Teletouch Seeks Acquisitions
FORT WORTH, Texas — Teletouch Communications, Inc. (PINK SHEETS: TLLE - News), a leading U.S. cellular, mobile electronics and related wireless services provider, today announced that the Company has begun a formal process to explore strategic acquisitions and related financial opportunities in the cellular, mobile electronics and complementary Fixed-Mobile-Convergence (”FMC”) technology industries. This process includes, but is not limited to the review of acquisition targets, strategic partnerships and/or business combinations, potential sale of a division or divisions of the Company, and/or a significant financing, refinancing or recapitalization transaction. The Company has engaged the Stanford Group Company, an investment banking and advisory services firm, as its strategic and financial advisor to assist the Company in the evaluation of such opportunities. Stanford Group Company is a member of the Stanford Financial Group, a global network of financial services companies.
No timetable has been set for completion of the review and there can be no assurance that this process will result in any specific strategic acquisition or financial transaction. The Company does not intend to update its progress or disclose developments with respect to potential initiatives unless and until the Board of Directors has approved specific recommendations and actions to be taken by the Company.
T. A. “Kip” Hyde, Jr., President and Chief Operating Officer of Teletouch, and CEO of wholly-owned subsidiary, Progressive Concepts, Inc. (PCI), stated, “Our executive team has been in the process of evaluating the Company’s strategic positioning in the U.S. and international cellular and mobile electronics markets, as well as various financial and investment opportunities that exist in these large industry spaces. We have enhanced our infrastructure and business processes to support new national MVNO and MVNE-based (Mobile Virtual Network Operator and Mobile Virtual Network Enabler respectively) cellular sales initiatives and position the Company to capitalize on new opportunities to enhance delivery of wireless services and sales of electronics products, both to our existing base of customers and in the rapidly emerging residential and small commercial FMC solutions space.”
Hyde continued, “After completion of the acquisition in August 2006, PCI is now generating significant positive EBITDA after adjusting for a number of one-time costs related to the acquisition, certain service, rent and maintenance revenue reserves and other expenses. That said, we continue to look for ways to increase total sales, lower overhead costs and enhance overall margins. We see PCI as a solid platform for growth in the cellular, mobile electronics and related industries.”
Teletouch Communications Inc.
