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, 1997 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
incorporation of organization) Identification No.)
1720 Bellaire Street, Suite 1000, Denver, Colorado 80222
- --------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (303) 691-2115
- --------------------------------------------------------------------------
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 November 1, 1997 is 17,350,153 shares, all of one
class of $.001 par value Common Stock.
EXECUTIVE TELECARD, LTD.
FORM 10-Q
Quarter Ended September 30, 1997
TABLE OF CONTENTS
FINANCIAL INFORMATION PAGE
Item 1 - Consolidated Financial Statements
Consolidated Balance Sheets as of
September 30, 1997
and March 31, 1997 3, 4
Consolidated Statements of Operations
for the three months
ended September 30, 1997 and 1996 5
Consolidated Statements of Operations
for the six months
ended September 30, 1997 and 1996 6
Consolidated Statements of Cash
Flows for the six months
ended September 30, 1997 and 1996 7
Notes to Consolidated Financial
Statements 8-11
Item 2 - Management's Discussion and Analysis
of Financial Condition and Results
of Operations 12-15
OTHER INFORMATION
Item 1 - Legal Proceedings 16
Item 2 - Changes in Securities 16
Item 3 - Defaults upon Senior Securities 16
Item 4 - Submission of Matters to a Vote
of Security Holders 16
Item 5 - Other Information 16
Item 6 - Exhibits and Reports on Form 8-K 16
SIGNATURES 17
EXECUTIVE TELECARD, LTD.
PART I: FINANCIAL INFORMATION
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 1997 AND MARCH 31, 1997
ASSETS
<TABLE>
<CAPTION>
September 30, 1997 March 31, 1997
------------------- ---------------
(Unaudited)
CURRENT:
<S> <C> <C>
Cash and cash equivalents $ 4,390,631 $ 2,172,480
Trade accounts receivable,
less allowance of
$238,018 and $123,000 for
doubtful accounts 9,353,356 8,363,017
Accounts receivable from
related parties - 175,114
Other current assets 326,273 347,995
----------- ----------
Total current assets 14,070,260 11,058,606
PROPERTY AND EQUIPMENT -
net of accumulated
depreciation and
amortization 12,505,181 11,905,956
OTHER:
Intangible assets - net 157,753 286,941
Deposits 289,636 261,125
Other assets - 167,058
----------- -----------
Total other assets 447,389 715,124
----------- -----------
TOTAL ASSETS $27,022,830 $23,679,686
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
EXECUTIVE TELECARD, LTD.
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 1997 AND MARCH 31, 1997
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
September 30, 1997 March 31, 1997
------------------ ---------------
(Unaudited)
CURRENT:
<S> <C> <C>
Accounts payable $ 1,579,563 $ 2,466,056
Accrued expenses 3,175,108 2,038,415
Customer deposits 258,363 319,674
Unearned income 179,652 155,879
Current maturities of
long-term debt 7,084,604 1,003,383
------------ ------------
Total current liabilities 12,277,290 5,983,407
LONG-TERM DEBT, less
current maturities 1,268,050 9,737,007
------------ ------------
Total liabilities 13,545,340 15,720,414
------------ ------------
STOCKHOLDERS' EQUITY:
Preferred stock - $.001 par value;
5,000,000 shares authorized,
none issued
Common stock - $.001 par value;
100,000,000 shares authorized,
and 17,350,153 and 15,861,240
outstanding 17,350 15,861
Additional paid-in capital 23,935,036 16,047,812
Accumulated deficit (10,556,734) (8,186,244)
Accumulated translation adjustment 81,838 81,843
------------ ------------
Total stockholders' equity 13,477,490 7,959,272
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 27,022,830 $ 23,679,686
============ ============
</TABLE>
See Notes to Consolidated Financial Statements
EXECUTIVE TELECARD, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
September 30, 1997 September 30, 1996
----------------- -----------------
<S> <C> <C>
NET REVENUE $ 8,891,328 $ 9,076,365
COST OF REVENUE 4,855,848 4,649,139
----------- -----------
GROSS PROFIT 4,035,480 4,427,226
----------- -----------
COSTS AND EXPENSES:
Selling, general and
administrative 3,580,163 3,091,078
Corporate realignment expense 1,259,657 -
Depreciation and amortization 595,188 410,332
----------- -----------
Total costs and expenses 5,435,008 3,501,410
----------- -----------
Income (loss) from operations (1,399,528) 925,816
OTHER INCOME (EXPENSE):
Interest expense (289,509) (242,347)
Interest income 30,471 30,089
Proxy related litigation expense (53,017) -
Foreign currency transaction loss (55,986) (10,653)
----------- -----------
Total other expense (368,041) (222,911)
----------- -----------
Income (loss) before taxes on income(1,767,569) 702,905
Income taxes 105,000 105,000
----------- -----------
NET INCOME (LOSS) $(1,872,569) $ 597,905
=========== ===========
NET INCOME (LOSS) PER SHARE $ (0.11) $ 0.04
=========== ===========
WEIGHTED AVERAGE NUMBER OF SHARES
AND SHARE EQUIVALENTS OUTSTANDING 17,333,590 15,860,407
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
EXECUTIVE TELECARD, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Six Months
Ended Ended
September 30, 1997 September 30, 1996
----------------- -----------------
<S> <C> <C>
NET REVENUE $17,450,879 $17,143,874
COST OF REVENUE 9,301,344 8,794,088
----------- -----------
GROSS PROFIT 8,149,535 8,349,786
----------- -----------
COSTS AND EXPENSES:
Selling, general and
administrative 6,950,435 5,455,865
Corporate realignment expense 1,259,657 -
Depreciation and amortization 1,229,810 796,755
----------- -----------
Total costs and expenses 9,439,902 6,252,620
----------- -----------
Income (loss) from operations (1,290,367) 2,097,166
OTHER INCOME (EXPENSE):
Interest expense (615,852) (308,115)
Interest income 31,434 30,095
Proxy related litigation expense (252,904) -
Foreign currency transaction gain
(loss) (102,801) 1,064
----------- -----------
Total other expense (940,123) (276,956)
----------- -----------
Income (loss) before taxes on income(2,230,490) 1,820,210
Income taxes 140,000 273,000
----------- -----------
NET INCOME (LOSS) $(2,370,490) $ 1,547,210
=========== ===========
NET INCOME (LOSS) PER SHARE $ (0.14) $ 0.10
=========== ===========
WEIGHTED AVERAGE NUMBER OF SHARES
AND SHARE EQUIVALENTS OUTSTANDING 16,820,150 15,857,237
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
EXECUTIVE TELECARD, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Six Months Six Months
Ended Ended
September 30, 1997 September 30, 1996
----------------- ------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net Income (loss) $ (2,370,490) $ 1,547,210
Adjustments to reconcile net
income (loss) to net cash
flows provided by (used in)
operating activities:
Depreciation and amortization 1,175,554 796,755
Stock issued as compensation 161,945 -
Provision for bad debts 205,268 104,835
Write-down of building
to market value 55,000 -
Changes in operating assets
and liabilities:
Accounts receivable (1,020,493) 275,540
Other assets 21,722 (358,571)
Accounts payable (886,493) (226,289)
Accrued expenses 1,280,961 (1,497,611)
Other liabilities (37,537) (146,158)
----------- -----------
Cash provided by (used in)
operating activities (1,414,563) (495,711)
----------- -----------
INVESTING ACTIVITIES:
Acquisitions of property and
equipment (1,689,366) (2,781,733)
Other assets 227,322 (113,253)
----------- -----------
Cash used in investing activities (1,462,044) (2,894,986)
----------- -----------
FINANCING ACTIVITIES:
Principal payments on long-term debt(3,199,952) (1,617,448)
Proceeds from long-term debt 812,213 1,004,587
Proceeds from issuance of capital
stock 7,482,500 -
Proceeds from note payable - 6,000,000
----------- -----------
Cash provided by financing
activities 5,094,761 5,387,139
----------- -----------
Effect of exchange rate changes
on cash (3) (782)
----------- -----------
Net increase in cash and cash
equivalents 2,218,151 2,987,082
CASH AND CASH EQUIVALENTS,
beginning of period 2,172,480 950,483
----------- -----------
CASH AND CASH EQUIVALENTS,
end of period $ 4,390,631 $ 3,937,565
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
EXECUTIVE TELECARD, LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
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, 1997 are not necessarily indicative of the results that may
be expected for the year ending March 31, 1998. 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, 1997.
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 functional currency for the Company's foreign operations is the
applicable local currency. 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.
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 - LONG TERM DEBT
At September 30, 1997 and March 31, 1997, long-term debt consisted of the
following:
<TABLE>
<CAPTION>
September 30, March 31,
1997 1997
------------ -----------
<S> <C> <C>
11% (lender's prime rate plus 2.5%)
secured term note payable to a
financial institution, interest
payable quarterly, principal due
and payable April 1, 1998 (1). $ 6,500,000 $ 9,000,000
12% unsecured term note payable to a
stockholder, interest payable
monthly, principal due and payable
December 27, 1998 (2). 500,000 500,000
Capitalized lease obligations. 1,194,287 1,079,697
9% mortgage note, payable monthly,
including interest, through November
1997, with a December 1997 balloon
payment, secured by deed of trust
on the related land and building. 158,367 160,693
----------- -----------
TOTAL 8,352,654 10,740,390
Less current maturities 7,084,604 1,003,383
----------- -----------
TOTAL LONG TERM DEBT $ 1,268,050 $ 9,737,007
=========== ===========
</TABLE>
(1) The Company borrowed $6 million from a financial institution in June
1996 pursuant to a one year term note. In November 1996, the Company
obtained a $4 million multiple draw down term loan from the same
institution, with both loans maturing in June 1997. In connection
with these borrowings, the Company issued warrants to purchase shares
of the Company's common stock to the lender, including certain
penalty warrants exercisable only if the Company failed to repay the
loan at maturity.
In June 1997, the Company obtained an extension of the $6 million
term loan and the $4 million multiple draw loan until April 1998 in
exchange for the payment of certain fees, an adjustment of the
exercise price of the existing warrants and the issuance of
additional penalty warrants exercisable if the loans are not paid by
December 31, 1997.
As the result of the nonpayment of the loans on September 30, 1997
and in connection with the subsequent renegotiation and amendments to
the terms of the loans, a portion of the penalty warrants became
exercisable. Accordingly, as detailed below, on September 30, 1997,
total warrants outstanding in connection with these loan agreements
consisted of three sets of warrants presently exercisable by the
lender and two sets of penalty warrants which may become exercisable
in the future if the loan is not paid before their respective vesting
dates.
The lender holds ten-year warrants to purchase an aggregate of
166,667 shares at $6.61 per share and a ten-year penalty warrant to
purchase 125,000 shares at the lesser of $6.61 per share or 120% of
the average quoted price of the Company's stock for the five trading
days before exercise, all of which are dated June 27, 1997 and are
presently exercisable. If the loans are not repaid by December 31,
1997, ten-year penalty warrants to purchase another 15,000 shares at
$.01 per share will become exercisable. If the loans are not repaid
by March 31, 1998, ten-year penalty warrants for 125,000 shares at
the lesser of $6.61 per share or 120% of the average quoted price for
the 5 trading days before exercise will become exercisable.
The value assigned to such warrants when granted in connection with
these loans is being amortized over the terms of the loans. As of
September 30, 1997, none of the warrants have been exercised.
As amended in November of 1997, the notes evidencing the loans are
subject to certain financial covenants, including maintenance of
operating results, certain debt ratios and limitations on asset
purchases. At September 30, 1997, the Company was in compliance with
the amended covenants.
(2) In connection with this transaction, the Company issued options to
purchase 50,000 shares of the Company's common stock to the
stockholder at a price of $12.13 per share, expiring June 27, 1999.
During April 1997, the Company renegotiated the note extending the
term to December 27, 1998, adjusting the exercise price of the
options to $6.00 per share and extending the term of the options to
April 24, 2000. As of September 30, 1997, such options have not been
exercised.
The value assigned to such warrants or options when granted in connection
with the above note agreements is being amortized over the term of the
respective notes.
NOTE 4 - COMMON STOCK
On May 14, 1996 the Board of Directors declared a stock split, effected in
the form of a ten percent (10%) stock dividend, subject to shareholders
approving an increase in the number of authorized shares of common stock.
As a result of that approval on July 26, 1996, shareholders received the
dividend on August 5, 1996.
All references to common share and per share amounts in the accompanying
financial statements have been retroactively adjusted to reflect the
effect of these stock dividends.
On June 3, 1997, the Board of Directors approved the sale of 1,425,000
shares of the Company's common stock for $7,500,000 to one individual.
$3,000,000 of the proceeds from the sale was used to reduce long term
debt. The remainder of the proceeds has been used for working capital or
invested in obligations through a financial institution.
EXECUTIVE TELECARD, LTD.
SEPTEMBER 30, 1997
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS
Certain statements in this Quarterly Report on Form 10-Q are "forward
looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 and involve known and unknown risks,
uncertainties and other factors that may cause the Company's actual
results, performance or achievements to be materially different from the
results, performance or achievements expressed or implied by the forward
looking statements. Factors that impact such forward looking statements
include, among others, changes in worldwide general economic conditions,
changes in interest rates, currency rates and worldwide competition.
Net revenue for the three month period ended September 30, 1997, decreased
by 2% to $8,891,328 from $9,076,365 for the three months ended September
30, 1996. For the six month period ended September 30, 1997, net revenue
increased by 2% to $17,450,879 as compared to $17,143,874 for the same
period last year. The 2% decrease in revenue for the three month period
ended September 30, 1997 as compared to the same period for the prior
year resulted from decreases in revenue from the Company's long distance,
prepaid and international toll free services offset by increases in the
Company's calling card services. Growth in revenue for the six month
period ended September 30, 1997 as compared to the same period for the
prior year resulted primarily from increased usage of the Company's
calling card services by existing customers as well as the addition of new
customers offset by decreases in the Company's other services.
Cost of revenue for the three month period ended September 30, 1997 was
$4,855,848, an increase of 4% from the prior year's amount of $4,649,139.
For the six month period ended September 30, 1997, cost of revenue
increased by 6% to $ 9,301,344 from $8,794,088 for the comparable period
last year. As a percentage of revenue, these costs increased by 4%, from
51% for the three months ended September 30, 1996 to 55% for the current
period. Included in this increase are costs attributable to the
development of eGlobe, the Company's Internet project, increased discounts
offered to existing customers and the introduction of new rate structures
with lower standard pricing. For the six months ended September 30, 1997,
cost of revenue was 53% compared to 51% for the six months ended September
30, 1996, an increase of 2%.
For the three month period ended September 30, 1997 corporate realignment
expenses were $1,259,657. Such costs consisted of $746,860 for employee
severance and related costs and $151,000 for legal, accounting, consulting
and relocation expenses. Corporate realignment expenses of $306,797 were
also incurred for related acquisition costs and banking and investment
banking costs related to activities that management has decided not to
pursue, as well as $55,000 for the write-down of company real property to
fair market value.
Selling, general and administrative expenses increased by $489,085 (16%),
to $3,580,163, during the three month period ended September 30, 1997
versus $3,091,078 for the comparable period last year. For the six months
ended September 30, 1997, selling, general and administrative expenses
were $6,950,435, an increase of $1,494,570 (27%) over the $5,455,865
reported for the comparable period last year. These increases were
primarily attributable to the addition of personnel and related employee
costs necessary to manage the anticipated increase in business volume,
provide additional marketing and promotion for the Company's calling card
services, develop new business services (primarily Internet related) and
maintain quality customer support and assistance. As a percentage of
revenue, selling, general and administrative expenses increased from 34%
to 40% for the three months and from 32% to 40% for the six months ended
September 30, 1997 compared to the same periods last year. As a result of
the corporate realignment described above, it is anticipated that selling,
general and administrative costs will decrease as a percentage of revenue.
Depreciation and amortization expense increased by $184,856 to $595,188 as
compared to $410,332 for the three months and by $433,055 to $1,229,810
compared to $796,755 for the six months ended September 30, 1997. These
increases primarily relate to equipment placed in service during the
period.
Interest expense increased by $47,162 to $289,509 for the three months
ended September 30, 1997, from $242,347 and for the six months ended
September 30, 1997, interest expense increased $307,737 to $615,852 versus
$308,115 for the comparable periods last year. These increases primarily
relate to additional borrowings to finance business development and
expansion.
The Company incurred a foreign currency transaction loss of $55,986 for
the three months ended September 30, 1997 as compared to $10,653 for the
same period last year. For the six months ended September 30, 1997, the
Company incurred a foreign currency transaction loss of $102,801 as
compared to a foreign currency gain of $1,064 for the same period last
year. The losses incurred in the current period as compared to the prior
periods generally reflect the currency exchange rate movement between
foreign currencies billed to customers and paid to suppliers against the
U. S. Dollar.
LIQUIDITY AND CAPITAL RESOURCES
During the six months ended September 30, 1997, cash and cash equivalents
increased $2,218,151 to $4,390,631. The increase in cash and cash
equivalents consisted of the following components: (i) net cash flows
used in operating activities in the amount of $1,414,563, resulting from a
net loss for the six months of $2,370,490, a decrease in accounts payable
of $886,493, a decrease in other liabilities of $37,537 and an increase in
accounts receivable of $1,020,493, which were primarily offset by a
decrease in other assets of $21,722 and an increase in accrued expenses of
$1,280,961, (ii) net cash flows used in investing activities in the amount
of $1,462,044, which related primarily to $1,689,366 in acquisitions of
new equipment to expand the Company's global network, (iii) cash flows
provided by financing activities of $5,094,761 consisting of net proceeds
from the issuance of the company's common stock of $7,482,500 and proceeds
from borrowings of $812,213 reduced by principal payments on long-term
debt of $3,199,952.
The $7,500,000 proceeds from the issuance of the Company's common stock
during the quarter ended June 30, 1997 and included in cash flows provided
by financing activities for the six month period ended September 30, 1997
were used to pay down $3,000,000 on debt and to provide additional working
capital.
The Company's future plans to fund its working capital needs consist of
the following: (i) issuance of additional shares of common or preferred
stock, (ii) the creation of a long-term debt facility, and (iii) cash flow
generated from operations. There can be no assurance that the Company
will be successful in its efforts to raise such additional capital.
RECENT ACCOUNTING PRONOUNCEMENTS
On March 3, 1997, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 128 "Earnings Per Share"
(SFAS No. 128). This pronouncement provides a different method of
calculating earnings per share than is currently used in accordance with
Accounting Principles Board Opinion (APB) No. 15, "Earnings Per Share".
SFAS No. 128 provides for the calculation of "Basic" and "Diluted"
earnings per share. Basic earnings per share includes no dilution and is
computed by dividing income available to common shareholders by the
weighted average number of common shares outstanding for the period.
Diluted earnings per share reflects the potential dilution of securities
that could share in the earnings of an entity, similar to fully diluted
earnings per share. The Company will adopt SFAS No. 128 in fiscal 1998
and its implementation is not expected to have a material effect on the
consolidated financial statements.
In June 1997, FASB issued SFAS No. 130, "Reporting Comprehensive Income"
which establishes standards for reporting and display of comprehensive
income, its components and accumulated balances. Comprehensive income is
defined to include all changes in equity except those resulting from
investments by owners and distributions to owners. Among other
disclosures, SFAS No. 130 requires that all items that are required to be
recognized under current accounting standards as components of
comprehensive income be reported in a financial statement that is
displayed with the same prominence as other financial statements.
Also, in June 1997, FASB issued SFAS No. 131, "Disclosures about Segments
of an Enterprise and Related Information" which supersedes SFAS No. 14,
"Financial Reporting for Segments of a Business Enterprise." SFAS No. 131
establishes standards for the way that public companies report information
about operating segments in annual financial statements and requires
reporting of selected information about operating segments in interim
financial statements issued to the public. It also establishes standards
for disclosure regarding products and services, geographic areas and major
customers. SFAS No. 131 defines operating segments as components of a
company about which separate financial information is available that is
evaluated regularly by the chief operating decision maker in deciding how
to allocate resources and in assessing performance.
Both SFAS No. 130 and 131 are effective for financial statements for
periods beginning after December 15, 1997 and require comparative
information for earlier years to be restated. Because of the recent
issuance of these standards, management has been unable to fully evaluate
the impact, if any, they may have on future financial statement
disclosures. Results of operations and financial position, however, will
be unaffected by implementation of these standards.
ITEM 1 LEGAL PROCEEDINGS
- --------------------------------------------------------------------------
None
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
- --------------------------------------------------------------------------
a) Exhibits
27 Financial Data Schedule
b) Reports on Form 8-K
A Report on Form 8-K dated September 20, 1997 under Item 5 was filed with
the Commission on October 2, 1997 to report the resignation of three
directors and the engagement of a management consulting firm.
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 17, 1997 By:/s/Allen Mandel
Allen Mandel
Executive Vice President and
Principal Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 4,390,631
<SECURITIES> 0
<RECEIVABLES> 9,353,356
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 14,070,260
<PP&E> 12,505,181
<DEPRECIATION> 0
<TOTAL-ASSETS> 27,022,830
<CURRENT-LIABILITIES> 12,277,290
<BONDS> 1,268,050
0
0
<COMMON> 17,350
<OTHER-SE> 13,460,140
<TOTAL-LIABILITY-AND-EQUITY> 27,022,830
<SALES> 0
<TOTAL-REVENUES> 17,450,879
<CGS> 0
<TOTAL-COSTS> 9,301,344
<OTHER-EXPENSES> 9,439,902
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 615,852
<INCOME-PRETAX> (2,230,490)
<INCOME-TAX> 140,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,370,490)
<EPS-PRIMARY> (0.14)
<EPS-DILUTED> 0
</TABLE>
