<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended Commission File Number
SEPTEMBER 30, 1995 1-10210
- - - ------------------------- ---------------------------
EXECUTIVE TELECARD, LTD.
- - - --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 13-3486421
---------------------------------- --------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation of organization)
8 AVENUE C, NANUET, NEW YORK 10954
-----------------------------------
(Address of principle executive offices) (Zip Code)
Registrant's telephone number, including area code: (914) 627-2060
________________________________________________________________________________
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______
-------
The number of shares outstanding of each of the registrant's classes of common
stock, as of October 31, 1995 is 14,406,374 shares, all of one class of $.001
par value Common Stock.
1
<PAGE>
EXECUTIVE TELECARD, LTD.
PART I
FINANCIAL INFORMATION
QUARTER ENDED SEPTEMBER 30, 1995
GENERAL
The following financial information is submitted in response to the requirements
of Form 10-Q and does not purport to be financial statements prepared in
accordance with generally accepted accounting principles. Certain information
and footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted, although the Company believes the disclosures that are made are
adequate to make the information presented not misleading. Further, in the
opinion of the management, the interim financial statements reflect fairly the
financial position and results of operations for the period indicated.
It is suggested that these interim consolidated financial statements be read in
conjunction with the financial statements and the notes thereto included in the
Company's 1995 Annual Report on Form 10-K for the year ended March 31, 1995,
filed with the Securities and Exchange Commission.
The results of operations for the quarter ending September 30, 1995, are not
necessarily indicative of the results to be expected for the entire fiscal year
ending March 31, 1996.
DOCUMENTS INCORPORATED BY REFERENCE
a. Registrant's Form S-1 Registration Statements and Exhibit Book under file
#33-25572, as effective March 17, 1989, are incorporated by reference.
b. Forms 10-K for the fiscal years ended March 31, 1993, March 31, 1994 and
March 31, 1995, are incorporated by reference.
2
<PAGE>
EXECUTIVE TELECARD, LTD.
FORM 10-Q
QUARTER ENDED SEPTEMBER 30, 1995
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
PART I FINANCIAL INFORMATION
Item 1 - Consolidated Financial Statements
Consolidated Balance Sheets as of
September 30, 1995 and March 31, 1995 4-5
Consolidated Statements of Operations
for the three months ended September
30, 1995 and 1994 6
Consolidated Statements of Operations
for the six months ended September 30,
1995 and 1994 7
Consolidated Statements of Cash Flows
for the three months ended September
30, 1995 and 1994 8
Consolidated Statements of Cash Flows
for the six months ended September 30,
1995 and 1994 9
Notes to Consolidated Financial
Statements 10-12
Item 2 - Management's Discussion and Analysis
of Financial Condition and Results of
Operations 13-14
PART II OTHER INFORMATION
Item 1 - Legal Proceedings 15
Item 2 - Changes in Securities 15
Item 3 - Defaults Upon Senior Securities 15
Item 4 - Submission of Matters to a Vote of
Security Holders 15
Item 5 - Other Information 15
Item 6 - Exhibits and Reports on Form 8-K 15
SIGNATURES 16
</TABLE>
3
<PAGE>
ITEM 1 - CONSOLIDATED FINANCIAL STATEMENTS
================================================================================
EXECUTIVE TELECARD, LTD.
------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
AS OF SEPTEMBER 30, 1995 AND MARCH 31, 1995
-------------------------------------------
ASSETS
------
<TABLE>
<CAPTION>
September 30, March 31,
1995 1995
------------ -----------
(Unaudited) (Note 1)
<S> <C> <C>
CURRENT:
- - - --------
Cash and cash equivalents $ 2,225,354 $ 1,734,232
Accounts receivable less allowance for
doubtful accounts of $490,000 and
$346,000 5,026,163 3,777,984
Other current assets 210,448 343,337
------------- -------------
Total current assets
7,461,965 5,855,553
PROPERTY AND EQUIPMENT - net
6,730,567 6,357,575
OTHER:
Intangible assets - net
260,007 314,506
Advances for equipment purchases
253,525 109,132
Deposits
244,877 278,229
Other assets
90,208 28,049
Total other assets ------------- -------------
TOTAL ASSETS 848,617 729,916
------------- -------------
$ 15,041,149 $ 12,943,044
============= =============
</TABLE>
See Notes to Consolidated Financial Satements
4
<PAGE>
EXECUTIVE TELECARD, LTD.
------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
AS OF SEPTEMBER 30, 1995 AND MARCH 31, 1995
-------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
<TABLE>
<CAPTION>
September 30, March 31,
1995 1995
------------- --------------
(Unaudited) (Note 1)
<S> <C> <C>
CURRENT:
- - - --------
Note payable $ 1,000,000 $
Accounts payable 2,328,325 1,629,680
Accrued expenses 5,189,888 6,006,314
Customer deposits 336,856 349,385
Unearned income 229,888 220,103
Current maturities of long-term debt 136,996 146,037
------------ ------------
Total current liabilities 9,221,953 8,351,519
------------ ------------
LONG-TERM DEBT, less current maturities 610,382 671,774
------------ ------------
Total liabilities 9,832,335 9,023,293
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock - $.001 par value; 20,000,000
shares authorized, 14,406,374 and
14,279,962 shares outstanding 14,406 14,280
Additional paid-in capital 15,895,770 15,558,045
Accumulated deficit (10,681,410) (11,813,048)
Accumulated translation adjustment (19,952) 160,474
------------ ------------
Total stockholders' equity 5,208,814 3,919,751
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 15,041,149 $ 12,943,044
============ ============
</TABLE>
See Notes to Consolidated Financial Statements
5
<PAGE>
EXECUTIVE TELECARD, LTD.
------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
----------------------------------------------
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
September 30, 1995 September 30, 1994
------------------ ------------------
(Note 1)
<S> <C> <C>
NET REVENUE $7,674,396 $5,907,954
COST OF REVENUE 4,791,519 3,985,594
---------- ----------
GROSS PROFIT 2,882,877 1,922,360
COSTS AND EXPENSES:
- - - -------------------
Selling, general and administrative 1,820,427 1,552,298
Depreciation and amortization 382,055 283,947
---------- ----------
Total costs and expenses 2,202,482 1,836,245
---------- ----------
Income from operations 680,395 86,115
---------- ----------
OTHER INCOME (EXPENSE):
- - - -----------------------
Interest income 365 103
Interest expense (43,346) (9,067)
Foreign currency transaction loss (13,517) (100,580)
---------- ----------
Total other expense (56,498) (109,544)
---------- ----------
Income (loss) before provision for
income taxes 623,897 (23,429)
Provision for income taxes 64,000 26,028
---------- ----------
NET INCOME (LOSS) $ 559,897 $ (49,457)
========== ==========
NET INCOME (LOSS) PER SHARE $ .04 $ (.00)
========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES AND
SHARE EQUIVALENTS OUTSTANDING 14,358,522 14,254,536
========== ==========
</TABLE>
See Notes to Consolidated Financial Statements
6
<PAGE>
EXECUTIVE TELECARD, LTD.
------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
SIX MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
--------------------------------------------
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Six Months
Ended Ended
September 30, 1995 September 30, 1994
------------------ ------------------
(Note 1)
<S> <C> <C>
NET REVENUE $ 14,671,195 $ 10,933,113
COST OF REVENUE 9,422,252 7,780,469
------------ ------------
GROSS PROFIT 5,248,943 3,152,644
COSTS AND EXPENSES:
- - - -------------------
Selling, general and administrative 3,442,267 2,908,133
Depreciation and amortization 751,232 539,599
------------ ------------
Total costs and expenses 4,193,499 3,447,732
------------ ------------
Income (loss) from operations 1,055,444 (295,088)
------------ ------------
OTHER INCOME (EXPENSE):
- - - -----------------------
Interest income 388 5,927
Interest expense (85,640) (23,958)
Foreign currency transaction loss (60,554) (133,851)
Other income 350,000
------------ ------------
Total other income (expense) 204,194 (151,882)
------------ ------------
Income (loss) before provision for
income taxes 1,259,638 (446,970)
Provision for income taxes 128,000 45,198
------------ ------------
NET INCOME (LOSS) $ 1,131,638 $ (492,168)
============ ============
NET INCOME (LOSS) PER SHARE $ .08 $ (.03)
============ ============
WEIGHTED AVERAGE NUMBER OF SHARES AND
SHARE EQUIVALENTS OUTSTANDING 14,325,347 14,231,964
============ ============
</TABLE>
See Notes to Consolidated Financial Statements
7
<PAGE>
EXECUTIVE TELECARD, LTD.
------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
----------------------------------------------
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
September 30, 1995 September 30, 1994
------------------ ------------------
(Note 1)
<S> <C> <C>
OPERATING ACTIVITIES:
- - - ---------------------
Net income (loss) $ 559,897 $ (49,457)
Adjustments to reconcile net income (loss)
to net cash flows provided by operating
activities:
Depreciation and amortization 382,055 283,947
Provision for bad debts 63,073 41,999
Changes in operating assets and liabilities:
Accounts receivable (487,240) (290,860)
Other assets 86,793 (17,860)
Accounts payable (110,817) (28,557)
Accrued expenses 361,686 1,110,618
Other liabilities (6,306) 9,209
----------- -----------
Cash provided by operating activities 849,141 1,059,039
INVESTING ACTIVITIES:
- - - ---------------------
Acquisitions of property and equipment (637,585) (431,851)
Other assets (232,226) (1,513)
----------- -----------
Cash used in investing activities (869,811) (433,364)
FINANCING ACTIVITIES:
- - - ---------------------
Principal payments on long-term debt (28,035) (28,154)
Issuance of capital stock 337,851 10,014
----------- -----------
Cash provided by (used in) financing activities 309,816 (18,140)
Effect of exchange rate changes on cash (25,512) (236,805)
----------- -----------
Net increase in cash and cash equivalents 263,634 370,730
CASH AND CASH EQUIVALENTS - beginning of period 1,961,720 1,651,502
----------- -----------
CASH AND CASH EQUIVALENTS - end of period $ 2,225,354 $ 2,022,232
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
8
<PAGE>
EXECUTIVE TELECARD, LTD.
------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
SIX MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
--------------------------------------------
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Six Months
Ended Ended
September 30, 1995 September 30, 1994
------------------ ------------------
(Note 1)
<S> <C> <C>
OPERATING ACTIVITIES:
- - - ---------------------
Net income (loss) $ 1,131,638 $ (492,168)
Adjustments to reconcile net income (loss) to
net cash flows provided by operating activities:
Depreciation and amortization 751,232 539,599
Provision for bad debts 148,590 111,701
Changes in operating assets and liabilities:
Accounts receivable (1,392,430) (995,983)
Other assets 132,889 8,257
Accounts payable 698,645 301,766
Accrued expenses (816,426) 1,480,923
Other liabilities (2,744) (3,698)
------------ ------------
Cash provided by operating activities 651,394 950,397
INVESTING ACTIVITIES:
- - - ---------------------
Acquisitions of property and equipment (1,071,640) (1,207,675)
Other assets (175,624) 15,636
------------ ------------
Cash used in investing activities (1,247,264) (1,192,039)
FINANCING ACTIVITIES:
- - - ---------------------
Principal payments on long-term debt (70,433) (53,005)
Proceeds from note payable 1,000,000
Issuance of common stock 337,851 448,001
------------ ------------
Cash provided by financing activities 1,267,418 394,996
Effect of exchange rate changes on cash (180,426) 387,447
------------ ------------
Net increase in cash and cash equivalents 491,122 540,801
CASH AND CASH EQUIVALENTS - beginning of period 1,734,232 1,481,431
------------ ------------
CASH AND CASH EQUIVALENTS - end of period $ 2,225,354 $ 2,022,232
============ ============
</TABLE>
See Notes to Consolidated Financial Statements
9
<PAGE>
EXECUTIVE TELECARD, LTD.
------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
SEPTEMBER 30, 1995
------------------
NOTE 1 - BASIS OF PRESENTATION
- - - --------------------------------------------------------------------------------
The accompanying consolidated financial statements have been prepared
in accordance with United States generally accepted accounting
principles for interim financial information and with the instructions
to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments considered necessary for a
fair presentation have been included. Operating results for the three
and six months ended September 30, 1995 are not necessarily indicative
of the results that may be expected for the year ended March 31, 1996.
For further information, refer to the consolidated financial statements
and footnotes thereto included in the Company's Form 10-K for the year
ended March 31, 1995.
The accompanying consolidated financial statements include the accounts
of the Company and its wholly-owned subsidiaries. All material
intercompany transactions and balances have been eliminated in
consolidation.
The consolidated financial statements are presented in United States
Dollars, which is the reporting currency of the Company as of April 1,
1995. Prior to April 1, 1995, the Company's reporting currency was
Swiss Francs. For purposes of comparing the financial information for
the period ended September 30, 1995 to the fiscal year ended March 31,
1995 and to the quarter and six months ended September 30, 1994, the
information previously reported has been converted to United States
dollars in accordance with FASB 52. The functional currency for the
company's foreign operations is the applicable local currency. Currency
gains and losses arising from transactions occurring during the period
are recorded when the transaction occurs at the then current exchange
rate and are included in the operating statements of the Company. The
translation of the applicable foreign currency into United States
Dollars is computed for balance sheet accounts using current exchange
rates in effect at the balance sheet date and for revenue and expense
accounts using a weighted average exchange rate during the period. The
gains and losses resulting from such translation are included in
stockholders' equity.
10
<PAGE>
EXECUTIVE TELECARD, LTD.
------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
SEPTEMBER 30, 1995
------------------
NOTE 1 - BASIS OF PRESENTATION (Continued)
- - - --------------------------------------------------------------------------------
Management has determined that certain costs are more properly
reflected as a cost of revenue and, therefore, has reflected these
costs in cost of revenue for the three and six month periods ended
September 30,1995. To conform to the current year's presentation, these
costs have been reclassified from selling, general and administrative
expense to cost of revenue for the three and six month periods ended
September 30, 1994.
Effective March 31, 1995, the Company acquired substantially all of the
assets of Residual Corporation ("Residual"). The assets consisted
primarily of all of Residual's operating subsidiaries. In connection
with the acquisition, agreement was reached to terminate the management
agreement between the Company and Residual. In consideration for the
transaction, the Company issued 697,828 restricted shares of its common
stock to Residual and also transferred approximately $12,722,000 of
debt obligations payable by Residual to the Company. As a result of the
termination of the management agreement and considering the nature of
the relationship between the Company and Residual, the transaction is
considered to be an exchange between enterprises under common control
and accordingly, it has been accounted for at historical cost in a
manner similar to that in pooling-of-interests accounting with the
accompanying financial statements presented to include the accounts and
operations of the acquired companies as though the acquisition had
occurred as of April 1, 1994.
NOTE 2 - NET INCOME (LOSS) PER SHARE
- - - --------------------------------------------------------------------------------
Net income (loss) per share and common equivalent share is computed
using the weighted average number of shares outstanding during each
period. Warrants and options outstanding to purchase common stock are
included as common stock equivalents when dilutive.
NOTE 3 - RELATED PARTY TRANSACTION
- - - --------------------------------------------------------------------------------
During April 1995, an agreement between the Company and a corporate
stockholder was finalized to resolve certain claims and potential
claims between the two parties. The claims arose out of negotiated
transactions whereby sales of the Company's restricted stock had
occurred at prices at or below the quoted market price. Under the
agreement, the corporate stockholder granted the Company an irrevocable
proxy to vote all of the shares beneficially owned or controlled by the
stockholder in favor of the director nominees proposed by the Board, to
pay the Company the sum of $350,000 and not to compete with nor solicit
Company employees for a period of three years. The sum of $350,000
11
<PAGE>
EXECUTIVE TELECARD, LTD.
------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
SEPTEMBER 30, 1995
------------------
NOTE 3 - RELATED PARTY TRANSACTION (Continued)
- - - --------------------------------------------------------------------------------
has been included in other income for the six months ended September
30, 1995.
NOTE 4 - NOTE PAYABLE
- - - --------------------------------------------------------------------------------
In April 1995, the Company borrowed $1,000,000 from a foreign
corporation. The note is payable in April 1996 and carries an interest
rate of 12% per annum. In connection with this transaction, the Company
issued warrants to purchase 82,500 shares at a price of $6.36 per
share. As of September 30, 1995, such warrants have not been exercised.
NOTE 5 - COMMON STOCK
- - - --------------------------------------------------------------------------------
On June 30, 1995, the Board of Directors authorized a stock split,
effected in the form of a ten percent (10%) stock dividend, which was
distributed on August 25, 1995 to shareholders of record on August 10,
1995. All references to common share and per share amounts in the
accompanying financial statements have been adjusted to reflect the
effect of this stock dividend.
(Balance of page intentionally left blank)
12
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
================================================================================
EXECUTIVE TELECARD, LTD.
------------------------
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
- - - --------------------------------------------------------------------------------
OF OPERATIONS
-------------
Net revenue increased by 34% to $14,671,195 for the six months ended
September 30, 1995 as compared to $10,933,113 for the comparable period
last year. For the three months then ended, net revenue increased by
30% to $7,674,396 from $5,907,954 reported for the comparable period
last year. This continued growth resulted primarily from volume
increases in usage of the Company's calling service by existing
customers as well as the addition of customers reflecting new
agreements signed.
Cost of revenue for the six months ended September 30, 1995 was
$9,422,252, an increase of 21% over the prior period amount of
$7,780,469. For the three months ended September 30, 1995, cost of
revenue was $4,791,519, an increase of 20% over $3,985,594 reported for
the comparable period last year. These costs represent charges directly
attributable to increases in intra/intercountry calling services. As a
percentage of revenue, these costs decreased 7% from 71% for the six
months ended September 30, 1994 to 64% for the current period. For the
three months ended September 30, 1995, these costs were 62% compared to
67% for the prior period, a decrease of 5%. This reduction in costs
primarily reflects general rate decreases and volume discounts offered
by domestic and foreign telephone carriers based upon the continued
increase in volume of traffic generated over their networks.
Selling, general and administrative expenses increased by $534,134 to
$3,442,267 during the six months ended September 30, 1995 from
$2,908,133 for the comparable period last year. For the three months
ended September 30, 1995, selling, general and administrative expenses
were $1,820,427, an increase of $268,129 over $1,552,298 reported for
the comparable period last year. These increases are due primarily to
increased general, administrative and technical personnel costs. As a
percentage of revenue, selling, general and administrative expenses
decreased from 27% to 24% for the six months and from 26% to 24% for
the three months ended September 30, 1995 as compared to the same
periods last year.
Depreciation and amortization for the six months ended September 30,
1995 increased by $211,633 to $751,232 as compared to $539,599 for the
same period last year. For the three months ended September 30, 1995,
depreciation and amortization increased $98,108 to $382,055 compared to
$283,947 for the prior period. This increase primarily relates to
equipment placed in service during the past twelve months.
13
<PAGE>
EXECUTIVE TELECARD, LTD.
------------------------
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- - - -------------------------------------------------------------------------
RESULTS OF OPERATIONS (Continued)
---------------------------------
Liquidity and Capital Resources
-------------------------------
During the quarter ended September 30, 1995, cash and cash equivalents
increased $263,634 to $2,225,354. The increase in cash and cash
equivalents consisted of the following components: (i) net cash flows
provided by operating activities in the amount of $849,141, resulting
primarily from net income for the quarter of $559,897, an increase in
accrued expenses of $361,686 offset by an increase in accounts
receivable of $487,240 and a reduction in accounts payable of $110,817;
(ii) net cash flows used in investing activities in the amount of
$869,811, which primarily related to acquisitions of property and
equipment; (iii) cash flows provided by financing activities of
$309,816 relating to the issuance of common stock which was partially
offset by principal payments on long term debt of $28,035; and (iv) the
effect of exchange rate changes on cash which served to decrease cash
and cash equivalents by $25,512.
The substantial costs incurred in the proxy contest during the year
ended March 31, 1995 have materially and adversely affected the working
capital of the Company. The Company believes, however, that it has
adequate internal resources and access to external resources that are
sufficient to finance its operating needs for the next twelve months,
including CAVIAR network expansion and modernization, payment of
indebtedness and planned marketing activities. The Company may be
required to raise additional capital through the incurring of
additional debt or placement of additional equity securities in order
to effectively fund its business needs through the next twelve (12)
months. There can be no assurance that the Company will be successful
in its efforts to raise such additional capital.
(Balance of page intentionally left blank)
14
<PAGE>
EXECUTIVE TELECARD, LTD
PART II
OTHER INFORMATION
QUARTER ENDED SEPTEMBER 30, 1995
ITEM 1 LEGAL PROCEEDINGS
- - - --------------------------------------------------------------------------------
There have been no material developments concerning legal proceedings
in which the Company is involved since the filing on August 21, 1995
of the Company's Form 10-K for the fiscal year 1995.
ITEM 2 CHANGE IN SECURITIES
- - - --------------------------------------------------------------------------------
None
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
- - - --------------------------------------------------------------------------------
None
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- - - --------------------------------------------------------------------------------
None
ITEM 5 OTHER INFORMATION
- - - --------------------------------------------------------------------------------
None
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
- - - --------------------------------------------------------------------------------
None
15
<PAGE>
EXECUTIVE TELECARD, LTD.
SIGNATURES
Pursuant to the requirements of Section 13 of 15 (d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed in its
behalf by the undersigned, thereunto duly authorized.
EXECUTIVE TELECARD, LTD.
(Registrant)
Date: November 13, 1995 By /S/
-----------------------------------
Timothy A. Peach
Controller, Chief Accounting Officer
16
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<CIK> 0000842807
<NAME> EXECUTIVE TELECARD, LTD
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 2,225,354
<SECURITIES> 0
<RECEIVABLES> 5,515,913
<ALLOWANCES> (489,750)
<INVENTORY> 0
<CURRENT-ASSETS> 7,461,965
<PP&E> 13,405,780
<DEPRECIATION> (6,675,213)
<TOTAL-ASSETS> 15,041,149
<CURRENT-LIABILITIES> 9,221,953
<BONDS> 0
<COMMON> 14,406
0
0
<OTHER-SE> 5,194,408
<TOTAL-LIABILITY-AND-EQUITY> 15,041,149
<SALES> 14,835,542
<TOTAL-REVENUES> 14,671,195
<CGS> 9,422,252
<TOTAL-COSTS> 4,193,499
<OTHER-EXPENSES> (289,834)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 85,640
<INCOME-PRETAX> 1,259,638
<INCOME-TAX> 128,000
<INCOME-CONTINUING> 1,131,638
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,131,638
<EPS-PRIMARY> 0
<EPS-DILUTED> .08
</TABLE>
