U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[ X ] QUARTELY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quartely period ended March 31, 2000
COMMISSION FILE NO. 1-13134
AMERICAN NORTEL COMMUNICATIONS, INC.
(NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER)
WYOMING 87-0507851
(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
Incorporation or organization)
7201 EAST CAMELBACK ROAD, SUITE 320
SCOTTSDALE, AZ 85251
(Address of Principal Executive Office)
Issuer's Telephone Number: (480) 945-1266
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), and (2) has been subject to such filing
requirements for the past 90 days.
(1) Yes / X / No / /
(2) Yes / X / No / /
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registration filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by court.
Yes / / No / /
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the Registrant's classes of
common stock, as of the latest practicable date:
THERE WERE 15,403,785 SHARES OF THE REGISTRANT'S COMMON STOCK OUTSTANDING ON
APRIL 30, 2000
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
AMERICAN NORTEL COMMUNICATIONS, INC.
COMPARATIVE BALANCE SHEETS
AS OF MARCH 31, 2000 and 1999
(UNAUDITED)
ASSETS
2000 1999
<S> <C> <C> <C> <C>
CURRENT ASSETS:
Cash in Bank 2,415,384.26 $ 287,832.55
Prepaid Expenses 321,618.60 726,935.25
Intangible Debt Issue - 16,200.00
Accounts Receivable 3,376,810.06 -
Marketable Securities Available for Sale 10,465,178.19 2,377,714.73
---------------- ----------------
TOTAL CURRENT ASSETS $ 16,578,991.11 $ 3,408,682.53
PROPERTY AND EQUIPMENT:
Telecommunications Property 1,650.00
Equipment & Computer Equipment 77,449.00 1,650.00
Furniture and Fixtures 4,660.00 98,675.18
LESS: Accumulated Depreciation (43,182.00) (19,119.13)
---------------- ----------------
TOTAL PROPERTY AND EQUIPMENT 40,577.00 81,206.05
OTHER ASSETS:
Other Assets 6,666.94 6,666.94
Notes Receivables - other 3,500.00 -
Due from Affiliates 606,390.00 437,114.76
Deferred Tax Asset 1,160,000.00 -
---------------- ----------------
TOTAL OTHER ASSETS 1,776,556.94 443,781.70
---------------- ----------------
TOTAL ASSETS $ 18,396,125.05 3,933,670.28
================ ================
LIABILITIES
CURRENT LIABILITIES:
Trade Accounts Payable 825,224.00 1,104,380.46
Trade Accounts Payable - Other 362,189.00 410,327.00
Accrued Expenses 106,121.70 55,179.32
State Income Taxes Payable 340,000.00 620,000.00
Notes Payable 50,000.00 291,801.50
Accrued Interest Payable 51,813.10 -
Notes Payable Southwest Security 99,181.29 -
---------------- ----------------
TOTAL CURRENT LIABILITIES 1,834,529.09 2,481,688.28
LONG-TERM LIABILITIES:
Converted Debentures - 18,750.00
Unearned Revenues Marketable Securities 8,939,135.69 -
---------------- ----------------
TOTAL LONG-TERM LIABILITIES 8,939,135.69 18,750.00
---------------- ----------------
TOTAL LIABILITIES 10,773,664.78 2,500,438.28
STOCKHOLDERS' EQUITY
Common Stock 21,938,202.00 21,920,002.00
Treasury Stock (117,000.00) (117,000.00)
Additional Paid In Capital 50,595.00 -
Retained Earnings(Loss) (14,249,336.73) (20,369,770.00)
---------------- ----------------
OTAL STOCKHOLDERS' EQUITY 7,622,460.27 1,433,232.00
---------------- ----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 18,396,125.05 3,933,670.28
================ ================
</TABLE>
See the accompanying notes to these unaudited financial statements
<PAGE>
<TABLE>
<CAPTION>
AMERICAN NORTEL COMMUNICATIONS, INC.
COMPARATIVE STATEMENT OF OPERATIONS
FOR THE PERIOD ENDING MARCH 31, 2000 AND 1999
(UNAUDITED)
FISCAL YEAR 2000 FISCAL YEAR 1999
3RD QUARTER YEAR TO DATE 3RD QUARTER YEAR TO DATE
<S> <C> <C> <C> <C>
INCOME
Airtime Income $5,293,883.65 18,098,778.47 $4,622,597.17 11,880,424.06
COST OF SALES 4,303,524.38 13,645,400.01 3,361,703.14 8,542,558.21
GROSS PROFIT 990,359.27 4,453,378.46 1,260,894.03 3,337,865.85
SELLING EXPENSES 211,974.72 771,103.91 371,671.59 694,164.01
GENERAL & ADMINISTRATIVE 270,738.60 935,410.71 262,892.19 671,311.54
-------------- --------------- -------------- --------------
TOTAL EXPENSES 482,713.32 1,706,514.62 634,563.78 1,365,475.55
EARNINGS (LOSS) FROM OPERATIONS 507,645.95 2,746,863.84 626,330.25 1,972,390.30
OTHER INCOME (EXPENSE)
Other Income 1,659,473.62 1,670,979.39 98,006.50 179,225.32
Gain on Maturing Note - - 81,000.00 -
Interest Income 2,890.97 7,168.47 10,371.48 13,277.87
Interest Expense (33,700.85) (47,785.43) (13,500.00) (40,500.00)
-------------- --------------- -------------- --------------
TOTAL OTHER INCOME 1,628,663.74 1,630,362.43 175,877.98 152,003.19
NET INCOME BEFORE INCOME TAXES 2,136,309.69 4,377,226.27 802,208.23 2,124,393.49
Provisions for State Income Taxes 85,000.00 230,000.00 - -
-
NET INCOME (LOSS) $2,051,309.69 4,147,226.27 $ 802,208.23 2,124,393.49
============== =============== ============== ==============
EARNINGS PER SHARE:
BASIC EARNINGS PER SHARE BEFORE INCOME TAXES $ 0.14 $ 0.06
-------------- ---------------
WEIGHTED AVERAGE NUMBER OF COMMON 15,403,785 14,071,158
-------------- ---------------
SHARES OUTSTANDING
BASIC EARNINGS PER SHARE $ 0.13 $ 0.06
-------------- ---------------
WEIGHTED AVERAGE NUMBER OF COMMON 15,403,785 14,071,158
-------------- ---------------
SHARES OUTSTANDING
DILUTED EARNINGS PER SHARE BEFORE INCOME TAXES $ 0.14 $ 0.06
-------------- ---------------
WEIGHTED AVERAGE NUMBER OF COMMON 15,403,785 14,077,002
-------------- ---------------
AND COMMON SHARE EQUIVALENTS OUTSTANDING
DILUTED EARNINGS PER SHARE $ 0.13 $ 0.06
-------------- ---------------
WEIGHTED AVERAGE NUMBER OF COMMON 15,403,785 14,077,002
-------------- ---------------
AND COMMON SHARE EQUIVALENTS OUTSTANDING
</TABLE>
See the accompanying notes to these unaudited financial statements
<PAGE>
<TABLE>
<CAPTION>
AMERICAN NORTEL COMMUNICATIONS, INC.
STATEMENTS OF CASH FLOWS
FOR THE PERIOD ENDED MARCH 31, 2000 AND PERIOD ENDED DECEMBER 31, 1999
(UNAUDITED)
3RD QTR 2ND QTR
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $2,051,309.69 $ 699,266.33
Adjustments to reconcile net income to net cash provided by
operating activities.
Depreciation and amortization 3,600.00 3,600.00
Expenses paid with common stock - -
(Increase) decrease in:
Trade accounts receivable 184,786.96 94,271.38
Prepaid expenses (68,556.49) 20,851.17
Increase (decrease) in:
Trade accounts payable (1,583.42) (55,153.00)
Accrued interest 2,396.85 4,005.00
State income taxes payable 85,000.00 65,000.00
Accrued Expenses (29,766.10) 34,266.58
-------------- ---------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,227,187.49 866,107.46
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of marketable equity securities 50,000.00 (1,216,141.15)
Advances to affiliates (203,500.00) -
Purchase of common stock 484,825.00 (11,505.77)
Purchases of property and equipment (434.00) (5,078.22)
-------------- ---------------
NET CASH (USED) BY INVESTING ACTIVITIES 330,891.00 (1,232,725.14)
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term installment loan - 300,000.00
Short-term investment margin - 99,181.29
Payment on notes payable (553,000.00) (45,500.00)
-------------- ---------------
NET CASH PROVIDED BY FINANCING ACTIVITIES (553,000.00) 353,681.29
NET INCREASE (DECREASE) IN CASH 2,005,078.49 (12,936.39)
CASH AT BEGINNING OF PERIOD 410,305.77 423,242.16
-------------- ---------------
CASH AT END OF PERIOD $2,415,384.26 $ 410,305.77
============== ===============
</TABLE>
See the accompanying notes to these unaudited financial statements
<PAGE>
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies followed by the Company, and the methods of applying
those policies, which materially affect the determination of its financial
position, results of operations, or cash flows are summarized below:
UNAUDITED INFORMATION AND BASIS OF PRESENTATION
The balance sheet as of March 31, 2000 and statement of operations and cash
flows for all periods included in the accompanying financial statements have not
been audited. In the opinion of management these financial statements include
all normal and recurring adjustments necessary for a fair presentation of such
financial information. The results of operations for the interim periods are
not necessarily indicative on the results of operations to be expected for the
fiscal year.
The financial information included herein has been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
omitted pursuant to such rules and regulations. The interim financial
information and the notes thereto should be read in conjunction with the audited
financial statements which were included in the Company's Annual Report on
10-KSB for the fiscal year ended June 30, 1999.
ADVERTISING COSTS
Advertising production costs, except for costs associated with marketing, are
charged to operations when incurred. Marketing costs are related to
direct-response marketing and costs are capitalized as required by SOP 93-7 and
amortized, as described below.
CASH AND CASH EQUIVALENTS, SHORT AND LONG-TERM INVESTMENTS
All highly liquid instruments with an original maturity of three months or less
are considered cash equivalents, those with original maturities greater than
three months and current maturities less than twelve months from the balance
sheet date are considered short-term investments, and those with maturities
greater than twelve months from the balance sheet date are considered long-term
investments.
CONCENTRATION OF CREDIT RISK
The Company maintains its cash balances in two banks in Phoenix, Arizona.
Accounts at each institution are insured up to $100,000 by the Federal
Depository Insurance Corporation (FDIC). The Company maintains its investment
balances with two brokerage firms. Accounts at these firms are insured up to
$500,000 by the Security Investor Protection Corporation (SPIC).
<PAGE>
DEPRECIATION AND AMORTIZATION
Property and equipment are stated at cost and depreciated using the
straight-line method over the estimated useful lives of the assets, generally
five to seven years. The Company periodically evaluates the recoverability of
its long-lived assets based on expected undiscounted cash flows and recognizes
impairments, if any based on expected discounted future cash flows.
REVENUE RECOGNITION
The Company's revenues are derived principally from long distance service.
Revenue is recorded when service is rendered, which is when a long distance call
is completed, and is recorded net of an allowance for certain amounts which the
Company estimates will be refunded, rebated, uncollectable, or not billable.
MARKETING COSTS
Direct response marketing costs, primarily incurred through contracted telephone
solicitation of prospective accounts are deferred and amortized over the average
life of the new accounts, which is normally six to eight months.
INCOME TAXES
The Company has net operating loss carry forwards, which expire from 2009
through 2012. Realization depends on generating sufficient taxable income
before expiration of the loss carry forwards. Although realization is not
assured, management believes it is more likely than not that all of the deferred
tax asset will be realized.
The net deferred tax asset consists entirely of the Federal benefit. There is
no State deferred tax asset.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying amounts for cash, investments in marketable securities, trade
accounts receivable, advances to control group, accounts payable, disputed
claims, accrued liabilities, and notes payable approximate their fair value due
to the short maturity of these instruments. The Company has determined that the
recorded amounts approximate fair value.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, and disclosure of
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reported period.
Actual results could differ from those estimates. Material estimates that are
particularly susceptible to significant change relate to the determination of
the collectability of receivables and advances, the valuation allowance for
deferred tax assets, and the amortization period for deferred marketing costs.
COMMON STOCK
Transactions in the Company's common stock issued for the acquisition of assets,
products or services are accounted for at fair value. Fair value is determined
based on the Company's traded closing price on the date of the transaction or
the fair value of the asset, product or service received, whichever fair value
is more readily determinable.
<PAGE>
ADVANCES TO CONTROL GROUP
The Secretary of the Company is the sole shareholder of Wilcom, Inc., (the
majority shareholder of ANC). The Company's President and CEO is the sole
shareholder of Shelton Financial, Inc., also a shareholder of ANC. The
Secretary and President are husband and wife. These officers, Wilcom, and
Shelton have all advanced funds to and received funds from ANC. It is not
practicable to segregate the individual advances and payments between these four
related entities and ANC, and, accordingly they are reported in the aggregate.
The advances bear interest at 8% per annum and are unsecured, and are due and
payable to the Company upon demand.
RECENT ACCOUNTING PRONOUNCEMENTS: NONE
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
NONE; NOT APPLICABLE.
ITEM 2. CHANGES IN SECURITIES.
NONE; NOT APPLICABLE.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
NONE; NOT APPLICABLE.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
NONE; NOT APPLICABLE.
ITEM 5. OTHER INFORMATION.
NONE; NOT APPLICABLE.
ITEM 6: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Certain statements in this report are forward looking statements that
involve risks and uncertainties. Among the factors that could cause actual
results to differ materially from those described in such forward looking
statements are the following: the Company's ability to manage rapid growth;
litigation; changes in regulations affecting the cost of long-distance service
or affecting competition in the long-distance industry, especially price
competition and the growth of low-cost, high quality Internet telephony; the
Company's ongoing relationship with its long distance carriers; dependence upon
key personnel; subscriber attrition and the Company's success in marketing its
telecommunication services and programs to new subscribers; the adoption of new,
or changes in, accounting policies, practices, and estimates and the application
of such policies, practices, and estimates; federal and state governmental
regulation of the long distance telecommunications industry; the Company's
ability to develop its own long distance network; the Company's ability to
maintain, operate, and upgrade its information systems; and the Company's
success in offering additional communications products and services.
In the quarter ended March 31, 2000, the Company provided long distance
service as a reseller. The Company's focus is to provide quality
<PAGE>
telecommunications services its customers. The Company anticipates continued
profitability in this area of business and growth within its other
telecommunication areas. The Company has also been able to target markets that
have high volume calls and international calls. International calling
represented 10% of the Company's revenues during the quarter ended March 31,
2000 compared to prior quarters in which international calling represented
approximately 6% of the Company's revenues. The Company has experienced
continued increases in competition in the U.S. domestic market, and continues to
seek joint venture and investment acquisition opportunities to potentially
lessen the effects of cost competition in the domestic telecommunication market.
On July 21, 1999, the Company purchased for investment 1,000,000 shares of
SHC Corporation a/k/a Victor Maxx Technologies, Inc. An OTC Bulletin Board stock
company whose common stock trades under the symbol VMAX. This company
specializing in short-term lending to consumers. The acquisition price was
$140,000, or 14 cents per share. On March 15, 2000, the Company purchased an
additional 500,000 shares of SHC common stock. The acquisition price was
$50,000 or 10 cents per share.
On October 22, 1999, the Company purchased for investment 19,400 shares of
American Educational Products Inc., an OTC Bulletin Board stock company whose
common stock shares trades under the symbol AMEP. The acquisition price was
$210,467, or $10.75 per share.
On October 26, 1999, the Company purchased for investment 250,000 shares of
PTN Media a/k/a PTN Media, Inc., an OTC Bulletin Board stock company whose
common stock shares trades under the symbol PTNM. The Company develops and
markets multi-media products. The acquisition price was $500,000, or $2.00 per
share.
On November 15, 1999, the Company purchased for investment 1,111,111 shares
of MedCom USA, Inc., an OTC Bulletin Board stock company whose common stock
shares trades under the symbol EMED. The company markets online medical billing
services. The acquisition price was $500,000, or 45 cents per share. The
Company received 300,000 MedCom shares when MedCom failed to timely file a
registration statement covering the Company's resale of MedCom shares.
Results of Operations
Quarter Ended March 31, 2000 Compared to Quarter Ended March 31, 1999.
Airtime income for the quarter ended March 31, 2000 increased to
$2,051,308.69, or 39%, from $802,208.23 during quarter ended March 31, 1999.
The increase in revenue resulted from growth in the volume of calls by
subscribers using the Company's basic 1 Plus and 800 long-distance service. The
Company has purchased new accounts and has increased the size of its customer
base through the use of outside telemarketers. The Company has also increased
its market share in large call volume areas, and has concentrated additional
marketing resources on international calling, which has a higher profit margin
that can be achieved in the U.S. domestic long distance market, and which is not
currently being directly affected by the pricing competition, which is very
intense in the U.S. domestic calling market. The Company has been better able
to control subscriber attrition ratios, which it attributes to better and more
cost effective service to its customers. The Company's other income included
$1,659,474 from the sale of common stock held as an investment by the Company.
Airtime income for the nine-months ending March 31, 2000 were $18,098,778
compared to $11,880,424 during the nine-months ending March 31, 1999.
Cost of sales for quarter March 31, 2000 increased 21.8% to 4,343,524 from
3,361,703 during quarter ended March 31, 1999. The increase results from the
continued increase in pricing and increase in competition in the U.S. domestic
market. The Local Exchange Carriers (LEC) have been continually increasing the
costs of wholesale traffic through their long distance switches, which increases
<PAGE>
airtime costs to the Company and the Company anticipates that this trend will
continue. Cost of Sales for the nine-months ending March 31, 2000 were
$13,645,400 compared to $8,542,558 during the nine-months ending March 31, 1999.
Selling expenses for the quarter ended March 31, 2000 decreased 75%, to
$211,974.72 from $371,671.59 during quarter ended March 31, 1999. The decrease
in selling expenses was a result of the decrease in marketing costs associated
with the more efficient use of the telemarketing campaigns. The Company
decreased its telemarketing campaigns because the Company's customer attrition
has decreased and the Company has maintained its client base for longer periods.
Selling expenses for the nine-months ending March 31, 2000 were $771,103
compared to $694,164 during the nine-months ending March 31, 1999.
General and administrative expenses for quarter ended March 31, 2000
increased 3.25% to $271,738.60 from $262,892.19 during quarter ended March 31,
1999. The increase results from the Company increasing its customer service
staffing to provide better services to its customers. The Company has
maintained the number of its customer service representatives to provide
bi-lingual assistance to non-English speaking customers. General and
administrative expenses for the nine-months ending March 31, 2000 were $935,410
compared to $671,311 during the nine-months ending March 31, 1999.
Interest expense for the quarter ended March 31, 2000 increased 59.94% to
$33,700 from $13,500 during quarter ended March 31, 1999. The increase in
interest expense was a result of an increase in debt outstanding in connection
with the Company's increased line of credit associated with the factoring of the
Company's account receivablesNet earnings for the nine-months ending March 31,
2000 were $47,785 compared to $40,500 during the nine-months ending March 31,
1999.
Net earnings for the quarter ended March 31, 2000 were, $2,136,309, or $.13
per diluted share compared to $802,208 or $.06 per diluted share during quarter
ended March 31, 1999. Net earnings for the nine-months ending March 31, 2000
were $4,147,226 compared to $2,124,393 during the nine-months ending March 31,
1999.
Liquidity
The Company has funded its working capital requirements primarily from cash
provided by operating activities. Cash provided by operating activities for the
quarter ended March 31, 2000, was $2,227,187. The principle source of revenue
is generated from providing long distance service as a long distance reseller.
The Company expects that its ability to maintain recent net earnings levels
will be adversely affected by numerous factors, including continued price
competition in the long distance calling market, which has been characterized by
steady decreases in rates which competitors charge long distance customers, by
the Company's retention of customers and by the level of its marketing and
selling expenses.
Capital Resources
Cash flows used by investing activities was $330,891 for the quarter ended
March 31, 2000. The Company purchased computer equipment for $434.
Additionally, the Company has purchased the following stock throughout the year
for investment:
<PAGE>
Date
Purchased Symbol # Shares Cost Per Share
- --------- -------------- --------- --------------
04/23/99 DNTK 187,569 $ .53
07/21/99 VMAX 700,000 .14
10/22/99 AMEP 19,400 10.75
10/26/99 PTNM 250,000 2.00
11/15/99 EMED* 1,411,111 .45
03/15/00 VMAX* 500,000 .10
*The Company, for the quarter ended March 31, 2000 purchased for investment
500,000 shares of common stock of Sonoma Financial, Inc. (VMAX) and additionally
received 300,000 shares of MedComUSA, Inc. (EMED) as a penalty for late
registration.
The Company advanced funds to affiliates in the amount of $203,500 during the
quarter ended March 31, 2000.
Cash flows used for financing activities were $553,000 in the quarter ended
March 31, 2000. This cash inflow was attributed to the Company paid notes
payable to unrelated third parties on terms negotiated with note holders. The
notes represent obligations incurred by prior management in 1993, which were
re-negotiated with pay off, default, and maturity provisions more favorable to
the Company than the original note terms.
ITEM 7. EXHIBITS
The exhibits filed as part of this report are as follows:
Exhibit 11
COMPUTATION OF EARNINGS PER SHARE
Exhibit 27:
FINANCIAL DATA SCHEDULE
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on behalf by the undersigned
thereunto duly authorized.
AMERICAN NORTEL COMMUNICATIONS, INC.
Date: May 10, 2000 by: /S/ W.P. Williams, Jr.
W.P. WILLIAMS, JR., Director
Chief Executive Officer
<TABLE>
<CAPTION>
AMERICAN NORTEL COMMUNICATIONS, INC.
COMPUTATION OF EARNINGS PER SHARE
2000 1999
3RD QUARTER 3RD QUARTER
<S> <C> <C>
BASIC EARNINGS PER SHARE: (NOTE 1)
Common shares outstanding, beginning of period 15,403,785 15,153,785
Effects of weighting shares:
Weighted common shares issued - (1,082,627)
------------- ------------
Weighted average number of common shares 15,403,785 14,071,158
============= ============
outstanding
Net Income 2,051,309.69 $802,208.23
============= ============
Earnings Per Share 0.13 $ 0.06
============= ============
DILUTED EARNINGS PER SHARE: (NOTE 1)
Common shares outstanding, beginning of period 15,403,785 15,153,785
Effects of weighting shares:
Weighted common shares issued - (1,082,627)
------------
10% convertible debentures - 5,844
------------- ------------
Weighted average number of common shares and
common equivalent shares outstanding 15,403,785 14,077,002
============= ============
Net Income $2,051,309.69 $802,208.23
============= ============
Earnings Per Share $ 0.13 $ 0.06
============= ============
</TABLE>
See the accompanying notes to these unaudited financial statements
NOTE 1:
- --------
Earnings per common share and common equivalent share are computed by
dividing net income by the weighted average number of shares of common stock and
common stock equivalents outstanding during the period. The Company's 10%
convertible debentures are considered to be common stock equivalents.
Consequently, the number of shares issuable, assuming full conversion
outstanding of these debentures as of the beginning of the fiscal year, is added
to the number of common shares. A fully diluted earnings per share is computed
assuming conversion of all debentures.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
AMERICAN NORTEL COMMUNICATIONS, INC. MARCH 31, 2000 THIRD QUARTER 2000
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> MAR-31-2000
<CASH> 2415384
<SECURITIES> 10465178
<RECEIVABLES> 3376810
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 16578991
<PP&E> 83759
<DEPRECIATION> 43182
<TOTAL-ASSETS> 18396125
<CURRENT-LIABILITIES> 1834529
<BONDS> 0
0
0
<COMMON> 21938202
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 7622460
<SALES> 5293884
<TOTAL-REVENUES> 5293884
<CGS> 4303524
<TOTAL-COSTS> 4303524
<OTHER-EXPENSES> 482714
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 33701
<INCOME-PRETAX> 2136310
<INCOME-TAX> 85000
<INCOME-CONTINUING> 507645
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2051310
<EPS-BASIC> .13
<EPS-DILUTED> .13
</TABLE>
