XFONE, Inc. (NYSE Amex and TASE: XFN) (�XFONE� or �the
Company�) announced results for the three months ended March 31,
2009.
Financial highlights for the three months ended March 31,
2009:
- Total revenues increased 36% to
$21.5 million compared to $15.8 million for the three months ended
March 31, 2008.
- EBITDA (earnings before
interest, taxes, depreciation and amortization) was $2.0 million
compared to $1.6 million for the three months ended March 31,
2008.
- Operating income was $1.0
million, compared to $1.1 million for the three months ended March
31, 2008
- Net financing income increased
to $1.5 million, compared to a net financing expense of ($903,169)
for the three months ended March 31, 2008, primarily attributed to
the effect of fluctuation in the exchange rate of the New Israeli
Shekel (NIS) on the Company�s Bonds which are stated in NIS and
linked to the Israeli Consumer Price Index (CPI).
- The Company reported net income
of $2.3 million or $0.126 per share, assuming 18,376,075 fully
diluted shares outstanding at March 31, 2009, compared to $81,130
or $0.005 per share, assuming 15,392,258 fully diluted shares
outstanding at March 31, 2008.
Guy Nissenson, President and CEO, commented, �Our revenue growth
was driven by the performance of our U.S. division where revenues
increased 79.7% to $15.7 million during the first three months of
2009, and represented 72.9% of the Company�s total revenue for the
first quarter. This increase in revenues largely stems from our
acquisition of NTS Communications in February 2008. During the
first quarter of 2009, we continued to make progress with the
strategic roll out of our Fiber-to-the-Premise (FTTP) network. In
addition to building out the Levelland network and beginning the
initial sales process in this market, we have applied for an
additional RUS broadband loan. If approved, this new project will
extend our FTTP footprint to include six communities in southern
Louisiana and will add approximately 20,000 additional passings to
our triple play network. We remain highly focused on obtaining both
grants and loans currently being made available under the federal
government's stimulus plan for the construction of advanced
broadband networks in select rural areas of the United States. We
believe that our previous experience working with the government on
the buildout of our Levelland network positions us very
competitively as a potential recipient of federal funding.�
�Our non-U.S. subsidiaries continued to contribute cash flow to
the business even in this global economic slowdown. Nonetheless,
currency fluctuation significantly impacted their reported
revenues. For example, our UK revenues showed a decline of 24% to
$3.7 million compared to the same quarter last year.
Notwithstanding the currency valuation, nominal revenues in the UK
were flat compared to the same quarter last year. Likewise,
revenues at Xfone 018, our Israeli division, decreased 4.6% to $2.2
million for the first quarter of 2009 compared to the first quarter
of 2008 due to the revaluation of the U.S. Dollar to the New
Israeli Shekel in the quarter ended March 31, 2009. Notwithstanding
this currency valuation, the nominal revenues in Israel
demonstrated an increase of 11% as a result of Xfone 018�s new
marketing initiatives.�
Mr. Nissenson concluded, �In this current difficult economic
environment, Xfone had a solid first quarter. We believe our
company�s industry experience, ability to adapt to the changing
marketplace, and ongoing focus on building our FTTP network will
continue to create new opportunities and serve us well for long
term growth.�
Conference
Call:
The Company will host a conference call today at 10:00 a.m.
Eastern Time to discuss its financial results. The conference call
may be accessed in the U.S. and Canada by dialing toll-free
1-877-407-8033. International callers may access the call by
dialing 1-201-689-8033.
A replay of the teleconference will be available for 30 days
after the call and may be accessed domestically by dialing
1-877-660-6853 and international callers may dial 1-201-612-7415.
Callers must enter account number 286 and conference number
323061.
To access the live webcast, log onto the XFONE website at
http://www.xfone.com. The webcast can also be accessed at
http://www.InvestorCalendar.com. An online replay will be available
shortly after the call.
About XFONE, Inc.
A U.S.-domiciled corporation, XFONE is a holding and managing
company with operations in the United States, the United Kingdom
and Israel, that offers a wide range of communications services
which include: local, long distance and international telephony
services; video; prepaid and postpaid calling cards; cellular
services; Internet services; messaging services (Email/Fax
Broadcast, Email2Fax and Cyber-Number); and reselling
opportunities. The Company serves customers worldwide.
This press release contains forward-looking statements. The
words or phrases "would be," "will allow," "intends to," "will
likely result," "are expected to," "will continue," "is
anticipated," "estimate," "project," or similar expressions are
intended to identify "forward-looking statements." XFONE's
financial and operational results reflected above should not be
construed by any means as representative of the current or future
value of its common stock. All information set forth in this news
release, except historical and factual information, represents
forward-looking statements. This includes all statements about the
Company's plans, beliefs, estimates and expectations. These
statements are based on current estimates and projections, which
involve certain risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. These risks and uncertainties include issues related
to: rapidly changing technology and evolving standards in the
industries in which the Company and its subsidiaries operate; the
ability to obtain sufficient funding to continue operations,
maintain adequate cash flow, profitably exploit new business,
license and sign new agreements; the unpredictable nature of
consumer preferences; and other factors set forth in the Company's
most recently filed annual report and registration statement.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis
only as of the date hereof. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof. Readers should
carefully review the risks and uncertainties described in other
documents that the Company files from time to time with the U.S.
Securities and Exchange Commission.
�
Xfone, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF
OPERATIONS � �
Three months ended March 31,
2009 �
2008 � Revenues $ 21,474,435 $ 15,793,098 Cost
of revenues � 11,778,457 � 7,656,273 Gross profit � 9,695,978 �
8,136,825 �
Operating expenses: Research and development
11,458 15,010 Marketing and selling 2,714,610 2,665,629 General and
administrative 6,003,537 4,311,720 � � � � Total operating expenses
� 8,729,605 � 6,992,359 � Operating profit 966,373 1,144,466 �
Financing income (expenses), net 1,462,072 (903,169 ) � � � � �
Income before minority interest and taxes 2,428,445 241,297 �
Minority interest � (19,554 ) � (82,474 ) � Income before taxes
2,408,891 158,823 � Income tax expense � (90,530 ) � (77,693 ) �
Net income $ 2,318,361 $ 81,130 �
Earnings Per Share: Basic
$ 0.126 $ 0.005 � Diluted $ 0.126 $ 0.005 �
Weighted average
shares outstanding: Basic � 18,376,075 � 15,323,690 � Diluted �
18,376,075 � 15,392,258 � �
Three months ended March
31, 2009 2008 � � Reconciliation of Non-GAAP
Financial Measures* � Net income $ 2,318,361 $ 81,130 �
Depreciation and amortization 985,169 507,210 Financing (income)
expenses, net (1,462,072 ) 903,169 Minority interest 19,554 82,474
Income tax expense 90,530 77,693 � EBITDA* $ 1,951,542 $ 1,651,676
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