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 April 30, 1997
( ) 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)
(561) 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 June 16, 1997, there were 8,313,701 shares, par value $.001 per
share, of the Registrant's Common Stock outstanding.
<PAGE>
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 -
April 30, 1997 and October 31, 1996 3
Condensed Consolidated Statements of
Operations-Three months and six months
ended April 30, 1997 and 1996 5
Condensed Consolidated Statements of Cash
Flows-Three months and six months ended
April 30, 1997 and 1996 6
Notes to Condensed Consolidated Financial
Statements April 30, 1997 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10
PART II - OTHER INFORMATION
Items 1 through 5 - Not Applicable
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
</TABLE>
<PAGE>
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
April 30, October 31,
1997 1996
-------------- ------------
(unaudited) (Note)
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $6,311,297 $3,267,161
Investments --- 571,010
Accounts receivable, net 11,967,630 13,617,792
Inventories 1,088,867 1,374,698
Costs and profits in excess of
billings on uncompleted contracts 1,515,400 954,269
Prepaid expenses and other 974,734 757,883
Deferred income taxes 41,249 905,898
----------- -----------
Total current assets 21,899,177 21,448,711
Property and equipment, net 13,531,932 10,667,357
Other assets:
Deferred income taxes 269,942 269,942
Goodwill, net 7,219,204 5,919,880
Other 847,409 612,941
----------- ----------
Total other assets 8,336,555 6,802,763
---------- ----------
Total assets $43,767,664 $38,918,831
========== ==========
</TABLE>
Note: The balance sheet at October 31, 1996 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>
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Continued)
<TABLE>
<CAPTION>
April 30, October 31,
1997 1996
-------------- ------------
(unaudited) (Note)
<S> <C> <C>
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt $2,771,026 $1,965,611
Notes payable - shareholders 1,605,309 1,307,976
Lines of credit 6,038,437 4,626,178
Accounts payable and accrued liabilities 6,535,291 8,036,142
Billings in excess of costs and profits
on uncompleted contracts 377,456 1,218,724
--------- ---------
Total current liabilities 17,327,519 17,154,631
Long-term debt, excluding current portion 7,244,434 8,149,807
Other liabilities --- 2,015,895
--------- ---------
Total liabilities 24,571,953 27,320,333
Contingencies ---
Convertible, redeemable preferred stock, $.10
par value, authorized 1,000,000 shares;
1,000 shares issued and outstanding in 6,572,600 ---
1997
Shareholders' equity:
Common stock, $.001 par value, authorized
25,000,000 shares; 8,313,701 and 8,203,212
shares issued and outstanding in 1997 and
1996, respectively 8,313 8,203
Additional paid-in capital 13,129,183 12,833,286
Unrealized loss on investments, net of tax --- (53,990)
Accumulated deficit (514,385) (1,189,001)
----------- -----------
Total shareholders' equity 12,623,111 11,598,498
---------- ----------
Total liabilities and shareholders' equity $43,767,664 $38,918,831
========== ==========
</TABLE>
Note: The balance sheet at October 31, 1996 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>
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(unaudited)
<TABLE>
<CAPTION>
For the three months For the six months
ended April 30, ended April 30,
----------------------- -----------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues $20,871,009 $12,592,295 $39,197,148 $24,170,670
---------- ---------- ---------- ----------
Costs and expenses:
Costs of revenues 15,759,382 9,706,294 30,034,344 19,133,118
General and
administrative 2,313,167 1,671,556 4,223,277 3,122,512
Depreciation and
amortization 1,040,406 539,396 2,039,373 1,102,754
Charges and transaction/
translation losses related
to Latin American
operations --- 3,404,750 --- 4,158,446
---------- ---------- ---------- ---------
Total costs and expenses 19,112,955 15,321,996 36,296,994 27,516,830
---------- ---------- ---------- ----------
Income (loss) from 1,758,054 (2,729,701) 2,900,154 (3,346,160)
operations ---------- ---------- ---------- ----------
Other expense (income):
Interest expense 408,431 297,213 788,333 534,917
Interest and dividend income (129,366) (63,076) (225,875) (136,876)
Other expenses --- --- 8,789 ---
---------- ---------- ---------- --------
Total other expense (income) 279,065 234,137 571,247 398,041
--------- ---------- ---------- ----------
Income (loss) before income taxes
and minority interest 1,478,989 (2,963,838) 2,328,907 (3,744,201)
Income tax expense (benefit) 539,531 233,610 884,210 234,000
---------- ---------- ---------- ----------
Income (loss) before minority 939,458 (3,197,448) 1,444,697 (3,978,201)
interest
Minority interest 87,480 (635,087) 87,480 882,447
---------- ---------- ---------- ----------
Net income (loss) 851,978 (2,562,361) 1,357,217 (3,095,754)
Preferred stock dividends 75,000 --- 110,000 ---
Discount attributable to
beneficial conversion
privilege of preferred
stock 439,600 --- 572,600 ---
---------- ---------- ---------- ----------
Income (loss) applicable to
common stock $ 337,378 $(2,562,361) $ 674,617 $(3,095,754)
========== ========== ========== ==========
Income (loss) per common
share: $ .04 $ (.31) $ .08 $ (.37)
========== ========== ========== ==========
Weighted average common shares
and common stock equivalents
outstanding 8,578,952 8,355,835 8,534,473 8,356,273
========== ========== ========== ==========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(unaudited)
<TABLE>
<CAPTION>
For the six months ended
April 30,
----------------------------
1997 1996
---- ----
<S> <C> <C>
Cash from operations $ 3,121,832 $ 815,387
Investing Activities:
Purchase of property and equipment (1,978,946) (1,078,755)
Cash acquired in acquisitions 403,617 400,000
Cash paid in acquisitions (3,000,000) (2,716,691)
Sale of Investments 625,000 ---
----------- ----------
Net cash used by investing activities (3,950,329) (3,395,446)
----------- ----------
Financing Activities:
Net (payments) borrowings under lines of credit (87,741) 445,000
Payments on long-term debt (6,715,354) (459,260)
Proceeds from debt to finance acquisitions 3,000,000 1,715,074
Proceeds from long-term debt 2,424,060 48,810
Net proceeds from preferred stock offering 5,664,148 ---
(Repayments) proceeds from notes payable - (250,000) 250,000
shareholders
Dividends Paid (75,000) ---
Distributions to minority interests (87,480) (172,868)
--------- ---------
Net cash provided by financing activities 3,872,633 1,826,756
--------- ----------
Effect of exchange rate changes on cash and --- (113,759)
equivalents --------- ----------
Increase (decrease) in cash and cash equivalents $ 3,044,136 $(867,062)
========= ==========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
April 30, 1997
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 10-Q 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 currency
devaluations on the Company's operations in Venezuela during fiscal year
1996.
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, 1996. Operating results for the three and six
months ended April 30, 1997 are not necessarily indicative of the results
that may be expected for the year ended October 31, 1997.
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 1996 Annual Report
on Form 10-K.
Certain items in the condensed consolidated financial statements for the
interim periods ended April 30, 1996 have been reclassified to conform
with the current presentation.
2. Acquisition
On December 2, 1996, the Company, through a wholly owned subsidiary,
acquired all the outstanding common stock of Dial Communications, Inc.
("Dial"). As consideration, the Company paid $3,000,000 in cash, issued
108,489 shares of common stock and issued an $892,000 promissory note. The
acquisition was accounted for using the purchase method of accounting and
approximately $1,500,000 of goodwill was recorded which will be amortized
over 20 years. The results of operations of Dial have been included since
the date of acquisition. The cash component of the purchase was funded in
part from the Company's line of credit and the remainder through a
$1,900,000 Term Loan from a bank with interest at prime (8.50% at April
30, 1997) plus 1/2 % due March 31, 1998. Management is currently
negotiating with the bank on restructuring the existing term loan credit
facility to refinance the $1,900,000 term loan used in the acquisition and
expand the facility.
<PAGE>
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
April 30, 1997
The pro forma unaudited results of operations for the three months ended
April 30, 1997 and 1996, assuming consummation of the purchase at the
beginning of the respective periods, are as follows:
<TABLE>
<CAPTION>
For the three months For the six months
ended April 30, ended April 30,
---------------------- ---------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues $20,871,009 $14,699,055 $40,034,667 $28,317,175
Net income (loss) $ 851,978 $(2,395,159) $ 1,380,380 $(2,923,189)
Net income (loss) per
common share and
equivalent share $ 0.09 $ (0.28) $ 0.15 $ (0.35)
</TABLE>
The unaudited pro forma information does not purport to be indicative of
the results of operations which would have resulted had the acquisition
been consummated at the date assumed.
3. Borrowings
Effective December 2, 1996 the Company entered into a $3,000,000 Term Loan
Credit Facility (the "Term Loan") with a bank. The Term Loan is
collateralized by all real and personal property of Georgia Electric
Company ("GEC") which was acquired on October 12, 1996. The Term Loan is
payable in sixty monthly installments of $50,000 plus interest at prime
(8.50% at April 30, 1997). Additionally, excess cash flow of GEC, as
defined, is to be paid to the bank. The Term Loan contains covenants,
which require among other conditions, that the Company maintain certain
tangible net worth, working capital and debt service amounts. Proceeds
from the Term Loan were used to repay $3,000,000 of borrowings from a bank
outstanding at October 31, 1996 which consisted of a $1,500,000 bank line
of credit and a $1,500,000 note payable that was due on December 2, 1996.
See Note 2 "Acquisition" for additional debt incurred in connection with
an acquisition on December 2, 1996.
4. Preferred Stock
Effective December 20, 1996 the Company completed a private placement
transaction of 1,000 shares of $.10 par value, Series A Convertible
Preferred Stock (the "Preferred Stock") and warrants to purchase 200,000
shares of the Company's common stock at $9.82 per share. Proceeds from the
offering totaled $6,000,000. Each share of Preferred Stock is convertible
to shares of the Company's common stock after April 30, 1997 at the lesser
of $9.82 per share or at a discount (ranging from 10% to 20% depending
upon the date of conversion) of the average closing bid price of a share
of common stock for three days proceeding the date of conversion. The
Company is recognizing the discount attributable to the beneficial
conversion privilege of
<PAGE>
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
April 30, 1997
approximately $660,000 by accreting the amount from the date of issuance
through May 20, 1997 as an adjustment of net income attributable to common
shareholders (see Note 5.) Such adjustment totaled $439,600 for the
quarter ended April 30, 1997. This accretion adjustment, which also
represents the amount needed to accrete to the redemption value of the
Preferred Stock for the period ended April 30, 1997, was recorded as a
charge to accumulated deficit and accompanying credit to the Preferred
Stock. The Preferred Stock accrues dividends at an annual rate of 5% and
is payable quarterly in arrears in cash or through a dividend of
additional shares of Preferred Stock. The warrants are exercisable after
one year provided that the Preferred Stock is not converted to common
stock prior to the first anniversary date of the private placement. Upon
the occurrence of certain events the Company may be required to redeem the
Preferred Stock at a price equal to the liquidation preference, plus any
accrued and unpaid dividends, plus an amount determined by formula.
Proceeds from the private placement were used to repay certain debt
outstanding at October 31, 1996, including a $1,869,050 note payable to
the sellers of H.C. Connell, Inc. ("Connell") acquired by the Company on
December 8, 1995, a $250,000 note payable to a director, and $2,015,895
due the former principals of GEC. The amount due to the former principals
of GEC represented undistributed S corporation profits existing at the
date of acquisition, and is presented as "Other liabilities" in the
accompanying consolidated balance sheet at October 31, 1996.
5. Earnings Per Share
Fully diluted earnings per share data, which includes the assumed
conversion of the convertible preferred stock, has not been presented
because it was not dilutive. Earnings attributable to common stock
reflects adjustments for cumulative preferred dividends and imbedded
dividends arising from discounted conversion terms on the Series A
Convertible Preferred Stock (see Note 4).
6. Contingencies - Litigation
The Company is involved in various claims and legal actions arising in the
ordinary course of business including claims relating to notes payable to
the former owners of Transportation Safety Contractors, Inc. These notes
payable and related accrued interest are classified as current in the
accompanying balance sheets. 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 or results of operations.
<PAGE>
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 financial condition
and results of operations of the Company for the three and six months ended
April 30, 1997 and 1996. This information should be read in conjunction with the
Company's condensed consolidated financial statements appearing elsewhere in
this document. Except for historical information contained herein, the matters
discussed below contain forward looking statements that involve risks and
uncertainties, including but not limited to economic, competitive, governmental
and technological factors affecting the Company's operations, markets and
profitability.
Results of Operations
- ----------------------
The following table sets forth, for the periods indicated, selected
elements of the Company's condensed consolidated statements of operations as a
percentage of its revenues.
<TABLE>
<CAPTION>
For the three months For the six months
ended April 30, ended April 30,
------------------------- ----------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues 100.00% 100.00% 100.00% 100.00%
------- -------- ------- -------
Cost of revenues 75.51% 77.08% 76.62% 79.16%
General and 11.08% 13.28% 10.77% 12.92%
administrative
Depreciation and 4.98% 4.28% 5.20% 4.56%
amortization
Charges and
transaction/translation
losses relating to --- 27.04% --- 17.20%
Latin American
operations
Income (loss) from 8.43% (21.68%) 7.41% (13.84%)
operations
Interest expense and 1.34% 1.86% 1.46% 1.65%
other
Net income (loss) 4.08% (20.35%) 3.46% (12.81%)
</TABLE>
The Company reported net income for the quarter ended April 30, 1997,
before a one time charge, of $776,978 or $.09 a share compared to a net loss of
($2,562,361) or ($.31) per share for the same period in 1996. Net income for the
six months ended April 30, 1997, before a one time charge, was $1,247,217 or
$.15 per share compared to a net loss of ($3,096,000) or ($.37) per share for
the same period in 1996. These amounts are after a deduction for Preferred Stock
dividends of $75,000 and $110,000 for the three and six months ended April 30,
1997. Net income was further reduced by the previously reported one time
non-cash charge for the discounted conversion on its convertible Preferred Stock
issued in December of 1996. This charge totaled $439,600 for the three months
and $572,600 six months ended April 30, 1997. This increase in net income is
primarily due to the fact that no special charges relating to the Latin American
operations were required during the quarter and six months period ended April
30, 1997. For the same periods in 1996, the Company incurred charges of
$3,404,750 and $4,158,446 relating to Latin American operations. The
assimilation of the Georgia Electric Company ("GEC") and Dial Communications,
Inc. ("Dial ") acquisitions as well as the continued improvement in margins
within the Traffic Management Group contributed to the improved performance.
<PAGE>
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
Revenues for the quarter ended April 30, 1997 increased $8,278,714 to
$20,871,009 compared to revenues of $12,592,295 for the same period in 1996.
Revenues for the six month period ended April 30, 1997 increased by $15,026,478
to $39,197,148 from $24,170,670 for the same six month period of the prior year.
The acquisition of GEC in October of 1996 and Dial in December of 1996 accounted
for approximately $7,300,000 of the revenue increase for the second quarter of
1997 and approximately $14,000,000 of the increase for the six month period
ended April 30, 1997. The remaining increases in revenue for the quarter and six
months period were generated from increased demand for services from the other
subsidiaries.
Cost of Revenues improved during the second quarter to 75.51% of revenues
from 77.08% of revenues for the same period in 1996. For the six months ended
April 30, 1997, cost of revenues were 76.62% compared to 79.16% for the first
six months of 1996. This is primarily a reflection of the improved labor
productivity and cost cutting measures within the Traffic Management Group and
the assimilation of GEC and Dial acquisitions.
General and administrative expense during the quarter ended April 30,
increased $641,611 from $1,671,556 in 1996 to $2,313,167 in 1997. For the six
months ended April 30, the expenses increase $1,100,765 from $3,122,512 in 1996
to $4,223,277 in 1997. Approximately $540,000 of the increase for the quarter
and $980,000 of the increase for the six month period result from the
acquisition of GEC and Dial. These expense totals represent a significant
decline as a percentage of revenues from prior years as result of the Company's
efforts to enhance financial controls and the implementation of a cost
containment program.
The increase in interest expense during the quarter and six month period
ending April 30, 1997 reflects the recent addition of acquisition-related debt
and the financing of equipment purchases as well as the payment of debt with the
proceeds from the Preferred stock issue.
Depreciation and amortization expense increased $501,010 and $936,619 for
the quarter and six month period ended April 30, 1997 from the corresponding
periods in 1996. The GEC and Dial acquisitions represent approximately $384,000
and $649,000 of the total increase for the quarter and six month period
respectively. The remaining increase resulted from the continuing improvement
and updating of the Company's equipment.
The foreign currency translation and transaction losses improved during the
second quarter of 1997. The stabilization of the Venezuelan bolivar resulted in
a decrease in foreign currency losses of $479,895 and $1,009,792 for the quarter
and six month period ended April 30, 1997 as compared to the same periods for
1996.
Income tax expense (benefit) for the quarter and six month period ended
April 30, 1997 and 1996 differ from the amounts that would result from applying
federal and state statutory tax rates to pre tax income (loss) primarily due to
non deductible goodwill, losses from foreign operations and the reversal of
other deferred tax items from prior years.
Liquidity and Capital Resources
- -------------------------------
Cash and cash equivalents were $6,311,292 at April 30, 1997 compared to
$3,267,161 at October 31, 1996. Cash was impacted during the first six months of
1997 was primarily the result of private placement of preferred stock.
<PAGE>
On December 2, 1996 the Company entered into a $3,000,000 Term Loan (the
"Term Loan") with a bank in connection with refinancing the acquisition of GEC
on October 12, 1996. The Term Loan is payable in sixty monthly installments of
$50,000 plus interest at prime (8.50% at April 30, 1997). Excess cash flow of
GEC, as defined, is to be paid to the Bank. The Term Loan contains covenants,
which require among other conditions, that the Company maintain certain tangible
net worth, working capital and debt service amounts. The Term Loan is
collateralized by all real and personal property of GEC. Proceeds from the Term
Loan were partially used to repay a $1,500,000 note payable to a bank,
outstanding at October 31, 1996 and due on December 2, 1996. The remaining
proceeds were used to repay the Company's lines of credit.
Effective December 20, 1996 the Company completed a private placement
transaction of 1,000 shares of $.10 par value, Series A Convertible Preferred
Stock (the Preferred Stock) and warrants to purchase 200,000 shares of the
Company's common stock. Gross proceeds from the offering totaled $6,000,000.
Each share of Preferred Stock is convertible to shares of the Company's common
stock after April 30, 1997 at the lesser of $9.82 per share or at a discount
(ranging from 10% to 20% depending upon the date of conversion) of the average
closing bid price of a share of common stock for three days proceeding the date
of conversion. The Preferred Stock accrues dividends at an annual rate of 5% and
is payable quarterly in arrears in cash or through a dividend of additional
shares of Preferred Stock. In addition, the accumulated deficit and earnings
attributable to common stock reflects adjustments for cumulative preferred
dividends and imbedded dividends arising from discounted conversion terms on the
preferred stock. The warrants are exercisable at $9.82 per share after one year
provided that the Preferred Stock is not converted to common stock prior to the
first anniversary of the private placement. Upon the occurrence of certain
events the Company may be required to redeem the preferred stock at a price
equal to the liquidation preference, plus any accrued and unpaid dividends plus
an amount determined by formula. The proceeds from the private placement were
used to repay a $1,869,050 note payable to the sellers of H.C. Connell, Inc., a
$250,000 note payable to a director in connection with the acquisition of
Connell, and $2,015,895 due the former principals of GEC by GEC at the date of
acquisition, all of which were outstanding at October 31, 1996.
In addition, on December 2, 1996, the Company acquired all the outstanding
common stock of Dial. As consideration, the Company paid $3,000,000 in cash,
issued 108,489 shares of common stock (fair value of $620,421) and issued an
$892,000 promissory note with a three year term bearing interest at prime (8.50%
at April 30, 1997) plus 1/2%. The cash component of the purchase was funded in
part from the Company's line of credit and the remainder through a $1,900,000
Term Loan from a bank with interest at prime (8.50% at April 30, 1997) plus
1/2%. The principal balance of this note, plus accrued interest, is due March
31, 1998. Management is currently negotiating with the tank to restructure the
existing term loan credit facility to refinance the $1,900,000 term loan used in
the acquisition and expand the facility.
The Company expects that available cash will be sufficient to meet normal
operating requirements over the near term.
<PAGE>
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
Part II - Other Information
<TABLE>
<S> <C>
Items 1-5. Not applicable
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits - None
b) Reports on Form 8-K
</TABLE>
On February 11, 1997, the Company filed an amended Current Report on Form
8-K to include the financial statements of Dial Communications, Inc. pursuant to
Regulation S-X.
<PAGE>
ABLE TELCOM HOLDING CORP.
AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements 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.
Able Telcom Holding Corp.
(Registrant)
By: /s/ Gerry W. Hall June 20, 1997
-----------------------
Gerry W. Hall
President and CEO
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF ABLE TELCOM HOLDING CORP. FOR THE QUARTER ENDED APRIL
30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> FEB-01-1997
<PERIOD-END> APR-30-1997
<CASH> 6,311,297
<SECURITIES> 0
<RECEIVABLES> 11,967,630
<ALLOWANCES> 0
<INVENTORY> 1,088,867
<CURRENT-ASSETS> 21,899,177
<PP&E> 13,531,932
<DEPRECIATION> 1,040,406
<TOTAL-ASSETS> 43,767,664
<CURRENT-LIABILITIES> 17,327,519
<BONDS> 0
0
6,572,600
<COMMON> 8,313
<OTHER-SE> 12,614,798
<TOTAL-LIABILITY-AND-EQUITY> 43,767,664
<SALES> 0
<TOTAL-REVENUES> 20,871,009
<CGS> 0
<TOTAL-COSTS> 19,112,955
<OTHER-EXPENSES> 0
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<NET-INCOME> 337,378
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</TABLE>
