-----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, VGb+IfdkU0sEp3AxtdSuCCWAQOGMAB3DQ8oJph2+RxOdnkXkdDfMSAnHWperollv A/aQ7HTWxeqfkWHd5QvWQA== 0000950147-98-000403.txt : 19980518 0000950147-98-000403.hdr.sgml : 19980518 ACCESSION NUMBER: 0000950147-98-000403 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL FIBERCOM INC CENTRAL INDEX KEY: 0000924632 STANDARD INDUSTRIAL CLASSIFICATION: CABLE & OTHER PAY TELEVISION SERVICES [4841] IRS NUMBER: 860271282 STATE OF INCORPORATION: AZ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-13278 FILM NUMBER: 98626485 BUSINESS ADDRESS: STREET 1: 3615 S 28TH ST STREET 2: SUITE 180 CITY: PHOENIX STATE: AZ ZIP: 85040 BUSINESS PHONE: 6029411900 MAIL ADDRESS: STREET 1: 3615 S 28TH STREET STREET 2: 520 S 52ND STREET STE 201 CITY: PHOENIX STATE: AZ ZIP: 85040 10-Q 1 QUARTERLY REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-QSB QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended March 31, 1998 Commission File No 1-9690 INTERNATIONAL FIBERCOM, INC. Incorporated in the State of Arizona IRS No. 86-0271282 3615 S. 28th Street Phoenix, AZ 85040 (602) 941-1900 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 report, and (2) has been subject to such filing requirements for the past 90 days. Yes (X) No ( ) Common Stock without par value 17,616,033 shares issued and 17,412,343 outstanding at March 31, 1998 PART I - FINANCIAL INFORMATION ITEM 1. The financial statements are included herewith commencing on page F-1. ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. General International FiberCom, Inc., (the "Company") is a holding company which offers diversified services and products to the telecommunications, cable television ("CATV") and other industries through its five wholly-owned subsidiaries. The Company provides installation, construction, consulting, design engineering and systems integration services to the owners of broadband, fiber-optic networks. The Company also sells distributes new and used telecommunications equipment, including digital computer boards widely used in the nation's telephone systems, to telecommunications companies and hardware resellers, Regional Bell Operating Companies ("RBOCS") and other Fortune 500 companies. The Company derives a substantial portion of its revenue from contracts that are accounted for under the percentage of completion method of accounting. Under this method, revenues are recorded as work progresses on a contract. Overall gross margin percentages can increase or decrease based upon changes in the estimated gross margin percentages over the lives of the individual contracts. Business. In the first quarter of 1998, the Company continued to follow its strategy of becoming a one-stop solution for the telecommunications marketplace, offering a wide range of engineering, consulting and maintenance service for broadband, fiber-optic networks with local are network ("LAN") and wide area network ("WAN"). In 1997 the Company implemented this strategy through acquisitions of businesses that complemented and enhanced its services, products and customer base. Effective April 1998 the Company purchased the assets of Riley Underground Communications, Inc. ("Riley") for cash and restricted shares of Common Stock. Riley, which is based in California, builds and maintains broad based fiber-optic and other networks for major cable, telephone and other telecommunications companies. The purchase agreement provides for a price up to $2.5 million, payable in an initial installment based upon a percentage of the current of book value of Riley, with additional installments computed on a percentage of Riley's pretax earnings over the next three years. Payments may be in cash or, at the Company's election, up to 50% in restricted shares of the Company's Common Stock. - 1 - Results of Operations The comparability of the results of operations for the first quarter of 1998 with the same period in 1997 was significantly impacted by the acquisition of Southern, as shown in the Unaudited Pro Forma Consolidated Statement of Operations information contained in this Report. Therefore, Management's Discussion and Analysis of Financial Condition and Results of Operations for these periods discusses the operations in 1998 compared with actual operations in 1997 and the operations in 1998 compared with 1997 pro forma figures as if the Company had owned Southern since January 1997, which it has not. Both comparisons includes the operations of Compass Communications, Inc. ("Compass") for 1997 and 1998, which was a pooling of interests completed effective October 1997. Contract Revenues. Contract revenues for the first quarter of 1998 increased to $12,876,081 from $8,385,556 for the same period in 1997, an increase of 54%. This increase in revenues is primarily attributable to the addition of Southern's revenues for the first quarter of 1998. On a pro forma basis, for the first quarter of 1998, contract revenues increased 9% from $11,635,416 in 1997 to $12,876,081. This increase is due primarily to higher levels of revenue generated by Concepts, principally from national customers such as Gambro Healthcare and Nike, Inc. Gross Profit. The Company's gross profit increased to $4,363,638 for the first quarter of 1998 compared with $1,712,610 for the same period in 1997 due to the increased gross profits from the Southern's operations and marked increase in the gross profit margin of Concepts. The Company's gross profit margin increased from 20% of contract revenues in the first quarter of 1997 to 34% of contract revenues in the first quarter of 1998, primarily due to Southern's gross profit margins. On a pro forma basis, the Company's gross profit for the first quarter of 1998 was $4,363,638 compared with $3,900,364 for the same period in 1997. The improved gross profits of Concepts and the addition of Southern's gross profits overcame a weak quarter for both Kleven and Compass. Kleven's revenues and gross profits declined from the first quarter of 1997 because of a decline in work from Cox Communications during the first quarter of 1998. The Company's gross margin was 34% for both quarters. General and Administrative Costs. The Company's general and administrative expenses were $2,455,593 for the first quarter of 1998 compared with $1,231,147 for the same period in 1997, an increase of 99%, chiefly due to the addition of the general and administrative expenses of Southern. A significant portion of these expenses are attributable to the amortization of intangibles resulting from the acquisition of Southern. On a pro forma basis, general and administrative expenses for the first quarter of 1998 were $2,455,593, or 19% of revenues, compared with $1,803,893, or 16% of revenues, for the same period in 1997. The Company has and will continue to consolidate duplicative administrative functions relating to its acquired companies to the extent possible. The administrative expenses of - 2 - the Company include significant amounts for amortization of intangibles resulting from the acquisitions of Concepts and Southern. Other Income (Expense). The Company's net expense in this category was $86,300 for the first quarter of 1998 compared with net income of $73,365 for the same period in 1997. This difference is due primarily to a gain on sale of equipment by Kleven in 1997, which did not occur in 1998. On a pro forma basis, other expense was $86,300 in the first quarter of 1998 as compared with a net income of $27,345 for the same period in 1997. The difference is due primarily to a decrease in interest expenses of Kleven because of debt reduction and the gain on sale of equipment noted above. Provision for Income Tax Benefit (Expense). The Company accrued income tax expense of $631,628 in the first quarter of 1998 due to conversion of the Company's net operating loss carry forward into a deferred tax asset as of December 31, 1997. No income tax expense was accrued in 1997 because of net operating loss carryovers of the Company and Kleven from 1996 and prior years. Net Income. The Company generated a net income of $1,190,117, or approximately 9% of revenues, for the first quarter of 1998 compared with net income of $554,828, or 7% of revenues for the same period in 1997. This is primarily a result of increased profit margins at Concepts and the addition of Southern. On a pro forma basis, the Company's net income decreased to $1,190,117, in the first quarter of 1998 compared with a net income of $1,380,480 for the same period in 1997. Such decrease was primarily due to the weaker first quarter results for both Kleven and Compass as compared to the same period in 1997. Preferred Stock Dividend. The Company paid a dividend of $22,910 on its Convertible Preferred Stock for the first quarter of 1998 through the issuance of 4,411 shares of its Common Stock. Backlog. The Company had a backlog of approximately $6,280,000 on a work in process basis as of March 31, 1998. The Company expects such work orders to be completed by September 1998. Further, the Company has work orders, which were not started at March 31, 1998, for Gambro Healthcare, Cox Communications, Inc., the State of Tennessee and other clients. These work orders total in excess of $5.0 million. The Company expects to commence such work during the second quarter of 1998 and complete the same by September 1998. Contracts signed since March 31, 1998 and the work in process of Riley are not included in the above backlog numbers. Liquidity and Capital Resources Operations. The Company has historically financed its operations through operating cash flow, lines of credit and debt and equity offerings. The Company's liquidity is impacted, to a large degree, by the nature of billing provisions under its contracts. Generally, in the early periods of contracts, cash expenditures and accrued profits are greater than allowed billings, while contract - 3 - completion results in billing previously unbilled costs and profits. In the first quarter of 1998 the Company used approximately $219,000 of net cash from operations. Cash generated from operations of $2,338,000, which includes net income of approximately $1,167,000, depreciation and amortization of $521,000, and the net increase in various current payables and decrease in various current assets of $650,000, were used primarily for an increase in trade receivables of $1,198,000 and an increase in inventory of $1,358,000 due to the higher sales activity of Concepts and Southern. The net cash used of $219,000 from operations in the first quarter of 1998 compares to a negative cash flow from operations of approximately $2,153,000 in the same period 1997. Investing Activities. For the first quarter of 1998 the Company in part used approximately $495,000 in investing activities. These were comprised of the Company's purchase of fixed assets of approximately $375,000, amortization of goodwill and other assets of $92,000 and payment of deferred acquisition costs of $43,000. Financing Activities. In the first quarter of 1998 the Company's financing activities used approximately $777,000 consisting in part of repayment of loans and other liabilities payable of approximately $1.3 million, loan to Riley of $713,000 and offset by proceeds from a private placement of equity of $1.2 million, net of expenses consisting primarily of warrant exercises, convertible debenture conversion to common stock and incentive stock option exercises. The Company received $645,000 from the exercise of 295,000 Common Stock Purchase Warrants during the 1998 quarter and redeemed 25,000 shares of its Common Stock issued in its December 1997 Private Placement of Common Stock for $150,000. As of March 31, 1998, the Company has three revolving lines of credit totaling approximately $2.5 million, with an available balance of approximately $1,150,000. In addition the Company has unused equipment financing available in excess of $1 million from three sources. The Company believes that with its current working capital, funds generated through its operations and available credit balances on its lines of credit it will have sufficient working capital to address the anticipated growth of demand and markets for its products and services for the next 12 to 18 months. The Company may, however, seek to obtain additional capital through an expanded working capital line of credit at a financial institution or through additional debt or equity offerings during this time period. The raising of additional capital in public markets will primarily be dependent upon prevailing market conditions and the demand for the Company's products and services. Inflation. The Company does not believe that it is significantly impacted by inflation. Seasonality. The Company's operations are not seasonal in nature. Forward-looking Information and Risks of the Business. This Report contains certain forward-looking statements and information within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of - 4 - 1934. The cautionary statements made in this Report should be read as being applicable to all related forward-looking statements wherever they appear in this report. Forward-looking statements, by their very nature, include risks and uncertainties. Accordingly, the Company's actual results could differ materially from those discussed herein. A wide variety of factors could cause or contribute to such differences and could be adversely impact on revenues, profitability, cash flows and capital needs. Such factors, many of which are beyond the control of the Company, include the following: the Company's success in obtaining new contracts; the volume and type of work orders that are received under such contracts; the accuracy of the cost estimates for the projects; the Company's ability to complete its projects on time and within budget; levels of, and ability to collect amounts receivable; availability of trained personnel and utilization of the Company's capacity to complete work; competition and competitive pressures on pricing; and economic conditions in the United States and in the region served by the Company. Part II - Other Information Item 1. Legal Proceedings The Company has no on-going or pending litigation at this time. Items 2, 3, 4 and 5 are omitted because these Items are inapplicable to this Report. - 5 - INTERNATIONAL FIBERCOM, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET MARCH 31, 1998 (Unaudited) ASSETS
March 31, December 31, 1998 1997 Current Assets: Cash and cash equivalent $ 1,499,758 $ 2,990,575 Accounts receivable - trade, net of allowance 9,249,718 7,988,380 - unbilled receivables 88,124 180,545 - other 45,138 27,586 Salary advances 11,781 Inventory 3,922,341 2,563,509 Prepaid expenses 174,701 119,620 Loss receivable related parties 713,351 Accrued interest receivable 13,250 Deferred tax asset 209,606 258,606 Costs and estimated earnings in excess of billings 2,727,945 2,540,278 =========== =========== Total Current Assets 18,655,713 16,669,099 Property and Equipment, net 5,681,587 5,573,568 Other Assets: Loans receivable related party 260,410 238,806 Accosts receivable - long term 56,609 Goodwill, net 19,939,886 20,083,941 Covenant not to compete net 324,604 341,689 Other assets 273,862 347,142 Debt issue costs, net 284,435 241,192 =========== =========== 21,139,806 21,252,770 =========== =========== Total Assets $45,477,106 $43,495,437 =========== ===========
F-1 INTERNATIONAL FIBERCOM, INC., AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (CONTINUED) AS OF MARCH 31, 1998 (Unaudited) LIABILITIES AND STOCKHOLDERS EQUITY
March 31, December 31, 1998 1997 Current Liabilities: Notes payable current portion $ 1,158,548 $ 1,493,945 Notes payable related party 1,340,000 1,754,674 Obligations under capital lease 189,541 192,429 Income taxes payable 630,053 123,669 Accounts payable - trade 2,538,318 2,598,707 - related parties 24,207 19,610 Accrued offering costs 383,840 741,139 Accrued expense 1,314,363 1,093,686 Accrued interest 32,143 Billings in excess of cost estimated earnings 729,147 218,585 ============ ============ Total Current Liabilities 8,340,160 8,236,444 ============ ============ Long-Term Liabilities: Notes payable-long term 1,210,521 798,698 Notes payable-related party 2,338,117 3,051,326 Obligations under capital lease - long term 172,426 392,135 Deferred income tax payable 163,862 163,862 ============ ============ Total Long-Term Liabilities 3,884,926 4,406,021 ============ ============ Total Liabilities 12,225,086 12,642,465 ============ ============ Stockholder's Equity: Series B 4% convertible preferred stock, no par value; 4,400 authorized; 1518 issued and outstanding at December 1997, 1,291 issued and outstanding at March 1998 958,335 1,126,837 Series C 4% convertible preferred stock, no par value; 1,000 authorized, issued and outstanding 766,662 766,662 Common Stock, no par, 100,000,000 shares authorized; 17,616,033 shares issued, 17,412,343 outstanding 33,403,549 32,389,218 Common stock warrants 99,082 99,082 Additional paid-in capital 2,838,038 2,862,027 Retained earnings (5,722,837) (7,853,875) Current period profit (loss) 1,167,207 2,131,038 ============ ============ 34,070,036 31,520,989 ============ ============ Less: treasury stock 203,690 shares, at cost (818,017) (668,017) ============ ============ Total Stockholders' Equity 33,252,020 30,852,972 ============ ============ Total Liabilities and Stockholders' Equity $ 45,477,106 $ 43,495,437 ============ ============
F-2 INTERNATIONAL FIBERCOM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Three Months Ended Months Ended March 31, 1998 March 31, 1997* Contract Revenues $ 12,876,081 $ 8,385,556 Direct Cost of Contract Revenues 8,512,443 6,672,946 ============ ============ Gross Profit 4,363,638 1,712,610 General and Administrative Expenses 2,455,593 1,231,147 ============ ============ Profit from operations 1,908,045 481,463 Other Income (Expense): Interest income 23,614 7 Interest expense (124,003) (93,706) Other income 5,355 2,402 Gain on disposal of assets 8,734 164,662 ============ ============ (86,300) 73,365 ============ ============ Net income before income taxes 1,821,745 554,828 ============ ============ Provision for tax benefit (expense) (631,628) 0 ============ ============ Net income 1,190,117 554,828 Preferred stock dividend (22,910) (45,226) Net income attributable to common stockholders $ 1,167,207 509,602 ============ ============ Earnings per Share: Basic earnings per share $ 0.07 $ 0.07 ------------ ------------ Diluted earnings per share $ 0.05 $ 0.03 ------------ ------------ Basic weighted average shares outstanding 17,077,540 6,895,442 ------------ ------------ Diluted weighted average shares outstanding 22,580,105 14,848,360 ------------ ------------
*Includes operations of Compass Communications, Inc. due to a pooling of interests acquisition. F-3 INTERNATIONAL FIBERCOM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY For The Period Ended March 31, 1998 (Unaudited)
Preferred Stock Common Stock Series B Series C Shares Amount Warrants ------------ ------------ ------------ ------------ ------------ Stockholder's Equity December 31, 1997 $ 1,126,837 $ 766,662 16,632,849 $ 32,389,218 99,082 ============ ============ ============ ============ ============ Dividend paid on Series B Preferred Stock 2,486 12,910 Dividend paid on Series C Preferred Stock 1,925 10,000 Conversion of Series B Preferred Stock (168,502) 134,563 168,502 Interest on Debenture paid in Common Stock 7,744 46,948 Warrant Exercises 295,000 645,000 Conversion of 8% Debentures 480,000 600,000 Incentive Stock Option Exercises 86,466 90,972 Treasury Stock Repurchase (25,000) Earnings for the Quarter ------------ ------------ ------------ ------------ ------------ Stockholder's Equity 958,335 $ 766,662 17,616,033 $ 33,963,550 $ 99,082 March 31, 1998 ============ ============ ============ ============ ============ Additional Accumulated Paid-In Treasury Deficit Capital Stock Totals ------------ ------------ ------------ ------------ Stockholder's Equity December 31, 1997 $ (5,722,837) $ 2,862,027 $ (668,017) $ 30,852,972 ============ ============ ============ ============ Dividend paid on Series B Preferred Stock (12,910) Dividend paid on Series C Preferred Stock (10,000) Conversion of Series B Preferred Stock Interest on Debenture paid in Common Stock 46,948 Warrant Exercises 645,000 Conversion of 8% Debentures 600,000 Incentive Stock Option Exercises (23,989) 66,983 Treasury Stock Repurchase (150,000) (150,000) Earnings for the Quarter 1,190,117 1,190,117 ------------ ------------ ------------ ------------ Stockholder's Equity $ (4,555,630) $ 2,838,038 $ (818,017) $ 33,252,020 March 31, 1998 ============ ============ ============ ============
F-4 INTERNATIONAL FIBERCOM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) THREE MONTHS ENDED MARCH 31, 1998 AND 1997
1998 1997 ----------- ----------- Cash flows from operating activities: Net income (loss) $ 1,167,207 $ 384,843 Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: Depreciation and Amortization 521,220 243,380 (Increase) decrease in contracts receivable (1,198,250) (2,811,998) (Increase) decrease in inventory (1,358,832) (444,701) (Increase) in deferred tax assets 49,000 (Increase) decrease in costs and estimated earnings in excess of billings on uncompleted contracts (187,667) (1,500,035) (Increase) decrease in prepaid expenses (55,081) (90,340) (Increase) decrease in accrued interest receivable (13,250) (Increase) decrease in income tax refund 0 (10,500) (Decrease) increase in accounts payable (55,792) 919,577 (Decrease) increase in accrued expenses 252,820 442,384 (Decrease) increase in billings in excess of cost and estimated earnings on uncompleted contracts 510,562 233,286 (Decrease) increase in income tax payable 506,384 (Decrease) increase in accrued offering costs (357,299) 481,000 =========== =========== Net cash provided (used) by operating activities (218,978) (2,153,104) =========== =========== Cash flows from investing activities: (Purchase) sale of property and equipment (375,790) (467,680) (Increase) decrease in other assets 16,671 (Increase) decrease in deposits (20,350) (Increase) decrease in goodwill and other assets (92,309) (1,613,865) (Increase) decrease in deferred acquisition costs (43,243) 138,742 =========== =========== Net cash provided (uses) by investing activities (494,671) (1,963,153) Cash flows from financing activities: (Repayment) increase of loans and other liabilities payable (1,274,054) 2,301,592 Proceeds from private offering, net 1,231,840 5,249,523 Loan to acquisition company (713,350) 0 (Repayment) proceeds from stockholder loan (21,604) 0 (Increase) decrease in subscriptions receivable 0 (3,300,000) =========== =========== Net cash provided (used) by financing activities (777,168) 4,251,115 =========== =========== Net (decrease) increase in cash (1,490,817) 134,858 Cash, beginning of period 2,990,575 3,972 Cash, end of period $ 1,499,758 $ 138,830 =========== ===========
F-5 INTERNATIONAL FIBERCOM, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Significant accounting policies: Basis of presentation: In the opinion of management, the accompanying consolidated financial statements reflect all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of March 31, 1998 and the results of its operations for the three months ended March 31, 1998. Although management believes that the disclosures in these financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities Exchange Commission. The results of operations for the three months ended March 31, 1998 are not necessarily indicative of the results that may be expected for the full year ending December 31, 1998. The accompanying consolidated financial statements should be read in conjunction with the more detailed financial statements, and the related footnotes thereto, filed with the Company's Annual Report on Form 10-KSB for the year ended December 31, 1998 and the Form SB-2 as filed on February 12, 1998. Principles of consolidation: The consolidated financial statements include the financial position, results of operations and cash flows of International FiberCom, Inc., and its wholly-owned subsidiaries, Kleven Communications, Inc., Compass Communications, Inc., Riley Underground Communications, Inc., Southern Communications Products, Inc. and Concepts In Communications, Inc. All material intercompany transactions, accounts and balances have been eliminated. 2. Unaudited Pro Forma Condensed Consolidated Financial Statements: The accompanying consolidated statements of operations include the results of operations of Southern Communications Products, Inc. ("Southern") which the Company acquired effective October 1997. The following unaudited pro forma condensed consolidated financial statements for the quarter ended March 31, 1997 give effect to the acquisition of Southern by the Company pursuant to the Asset Purchase Agreement between the parties, and are based on the estimates and assumptions set forth herein and in the notes to such statements. This pro forma information has been prepared utilizing the historical financial statements and notes thereto, which are incorporated by reference herein. The pro forma financial data does not purport to be indicative of the results which actually would have been obtained had the purchase been effected on the dates indicated or of the results of which may be obtained in the future. The pro forma financial information is based on the purchase method of accounting for the acquisition of Southern. The pro forma entries are described in the accompanying footnotes to the unaudited pro forma condensed consolidated statements. The pro forma unaudited condensed consolidated statements of operations assume that the acquisition took place on the first day of the period presented. F-6 INTERNATIONAL FIBERCOM, INC. AND SUBSIDIARIES PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) FOR THE THREE MONTHS ENDED MARCH 31, 1997
Southern IFC Communications Pro Forma IFC Consolidated Products, Inc. Adjustments Consolidated Contract Revenues $ 8,385,556 $ 3,249,860 $ 11,635,416 Cost of Contract Revenues 6,672,946 1,062,105 7,735,052 ============ ============ ============ Gross Profit 1,712,610 2,187,755 3,900,364 General and Administrative Expenses 1,231,147 346,598 226,149(1) 1,803,893 Provision for doubtful account 0 0 0 ============ ============ ============ ============ Profits from Operations 481,463 1,841,157 (226,149) 2,096,471 Other Income (Expense): Interest Income 7 21,979 21,986 Interest expense (93,706) (68,000)(2) (161,706) Other Income 2,402 2,403 Gain on disposal of assets 164,662 164,662 ============ ============ ============ ============ 73,365 21,979 (68,000) 27,345 ============ ============ ============ ============ Net income before income taxes 554,828 1,863,136 (294,149) 2,123,816 ============ ============ ============ ============ Provision for tax benefit (expense) 0 0 (743,335)(3) (743,335) ============ ============ ============ ============ Net income 544,828 1,863,136 (1,037,484) 1,380,480 ============ ============ ============ ============ Preferred stock dividend (45,226) 0 (45,226) ============ ============ ============ ============ Net income attributable to common stockholders 509,602 1,863,136 (1,037,484) 1,335,254 ============ ============ ============ ============ Basic earnings per share $ 0.07 $ 0.11 Fully diluted earnings per share $ 0.03 $ 0.07 Basic average shares outstanding 6,895,442 11,827,103 Diluted weighted average shares outstanding 14,848,360 19,780,021
1. Amortize goodwill 2. Interest expense 3. Income tax proration F-7 ITEM 6. The Company filed no Reports on Form 8-K during the quarter for which this report is filed. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. INTERNATIONAL FIBERCOM, INC. BY /s/ Terry Beiriger ------------------------------------ Terry Beiriger, Chief Financial Officer DATED: May 15, 1998 EX-27 2 FINANCIAL DATA SCHEDULE
5 924632 INTERNATIONAL FIBERCOM INC 1 U.S. Dollars 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 1 1,499,758 0 9,382,980 0 3,922,341 18,655,713 10,175,322 4,493,795 45,477,106 8,340,160 0 0 766,662 34,921,884 (2,436,526) 45,477,106 12,876,081 12,876,081 8,512,443 10,968,036 (14,793) 0 124,003 1,798,835 631,628 1,167,207 0 0 0 1,167,207 .07 .05
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