XFONE Reports Fourth Quarter and Year End Results
April 1, 2009
Lubbock, TX – April 1, 2009 – XFONE, Inc. (NYSE Amex and TASE: XFN) (“XFONE” or “the Company”) announced results for the three months and year ended December 31, 2008.
Financial highlights for the year ended December 31, 2008 compared to the year ended December 31, 2007:
- Total revenues increased 102% to $90.3 million compared to $44.7 million
- EBITDA (earnings before interest, taxes, depreciation and amortization) was approximately $9 million.
- Operating income increased to $4.8 million compared to an operating loss of $1 million
- Net financing expenses increased to $2.9 million from $515,562 primarily related to interest payable on the bonds.
- The Company reported net income of approximately $2 million or $0.12 per share, assuming 17,624,249 diluted shares outstanding at December 31, 2008, compared to a net loss of $(1.3) million, or $(0.11) per share, assuming 11,777,645 fully diluted shares outstanding at December 31, 2007.
Financial highlights for the three months ended December 31, 2008 compared to the three months ended December 31, 2007:
- Total revenues increased 141% to $23 million from $9.4 million. Valuation of the U.S. Dollar to the GBP and NIS reduced our revenues in the quarter by $1.1 million.
- EBITDA was approximately $1 million versus a loss of $110,018.
- Operating income was $3,036 compared to an operating loss of $(3.4) million.
- The valuation of the Company’s NIS debt to the USD resulted in a net financial profit of approximately $2.1 million from net financial expense of $135,215.
- The Company reported net income of $2.3 million or $0.125 per share assuming 18,376,075 diluted shares outstanding at December 31, 2008, compared to a net loss of $(2.7) million or $(0.20) per share assuming 13,742,160 diluted shares outstanding at December 31, 2007.
Guy Nissenson, President and CEO, commented, “We achieved several milestones during 2008, perhaps the most important being the completion of our acquisition of NTS Communications ("NTS") in the first quarter. The addition of NTS significantly increased the size of our Company, both geographically and with regard to the range of services offered; most notably the addition of our FTTP offering.
“During the year we completed the first two phases of our three-phase extension of the FTTP network from Lubbock to Levelland and Smyer, Texas. We are in the process of completing phase three of the project and I am pleased that we have signed up our first customer. This buildout has been financed by a low interest, non-recourse federal loan from the Department of Agriculture’s Rural Utility Service and we expect to use the Levelland and Smyer project as a template for additional projects in the U.S.”
Mr. Nissenson continued, “Revenues grew in our U.S. operations to $62.7 million from $12.3 million in the previous year due to the acquisition of NTS. Xfone 018, our Israeli division, generated $9.2 million, an increase from $8.2 million in 2007. Our U.K. division contributed $18.4 million, a decrease from $24.3 million last year. This reduction is attributable to a tariff structure change and the devaluation of the British Pound to the U.S. dollar during 2008.
“We will continue to monitor the impact of the softened economy and adjust our business accordingly, but we remain confident that with our state-of-the-art FTTP network, Xfone is well positioned to meet the demand for reliable voice, video and data services.”
Conference Call:
The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the financial results. The conference call may be accessed in the U.S. and Canada by dialing toll- free 1-877-407-8033. International callers may access the call by dialing 1-201-689-8033.
A replay of the teleconference will be available for 30 days after the call and may be accessed domestically by dialing 1-877-660-6853 and international callers may dial 1-201-612-7415 Callers must enter account number 286 and conference number 317871.
To access the live webcast, log onto the XFONE website at http://www.xfone.com. The webcast can also be accessed at http://www.InvestorCalendar.com. An online replay will be available shortly after the call.
About XFONE, Inc.
A U.S.-domiciled corporation, XFONE, Inc. is an international voice, video and data communications services provider with operations in the United States, United Kingdom, and Israel that offers a wide range of services, which include: local, long distance and international telephony services; video; prepaid and postpaid calling cards; cellular services; Internet services; messaging services (Email/Fax Broadcast, Email2Fax and Cyber-Number); and reselling opportunities. The Company serves customers worldwide. For the company's website, please visit: www.xfone.com
This press release contains forward-looking statements. The words or phrases "should," "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." The Company's financial results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this press release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, and license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.
| For More Information, Please Contact: |
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| U.S.
IR Contact |
John Nesbett/Jennifer Beloeau
Institutional Marketing Services (IMS)
Phone: 1.203.972.9200.
E-mail: jnesbett@institutionalms.com |
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| Xfone Contact |
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Niv Krikov
Chief Financial Officer
Phone: + 972.39254446 (Israel)
E-mail: E-mail: niv@xfone.com |
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