-----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, BGVunupcYvdgRfnPousZlYtaEwDNNlpJv31Yz0zhoU31wpcT0Vm7H7h7mLpiuK/K bEdg0HNtaSozWZ5fgXaYwQ== 0001047469-98-041731.txt : 19981120 0001047469-98-041731.hdr.sgml : 19981120 ACCESSION NUMBER: 0001047469-98-041731 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981116 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19981119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHOICETEL COMMUNICATIONS INC /MN/ CENTRAL INDEX KEY: 0001031927 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 411649949 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-23017 FILM NUMBER: 98755089 BUSINESS ADDRESS: STREET 1: 9724 10TH AVE NORTH CITY: PLYMOUTH STATE: MN ZIP: 55441 BUSINESS PHONE: 6125441260 MAIL ADDRESS: STREET 1: 9724 10TH AVE NORTH CITY: PLYMOUTH STATE: MN ZIP: 55441 FORMER COMPANY: FORMER CONFORMED NAME: INTELLIPHONE INC DATE OF NAME CHANGE: 19970625 8-K 1 8-K FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) NOVEMBER 16, 1998 COMMISSION FILE NUMBER 0-230 17 CHOICETEL CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) MINNESOTA 41-1649949 (STATE OF JURISDICTION OR IRS EMPLOYER ID NO. INCORPORATION OF ORGANIZATION) 9724 10TH AVE. NORTH, PLYMOUTH, MN 55441 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT S TELEPHONE NUMBER, INCLUDING AREA CODE 612-544-1260 ITEM 5. OTHER EVENTS ChoiceTel Communications, Inc. announced third quarter results. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS Filed herewith is the following exhibit: 99 Press release of November 16, 1998 a copy of which is filed herewith as Exhibit A. Signatures ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused to be signed on its behalf by the undersigned thereunto duly authorized. CHOICETEL COMMUNICATIONS, INC. (Registrant) Dated: November 16, 1998 By \s\ Jack S. Kohler --------------------- Jack S. Kohler Vice President and Chief Financial Officer EX-99 2 EX-99 FOR IMMEDIATE RELEASE ChoiceTel Communications, Inc. (NASDAQ-PHON) Contact: Jeff Paletz Press Release: November 16, 1998 CHOICETEL COMPLETES 4TH CONSECUTIVE QUARTER OF PROFITABILITY SINCE GOING PUBLIC IN NOVEMBER 1997 ChoiceTel Communications announced today that third quarter earnings for the quarter ended September 30, 1998 were $24,000 or one cent per share. This compares to a loss in the third quarter of 1997 of $112,000 or six cents per share. Revenue during the third quarter increased $983,000 or 51.8% compared to the three months ended September 30, 1997, primarily as a result of a 40% increase in the number of phones in service and recognition of dial-around compensation at a higher rate. Earnings for the first nine months ended September 30, 1998 were $99,000 or three cents per share. For the nine months ended September 30, 1998, the Company had a loss of $275,000 or thirteen cents per share. Revenue for the first nine months of 1998 increased 37%. As of October 31, 1998, ChoiceTel Communications was operating approximately 4,500 payphones in 12 states and Puerto Rico. Earnings for the third quarter were negatively impacted by $69,835 or two cents per share from the new Puerto Rico operation which does not yet have enough payphones installed to cover its costs. The 200 payphones installed during the first 6 months of operations in Puerto Rico represent more than double the number of payphones installed by the Company during its first year of operations in Minnesota, which was ChoiceTel Communications first market. To date in Puerto Rico, the Company has placed over 1,700 locations under contract, of which approximately 1,500 locations are not yet installed. The Company suffered little damage in September when Hurricane Georges went through Puerto Rico. The Company programmed all of its payphones to provide free local calls during the week following the hurricane as a way to help storm victims. Radio stations let people know that ChoiceTel Communications payphones were providing free local calls. Carol Lugo, ChoiceTel Communications head of Puerto Rico sales, and a Puerto Rico native, commented, People were very appreciative of ChoiceTel Communications support during our time of need. CHOICETEL COMMUNICATIONS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1998 (UNAUDITED) NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1998 (UNAUDITED)
Three months ended Three months ended % September 30, 1998 September 30, 1997 Change Service revenue $ ,881 $ 1,898 51.8% Cost of service 1,396 1,072 30.2 Gross margin 1,485 826 80.0 Selling, general and admin 841 492 70.9 Depreciation and amortization 420 285 47.3 Interest 126 158 (20.3) Sales tax contingency 58 63 (7.9) Income (losss) before income taxes 40 (172) n.m. Provision (credit) for income taxes 16 (60) n.m. Net income (loss) $24 $ (112) n.m. Per share net income $ 0.01 $ (0.06) n.m. Shares outstanding-weighted avg 2,915 2,019 Per share diluted net income $ .01 Shares outstanding-diluted 2,958 Nine months ended Nine months ended % September 30, 1998 September 30, 1997 Change Service revenue $ 6,880 $ 5,018 37.1% Cost of service 3,247 2,791 16.3 Gross margin 3,632 2,227 63.1 Selling, general and admin 2,075 1,306 58.8 Depreciation and amortization 1,001 687 45.7 Interest 199 483 (58.8) Sales tax contingency 191 173 10.4 Income (losss) before income taxes 165 (422) n.m. Provision (credit) for income taxes 66 (147) n.m. Net income (loss) $99 $ (275) n.m. Per share net income $ 0.03 $ (0.13) n.m. Shares outstanding-weighted avg 2,915 2,103 Per share diluted net income $ 0.03 Shares outstanding-diluted 2,959
Figures in thousands except per share numbers. -----END PRIVACY-ENHANCED MESSAGE-----