PRECOM ANNOUNCES QUARTERLY EARNINGS
Contact: Jan Read 801-365-0900
Boca Raton, FL. July 10, 2002: Precom Technology, Inc. (OTCBB:
PMMT), today released its un-audited operating results for the second
quarter, ending June 30, 2002. Drew Roberts, CFO of Precom stated:
This financial report represents the first financial statement for Precom
since its acquisition of Saddleback Finance, Inc. on June 1, 2002, and
the acquisition of a controlling interest in Precom itself in April, 2002
by CGI International. We are pleased that we are able to report both
positive earnings and net assets after such a short operating period.
Due to the recent acquisitions, we have requested our auditors to audit
these figures, and we expect to issue audited financial results shortly.
We do not expect to report any significant differences in the audited
reports."
Precom reported net income before tax of $4,524 on total revenues
of $38,144 for the Second Quarter. This compares with a loss of $9,444
in the comparable period for 2001, at which time Precom was inactive.
The financial statements also indicate total assets of $4,649,540 and net
equity of $4,550,429 at the end of the Second Quarter.
Mr. Roberts added: "These early results validate our strategy of
locating and acquiring key players in the national equipment lease
finance industry to consolidate the operational and back office part of
the business, and expand sales and closing capacity of the acquired
units. This strategy will continue for the remainder of the year. In
addition, we expect that the integration of Precom's equipment lease
finance operation with the remainder of the financial services business
of CGI will create positive synergies for the rest of the year."
On a consolidated basis with CGI International, PMMT's parent
company, results of operations for the quarter ending June 30, 2002
reflect net income before tax of $889,973 on revenues of $1,959,562,
total assets of $7,151,062 and net equity of $5,159,090.
Precom Technology is an international financial services company
engaged in equipment leasing, and related insurance and mortgage banking
functions in the U.S. The company currently maintains several offices in
the United States including Florida, California and New York. ###
Safe Harbor:
Certain information included in this communication contains statements
that are forward looking, such as statements relating to further
anticipated direction of the financial industry, plans for further
expansion, various business development activities, planned capital
expenditures, funding resources, anticipated sales growth and potential
contracts. These forward-looking statements are subject to a number of
known and unknown risks and uncertainties that could cause actual
operations or results to differ materially from those anticipated.
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Precom Technology, Inc.
Income Statement
(Unaudited)
June 30, 2002 June 30, 2001
Income
Subsidiary Income 38,144 NA
Total Income 38,144 0
Expenses Percent of
Income
Administrative 14,317 37.53% 9,444
Office 470 1.23%
Legal 8,844 23.19%
Rent 9,989 26.19%
Total Expenses 33,620 9,444
Net Income before taxes 4,524 (9,444)
Precom Technology, Inc.
Balance Sheet
June 30, 2002 June 30, 2001
ASSETS
Cash and Cash equivalents (2,981) 0
Accounts Receivable 190,665 0
Common Stock 4,500,000 0
Total Assets 4,687,684 -
LIABILITIES
Accounts Payable 63,964 102,803
Notes Payable 73,292
EQUITY
Common Stock 2,063,308 2,121
Paid in Capital 464,781 363,242
Preferred Stock 2,500,000
Retained Earnings (482,185) (458,722)
Net Income 4,524 (9,444)
Total Equity 4,550,428 (102,803)
Total Equity and
Liabilities 4,687,684 -
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CGI International
Income Statement
(Unaudited, Consolidated)
June 30, 2002 June 30, 2001
Income 1,921,418 n/a
Other Income 38,144 n/a
Total Income 1,959,562 0
Expenses Percent of
Income
Administrative 897,148 45.78%
Office 17,090 0.87%
Legal 71,674 3.66%
Rent 83,677 4.27%
Total Expenses 1,069,589
Net Income before taxes 889,973
CGI International
Balance Sheet
June 30, 2002
(Unaudited, Consolidated)
ASSETS
Cash and Cash equivalents 45,842
Accounts Receivable 634,240
Common Stock 6,400,000
Equipment 70,980
Total Assets 7,151,062
LIABILITIES
Accounts Payable 436,799
Notes Payable 1,555,173
EQUITY
Common Stock 2,063,308
Paid in Capital 464,781
Preferred Stock 2,500,000
Retained Earnings -482,185
Net Income 613,186
Total Equity 5,159,090
Total Equity
and Liabilities 7,151,062