-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GUvZyat0OMnNom/Ckht3dnFsY0F41u5bIBViZuaudxwfR+0s547Qvqv1XqXMXBy9 C8Lcv36Vee25l8yYaC0YEA== 0001108017-08-000319.txt : 20080516 0001108017-08-000319.hdr.sgml : 20080516 20080516152446 ACCESSION NUMBER: 0001108017-08-000319 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080516 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080516 DATE AS OF CHANGE: 20080516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: XFONE INC CENTRAL INDEX KEY: 0001126216 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATION SERVICES, NEC [4899] IRS NUMBER: 113618510 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32521 FILM NUMBER: 08842173 BUSINESS ADDRESS: STREET 1: 5307 W LOOP 289 CITY: LUBBOCK STATE: TX ZIP: 79414 BUSINESS PHONE: 8067715212 MAIL ADDRESS: STREET 1: 5307 W LOOP 289 CITY: LUBBOCK STATE: TX ZIP: 79414 8-K 1 xfone8k.htm xfone8k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): May 16, 2008 (May 16, 2008)
 
XFONE, INC. 
(Exact name of registrant as specified in its charter)
 
Nevada
(State or other jurisdiction of incorporation or organization)
 
Commission File No. 001-32521 
 
11-3618510 
(I.R.S. Employer Identification Number)
 
5307 W. Loop 289
Lubbock, Texas 79414
 (Address of principal executive offices)
 
806-771-5212
 (Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 7.01                      Regulation FD Disclosure

On May 16, 2008, Xfone, Inc. (the “Registrant”) issued a press release announcing its results for the quarter ended March 31, 2008 and pro forma unaudited consolidated results of the Registrant and NTS Communications, Inc., which the Registrant acquired on February 26, 2008, as if the acquisition had occurred on January 1, 2008.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01                      Financial Statements and Exhibits

(a)           Not applicable.
(b)           Not applicable.
(c)           Not applicable.
(d)           Exhibits


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SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  Xfone, Inc.  
       
Date:  May 16, 2008
By:
/s/ Guy Nissenson  
    Guy Nissenson  
   
President, Chief Executive Officer and Director
 
       


 
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INDEX TO EXHIBITS

 
 
-4-

 
EX-99.1 2 ex991.htm ex991.htm

Exhibit 99.1
 
 
FOR IMMEDIATE RELEASE

 
XFONE Reports First Quarter Pro Forma Net Income of $1.5 Million and Pro Forma EPS of $0.08 Per Share
 
- Actual Revenues Increase 37% To $15.8M -
 

 
Lubbock, TX –May 16, 2008XFONE, Inc. (AMEX and TASE: XFN) (“XFONE” or “the Company”) announced results for the quarter ended March 31, 2008 and also reported pro forma unaudited consolidated results of Xfone and NTS Communications, Inc. (“NTS”), which Xfone acquired on February 26, 2008, as if the acquisition had occurred on January 1, 2008.
 

Pro forma revenue was $25.8 million for the three months ended March 31, 2008 and pro forma EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was approximately $3 million.  Pro forma operating income was $2.1 million for the first quarter of 2008.  Pro forma net income was $1.5 million or $0.08 per share assuming 18,564,777 fully diluted shares outstanding through March 31, 2008.
 
Unaudited revenues of the consolidated company (consolidation of NTS since the day of the closing of the acquisition on February 26, 2008) for the quarter ended March 31, 2008 increased 37% to $15.8 million compared to $11.5 million in the same period in the prior year. Operating income for the first quarter of 2008 was $1.1 million an increase of approximately 73% from $661,449 reported in the same quarter of 2007.
 
Guy Nissenson, President and CEO of XFONE, stated, “These results demonstrate the accretive nature of our acquisition of NTS for our shareholders and the significantly enhanced scale of our business today.  Since only one month of the combined business is included in the actual results we do not yet show integration savings of the merged companies, but we expect to drive savings as the year progresses. Strategically, we are particularly focused on maximizing growth in our high gross margin, fiber-to-the-premise (FTTP) platform that enables us to offer the voice, video and data ‘triple play’ option to our customers.  FTTP grew 5% sequentially from the fourth quarter of 2007 and continues to trend well into the second quarter of 2008. We are also moving forward on our planned FTTP build outs in Levelland and Smyer, Texas to broaden our footprint for this service.”
 
Mr. Nissenson continued, “While the majority of our revenues are now from the U.S., our international divisions reported solid first quarter results.  Xfone 018, our Israeli operation, posted a 13% increase in revenues during the first quarter of 2008 when compared to the first quarter of fiscal 2007, and sequential revenue gain of 9% compared to the fourth quarter of 2007.  In the U.K., while our revenues are below where they were at this time last year, our team was able to quickly adjust to increased pricing on access numbers, and we saw a 6.8% sequential increase in revenues.”

The unaudited pro forma consolidated financial information presented herein does not purport to represent what Xfone’s actual results of operations would have been had the acquisition of NTS occurred on January 1, 2008, or to project Xfone’s results of operations for any future period.
 

Conference Call:

The Company will host a conference call today, May 16 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.
-1-


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 285072.
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 is an international voice, video and data communications services provider with operations in the United Kingdom, the United States 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.
 
This press release contains forward-looking statements. The words or phrases "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." XFONE's financial and operational 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 news 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, 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.
 
Contact Details:
 
 
US IR Contact
 
John G. Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Tel: 1.203.972.9200.
E-mail: jnesbett@institutionalms.com
Israel IR Contact
 
Zvi Rabin
Kwan Communications
Tel: (Israel) +972 50 560 0140
E-mail: zvi@kwan.co.il

 
Company Contact
 
Niv Krikov
CFO
Tel: (Israel) +972 39254446
E-mail: niv@xfone.com
 


-2-

XFONE, INC. AND SUBSIDIARIES
 
Consolidated Statement of Operations
 
                   
   
Three months ended
 
   
March 31,
 
   
2008
   
2008
   
2007
 
   
Proforma
   
unaudited
   
unaudited
 
                   
Revenues
    25,886,330       15,793,098       11,523,716  
Cost of revenues
    13,556,458       7,656,273       5,193,222  
                         
Gross profit
    12,329,872       8,136,825       6,330,494  
                         
Operating expenses:
                       
Research and development
    15,010       15,010       15,778  
Marketing and selling
    3,372,031       2,665,629       2,731,976  
General and administrative
    6,841,062       4,311,720       2,921,291  
                         
Total operating expenses
    10,228,103       6,992,359       5,669,045  
                         
Operating profit (loss)
    2,101,769       1,144,466       661,449  
                         
Financing expenses, net
    (877,438 )     (903,169 )     (139,869 )
Equity in income of affiliated company
    -       -       79,136  
Other income
    -       -       34,505  
                         
Income (loss) before minority interest and taxes
    1,224,331       241,297       635,221  
                         
Minority interest
    (82,474 )     (82,474 )     (92,135 )
                         
Income before taxes
    1,141,857       158,823       543,086  
                         
Taxes benefits (expenses)
    372,581       (77,693 )     (98,691 )
                         
Net income
    1,514,438       81,130       444,395  
                         
Earnings per share:
                       
Basic
    0.082       0.005       0.039  
                         
Diluted
    0.082       0.005       0.039  
                         
Weighted average shares outstanding:
                       
Basic
    18,434,820       15,323,690       11,479,609  
                         
Diluted
    18,564,777       15,392,258       11,479,609  

-3-


Reconciliation of Non-GAAP Financial Measures*
 
                   
   
Three months ended
 
   
March 31,
 
   
2008
   
2008
   
2007
 
   
Proforma
   
unaudited
   
unaudited
 
                   
Net income
    1,514,439       81,130       444,395  
                         
Depreciation and amortization
    909,235       507,210       254,998  
Financing expenses, net
    877,438       903,169       139,869  
Equity in income of affiliated company
    -       -       (79,136 )
Other income
    -       -       (34,505 )
Minority interest
    82,474       82,474       92,135  
Taxes on income
    (372,581 )     77,693       98,691  
                         
EBITDA*
    3,011,005       1,651,676       916,447  
                         

 
-4-

 
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