Champion sheds $4.5 million in assets as net income declines
Champion Communication Services
, Woodlands, TX, has sold $4.5 million worth of radio communications systems assets and inventory in several states, including FCC licenses, equipment and subscriber contracts, in a series of transactions. Most of the transactions closed during September, with a smaller portion having closed in August.
“These asset sales represent the disposal of essentially all remaining non- core assets as part of management’s plan to fund the expansion of the current T-band communication infrastructure, potential expansion into international geographic areas and general corporate purposes,” a statement from the company reads. Champion’s statement does not detail which assets were sold, and company officials were unavailable for comment.
T-band refers to 470MHz–512MHz spectrum allocated for TV broadcasting. Land mobile radio systems can operate on selected TV frequencies in the 13 largest U.S. market areas as defined in the FCC rules. These frequencies are considered more desirable than some comparable 450MHz–470MHz channels because they more easily can be assigned for exclusive, non-shared use, which makes trunking the channels easier and free of co-channel interference.
Champion began its operations through the purchase of 1,501 community repeaters from Motorola in 1994. Since then, the company has been divesting assets in some markets and has been converting its community repeaters to private carriers in other markets. Additionally, it has been converting its private carrier systems from conventional to trunked operation. Champion has focused its efforts on Chicago, Dallas, Houston, San Francisco, Washington-Baltimore and a portion of Florida.
Champion offers flat-rate, unlimited-airtime dispatch service plans and an integrated voice, data and vehicle tracking system. The company also rents two-way radios, repeaters and accessories for use nationwide.
For the second quarter ended June 30, Champion reported revenues of $2.269 million, a decrease of 5% from $2.387 million for the comparable quarter last year. Equipment sales and service combined with rental revenues were $249,000 for the quarter, down $118,000 from the same period in 2000.
Net income for the quarter was $147,000, compared to $299,000 for the same quarter last year. The company’s year-to-date (as of June 30) net loss was $121,000, compared with net income before taxes of $475,000 for the same period in 2000.
In March 2000, Champion operated 677 repeaters and held 238 exclusive licenses, including 52 in the 800MHz band; 172 in the 470MHz–512MHz band; and 14 in the 450MHz–470MHz band. In addition, the company held 535 co-channel licenses, including 29 in the 800MHz band, 158 in the 470MHz–512MHz band and 348 in the 450MHz–470MHz band.
In March of this year, Champion reported holding 207 exclusive licenses in the 470MHz–512MHz band and 150 co-channel licenses in the 450MHz–470MHz band.
