Archive for the ‘Teletouch Communications Inc. TLLE’ Category

Teletouch Communications, Inc. (TLLE) Provides a Full Array of Wireless Solutions

Monday, September 24th, 2012

Teletouch Communications, founded in 1964 and headquartered in Fort Worth, Texas, delivers superior consumer electronics, electronics solutions, and wireless connectivity services to a wide platform of consumers ranging from businesses to state and federal government agencies in the United States and around the globe. These products run the gamut and are offered through an abundance of retail locations as well as various direct distribution agreements with manufacturers and via multiple retail e-commerce websites.

Operating through its wholly owned subsidiary, Progressive Concepts, Inc., or PCI, the company also offers AT&T wireless services and mobile, portable, and personal electronics products through a venue of about 30 local company agents in the Dallas/Fort Worth and San Antonio areas. These agents, far from being merely part of a distribution chain for TLLE, provide expert sales, service, and onsite training for those lost in today’s mobile electronics revolution.

PCI, offering products and services under the Teletouch and Hawk Electronics brands (,, and, provides a comprehensive suite of wireless telecommunications solutions including cellular, GPS-telemetry, and wireless messaging to an array of entities ranging from Tier-1 (AT&T) to Tier-3, and including rural carriers, auto dealers, and smaller consumer electronics retailers. In this configuration, PCI supports a network of more than 20 retail and agent-oriented locations whose knowledgeable sales and service employees assist customers in buying, understanding, and servicing such devices as the Apple iPhone and two generations of MTX Audio Thunder Marine amplifiers.

In business for 25 years in the same location, PCI offers auto and truck accessories, Bluetooth headsets, car audio and security, cellular communications, digital antennas for communication on land and at sea, tablets, marine electronics, and vehicle and travel chargers. The subsidiary also provides hands-free accessories, mobile video, navigation, and public safety equipment. PCI even offers rear vehicle collision avoidance systems by both Brandmotion and Boyo, featuring such “must haves” as a Ford aftermarket truck rear view backup camera to avoid the rare but devastating (and potentially lethal) accidents that happen in driveways or parking spots between trucks and compact cars or small children, or pets, all of which fall below the truck driver’s visual threshold as a result of a truck’s higher and wider profile.

In recognition for its reliable sales and consistent customer service record, and its all-inclusive Whelen and Havis product line of public safety, emergency vehicle lighting, and siren equipment, Teletouch Communications was recently accorded a multi-year GSA General Services Administration (GSA) Contractor license.

The GSA is an independent arm of the federal government which acts as overseer, protecting, managing, and allocating funding to various government properties and agencies. Addition to this select and limited GSA certified providers list provides Teletouch with a huge opportunity to demonstrate even further its exceptional handling of sales and service from a line of top quality products designed to assist city, state, and federal entities in responding to public safety and emergency management situations.

For more information on Teletouch, visit

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Teletouch Communications, Inc. (TLLE) Secures Agreement with Leading China Manufacture to Distribute UMX Branded Cellular Handsets in North America

Monday, September 17th, 2012

Teletouch Communications, a leading U.S. wireless services, cellular, and consumer electronics distributor, announced this morning that it has signed a comprehensive distribution agreement with Unimax Communications, Inc., a subsidiary of Hong Kong-based telecom electronics manufacturer, Unimax Communications Corporation, to sell and distribute their UMX® branded mobile handsets.

Specializing in low cost, high quality Android®, CDMA, and WCDMA handsets, Unimax is one of the fastest growing handset manufacturers in China. The company’s ruggedized and waterproof MAXCombat and MAXArmadillo line of phones are built to military specifications and fully certified for the U.S. market. Teletouch is now officially a distributor for North America and plans to focus on rural carrier operators and providers.

“Unimax Communications has made significant inroads launching their products into the U.S., with a number of UMX handsets approved at Tier 1 networks in North America and available for purchase beginning October 2012. UMX handsets have also already been certified and launched at a number of rural and regional carriers,” stated T. A. “Kip” Hyde, Jr., President and COO of Teletouch. “Based on initial customer interest, we expect significant multi-million dollar sales growth from this product line, through our PCI Wholesale subsidiary, during the second-half of fiscal 2013.”

Dan Gannon, President of Unimax Communications, added, “Teletouch’s long history in both retail and wholesale cellular handset sales and distribution makes them the perfect choice for us to increase our penetration and growth throughout the United States, Canada and Mexico. We are pleased to work with this great team of professionals to support our continued worldwide growth.”

For more information on Teletouch, visit

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Teletouch Communications, Inc. (TLLE) Holds Shareholder Conference Call Covering 4th Quarter and Year End Financial Results and Operations

Monday, September 10th, 2012

Teletouch Communications, Texas-based cellular services provider and growing consumer electronics distributor, recently held a shareholder conference call highlighting previously released financial results for the 4th fiscal quarter and fiscal year ending June 7, 2012, along with a number of operational issues. The call included Robert McMurrey (Chairman and CEO of Teletouch), Thomas “Kip” Hyde, Jr. (President & COO, and CEO of primary operating company PCI Hawk Electronics), Douglas Sloan (CFO), and Mike Dickens (Sr. VP of Operations).

The core of the presentation dealt with the company’s move back to profitability and growth, coming out of a particularly challenging year involving unpredictable events.

In spite of these unavoidable pressures, Teletech ended up generating reported net income of $6.3 million and $.08 fully diluted earnings per share for the year, the strongest earnings the company has seen in a decade. Fourth quarter net income was $161,000. The company also settled a two year long litigation with AT&T, and expects to close on new financing, all of which allows Teletouch to focus on their core strategy of growing their distribution operations. The company’s goal remains the transitioning of Teletouch into a market leader in the distribution business.

Shortly after the end of the fiscal year, Teletouch announced the signing of their first direct handset manufacturing distribution agreement with TCT Mobile, one of the largest consumer manufacturing companies in the world and the maker of the Alcatel OneTouch brand of cellular handsets, as well as a dozen other cellular equipment and accessory distribution agreements to support their wholesale business growth strategy.

During the call’s question and answer period, the anticipated effect of the TCT agreement on Teletouch revenues was discussed. The company believes that the new relationship should clearly generate several million dollars top line and then the related margins bottom line. It was pointed out that the initial order was just signed, and it takes about 45 days for product to be on the ground. Kip Hyde said of the agreement: “It’s our first handset deal. We’re pretty excited about it. We do have another handset deal that we will be announcing shortly…, and the combination of these will represent a real foundation to growth over the next 12 months.”

Another question arose regarding the recent Samsung-Apple software litigation, and whether there was any software on the incoming Alcatel handsets that might be negatively impacted by the jury decision in the case. The response was that Teletouch has not been given any indication by the manufacturer that they’re in violation of any of the patents that were in dispute in the Samsung-Apple litigation. To the extent that there is, the assumption is that they would modify their operating system accordingly, but that there is no indication that any ordered product would be impacted.

The complete earnings call is available at the Teletouch website at

For more information on Teletouch Communications, Inc., visit

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Teletouch Communications, Inc. (TLLE) Reports Financial Results and Operational Highlights for Fiscal Year 2012

Wednesday, August 29th, 2012

Teletouch Communications, a leading U.S. cellular services provider and consumer electronics distributor supporting over 60,000 wireless customers, earlier today reported its audited consolidated results on Form 10-K for the 2012 fiscal year ended May 31, 2012.

Financial highlights of the year include total operating revenues of $34.42 million; income from operations of $6.32 million; EBITDA of $7.48 million; net income of $4.17 million; basic earnings per share of $0.09; diluted earnings per share of $0.08; and reduction of total liabilities by $6.59 million. For the fourth quarter alone, the company reported total operating revenues of $8.30 million; income from operations of $0.65 million; EBITDA of $0.91 million; and net income of $0.16 million.

“As we look back and reflect on all of the events that transpired during fiscal 2012, what becomes readily apparent is the total mass of activity, both set-backs and accomplishments, that has set the stage for the Company’s future direction for the next several years,” stated T. A. “Kip” Hyde, Jr., President, Chief Operating Officer and Director of Teletouch. “From geometric growth in our two-way radio/PSE unit, to favorably settling the AT&T litigation, to a change of control in our stock holders, to our senior credit provider, Thermo Credit LLC, having its own difficulties and pulling our credit line, to a material sales tax assessment related to issues not identified in any State of Texas sales tax audits of the Company in any prior years, to satisfying the pent-up demand for the iPhone in our customer base, to completing our first direct handset manufacturer distribution agreement and a nearly a dozen other distribution agreements, we’ve been busy. To put it mildly, this past fiscal year has been a wild ride.”

Hyde continued, “Then add, since the end of the May 2012, the recent sale of that same two-way radio/PSE business, going through a road-show presentation process, with the subsequent term sheet negotiations and then signing, with due diligence now in process with a potential new lender, our high levels of activity continue, but are now all focused on furthering future growth for the Company. While we still have a few remaining challenges, returning Teletouch to operating profitability has been foremost among our goals, and we achieved that for the fourth quarter and year as a whole. All in all, it has been a great way to start fiscal 2013.”

On September 5, 2012, at 4:15 p.m. EDT (3:15 p.m. CDT), Teletouch will hold the company’s fiscal year 2012 earnings conference call. Investors interested in participating should call 866-901-2585 or 404-835-7099. Callers will be asked to provide their first and last names, with their company or financial institution name, as applicable. Participants are advised to dial in approximately 10-15 minutes before the conference is scheduled to begin. After their information is given to an operator, participants will be placed on music-hold prior to the start of the conference.

Other recent highlights noted by the company in today’s press release are presented below in their entirety.

1st Quarter

• Two-Way Radio/Public Safety Equipment business breakout quarter, with segment revenues increasing to just over $2.9 million in the first quarter, an approximately $1.8 million or 164% increase over the same quarter last year;
• Fundamental change of Company ownership and long-term stock voting control as result of former parent company, TLL Partners, LLC debt restructuring (see related detail in 8-K, filed August 18, 2011);

2nd Quarter

• Settled the AT&T litigation, resulting in the realization of material initial, as well as additional ongoing cash compensation, new iPhone and iPad sales agreements, with 3-Yr distribution contract extensions, and new 6-yr Dealer agreements (see related detail in 8-K, filed November 28, 2011);
• Settlement included AT&T non-interference clause, paving way for renewed Company-direct manufacturer distribution relationships;

3rd Quarter

• Fulfilled hundreds of iPhone deliveries to customers waiting for AT&T litigation end;
• Received the State of Texas’ computations from its ongoing sales and use tax audit of Company’s wholly owned subsidiary, Progressive Concepts, Inc. (“PCI”) through October 2009, resulting in an accrual of a $1.88 million estimated sales tax liability. In addition, the Company recorded a sales tax liability of approximately $0.3 million related to similar tax issues that are believed to have continued beyond the current tax audit period, for a total accrual in the period of $2.18 million;
• Teletouch’s senior lender, Thermo Credit LLC (“Thermo”) advised Company that it had to exit the Company’s $12 million revolving credit facility prior to the original term because of certain issues it had with its own lender;
• Amended Thermo senior debt agreement, deferring repayment of remaining note balance until May 2012, or August 2012, assuming certain criteria were met by Company, in exchange for a $2 million payment in March 2012 towards the outstanding loan balance;

4th Quarter

• Received extensions from both of the Company’s current real estate lenders which extended the maturity dates from May 2012 to August 2012;
• Entered into distribution agreements with a variety of cellular accessory manufacturers, including, Monster Digital, Concept 101, Pure Gear®, Boston Amplifier, Cellphone-Mate, Skunk Juice®, Digital Innovations, Dicotta Cases, Wilson Electronics®, among others;
• Expanded consumer electronics/12-volt audio product lines by entering into direct distribution agreements with manufacturers including Cadence Acoustics, Cerwin Vega®, Diamond Audio and Lightning Audio®;
• Returned Company to profitability, having positive EBITDA and net income for the fourth quarter (EBITDA is a non-GAAP measure; see “Disclosure of Non-GAAP Financial Measures” below).

Events Subsequent to Year End

• In June 2012, signed National Distribution Agreement with TCT Mobile Multinational Ltd to sell Alcatel OneTouch® branded cellular handsets. Initial inventory expected to be available by mid-October 2012;
• Sold legacy two way radio and public safety equipment business to Irving, Texas-based DFW Communications, Inc. for approximately $1.5 million in August 2012;
• Completed negotiating and executed term sheet with prospective new lender for senior revolving and term credit facilities to replace current credit facility with Thermo Credit. Although the term sheet is non-binding, diligence process started in late August 2012, with closing targeted for mid- to late September 2012.

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Teletouch Communications, Inc. (TLLE) is “One to Watch”

Monday, August 27th, 2012

Teletouch Communications offers a comprehensive suite of wireless telecommunications solutions, including cellular, GPS-telemetry, and wireless messaging. Founded in 1964, the company provides its products and services to consumers, businesses, and government agencies, operating a chain of 11 retail and authorized agent stores, in conjunction with its direct sales force, call center operations, and various retail eCommerce websites.

Through its wholly owned subsidiary, Progressive Concepts, Teletouch operates a national distribution business, PCI Wholesale, primarily serving Tier-1 (AT&T, T-Mobile, Verizon, Sprint) cellular carrier agents, Tier-2, Tier-3, and rural carriers, as well as auto dealers and smaller consumer electronics retailers. The subsidiary’s international sales coverage includes Canada, Mexico, Brazil, Singapore, and China.

The company is currently focusing on growing its core wholesale distribution business. The business plan being executed includes selling non-core corporate assets and reviewing potential acquisition opportunities. Operators and retailers of all sizes are seeking new sources of revenue at lower costs, creating a large opportunity to provide great products and value-added distribution capabilities at competitive prices.

Teletouch’s management team has extensive experience in financing, acquiring, and operating retail, wireless and other related companies. Robert McMurrey, Chairman and CEO, guided Teletouch’s original external expansion with the completion of over 15 acquisitions to date. Today, the company supports over 60,000 wireless customers, leveraging its long-standing relationships and global presence to drive future earnings growth.

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