ADDISON, Texas, May 18 /PRNewswire-FirstCall/ -- Zunicom, Inc. (BULLETIN BOARD: ZNCM) , parent company to Universal Power Group, Inc. and AlphaNet Hospitality Systems, Inc., today announced its financial performance results for the three months ended March 31, 2004. In addition, on May 16, 2004, Universal was listed in The Dallas Morning News as No. 132 of the D-FW Top 200, up from its No. 139 ranking last year. The D-FW Top 200 index is calculated by Bloomberg News.
Financial Highlights for First Quarter 2004 Compared to First Quarter 2003:
* Consolidated revenues increased 7% to $14,617,628 from $13,658,787 for the similar period in 2003;
* Combined net losses attributable to common shareholders were $380,733 or $0.05 loss per basic and diluted share, compared to combined net income attributable to common shareholders of $228,475, or $.03 earnings per basic and diluted share for the same period in 2003;
* Universal Power Group's revenues increased 8.4% to $14,075,664 from $12,985,031 due primarily to increase in revenues from Brink's, a third party logistics customer while core battery sales were slower. Core battery sales were partly impacted by new initiatives in the Medicare program resulting in a decrease in battery orders from that sector. However, Medicare has since rescinded most of the earlier program changes and Universal is beginning to see battery sales to its medical customers recover. Other factors which impacted core sales include increase in raw material costs, particularly in the price of lead which resulted in higher costs and delay in some shipments from China. In addition, due to Universal's commitment to its customers, Universal absorbed some increased costs without passing them on to the customer. Universal anticipates such factors to ease in the second quarter.
* AlphaNet's revenues decreased 19.6% to $541,964 from $673,756, due primarily to the continued decline in facsimile usage by hotel guests as well as declining installations of InnFax machines. AlphaNet had a $151,157 write off of revenue assets from facsimile equipment. Loss of revenue from AlphaNet's InnFax business has been partially offset by increased use and installations of "The Office" product in hotels around the country.
"Our first quarter overall performance was impacted by a combination of factors," said Ian Edmonds, Zunicom Executive Vice President, "but we are anticipating improved results going forward. We believe sales to the security and medical wheelchair sectors will be stronger in the second quarter, and Universal is moving into sales of its own line of portable powered consumer products, battery chargers for consumer and medical applications, and a range of popular consumer 12-volt accessory products.
"With the AlphaNet subsidiary, we are beginning to see InnFax(TM) revenues stabilize while The Office(TM) revenues are progressing smoothly. Combining these factors, we anticipate improved performance on AlphaNet," added Edmonds.
About Zunicom, Inc.
Headquartered in Addison, Texas, Zunicom (http://www.zunicom.com/) manages two wholly owned subsidiaries, Universal Power Group, Inc. and AlphaNet Hospitality Systems, Inc. The Zunicom Group of Companies currently has approximately 70 employees.
Zunicom's operations through Universal Power Group (http://www.universalpowergroup.com/) encompass the importation, sale and distribution of portable power and related portable-powered products packaged with third- party fulfillment, procurement and logistics support services to multiple industries including medical, security, mobility, consumer, industrial and more. Universal is one of the leading distributors of sealed lead acid batteries in the nation, and Universal's products are sold to original equipment manufacturers (OEMs) and distributors for use in the manufacture and sale of high-technology products such as computers, oil field equipment, medical instrumentation, uninterruptible power supply systems and security equipment. Universal also provides value-added custom battery pack assembly services. Some of Universal's customers include ComCast Cable, Cox Communications, Radio Shack, Protection One, Time Warner, Brink's Home Security, The Scooter Store and Pride Mobility.
Zunicom's operations through AlphaNet (http://www.alphanet.net/) consist of the sale of business communication, productivity, connectivity and wireless internet solutions to the hospitality industry through licensing agreements. AlphaNet's product offerings include The InnRoom Business Center(TM), a private in-room facsimile and printing service, and The Office(TM), a 24-hour unattended self-serve credit card activated hotel business center providing hotel guests with 24-hour convenient access to various business office services. AlphaNet's latest additions to its existing product line are Laptop Connect(TM) and WaveLan(TM). Laptop Connect(TM) allows hotel guests the ability to connect their laptops to high-speed internet access points located within the hotel by connecting a supplied cable. Laptop Connect(TM) also offers a hotspot for users wishing to access the internet through the wireless network feature on their laptop. Similarly, AlphaNet's WaveLan(TM) solution essentially enables hotels to provide their guests with public area wireless internet access in any number of locations including lobbies, meeting rooms, lounges, bars and restaurants. Both have the potential to become a revenue- generating offering for the hospitality industry. To date, AlphaNet's 350 hotel clients represent more than 20 brands, such as Hyatt, Hilton, Starwood, Marriott and Kimpton.
FINANCIAL CHARTS TO FOLLOW ZUNICOM, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS For the Periods Ended March 31, 2004 (unaudited) and December 31, 2003 March 31, December 31, 2004 2003 ---- ---- CURRENT ASSETS Cash and cash equivalents $ 329,895 $ 659,350 Accounts receivable - trade, net of allowance for doubtful accounts of $247,613 (unaudited) and $279,575 6,497,397 6,718,931 Accounts receivable - other 137,311 130,194 Inventories - finished goods, net of allowance for obsolescence of $716,573 (unaudited) and $676,533 10,197,415 10,574,381 Prepaid expenses and other current assets 406,141 543,962 ----------- ----------- Total current assets 17,568,159 18,626,818 ----------- ----------- PROPERTY AND EQUIPMENT Facsimile and business center equipment 1,838,533 2,348,629 Machinery and equipment 699,879 697,130 Computer equipment 242,031 237,608 Furniture and fixtures 323,314 318,795 Leasehold Improvements 195,998 195,998 Vehicles 140,676 140,676 ----------- ----------- 3,440,431 3,938,836 Less accumulated depreciation and amortization (2,180,569) (2,378,885) ----------- ----------- Net property and equipment 1,259,862 1,559,951 ----------- ----------- OTHER ASSETS 49,702 49,702 ----------- ----------- TOTAL ASSETS $18,877,723 $20,236,471 =========== =========== CURRENT LIABILITIES Line of credit $ 6,740,974 $ 5,252,310 Current portion of notes payable - related party 860,128 -- Current portion of long-term debt 19,516 20,948 Accounts payable 5,076,007 6,580,017 Accrued liabilities 791,063 1,776,570 Other current liabilities 9,200 9,200 ----------- ----------- Total current liabilities 13,496,888 13,639,045 ----------- ----------- NOTES PAYABLE - RELATED PARTY, less current portion -- 860,128 LONG-TERM DEBT, less current portion 36,751 42,102 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock - $1.00 par value, 1,000,000 shares authorized; 114,588 Class A shares issued and outstanding; liquidation preference of $601,587 114,588 114,588 Common stock - $0.01 par value; 50,000,000 shares authorized; 8,451,524 and 8,419,670 shares issued and outstanding 84,515 84,197 Additional paid-in capital 14,482,144 14,452,841 Accumulated deficit (9,337,163) (8,956,430) ----------- ----------- Total stockholders' equity 5,344,084 5,695,196 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $18,877,723 $20,236,471 =========== =========== ZUNICOM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Month Periods Ended March 31, 2004 and 2003 (Unaudited) 2004 2003 REVENUES ---- ---- Sales $14,075,664 $12,985,031 Service revenue 541,964 673,756 ----------- ----------- 14,617,628 13,658,787 COST OF REVENUES Cost of goods sold 12,127,767 11,018,591 Direct servicing costs 137,685 149,929 ----------- ----------- 12,265,452 11,168,520 ----------- ----------- GROSS PROFIT 2,352,176 2,490,267 OPERATING EXPENSES Selling, general and administrative 2,240,611 1,845,232 Depreciation and amortization of property and equipment 182,783 236,115 Write off of revenue assets 151,157 -- ----------- ----------- 2,574,551 2,081,347 ----------- ----------- INCOME (LOSS) FROM OPERATIONS (222,375) 408,920 OTHER EXPENSES Interest expense (including $48,440 and $76,014 to related parties) (141,524) (164,968) Other, net (5,183) (4,256) ----------- ----------- (146,707) (169,224) ----------- ----------- INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (369,082) 239,696 PROVISION FOR INCOME TAXES -- -- ----------- ----------- NET INCOME (LOSS) $ (369,082) $ 239,696 ============ =========== Net income (loss) attributable to common stockholders $ (380,733) $ 228,475 ============ =========== Net income (loss) per share attributable to common stockholders Basic $ (0.05) $ 0.03 ============= =========== Diluted $ (0.05) $ 0.03 ============= =========== Number of weighted average shares of common stock outstanding(basic and diluted) Basic 8,445,157 8,403,390 =========== =========== Diluted 8,445,157 8,633,566 =========== ===========
This release contains a number of forward-looking statements concerning the current expectations as to future results of operations, future growth and future performance of Zunicom, Inc. within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially depending on the various factors set forth under the caption "Forward-Looking Statements" in the company's annual report on Form 10-K for the year ended December 31, 2003 and accordingly, should be read in conjunction with the company's SEC filings.
FOR MORE INFORMATION, PLEASE CONTACT Elite Financial Communications Group, LLC Andrea Strittmatter, 407-585-1080, andrea@efcg.net Stephanie Noiseux, 407-585-1080, steph@efcg.net
Zunicom, Inc.CONTACT: Andrea Strittmatter, andrea@efcg.net, or Stephanie Noiseux,steph@efcg.net, both of Elite Financial Communications Group, LLC,+1-407-585-1080, for Zunicom
Web site: http://www.zunicom.com/
