SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1998 Commission File No 1-9690
INTERNATIONAL FIBERCOM, INC.
Incorporated in the State of Arizona IRS No. 86-0271282
3615 S. 28th Street
Phoenix, AZ 85040
(602) 941-1900
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 report, and (2) has been subject to such
filing requirements for the past 90 days.
Yes (X) No ( )
Common Stock without par value 17,616,033 shares issued and 17,412,343
outstanding at March 31, 1998
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. The financial statements are included herewith commencing on page F-1.
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
General
International FiberCom, Inc., (the "Company") is a holding company
which offers diversified services and products to the telecommunications, cable
television ("CATV") and other industries through its five wholly-owned
subsidiaries. The Company provides installation, construction, consulting,
design engineering and systems integration services to the owners of broadband,
fiber-optic networks. The Company also sells distributes new and used
telecommunications equipment, including digital computer boards widely used in
the nation's telephone systems, to telecommunications companies and hardware
resellers, Regional Bell Operating Companies ("RBOCS") and other Fortune 500
companies.
The Company derives a substantial portion of its revenue from contracts
that are accounted for under the percentage of completion method of accounting.
Under this method, revenues are recorded as work progresses on a contract.
Overall gross margin percentages can increase or decrease based upon changes in
the estimated gross margin percentages over the lives of the individual
contracts.
Business. In the first quarter of 1998, the Company continued to follow
its strategy of becoming a one-stop solution for the telecommunications
marketplace, offering a wide range of engineering, consulting and maintenance
service for broadband, fiber-optic networks with local are network ("LAN") and
wide area network ("WAN"). In 1997 the Company implemented this strategy through
acquisitions of businesses that complemented and enhanced its services, products
and customer base.
Effective April 1998 the Company purchased the assets of Riley
Underground Communications, Inc. ("Riley") for cash and restricted shares of
Common Stock. Riley, which is based in California, builds and maintains broad
based fiber-optic and other networks for major cable, telephone and other
telecommunications companies. The purchase agreement provides for a price up to
$2.5 million, payable in an initial installment based upon a percentage of the
current of book value of Riley, with additional installments computed on a
percentage of Riley's pretax earnings over the next three years. Payments may be
in cash or, at the Company's election, up to 50% in restricted shares of the
Company's Common Stock.
- 1 -
<PAGE>
Results of Operations
The comparability of the results of operations for the first quarter of
1998 with the same period in 1997 was significantly impacted by the acquisition
of Southern, as shown in the Unaudited Pro Forma Consolidated Statement of
Operations information contained in this Report. Therefore, Management's
Discussion and Analysis of Financial Condition and Results of Operations for
these periods discusses the operations in 1998 compared with actual operations
in 1997 and the operations in 1998 compared with 1997 pro forma figures as if
the Company had owned Southern since January 1997, which it has not. Both
comparisons includes the operations of Compass Communications, Inc. ("Compass")
for 1997 and 1998, which was a pooling of interests completed effective October
1997.
Contract Revenues. Contract revenues for the first quarter of 1998
increased to $12,876,081 from $8,385,556 for the same period in 1997, an
increase of 54%. This increase in revenues is primarily attributable to the
addition of Southern's revenues for the first quarter of 1998.
On a pro forma basis, for the first quarter of 1998, contract revenues
increased 9% from $11,635,416 in 1997 to $12,876,081. This increase is due
primarily to higher levels of revenue generated by Concepts, principally from
national customers such as Gambro Healthcare and Nike, Inc.
Gross Profit. The Company's gross profit increased to $4,363,638 for
the first quarter of 1998 compared with $1,712,610 for the same period in 1997
due to the increased gross profits from the Southern's operations and marked
increase in the gross profit margin of Concepts. The Company's gross profit
margin increased from 20% of contract revenues in the first quarter of 1997 to
34% of contract revenues in the first quarter of 1998, primarily due to
Southern's gross profit margins.
On a pro forma basis, the Company's gross profit for the first quarter
of 1998 was $4,363,638 compared with $3,900,364 for the same period in 1997. The
improved gross profits of Concepts and the addition of Southern's gross profits
overcame a weak quarter for both Kleven and Compass. Kleven's revenues and gross
profits declined from the first quarter of 1997 because of a decline in work
from Cox Communications during the first quarter of 1998. The Company's gross
margin was 34% for both quarters.
General and Administrative Costs. The Company's general and
administrative expenses were $2,455,593 for the first quarter of 1998 compared
with $1,231,147 for the same period in 1997, an increase of 99%, chiefly due to
the addition of the general and administrative expenses of Southern. A
significant portion of these expenses are attributable to the amortization of
intangibles resulting from the acquisition of Southern.
On a pro forma basis, general and administrative expenses for the first
quarter of 1998 were $2,455,593, or 19% of revenues, compared with $1,803,893,
or 16% of revenues, for the same period in 1997. The Company has and will
continue to consolidate duplicative administrative functions relating to its
acquired companies to the extent possible. The administrative expenses of
- 2 -
<PAGE>
the Company include significant amounts for amortization of intangibles
resulting from the acquisitions of Concepts and Southern.
Other Income (Expense). The Company's net expense in this category was
$86,300 for the first quarter of 1998 compared with net income of $73,365 for
the same period in 1997. This difference is due primarily to a gain on sale of
equipment by Kleven in 1997, which did not occur in 1998.
On a pro forma basis, other expense was $86,300 in the first quarter of
1998 as compared with a net income of $27,345 for the same period in 1997. The
difference is due primarily to a decrease in interest expenses of Kleven because
of debt reduction and the gain on sale of equipment noted above.
Provision for Income Tax Benefit (Expense). The Company accrued income
tax expense of $631,628 in the first quarter of 1998 due to conversion of the
Company's net operating loss carry forward into a deferred tax asset as of
December 31, 1997. No income tax expense was accrued in 1997 because of net
operating loss carryovers of the Company and Kleven from 1996 and prior years.
Net Income. The Company generated a net income of $1,190,117, or
approximately 9% of revenues, for the first quarter of 1998 compared with net
income of $554,828, or 7% of revenues for the same period in 1997. This is
primarily a result of increased profit margins at Concepts and the addition of
Southern.
On a pro forma basis, the Company's net income decreased to $1,190,117,
in the first quarter of 1998 compared with a net income of $1,380,480 for the
same period in 1997. Such decrease was primarily due to the weaker first quarter
results for both Kleven and Compass as compared to the same period in 1997.
Preferred Stock Dividend. The Company paid a dividend of $22,910 on its
Convertible Preferred Stock for the first quarter of 1998 through the issuance
of 4,411 shares of its Common Stock.
Backlog. The Company had a backlog of approximately $6,280,000 on a
work in process basis as of March 31, 1998. The Company expects such work orders
to be completed by September 1998. Further, the Company has work orders, which
were not started at March 31, 1998, for Gambro Healthcare, Cox Communications,
Inc., the State of Tennessee and other clients. These work orders total in
excess of $5.0 million. The Company expects to commence such work during the
second quarter of 1998 and complete the same by September 1998. Contracts signed
since March 31, 1998 and the work in process of Riley are not included in the
above backlog numbers.
Liquidity and Capital Resources
Operations. The Company has historically financed its operations
through operating cash flow, lines of credit and debt and equity offerings. The
Company's liquidity is impacted, to a large degree, by the nature of billing
provisions under its contracts. Generally, in the early periods of contracts,
cash expenditures and accrued profits are greater than allowed billings, while
contract
- 3 -
<PAGE>
completion results in billing previously unbilled costs and profits.
In the first quarter of 1998 the Company used approximately $219,000 of
net cash from operations. Cash generated from operations of $2,338,000, which
includes net income of approximately $1,167,000, depreciation and amortization
of $521,000, and the net increase in various current payables and decrease in
various current assets of $650,000, were used primarily for an increase in trade
receivables of $1,198,000 and an increase in inventory of $1,358,000 due to the
higher sales activity of Concepts and Southern. The net cash used of $219,000
from operations in the first quarter of 1998 compares to a negative cash flow
from operations of approximately $2,153,000 in the same period 1997.
Investing Activities. For the first quarter of 1998 the Company in part
used approximately $495,000 in investing activities. These were comprised of the
Company's purchase of fixed assets of approximately $375,000, amortization of
goodwill and other assets of $92,000 and payment of deferred acquisition costs
of $43,000.
Financing Activities. In the first quarter of 1998 the Company's
financing activities used approximately $777,000 consisting in part of repayment
of loans and other liabilities payable of approximately $1.3 million, loan to
Riley of $713,000 and offset by proceeds from a private placement of equity of
$1.2 million, net of expenses consisting primarily of warrant exercises,
convertible debenture conversion to common stock and incentive stock option
exercises.
The Company received $645,000 from the exercise of 295,000 Common Stock
Purchase Warrants during the 1998 quarter and redeemed 25,000 shares of its
Common Stock issued in its December 1997 Private Placement of Common Stock for
$150,000.
As of March 31, 1998, the Company has three revolving lines of credit
totaling approximately $2.5 million, with an available balance of approximately
$1,150,000. In addition the Company has unused equipment financing available in
excess of $1 million from three sources. The Company believes that with its
current working capital, funds generated through its operations and available
credit balances on its lines of credit it will have sufficient working capital
to address the anticipated growth of demand and markets for its products and
services for the next 12 to 18 months. The Company may, however, seek to obtain
additional capital through an expanded working capital line of credit at a
financial institution or through additional debt or equity offerings during this
time period. The raising of additional capital in public markets will primarily
be dependent upon prevailing market conditions and the demand for the Company's
products and services.
Inflation. The Company does not believe that it is significantly
impacted by inflation.
Seasonality. The Company's operations are not seasonal in nature.
Forward-looking Information and Risks of the Business.
This Report contains certain forward-looking statements and information
within the meaning of section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of
- 4 -
<PAGE>
1934. The cautionary statements made in this Report should be read as being
applicable to all related forward-looking statements wherever they appear in
this report. Forward-looking statements, by their very nature, include risks and
uncertainties. Accordingly, the Company's actual results could differ materially
from those discussed herein. A wide variety of factors could cause or contribute
to such differences and could be adversely impact on revenues, profitability,
cash flows and capital needs. Such factors, many of which are beyond the control
of the Company, include the following: the Company's success in obtaining new
contracts; the volume and type of work orders that are received under such
contracts; the accuracy of the cost estimates for the projects; the Company's
ability to complete its projects on time and within budget; levels of, and
ability to collect amounts receivable; availability of trained personnel and
utilization of the Company's capacity to complete work; competition and
competitive pressures on pricing; and economic conditions in the United States
and in the region served by the Company.
Part II - Other Information
Item 1. Legal Proceedings
The Company has no on-going or pending litigation at this time.
Items 2, 3, 4 and 5 are omitted because these Items are inapplicable to this
Report.
- 5 -
<PAGE>
INTERNATIONAL FIBERCOM, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
MARCH 31, 1998
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
<S> <C> <C>
Current Assets:
Cash and cash equivalent $ 1,499,758 $ 2,990,575
Accounts receivable
- trade, net of allowance 9,249,718 7,988,380
- unbilled receivables 88,124 180,545
- other 45,138 27,586
Salary advances 11,781
Inventory 3,922,341 2,563,509
Prepaid expenses 174,701 119,620
Loss receivable related parties 713,351
Accrued interest receivable 13,250
Deferred tax asset 209,606 258,606
Costs and estimated earnings in excess of billings 2,727,945 2,540,278
=========== ===========
Total Current Assets 18,655,713 16,669,099
Property and Equipment, net 5,681,587 5,573,568
Other Assets:
Loans receivable related party 260,410 238,806
Accosts receivable - long term 56,609
Goodwill, net 19,939,886 20,083,941
Covenant not to compete net 324,604 341,689
Other assets 273,862 347,142
Debt issue costs, net 284,435 241,192
=========== ===========
21,139,806 21,252,770
=========== ===========
Total Assets $45,477,106 $43,495,437
=========== ===========
</TABLE>
F-1
<PAGE>
INTERNATIONAL FIBERCOM, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS OF MARCH 31, 1998
(Unaudited)
LIABILITIES AND STOCKHOLDERS EQUITY
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
<S> <C> <C>
Current Liabilities:
Notes payable current portion $ 1,158,548 $ 1,493,945
Notes payable related party 1,340,000 1,754,674
Obligations under capital lease 189,541 192,429
Income taxes payable 630,053 123,669
Accounts payable
- trade 2,538,318 2,598,707
- related parties 24,207 19,610
Accrued offering costs 383,840 741,139
Accrued expense 1,314,363 1,093,686
Accrued interest 32,143
Billings in excess of cost estimated earnings 729,147 218,585
============ ============
Total Current Liabilities 8,340,160 8,236,444
============ ============
Long-Term Liabilities:
Notes payable-long term 1,210,521 798,698
Notes payable-related party 2,338,117 3,051,326
Obligations under capital lease - long term 172,426 392,135
Deferred income tax payable 163,862 163,862
============ ============
Total Long-Term Liabilities 3,884,926 4,406,021
============ ============
Total Liabilities 12,225,086 12,642,465
============ ============
Stockholder's Equity:
Series B 4% convertible preferred stock, no par value;
4,400 authorized; 1518 issued and outstanding at
December 1997, 1,291 issued and outstanding at March 1998 958,335 1,126,837
Series C 4% convertible preferred stock, no par value;
1,000 authorized, issued and outstanding 766,662 766,662
Common Stock, no par, 100,000,000 shares authorized;
17,616,033 shares issued, 17,412,343 outstanding 33,403,549 32,389,218
Common stock warrants 99,082 99,082
Additional paid-in capital 2,838,038 2,862,027
Retained earnings (5,722,837) (7,853,875)
Current period profit (loss) 1,167,207 2,131,038
============ ============
34,070,036 31,520,989
============ ============
Less: treasury stock 203,690 shares, at cost (818,017) (668,017)
============ ============
Total Stockholders' Equity 33,252,020 30,852,972
============ ============
Total Liabilities and Stockholders' Equity $ 45,477,106 $ 43,495,437
============ ============
</TABLE>
F-2
<PAGE>
INTERNATIONAL FIBERCOM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Three
Months Ended Months Ended
March 31, 1998 March 31, 1997*
<S> <C> <C>
Contract Revenues $ 12,876,081 $ 8,385,556
Direct Cost of Contract Revenues 8,512,443 6,672,946
============ ============
Gross Profit 4,363,638 1,712,610
General and Administrative Expenses 2,455,593 1,231,147
============ ============
Profit from operations 1,908,045 481,463
Other Income (Expense):
Interest income 23,614 7
Interest expense (124,003) (93,706)
Other income 5,355 2,402
Gain on disposal of assets 8,734 164,662
============ ============
(86,300) 73,365
============ ============
Net income before income taxes 1,821,745 554,828
============ ============
Provision for tax benefit (expense) (631,628) 0
============ ============
Net income 1,190,117 554,828
Preferred stock dividend (22,910) (45,226)
Net income attributable to
common stockholders $ 1,167,207 509,602
============ ============
Earnings per Share:
Basic earnings per share $ 0.07 $ 0.07
------------ ------------
Diluted earnings per share $ 0.05 $ 0.03
------------ ------------
Basic weighted average shares outstanding 17,077,540 6,895,442
------------ ------------
Diluted weighted average shares
outstanding 22,580,105 14,848,360
------------ ------------
</TABLE>
*Includes operations of Compass Communications, Inc. due to a pooling of
interests acquisition.
F-3
<PAGE>
INTERNATIONAL FIBERCOM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
For The Period Ended March 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Preferred Stock Common Stock
Series B Series C Shares Amount Warrants
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Stockholder's Equity
December 31, 1997 $ 1,126,837 $ 766,662 16,632,849 $ 32,389,218 99,082
============ ============ ============ ============ ============
Dividend paid on Series B
Preferred Stock 2,486 12,910
Dividend paid on Series C
Preferred Stock 1,925 10,000
Conversion of Series B
Preferred Stock (168,502) 134,563 168,502
Interest on Debenture paid
in Common Stock 7,744 46,948
Warrant Exercises 295,000 645,000
Conversion of 8%
Debentures 480,000 600,000
Incentive Stock Option
Exercises 86,466 90,972
Treasury Stock Repurchase (25,000)
Earnings for the Quarter
------------ ------------ ------------ ------------ ------------
Stockholder's Equity 958,335 $ 766,662 17,616,033 $ 33,963,550 $ 99,082
March 31, 1998
============ ============ ============ ============ ============
<CAPTION>
Additional
Accumulated Paid-In Treasury
Deficit Capital Stock Totals
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Stockholder's Equity
December 31, 1997 $ (5,722,837) $ 2,862,027 $ (668,017) $ 30,852,972
============ ============ ============ ============
Dividend paid on Series B
Preferred Stock (12,910)
Dividend paid on Series C
Preferred Stock (10,000)
Conversion of Series B
Preferred Stock
Interest on Debenture paid
in Common Stock 46,948
Warrant Exercises 645,000
Conversion of 8%
Debentures 600,000
Incentive Stock Option
Exercises (23,989) 66,983
Treasury Stock Repurchase (150,000) (150,000)
Earnings for the Quarter 1,190,117 1,190,117
------------ ------------ ------------ ------------
Stockholder's Equity $ (4,555,630) $ 2,838,038 $ (818,017) $ 33,252,020
March 31, 1998
============ ============ ============ ============
</TABLE>
F-4
<PAGE>
INTERNATIONAL FIBERCOM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
THREE MONTHS ENDED MARCH 31, 1998 AND 1997
<TABLE>
<CAPTION>
1998 1997
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 1,167,207 $ 384,843
Adjustments to reconcile net income (loss) to
net cash provided (used) by operating activities:
Depreciation and Amortization 521,220 243,380
(Increase) decrease in contracts receivable (1,198,250) (2,811,998)
(Increase) decrease in inventory (1,358,832) (444,701)
(Increase) in deferred tax assets 49,000
(Increase) decrease in costs and estimated earnings in
excess of billings on uncompleted contracts (187,667) (1,500,035)
(Increase) decrease in prepaid expenses (55,081) (90,340)
(Increase) decrease in accrued interest receivable (13,250)
(Increase) decrease in income tax refund 0 (10,500)
(Decrease) increase in accounts payable (55,792) 919,577
(Decrease) increase in accrued expenses 252,820 442,384
(Decrease) increase in billings in excess of cost and
estimated earnings on uncompleted contracts 510,562 233,286
(Decrease) increase in income tax payable 506,384
(Decrease) increase in accrued offering costs (357,299) 481,000
=========== ===========
Net cash provided (used) by operating activities (218,978) (2,153,104)
=========== ===========
Cash flows from investing activities:
(Purchase) sale of property and equipment (375,790) (467,680)
(Increase) decrease in other assets 16,671
(Increase) decrease in deposits (20,350)
(Increase) decrease in goodwill and other assets (92,309) (1,613,865)
(Increase) decrease in deferred acquisition costs (43,243) 138,742
=========== ===========
Net cash provided (uses) by investing activities (494,671) (1,963,153)
Cash flows from financing activities:
(Repayment) increase of loans and other
liabilities payable (1,274,054) 2,301,592
Proceeds from private offering, net 1,231,840 5,249,523
Loan to acquisition company (713,350) 0
(Repayment) proceeds from stockholder loan (21,604) 0
(Increase) decrease in subscriptions receivable 0 (3,300,000)
=========== ===========
Net cash provided (used) by financing activities (777,168) 4,251,115
=========== ===========
Net (decrease) increase in cash (1,490,817) 134,858
Cash, beginning of period 2,990,575 3,972
Cash, end of period $ 1,499,758 $ 138,830
=========== ===========
</TABLE>
F-5
<PAGE>
INTERNATIONAL FIBERCOM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. Significant accounting policies:
Basis of presentation:
In the opinion of management, the accompanying consolidated financial
statements reflect all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of March
31, 1998 and the results of its operations for the three months ended March
31, 1998. Although management believes that the disclosures in these
financial statements are adequate to make the information presented not
misleading, certain information and footnote disclosures normally included
in financial statements that have been prepared in accordance with
generally accepted accounting principles have been condensed or omitted
pursuant to the rules and regulations of the Securities Exchange
Commission.
The results of operations for the three months ended March 31, 1998 are not
necessarily indicative of the results that may be expected for the full
year ending December 31, 1998. The accompanying consolidated financial
statements should be read in conjunction with the more detailed financial
statements, and the related footnotes thereto, filed with the Company's
Annual Report on Form 10-KSB for the year ended December 31, 1998 and the
Form SB-2 as filed on February 12, 1998.
Principles of consolidation:
The consolidated financial statements include the financial position,
results of operations and cash flows of International FiberCom, Inc., and
its wholly-owned subsidiaries, Kleven Communications, Inc., Compass
Communications, Inc., Riley Underground Communications, Inc., Southern
Communications Products, Inc. and Concepts In Communications, Inc. All
material intercompany transactions, accounts and balances have been
eliminated.
2. Unaudited Pro Forma Condensed Consolidated Financial Statements:
The accompanying consolidated statements of operations include the results
of operations of Southern Communications Products, Inc. ("Southern") which
the Company acquired effective October 1997.
The following unaudited pro forma condensed consolidated financial
statements for the quarter ended March 31, 1997 give effect to the
acquisition of Southern by the Company pursuant to the Asset Purchase
Agreement between the parties, and are based on the estimates and
assumptions set forth herein and in the notes to such statements. This pro
forma information has been prepared utilizing the historical financial
statements and notes thereto, which are incorporated by reference herein.
The pro forma financial data does not purport to be indicative of the
results which actually would have been obtained had the purchase been
effected on the dates indicated or of the results of which may be obtained
in the future.
The pro forma financial information is based on the purchase method of
accounting for the acquisition of Southern. The pro forma entries are
described in the accompanying footnotes to the unaudited pro forma
condensed consolidated statements. The pro forma unaudited condensed
consolidated statements of operations assume that the acquisition took
place on the first day of the period presented.
F-6
<PAGE>
INTERNATIONAL FIBERCOM, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
Southern
IFC Communications Pro Forma IFC
Consolidated Products, Inc. Adjustments Consolidated
<S> <C> <C> <C> <C>
Contract Revenues $ 8,385,556 $ 3,249,860 $ 11,635,416
Cost of Contract Revenues 6,672,946 1,062,105 7,735,052
============ ============ ============
Gross Profit 1,712,610 2,187,755 3,900,364
General and Administrative Expenses 1,231,147 346,598 226,149(1) 1,803,893
Provision for doubtful account 0 0 0
============ ============ ============ ============
Profits from Operations 481,463 1,841,157 (226,149) 2,096,471
Other Income (Expense):
Interest Income 7 21,979 21,986
Interest expense (93,706) (68,000)(2) (161,706)
Other Income 2,402 2,403
Gain on disposal of assets 164,662 164,662
============ ============ ============ ============
73,365 21,979 (68,000) 27,345
============ ============ ============ ============
Net income before income taxes 554,828 1,863,136 (294,149) 2,123,816
============ ============ ============ ============
Provision for tax benefit (expense) 0 0 (743,335)(3) (743,335)
============ ============ ============ ============
Net income 544,828 1,863,136 (1,037,484) 1,380,480
============ ============ ============ ============
Preferred stock dividend (45,226) 0 (45,226)
============ ============ ============ ============
Net income attributable to
common stockholders 509,602 1,863,136 (1,037,484) 1,335,254
============ ============ ============ ============
Basic earnings per share $ 0.07 $ 0.11
Fully diluted earnings per share $ 0.03 $ 0.07
Basic average shares outstanding 6,895,442 11,827,103
Diluted weighted average shares
outstanding 14,848,360 19,780,021
</TABLE>
1. Amortize goodwill
2. Interest expense
3. Income tax proration
F-7
<PAGE>
ITEM 6.
The Company filed no Reports on Form 8-K during the quarter for which
this report is filed.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
INTERNATIONAL FIBERCOM, INC.
BY /s/ Terry Beiriger
------------------------------------
Terry Beiriger,
Chief Financial Officer
DATED: May 15, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 924632
<NAME> INTERNATIONAL FIBERCOM INC
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<EXCHANGE-RATE> 1
<CASH> 1,499,758
<SECURITIES> 0
<RECEIVABLES> 9,382,980
<ALLOWANCES> 0
<INVENTORY> 3,922,341
<CURRENT-ASSETS> 18,655,713
<PP&E> 10,175,322
<DEPRECIATION> 4,493,795
<TOTAL-ASSETS> 45,477,106
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0
766,662
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</TABLE>
