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