<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
AND EXCHANGE ACT OF 1934.
For the quarterly period ended January 31, 1996.
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
AND EXCHANGE ACT OF 1934.
For the transition period from ______________ to _____________.
Commission File Number: 0-21986
ABLE TELCOM HOLDING CORP.
(exact name of registrant as specified in its charter)
Florida 65-0013218
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1601 Forum Place, Suite 1110,
West Palm Beach, Florida 33401
(Address of principal executive offices) (Zip Code)
(407) 688-0400
(Registrant's telephone number, including area code)
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 reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO__
As of March 1, 1996, there were 8,193,212 shares, par value $.001 per share, of
the Registrant's Common Stock outstanding.
<PAGE> 2
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
INDEX
---------
PART I - FINANCIAL INFORMATION
<TABLE>
<S> <C>
Page Number
-----------
Item 1. Condensed Consolidated Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets - January 31, 1996 3
and October 31, 1995
Condensed Consolidated Statements of Operations - Three 5
months ended January 31, 1996 and 1995
Condensed Consolidated Statements of Cash Flows - Three 6
months ended January 31, 1996 and 1995
Notes to Condensed Consolidated Financial Statements - 8
January 31, 1996
Item 2. Management's Discussion and Analysis of Financial Condition 12
and Results of Operations
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
Signatures 15
</TABLE>
<PAGE> 3
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
January 31, 1996 October 31, 1995
Assets (unaudited) (audited)
- ------ ---------------- ----------------
<S> <C> <C>
Current assets:
Cash and equivalents $ 2,410,236 $ 2,952,239
Investments, net 546,875 571,875
Accounts receivable, net 12,557,940 10,529,124
Inventories 3,464,615 3,535,622
Prepaid expenses and other 1,460,795 831,908
Deferred income taxes 440,399 151,879
-------------- -------------
Total current assets 20,880,860 18,572,647
Property and equipment, net 8,119,063 6,119,608
Other assets:
Deferred income taxes 331,739 331,739
Goodwill and contractual rights, net 7,080,532 7,203,761
Other 300,689 254,461
-------------- -------------
Total other assets 7,712,960 7,789,961
-------------- -------------
Total assets $ 36,712,883 $ 32,482,216
============== =============
</TABLE>
Note: The balance sheet at October 31, 1995 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
See notes to condensed consolidated financial statements.
<PAGE> 4
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
<TABLE>
<CAPTION>
January 31, 1996 October 31, 1995
Liabilities and Shareholders' Equity (unaudited) (audited)
---------------- ----------------
<S> <C> <C>
Current liabilities:
Current portion of long-term debt $ 1,338,436 $ 2,222,369
Lines of credit 4,638,153 3,220,000
Notes payable - other 1,715,074 ---
Notes payable to shareholders/directors 1,807,976 1,557,976
Accounts payable 4,686,552 3,446,123
Accrued expenses 1,480,745 728,282
-------------- -------------
Total current liabilities 15,666,936 11,174,750
Deferred income taxes 264,800 ---
Long-term debt, excluding current portion 3,326,196 3,033,000
-------------- -------------
Total liabilities 19,257,932 14,207,750
Minority interest 546,869 807,955
Shareholders' equity:
Common stock, $.001 par value, authorized
25,000,000 shares; issued and outstanding
8,193,212 shares in 1996 and 1995 8,193 8,193
Additional paid-in capital 12,790,196 12,790,196
Unrealized loss on investments, net (78,125) (53,125)
Retained earnings 4,187,818 4,721,247
-------------- ------------
Total shareholders' equity 16,908,082 17,466,511
-------------- ------------
Total liabilities and shareholders' equity $ 36,712,883 $ 32,482,216
============== ============
</TABLE>
Note: The balance sheet at October 31, 1995 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
See accompanying notes to condensed consolidated financial statements.
<PAGE> 5
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the three months ended January 31,
--------------------------------------
1996 1995
(unaudited) (audited)
--------------- ---------------
<S> <C> <C>
Revenues $ 11,578,375 $ 7,624,773
---------- ---------
Costs and expenses:
Costs of revenues (exclusive of
depreciation and amortization shown
separately below) 9,426,923 6,557,741
General and administrative 1,450,703 1,531,524
Depreciation and amortization 563,358 328,763
Translation/transaction losses, net 1,009,792 (15,591)
Interest expense 237,705 280,178
Interest and dividend income (73,800) (126,213)
---------- ----------
Total costs and expenses 12,614,681 8,556,402
Loss before income taxes and minority
interest (1,036,306) (931,629)
Income tax benefit 255,553 46,258
---------- ----------
Loss before minority interest (780,753) (885,371)
Minority interest (247,360) (43,273)
---------- ---------
Net loss $ (533,393) $ (842,098)
========== =========
Loss per common share and common
equivalent share $ (.06) $ (.10)
========== =========
Weighted average shares outstanding:
Primary and fully diluted 8,354,144 8,178,596
========== =========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE> 6
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
For the three months ended January 31,
--------------------------------------
1996 1995
(unaudited) (audited)
--------------- ---------------
<S> <C> <C>
Operating Activities:
Net loss $ (533,393) $ (842,098)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization 483,358 328,763
Deferred income taxes (255,820) ---
Loss on disposal of property --- 4,919
Translation/transaction losses 1,009,792 (15,591)
Minority interest (247,360) ---
Changes in assets and liabilities, net
of effects from the acquisition of H.C.
Connell, Inc.
(Increase) decrease in accounts
receivable (107,837) 264,167
Decrease (increase) in inventories 196,086 (187,240)
Increase in prepaid expenses and other (563,787) (195,546)
(Increase) decrease in other assets (15,200) 111,243
Increase (decrease) in accounts payable
and accrued expenses 764,577 (361,070)
--------- ---------
Net cash provided by (used in)
operating activities 730,416 (892,453)
Investing Activities:
Cash acquired in acquisition 400,000 ---
Business acquisition, net of cash acquired (2,392,168) ---
Purchases of property and equipment (456,828) (711,975)
--------- ---------
Net cash used in investing activities (2,448,996) (711,975)
Financing Activities:
Net borrowings under lines of credit 445,000 ---
Borrowings from shareholders/directors 500,000 250,000
Repayments to shareholders/directors (250,000) ---
Proceeds from long-term debt --- 780,707
Payments on long-term debt (209,979) (486,473)
Proceeds from notes for acquisition 1,715,074 ---
Distributions to minority interests (13,726) (418,173)
Foreign currency translation adjustment (793,675) 15,591
--------- --------
Net cash provided by financing
activities 1,392,694 141,652
--------- --------
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE> 7
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
<TABLE>
<CAPTION>
For the three months ended January 31,
--------------------------------------
1996 1995
(unaudited) (audited)
--------------- --------------
<S> <C> <C>
Effect of exchange rate changes on cash
and equivalents (216,117) ---
--------- ----------
(Decrease) in cash and equivalents (542,003) (1,462,776)
Cash and equivalents at beginning of year 2,952,239 3,432,349
Cash and equivalents at end of year $ 2,410,236 $ 1,969,573
Supplemental disclosures of cash
flow information:
Non-cash transactions affecting
operating, investing and financing
activities:
Operating activities:
Decrease in the value of investments,
restricted net of tax effect $ --- $ (15,533)
======== ========
Investing and Financing activities:
Conversion of notes payable to
shareholders to common stock $ --- $ 1,500,000
======== =========
Liabilities assumed in conjunction
with acquisition:
Fair value of assets acquired $ 3,996,603
Note payable issued to Sellers/
directors (2,215,074)
----------- --------
Liabilities assumed $ 1,781,529 $ ---
=========== ========
Interest paid 177,700 210,525
=========== =======
Income taxes paid, net of refunds 0 0
=========== =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE> 8
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required for complete financial statements. In the
opinion of management, all adjustments necessary for a fair presentation of
the results for the interim periods presented have been included. Such
adjustments consist of normal recurring accruals and those adjustments
recorded to reflect the impact of a currency devaluation on the Company's
operations in Venezuela.
These results have been determined on the basis of generally accepted
accounting principles and practices applied consistently with those used in
the preparation of the Company's Annual Report on Form 10-K for the year
ended October 31, 1995. Operating results for the three months ended January
31, 1996 are not necessarily indicative of the results that may be expected
for the year ended October 31, 1996.
It is recommended that the accompanying condensed consolidated financial
statements be read in conjunction with the consolidated financial statements
and notes thereto included in the Company's 1995 Annual Report on Form 10-K.
Certain items in the condensed consolidated financial statements for the
three month interim period ended January 31, 1995 have been reclassified to
conform with the current presentation.
2. Inventories
The components of inventory consist of the following:
<TABLE>
<CAPTION>
January 31, October 31,
1996 1995
----------- -----------
<S> <C> <C>
Raw materials $ 1,464,667 $ 1,719,338
Committed inventory 1,999,948 1,816,284
----------- -----------
$ 3,464,615 $ 3,535,622
=========== ===========
</TABLE>
3. Acquisition
On December 8, 1995, the Company, through a wholly owned subsidiary,
acquired all of the outstanding Common Stock of H.C. Connell, Inc.
("Connell"). Connell provides outside plant telecommunication services to
local telephone operators and also provides power and other utility services
to major electric and water companies as well as various government
municipalities. The purchase price of approximately $2,300,000 was paid by
issuing promissory notes totaling $1,715,074 to the seller and with loan
proceeds of $500,000 from directors of the Company. The acquisition was
accounted for using the purchase method of accounting.
<PAGE> 9
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The proforma unaudited results of operations for the three months ended
January 31, 1996 and 1995, assuming consummation of the purchase at the
beginning of the respective periods, are as follows:
<TABLE>
<CAPTION>
Three months ended
--------------------------
January 31,
----------
1996 1995
------------ ------------
(000's omitted, except per share data)
<S> <C> <C>
Net revenues $ 12,721,353 $ 10,969,158
Net loss (430,210) (726,613)
Net loss per common share and
common equivalent share $ (.05) $ (.09)
</TABLE>
4. Borrowings
Effective November 29, 1995, the Company entered into a Term Loan and
Revolving Line of Credit Facility with a new lender (the "Lender") totaling
$12,500,000 (the "Credit Facility"). The Credit Facility is comprised of the
following components: (i) a $6,000,000 revolving line of credit (the "Line
of Credit"), (ii) a $2,500,000 equipment loan facility (the "Equipment Loan
Facility"), (iii) a 60-month Term A loan in the amount of $2,750,000
(the "Term A Loan"), and (iv) a 36-month Term B loan in the amount of
$1,250,000 (the "Term B Loan"). The Line of Credit, the Term A Loan and the
Term B Loan are each evidenced by separate promissory notes with varying
maturities and are secured by certain accounts receivable, inventory and
equipment. Each loan accrues interest at either the Lender's prime rate or,
at the Company's election, the one (1) month LIBOR rate plus two and seven
tenths (2 7/10%) percent. Proceeds from the Term A, Term B and a portion of
the proceeds from the credit line were used to refinance certain existing
debt of the Company. The balance of the Line of Credit will be used by the
Company for its working capital needs. The Credit Facility contains
covenants, which require, among other conditions, that the Company maintain
certain tangible net worth, funded debt, and debt service amounts.
In addition to the Credit Facility, the Company incurred and assumed
additional debt in connection with the acquisition of Connell.
At January 31, 1996, the Company's borrowings consist of the following:
<TABLE>
<S> <C>
January 31, 1996
----------------
LINES OF CREDIT:
Bank line of credit ($6,000,000 maximum limit), due February
28, 1997; interest payable monthly at prime (81/2% at
January 31, 1996); secured by certain accounts receivable,
inventory and equipment $ 4,486,153
Bank line of credit ($200,000 maximum limit); due June 8,
1996; interest payable monthly at prime (81/2% at January
31, 1996) plus 1/2%; secured by certain accounts receivable 152,000
---------
$ 4,638,153
=========
NOTES PAYABLE:
January 31, 1996
----------------
Note payable issued in connection with acquisition;
principal and accrued interest at 6% per annum due
June 8, 1996; collateralized by capital stock of the
subsidiary acquired 1,465,074
</TABLE>
<PAGE> 10
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
<S> <C>
Note payable issued in connection with acquisition;
principal and accrued interest at prime (81/2% at January
31, 1996) plus 1% due December 8, 1996; collateralized by
capital stock of the subsidiary acquired 250,000
---------
$ 1,715,074
=========
NOTES PAYABLE TO SHAREHOLDERS/DIRECTORS:
Notes payable to shareholders; personally guaranteed by a
shareholder/director of the Company $ 1,307,976
Notes payable to directors; principal and accrued interest
at prime (81/2% at January 31, 1996) plus 1% due June 8,
1996; secured by certain accounts receivable 500,000
---------
$ 1,807,976
=========
LONG-TERM DEBT:
Term loan payable to bank; payable in monthly installments
of $45,833 plus interest at prime (81/2% on January 31,
1996) through December 1, 2000; collateralized by certain
accounts receivable, inventory and equipment $ 2,704,167
Term loan payable to bank; payable in monthly installments
of $34,722 plus interest at prime (81/2% at January 31,
1996) through December 1, 1998; collateralized by certain
accounts receivable, inventory and equipment 1,215,278
Term loans payable to bank; payable in monthly installments
totaling $39,917 plus interest at prime (81/2% at January
31, 1996) plus 1/2%; through June 30, 1997; collateralized
by certain equipment 440,395
Mortgage note payable to bank; payable in monthly installments
totaling $1,604 plus interest at prime (81/2% at January 31,
1996) plus 1/2%; collateralized by land and building with a
carrying value of approximately $440,000 as of January 31,
1996; personally guaranteed by shareholders/directors 304,792
---------
Total long-term debt 4,664,632
Less current portion (1,338,436)
---------
Long-term debt, excluding current portion $ 3,326,196
=========
</TABLE>
The Company is negotiating an agreement relating to the notes payable to
shareholders/directors totaling $1,307,976, issued in connection with the
acquisition of Transportation Safety Contractors, Inc. in June 1994. Said
notes are classified as "current" in the accompanying consolidated balance
sheets at January 31, 1996 and October 31, 1995.
5. Litigation
The Company is involved in various claims and legal actions arising in the
ordinary course of business. In the opinion of management, the ultimate
disposition of these matters will not have a material adverse effect on
the Company's consolidated financial position.
<PAGE> 11
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATMENTS
6. Currency Devaluation
In December 1995, the Venezuelan government implemented a major currency
devaluation reestablishing the controlled exchange rate at 290 bolivars
= 1 U.S. dollar. As a result, the Company recorded a translation loss
net of applicable income taxes, of approximately $327,000 during the three
months ended January 31, 1996. At January 31, 1996, the Company had
approximately $1,111,697 of bolivar denominated net working capital assets,
comprised primarily of cash and accounts receivable, which are subject to
currency control restrictions and the risk associated with a further currency
devaluation. The impact of a further currency devaluation on the results of
the Company's operations in Venezuela cannot be determined at this time.
<PAGE> 12
ABLE TELCOM HOLDING CORP
AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following discussion and analysis relates to the Company's financial
condition and results of operations for the three months ended January 31,
1996 and 1995. This information should be read in conjunction with the Company's
Condensed Consolidated Financial Statements appearing elsewhere in this
document.
Results of Operations
- ---------------------
<TABLE>
<CAPTION>
Three months ended January 31,
------------------------------
1996 1995
------------ ------------
<S> <C> <C>
Revenues 100.0% 100.0%
------ ------
Cost of Revenues 81.4% 86.0%
General and administrative 12.5 20.1
Depreciation and amortization 4.9 4.3
Translation/transaction losses 8.7 (0.2)
Interest expense 2.0 3.7
Interest and dividend income 0.6 1.6
Income tax benefit 2.2 0.6
Minority interest 2.1 0.6
Net loss 4.6 11.0
</TABLE>
Overview
- --------
Net loss for the first quarter of fiscal 1996 was ($533,393) or ($.06) per
share compared to ($842,098) or ($.10) per share for the first three months of
1995. The first quarter 1996 reflects normal seasonality of the Company's
business which was compounded by severe blizzards and flooding in certain
operating areas. Such weather conditions are expected to result
in a deferral of the Company's planned business during the first quarter to
subsequent periods.
In addition, during the first quarter of 1996, the Company incurred a pre-tax
charge to earnings of $504,896 associated with the aforementioned currency
devaluation in Venezuela.
Three Months Ended January 31, 1996 and 1995
- --------------------------------------------
Revenues for the three month period ended January 31, 1996 were $11,578,375,
representing an increase of $3,953,602 or 52% compared to revenues of
$7,624,773 for the three month period ended January 31, 1995. Approximately
49% of the 1996 revenue increase is due to the acquisition of H.C. Connell,
Inc.("Connell"). The remaining increase was primarily due to an overall
increase in domestic telecommunication service business; however, revenues
were lower than expected, primarily due to previously mentioned weather
conditions.
Cost of revenues for the first quarter improved significantly compared to the
same period for the prior year. This is primarily due to increased productivity
resulting from organizational changes and emphasis on an equipment maintenance
program.
<PAGE> 13
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
General and administrative expenses for the quarter ended January 31, 1996 were
$1,450,703 or 12% of revenues compared to $1,531,524 or 20% of revenues for the
quarter ended January 31, 1995. $300,000 of costs incurred to pursue the
development of certain telecommunication equipment in Latin America are included
in general and administrative expenses for first quarter of fiscal 1995.
Excluding these costs, general and administrative expenses were 16% of revenues
for the three months ended January 31, 1995. This improvement reflects enhanced
financial controls and implementation of a cost containment program.
Translation/transaction losses during the first quarter of 1996 reflect
primarily the impact of a major currency devaluation on the Company's operations
in Venezuela. At January 31, 1996 the Company had bolivar denominated working
capital assets of approximately $1,111,697. This working capital is
comprised primarily of cash and accounts receivable, which are subject to
currency control restrictions and the risk of further currency devaluation.
The impact of a further currency devaluation on the results of the Company's
operations in Venezuela cannot be determined at this time.
The company is currently evaluating its operations in Latin America in an effort
to minimize the impact of severe economic volatility on the Company's operations
in the region.
Liquidity and Capital Resources
- -------------------------------
Cash flows from operations were $730,416 for the three-months period ended
January 31, 1996, as compared with cash used in operations of $892,453 for the
corresponding period in 1995.
Funds from operations were sufficient to pay for capital expenditures other than
the acquisition of Connell, such acquisition being funded by the issuance of
$1,715,074 in Seller Notes and by loan proceeds of $500,000 from directors of
the Company.
As discussed in Note 4 in the Notes to the Condensed Consolidated Financial
Statements, on November 29, 1995, the Company entered into a $12.5 million
credit facility (the "Credit Facility") comprised of a $6,000,000 revolving line
of credit; a $2,500,000 equipment loan facility to be secured by new or used
equipment purchased; a 60-month Term A loan in the amount of $2,750,000; and a
36-month Term B loan in the amount of $1,250,000. Proceeds from the term loans
and a portion of the credit line were used to refinance existing debt of the
Company, excluding loans from shareholders/directors, and the balance of the
line of credit will be used for working capital needs.
The Company is negotiating an agreement as to the due date and other terms
relating to the notes payable to shareholders totaling $1,307,976, issued in
connection with the acquisition of Transportation Safety Contractors, Inc. in
June 1994. Said notes are classified as "current" in the accompanying
consolidated balance sheets at January 31, 1996 and October 31, 1995.
The Company anticipates it will need to refinance a portion of the $3,600,000
debt incurred in connection with the acquisitions of Connell and TSCI, thereby
requiring the Company to seek financing alternatives in 1996. No assurance
can be given that the Company will achieve refinancing of the acquisition debt
on terms acceptable to the Company.
The Company expects that available cash and existing short-term lines of credit
will be sufficient to meet its next term operating requirements.
<PAGE> 14
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
In December 1995, the Venezuelan government implemented a major currency
devaluation reestablishing the controlled exchange rate at 290 bolivars - 1 U.S.
dollar. At January 31, 1996, the Company had approximately $1,111,697 of
bolivar denominated net working capital assets comprised primarily of cash and
accounts receivable, which are subject to said controls, and this risk of a
further currency devaluation.
Part II - Other Information
Items 1 - 5. Not applicable
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - none applicable
(b) Reports on Form 8-K
A report filed on Form 8-K dated December 22, 1995 was filed
under Item 2 for the acquisition of H. C. Connell, Inc. and
Item 5 for the refinancing loan consolidating the Company's debt.
<PAGE> 15
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant hasduly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Able Telcom Holding Corp.
(Registrant)
By: /s/ William J. Mercurio March 15, 1996
------------------------ --------------
William J. Mercurio, President and CEO Date
By: /s/ Daniel L. Osborne March 15, 1996
------------------------ --------------
Daniel L. Osborne, Chief Financial and Date
Accounting Officer, Secretary
(Principal Financial Officer and
Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF ABLE TELCOM FOR THE QUARTER ENDED JANUARY 31, 1996,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERNCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1995
<PERIOD-END> JAN-31-1996
<CASH> 2,410,236
<SECURITIES> 546,875
<RECEIVABLES> 12,557,940
<ALLOWANCES> 0
<INVENTORY> 3,464,615
<CURRENT-ASSETS> 20,880,860
<PP&E> 8,119,063
<DEPRECIATION> 0
<TOTAL-ASSETS> 36,712,883
<CURRENT-LIABILITIES> 15,666,936
<BONDS> 0
0
0
<COMMON> 8,193
<OTHER-SE> 16,899,889
<TOTAL-LIABILITY-AND-EQUITY> 36,712,883
<SALES> 0
<TOTAL-REVENUES> 11,578,375
<CGS> 0
<TOTAL-COSTS> 9,426,923
<OTHER-EXPENSES> 3,187,758
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 237,785
<INCOME-PRETAX> (1,036,306)
<INCOME-TAX> (255,553)
<INCOME-CONTINUING> (533,393)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (533,393)
<EPS-PRIMARY> (.06)
<EPS-DILUTED> (.06)
</TABLE>
