SPL Receives $10 Million from Boston Ventures
Jun 15, 2004 1:42 PM
SPL Integrated Solutions (www.splis.com) received a $10 million equity infusion from its majority owner, Boston Ventures, and refinanced its corporate debt with Wachovia Bank. SPL also released its financial results for the year ended December 31, 2003 and reported revenues of $95,378,711, an increase of $3,503,629 over 2002 revenue. The company was profitable for the 12th consecutive year with EBITDA of $2,425,724.
The new loan with Wachovia is a $15 million revolving line of credit with a two-year term that expires April 30, 2006. It will be used to meet the company’s working capital needs. The previous loan of $15.3 million was repaid to a bank group led by the Bank of New York. After the recapitalization, SPL’s debt-to-equity ratio is 0.45 to 1.
“We are very excited about the new loan and our relationship with Wachovia Bank,” says CFO Nicholas Yancich. “They worked closely with us to create a loan that met all of our needs. The new loan, along with the equity infusion, provides the right capital structure for SPL so we can focus on revenue growth, cost reduction, and profit optimization.”
“We are extremely pleased with the continued growth and profitability of SPL, especially in light of the weak economic conditions experienced throughout 2003,” says Chad Gillenwater, president and CEO of SPL. “Our financial success is due to having the best employees in the industry and a strong financial reporting system that closely monitors the profitability of every project.”
“The AV industry is in the early stages of expansion due to the significant improvements in videoconferencing technology,” says Dennis Cahill, executive chairman of SPL and a venture partner with Boston Ventures. “The technology now supports voice, data, and video over IP converged networks, which leads to significant cost savings for Fortune 1000 companies. SPL has been the clear industry leader in guiding Fortune 1000 companies through the integration of this technology. Given the quality and experience of SPL’s personnel and their ability to execute no matter what the environment, coupled with the additional equity investment that SPL earned, no company is better positioned to take advantage of the industry’s future growth prospects than SPL.”
Ernst and Young prepared the 2003 audited financial statements.
