Murdock Communications Corporation Announces Fourth Quarter and Fiscal Year Results
Apr 18, 2001, 01:00 ET from Murdock Communications Corporation
CEDAR RAPIDS, Iowa, April 18 /PRNewswire/ -- Murdock Communications Corporation (OTC Bulletin Board: MURC and MURCW) today reported results for the fourth quarter and fiscal year ended December 31, 2000. The Company reported revenues of $8.4 million and a net loss of $4.4 million attributable to common shareholders, or $0.41 per share for the year ended December 31, 2000 compared with revenues of $27.5 million and a net loss of $18.6 million attributable to common shareholders, or $1.79 per share for the prior year. For the fourth quarter ended December 31, 2000, the Company reported revenues of $1.9 million and a net loss of $2.7 million, or $0.22 per share compared with revenues of $7.0 million and a net loss of $16.0 million, or $1.53 per share for the prior year period. Fourth quarter results included a $1.6 million charge for the write-down of the Company's investment in Actel, a $1.2 million charge for impairment of assets primarily relating to the goodwill recorded in the PIC segment, and a $500,000 charge for the write-down of the Company's investment in the AcNet entities, as circumstances indicate the carrying value of these assets may not be recoverable. Fourth quarter results also included a $894,000 credit for USF Fees and a $722,000 extraordinary gain on the extinguishment of debt. Actel, based in Mobil, Ala., is a facilities-based competitive local exchange carrier of advanced voice and data communications to small and medium sized enterprises in the Southeastern United States. Actel filed for bankruptcy under Chapter 11 on April 11, 2001. Prior year results included significant charges which are described in the Company's Form 10-KSB filing for the year ended December 31, 1999. Revenues for the fourth quarter and fiscal year ended December 31, 2000 declined significantly from the prior periods primarily due to the loss of all or a significant portion of business of two of PIC's principal customers and due to the effective closing of the MTS segment in early 2000. The Company's current strategic direction is to continue to negotiate with its creditors to restructure indebtedness and to attempt to obtain financing to fund operations. If the Company is successful in completing further improvements to its financial condition, the Company may seek other strategic alternatives, including attempting to use the Company's public shell as a merger vehicle. If the Company is unsuccessful in this strategy, the Company may not be able to continue as a going concern. This news release contains statements, including statements of management's belief or expectation, which may be forward-looking within the meaning of applicable securities laws. The forward-looking statements include statements regarding new opportunities and projections regarding future revenues and earnings. These statements are subject to certain risks and uncertainties that could cause actual future results and developments to differ materially from those currently projected, including the following risks and uncertainties: the Company's ability to realize potential value from its PIC operating unit and its Actel investment; the possibility that the Company's creditors may take legal action for the repayment of past due debt; the Company's access to adequate debt or equity financing or other sources of cash flows; the Company's ability to continue as a going concern if it is unable to access adequate financing or other sources of cash flows or to otherwise restructure outstanding indebtedness; the Company's ability to stabilize its PIC business and the ability of PIC to distribute cash to the Company in future periods; and the risk that the Company's analyses of these risks could be incorrect and/or that the strategies developed to address them could be unsuccessful. Additional risk factors are discussed in the Company's most recent reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission. MURDOCK COMMUNICATIONS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended and Twelve Months Ended December 31, 2000 and 1999 (Dollars in thousands, except per share data) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2000 1999 2000 1999 REVENUES Call processing $1,878 $6,447 $8,327 $24,424 Other revenues 19 587 110 3,039 Total revenues 1,897 7,034 8,437 27,463 COSTS OF SALES Call processing 1,383 1,533 6,410 14,850 Other cost of sales (6) 406 9 1,657 Bad debt expense and universal service fund fees (894) 7,992 (894) 9,489 Total cost of sales 483 9,931 5,525 25,996 GROSS PROFIT 1,414 (2,897) 2,912 1,467 OPERATING EXPENSES Selling, general and administrative expenses 481 1,061 2,750 5,348 Depreciation and amortization expense 204 464 935 1,888 Impairment of assets 2,798 3,292 5,510 3,292 AcNet bad debt and acquisition expense 501 3,703 990 3,703 Total operating expenses 3,984 8,520 10,185 14,231 INCOME FROM OPERATIONS (2,570) (11,417) (7,273) (12,764) NON-OPERATING INCOME (EXPENSE) Interest expense (935) (1,184) (3,540) (3,519) Other income 38 91 7,287 314 Total non- operating income (expense) (897) (1,093) 3,747 (3,205) (LOSS) BEFORE INCOME TAXES (3,467) (12,510) (3,526) (15,969) Income tax (expense) benefit 13 (835) 9 (472) LOSS FROM CONTINUING OPERATIONS (3,454) (13,345) (3,517) (16,441) DISCONTINUED OPERATIONS Income (loss) from operations -- (2,670) (1,175) (1,957) Loss on disposition -- -- (332) -- Total discontinued operations -- (2,670) (1,507) (1,957) LOSS BEFORE EXTRAORDINARY ITEM (3,454) (16,015) (5,024) (18,398) EXTRAORDINARY ITEM- GAIN ON EXTINGUISHMENT OF DEBT 722 -- 722 -- NET LOSS (2,732) (16,015) (4,302) (18,398) DIVIDENDS AND ACCRETION ON 8% SERIES A CONVERTIBLE PREFERRED STOCK 13 (46) (125) (194) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $(2,719) $(16,061) $(4,427) $(18,592) BASIC AND DILUTED NET LOSS PER COMMON SHARE Loss from continuing operations $(0.28) $(1.27) $(0.34) $(1.60) Loss from discontinued operations -- (0.26) (0.14) (0.19) Loss before extraordinary item (0.28) (1.53) (0.48) (1.79) Extraordinary item - gain from extinguishment of debt 0.06 -- 0.07 -- Net Loss $(0.22) $(1.53) $(0.41) $(1.79) BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 12,268,225 10,481,454 10,869,511 10,392,940
SOURCE Murdock Communications Corporation
CEDAR RAPIDS, Iowa, April 18 /PRNewswire/ -- Murdock Communications Corporation (OTC Bulletin Board: MURC and MURCW) today reported results for the fourth quarter and fiscal year ended December 31, 2000. The Company reported revenues of $8.4 million and a net loss of $4.4 million attributable to common shareholders, or $0.41 per share for the year ended December 31, 2000 compared with revenues of $27.5 million and a net loss of $18.6 million attributable to common shareholders, or $1.79 per share for the prior year. For the fourth quarter ended December 31, 2000, the Company reported revenues of $1.9 million and a net loss of $2.7 million, or $0.22 per share compared with revenues of $7.0 million and a net loss of $16.0 million, or $1.53 per share for the prior year period. Fourth quarter results included a $1.6 million charge for the write-down of the Company's investment in Actel, a $1.2 million charge for impairment of assets primarily relating to the goodwill recorded in the PIC segment, and a $500,000 charge for the write-down of the Company's investment in the AcNet entities, as circumstances indicate the carrying value of these assets may not be recoverable. Fourth quarter results also included a $894,000 credit for USF Fees and a $722,000 extraordinary gain on the extinguishment of debt. Actel, based in Mobil, Ala., is a facilities-based competitive local exchange carrier of advanced voice and data communications to small and medium sized enterprises in the Southeastern United States. Actel filed for bankruptcy under Chapter 11 on April 11, 2001. Prior year results included significant charges which are described in the Company's Form 10-KSB filing for the year ended December 31, 1999. Revenues for the fourth quarter and fiscal year ended December 31, 2000 declined significantly from the prior periods primarily due to the loss of all or a significant portion of business of two of PIC's principal customers and due to the effective closing of the MTS segment in early 2000. The Company's current strategic direction is to continue to negotiate with its creditors to restructure indebtedness and to attempt to obtain financing to fund operations. If the Company is successful in completing further improvements to its financial condition, the Company may seek other strategic alternatives, including attempting to use the Company's public shell as a merger vehicle. If the Company is unsuccessful in this strategy, the Company may not be able to continue as a going concern. This news release contains statements, including statements of management's belief or expectation, which may be forward-looking within the meaning of applicable securities laws. The forward-looking statements include statements regarding new opportunities and projections regarding future revenues and earnings. These statements are subject to certain risks and uncertainties that could cause actual future results and developments to differ materially from those currently projected, including the following risks and uncertainties: the Company's ability to realize potential value from its PIC operating unit and its Actel investment; the possibility that the Company's creditors may take legal action for the repayment of past due debt; the Company's access to adequate debt or equity financing or other sources of cash flows; the Company's ability to continue as a going concern if it is unable to access adequate financing or other sources of cash flows or to otherwise restructure outstanding indebtedness; the Company's ability to stabilize its PIC business and the ability of PIC to distribute cash to the Company in future periods; and the risk that the Company's analyses of these risks could be incorrect and/or that the strategies developed to address them could be unsuccessful. Additional risk factors are discussed in the Company's most recent reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission. MURDOCK COMMUNICATIONS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended and Twelve Months Ended December 31, 2000 and 1999 (Dollars in thousands, except per share data) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2000 1999 2000 1999 REVENUES Call processing $1,878 $6,447 $8,327 $24,424 Other revenues 19 587 110 3,039 Total revenues 1,897 7,034 8,437 27,463 COSTS OF SALES Call processing 1,383 1,533 6,410 14,850 Other cost of sales (6) 406 9 1,657 Bad debt expense and universal service fund fees (894) 7,992 (894) 9,489 Total cost of sales 483 9,931 5,525 25,996 GROSS PROFIT 1,414 (2,897) 2,912 1,467 OPERATING EXPENSES Selling, general and administrative expenses 481 1,061 2,750 5,348 Depreciation and amortization expense 204 464 935 1,888 Impairment of assets 2,798 3,292 5,510 3,292 AcNet bad debt and acquisition expense 501 3,703 990 3,703 Total operating expenses 3,984 8,520 10,185 14,231 INCOME FROM OPERATIONS (2,570) (11,417) (7,273) (12,764) NON-OPERATING INCOME (EXPENSE) Interest expense (935) (1,184) (3,540) (3,519) Other income 38 91 7,287 314 Total non- operating income (expense) (897) (1,093) 3,747 (3,205) (LOSS) BEFORE INCOME TAXES (3,467) (12,510) (3,526) (15,969) Income tax (expense) benefit 13 (835) 9 (472) LOSS FROM CONTINUING OPERATIONS (3,454) (13,345) (3,517) (16,441) DISCONTINUED OPERATIONS Income (loss) from operations -- (2,670) (1,175) (1,957) Loss on disposition -- -- (332) -- Total discontinued operations -- (2,670) (1,507) (1,957) LOSS BEFORE EXTRAORDINARY ITEM (3,454) (16,015) (5,024) (18,398) EXTRAORDINARY ITEM- GAIN ON EXTINGUISHMENT OF DEBT 722 -- 722 -- NET LOSS (2,732) (16,015) (4,302) (18,398) DIVIDENDS AND ACCRETION ON 8% SERIES A CONVERTIBLE PREFERRED STOCK 13 (46) (125) (194) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $(2,719) $(16,061) $(4,427) $(18,592) BASIC AND DILUTED NET LOSS PER COMMON SHARE Loss from continuing operations $(0.28) $(1.27) $(0.34) $(1.60) Loss from discontinued operations -- (0.26) (0.14) (0.19) Loss before extraordinary item (0.28) (1.53) (0.48) (1.79) Extraordinary item - gain from extinguishment of debt 0.06 -- 0.07 -- Net Loss $(0.22) $(1.53) $(0.41) $(1.79) BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 12,268,225 10,481,454 10,869,511 10,392,940 SOURCE Murdock Communications Corporation
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