------- -------- -------- --------- Income from operations ..................... 10,725 11,369 9,468 8,704 40,266 Other income (expense), net ................. 673 713 1,430 1,616 4,432 -------- -------- -------- -------- --------- Income before provision for income taxes .... 11,398 12,082 10,898 10,320 44,698 Provision for income taxes .................. (4,393) (4,651) (4,198) (4,753) (17,995) -------- -------- -------- -------- --------- Net income .................................. $ 7,005 $ 7,431 $ 6,700 $ 5,567 $ 26,703 ======== ======== ======== ======== ========= Earnings per common share - diluted ......... $ 0.19 $ 0.20 $ 0.18 $ 0.15 $ 0.71 Weighted average common shares and common share equivalents outstanding ............. 37,167 37,776 37,738 37,272 37,488
13 YEAR 2000 COMPLIANCE The operation of the Company's business is highly dependent on its computer software programs and operating systems (collectively, "Programs and Systems"). These Programs and Systems are used in several key areas of the Company's business, including information management services, third-party billing clearinghouse services (including the advance funding program), direct billing services and financial reporting, as well as in various administrative functions. In providing information management, third-party billing clearinghouse and direct billing services, the Company processes telephone call records which are date sensitive. The Company also develops, sells and supports sophisticated billing systems and software (the "Billing Systems") which must be able to process date-dependent data correctly. Certain of the Billing Systems sold by the Company have been warranted to process information related to or including dates that are prior to, on or after January 1, 2000. The Company has been evaluating its Programs and Systems to identify potential Year 2000 readiness problems, as well as manual processes, external interfaces with customers and services supplied by vendors to coordinate Year 2000 compliance and conversion. The Year 2000 problem refers to the limitations of the programming code in certain existing software programs to recognize date-sensitive information for the Year 2000 and beyond. Unless modified prior to December 31, 1999, such systems may not properly recognize such information and could generate erroneous data or cause a system to fail to operate properly. The Company filed a Year 2000 Certification Request with ITAA (Information Technology Association of America) in January 1999. The Company has installed its Year 2000 compliant Modular Business Applications ("MBA") Version 4.0 in its Service Bureau operation, which is processing 11 clients, and also has successfully installed the MBA Version 4.0 into production at one of its largest MBA clients. The Company expects to prepare for a general release of MBA Version 4.0 in the second fiscal quarter of 1999. The Company is still anticipating that its modifications and replacements for its systems that perform LEC billing will be Year 2000 compliant by April 1999. It is anticipated that modification or replacement of the Company's Programs and Systems will be performed in-house by Company personnel. The Company believes that, with modifications to existing software and conversions to new software, the Year 2000 problem will not pose a significant operational problem for the Company. However, because the Company's business relies on processing date-sensitive telephone call records supplied by third parties, it is possible that non-compliant third-party computer systems may not be able to provide accurate data for processing through the Company's computer systems. The Company's business, financial condition and results of operations could be materially adversely affected by the Year 2000 problem if it or unrelated parties fail to successfully address this issue. Management of the Company currently anticipates that the total expenses and capital expenditures associated with its Year 2000 readiness project, including costs associated with modifying the Programs and Systems and the cost of purchasing or leasing certain hardware and software, will be less than $3 million. As of December 1998, the Company has spent approximately $1.5 million on capital expenditures for related hardware and software and incurred and expensed approximately $300,000 in personnel and other costs related to the Year 2000 readiness process. The Company anticipates incurring less than $1 million in additional personnel and other costs, which will be expensed as incurred. The cost of Year 2000 readiness and the expected completion dates are the best estimates of Company management and are believed to be reasonably accurate. In the event the Company's plan to address the Year 2000 problem is not successfully or timely implemented, the Company may need to devote more resources to the process and additional costs may be incurred, which could have a material adverse effect on the Company's financial condition and results of operations. Problems encountered by the Company's vendors, customers and other third parties also may have a material adverse effect on the Company's financial condition and results of operations. 14 In the event the Company determines, following the Year 2000 date change, that its Programs and Systems are not Year 2000 ready, the Company will be unable to process date-sensitive telephone call records and thus be unable to provide most of its revenue-producing services, which will have a material adverse effect on the Company's financial condition and results of operations. The Company also will likely experience considerable delays in compiling information required for financial reporting and performing various administrative functions. In addition, in the event the Company's Billing Systems are not Year 2000 ready, the Company will be required to devote more monetary and other resources to achieving such readiness, which could have a material adverse effect on the Company's financial condition and results of operations. The Company is currently developing a contingency plan for implementation in the event its Programs and Systems are not Year 2000 ready prior to December 31, 1999. Such contingency plan will be modeled upon the Company's Disaster Recovery Plan. The Disaster Recovery Plan outlines a strategy for reduced continued operations following a natural disaster which damages the Company's operations center in San Antonio, Texas. The above Year 2000 disclosure constitutes a "Year 2000 Readiness Disclosure" as defined in The Year 2000 Information and Readiness Disclosure Act (the "Act"), which was signed into law on October 19, 1998. The Act provides added protection from liability for certain public and private statements concerning a company's Year 2000 readiness. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK The Company does not believe that there is any material market risk exposure with respect to derivative or other financial instruments, which would require disclosure under this item. 15 PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS A lawsuit was filed on December 31, 1998, in United States District Court in San Antonio, Texas by an alleged stockholder of the Company against the Company and various of its officers and directors, alleging unspecified damages as a result of alleged false statements in various press releases prior to November 19, 1998. Although no assurances can be given, the Company believes it has a meritorious defense to the above action and intends to defend itself vigorously. The Company believes it is unlikely that the final outcome of such proceeding will have a material adverse effect on the Company's financial position or results of operations, however, due to the inherent uncertainty of litigation, the range of possible loss, if any, cannot be estimated with a reasonable degree of precision and there can be no assurance that the resolution of such proceeding will not have an adverse effect on the Company's results of operations for the fiscal period in which such resolution occurred. The Company is involved in various claims, legal actions and regulatory proceedings arising in the ordinary course of business. The Company believes it is unlikely that the final outcome of any of the claims or proceedings to which the Company is a party would have a material adverse effect on the Company's financial position or results of operations; however, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on the Company's results of operations for the fiscal period in which such resolution occurred. ITEM 2. CHANGES IN SECURITIES (a) Not applicable. (b) Not applicable. (c) Pursuant to a Plan of Merger and Acquisition Agreement (the "CommSoft Agreement") among the Company, Concepts Acquisition Corp., a Delaware corporation and wholly owned subsidiary of the Company, Communications Software Consultants, Inc., a New York corporation ("CommSoft"), and Larry A. Davis ("Davis") dated effective December 1, 1998, whereby the Company acquired substantially all of the assets of CommSoft, the Company issued 2,492,759 shares of common stock, $.01 par value ("Common Stock"), to Davis. Such Common Stock was not registered under the Securities Act of 1933, as amended (the "Securities Act"), pursuant to the exemptions of such registration provided under Regulation D ("Regulation D") of the rules and regulations promulgated under the Securities Act by the Securities and Exchange Commission and Section 4(2) of the Securities Act. The Company relied upon certain representations and warranties of Davis, including, among other things, as to his status as an "accredited investor" (as that term is defined in Rule 501(a) of Regulation D) and his ability to evaluate the merits and risks of the transactions contemplated in the CommSoft Agreement and that the Common Stock was acquired solely for his own account for investment and not with a view to distribution. Pursuant to a Plan of Merger and Acquisition Agreement (the "ESC Agreement") among the Company, Billing Acquisition Corp., a Delaware corporation and wholly owned subsidiary of the Company, Expansion Systems Corporation, a California corporation ("ESC"), Charles E. Beckmann, James E. Owen, Thomas M. Ladew and Fred Pierson (collectively, the "ESC Shareholders"), dated effective October 1, 1998, whereby the Company acquired substantially all of the assets of ESC, the Company issued 170,000 shares of Common Stock to the ESC Shareholders. Such Common Stock was not registered under the Securities Act pursuant to the exemptions of such registration provided under Regulation D and Section 4(2) of the Securities Act. The Company relied upon certain representations and warranties of the ESC Shareholders, including, among other things, as to their status as "accredited investors" (as that term is defined in Rule 501(a) of Regulation D) and their ability to evaluate the merits and risks of the transactions contemplated in the ESC Agreement and that the Common Stock was acquired solely for their own accounts for investment and not with a view to distribution. 16 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits: The exhibits listed below are filed as part of or incorporated by reference in this report. Where such filing is made by incorporation by reference to a previously filed document, such document is identified in parentheses. EXHIBIT NUMBER DESCRIPTION ------ ----------- 2.1 Plan of Merger and Acquisition Agreement dated December 14, 1998, by and among Billing Concepts Corp., Concepts Acquisition Corp., Communications Software Consultants, Inc. and Larry A. Davis (incorporated by reference from Exhibit 2.1 to the Company's Current Report on Form 8-K dated December 23, 1998) 10.1 1999 CommSoft Acquisition Stock Option Plan (incorporated by reference from Exhibit 10.1 to the Company's Current Report on Form 8-K dated December 23, 1998) 10.2 Form of Option Agreement between Billing Concepts Corp. and former employees of CommSoft under the 1999 CommSoft Acquisition Stock Option Plan (incorporated by reference from Exhibit 10.2 to the Company's Current Report on Form 8-K dated December 23, 1998) 10.3 Employment Agreement dated December 18, 1998 by and between Billing Concepts Corp. and Larry A. Davis (incorporated by reference from Exhibit 10.3 to the Company's Current Report on Form 8-K dated December 23, 1998) 27.1 Financial Data Schedule as of December 31, 1998 (filed herewith) 27.2 Restated Financial Data Schedule as of September 30, 1996 (filed herewith) 27.3 Restated Financial Data Schedule as of December 31, 1996 (filed herewith) 27.4 Restated Financial Data Schedule as of March 31, 1997 (filed herewith) 27.5 Restated Financial Data Schedule as of June 30, 1997 (filed herewith) 27.6 Restated Financial Data Schedule as of September 30, 1997 (filed herewith) 27.7 Restated Financial Data Schedule as of December 31, 1997 (filed herewith) 27.8 Restated Financial Data Schedule as of March 31, 1998 (filed herewith) 27.9 Restated Financial Data Schedule as of June 30, 1998 (filed herewith) 27.10 Restated Financial Data Schedule as of September 30, 1998 (filed herewith) (b) Current Reports on Form 8-K: Current Report on Form 8-K, dated December 23, 1998, relating to the Plan of Merger and Acquisition Agreement with Communications Software Consultants, Inc. ("CommSoft"). ITEMS 3, 4 AND 5 ARE NOT APPLICABLE AND HAVE BEEN OMITTED. 17 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BILLING CONCEPTS CORP. (Registrant) Date: February 12, 1999 By: /s/ KELLY E. SIMMONS Kelly E. Simmons EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER (Duly authorized and principal financial officer) 18 EX-27.1 2
5 THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR BILLING CONCEPTS CORP. AND SUBSIDIARIES AS OF AND FOR THE THREE MONTHS ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS SEP-30-1999 DEC-30-1998 149,248 4 37,692 275 0 238,220 38,227 14,365 278,822 173,728 200 0 0 369 99,953 278,822 2,699 47,912 2,083 28,686 0 0 5 11,388 4,384 7,004 0 0 0 7,004 0.19 0.19
EX-27.2 3
5 THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR BILLING CONCEPTS CORP. AND SUBSIDIARIES AS OF AND FOR THE YEAR ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 12-MOS SEP-30-1996 SEP-30-1996 34,580 4 18,496 0 0 125,765 14,947 1,843 141,414 111,992 5,226 0 0 309 22,987 141,414 2,164 109,421 1,642 70,375 0 0 318 29,203 11,107 18,096 0 0 0 18,096 0.57 0.54
EX-27.3 4
5 THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR BILLING CONCEPTS CORP. AND SUBSIDIARIES AS OF AND FOR THE THREE MONTHS ENDED DECEMBER 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS SEP-30-1997 DEC-31-1996 30,885 4 17,707 0 0 111,517 20,729 2,084 132,221 96,631 5,676 0 0 311 29,514 132,221 1,031 29,376 793 18,934 0 0 127 8,038 3,058 4,980 0 0 0 4,980 0.15 0.14
EX-27.4 5
5 THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR BILLING CONCEPTS CORP. AND SUBSIDIARIES AS OF AND FOR THE SIX MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS SEP-30-1997 MAR-31-1997 29,920 4 23,803 0 0 137,023 26,964 4,087 162,138 117,060 6,052 0 0 313 38,445 162,138 1,691 58,991 1,305 37,649 0 0 259 16,237 6,372 9,865 0 0 0 9,865 0.30 0.28
EX-27.5 6
5 THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR BILLING CONCEPTS CORP. AND SUBSIDIARIES AS OF AND FOR THE NINE MONTHS ENDED JUNE 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS SEP-30-1997 JUN-30-1997 26,773 4 31,418 0 0 145,630 21,487 5,073 169,783 120,490 6,762 0 0 329 40,011 169,783 1,897 93,547 1,451 58,955 0 0 402 4,578 6,652 (2,074) 0 0 0 (2,074) (0.06) (0.06)
EX-27.6 7
5 THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR BILLING CONCEPTS CORP. AND SUBSIDIARIES AS OF AND FOR THE YEAR ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 12-MOS SEP-30-1997 SEP-30-1997 42,826 4 27,532 138 0 144,120 25,778 6,240 171,288 115,526 2,805 0 0 331 49,462 171,288 3,654 132,237 2,750 82,860 0 125 537 14,878 10,640 4,238 0 0 0 4,238 0.13 0.12
EX-27.7 8
5 THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR BILLING CONCEPTS CORP. AND SUBSIDIARIES AS OF AND FOR THE THREE MONTHS ENDED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS SEP-30-1998 DEC-31-1997 77,002 4 26,558 183 0 197,420 27,000 7,595 224,068 159,036 2,621 0 0 334 59,443 224,068 2,368 40,861 1,793 24,926 0 45 102 11,398 4,393 7,005 0 0 0 7,005 0.20 0.19
EX-27.8 9
5 THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR BILLING CONCEPTS CORP. AND SUBSIDIARIES AS OF AND FOR THE SIX MONTHS ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS SEP-30-1998 MAR-31-1998 76,560 4 40,008 251 0 225,568 29,377 9,028 252,884 172,950 2,403 0 0 342 74,589 252,884 4,223 85,028 3,213 51,992 0 108 164 23,480 9,044 14,436 0 0 0 14,436 0.41 0.39
EX-27.9 10
5 THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR BILLING CONCEPTS CORP. AND SUBSIDIARIES AS OF AND FOR THE NINE MONTHS ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS SEP-30-1998 JUN-30-1998 128,823 4 39,579 371 0 258,155 32,157 10,460 286,626 195,433 2,417 0 0 346 85,519 286,626 6,334 128,566 4,843 79,807 0 251 186 34,378 13,242 21,136 0 0 0 21,136 0.59 0.56
EX-27.10 11
5 THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR BILLING CONCEPTS CORP. AND SUBSIDIARIES AS OF AND FOR THE YEAR ENDED SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 12-MOS SEP-30-1998 SEP-30-1998 120,972 4 36,588 374 0 225,518 36,085 12,198 266,464 165,220 2,468 0 0 349 93,844 266,464 8,277 176,023 6,287 108,581 0 165 269 44,698 17,995 26,703 0 0 0 26,703 0.74 0.71
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