Advanced Radio Telecom Announces Third Quarter 2000 Financial Results.Business Editors BELLEVUE, Wash.--(BUSINESS WIRE)--Nov. 13, 2000 Advanced Radio Telecom Corp. (ART) (Nasdaq:ARTT ARTT, n.pr See asymmetry/range of motion alteration/tissue texture alteration/tenderness. ) today announced financial results for the third quarter and nine months ended September 30, 2000. Total revenues for the third quarter of 2000 were $243,000 compared to $359,000 for the same period last year. Total revenues for the nine months ended September 30, 2000 were $1,004,000 compared to $924,000 for the same period last year. The decrease in revenues in the 2000 third quarter primarily reflects the Company's divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of certain customers in the former US WEST territory in connection with the US WEST / Qwest merger. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become loss (defined as loss from operations before depreciation and amortization and the provision for equipment impairment) for the third quarter of 2000 was $10.4 million compared to $8.9 million for the third quarter of 1999 and $32.0 million for the nine months ended September 30, 2000 compared to $25.2 million for the same period last year. The increase in EBITDA loss is primarily attributable to expenses associated with the expanded operations and infrastructure build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. in connection with network deployment and market development. During the third quarter, the Company entered three new markets, bringing to nine the total number of markets as of September 30, 2000. The Company reported a net loss per common share of $1.71 for the third quarter of 2000 compared to $4.65 for the same period last year. The net loss per common share for the nine months ended September 30, 2000 was $3.17 compared to $6.25 for the same period last year. The net loss per common share included non-cash deemed preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends of $1.22 and $1.57 per share for the three and nine months ended September 30, 2000, respectively, and $3.99 and $4.00, respectively, for same periods a year earlier. Excluding these non-cash dividends, the net loss per common share would have been $0.49 for the third quarter of 2000 compared to $0.66 for the same period last year, and $1.60 for the nine months ended September 30, 2000 compared to $2.25 for the same period last year. At September 30, 2000, the Company had cash, cash equivalents and short-term investments of $112.4 million. In October 2000, the Company made the remaining payment of $61.6 million for 39 GHz licenses acquired in the FCC auction See 700 MHz spectrum. concluded in May. In addition to the acquisition of FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. licenses, capital expenditures, including vendor financed expenditures, were $9.6 million for the third quarter of 2000 and $26.8 million for the nine months ended September 30, 2000. As of September 30, 2000, the Company had drawn $7.8 million under its purchase money facility provided by Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. Capital. The Company is in the process of evaluating its strategy and business plan. The Company has slowed the rate of its market deployment and has reduced its expenditures to conserve cash and, if additional financing is not obtained soon, will make further reductions in expenditures. Wharton B. (Zie) Rivers, Jr., ART's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "I am excited about the opportunity for broadband wireless See wireless broadband. services. We are currently evaluating our strategy to determine the best way to realize that opportunity. Our primary focus now is to drive revenue through customer traffic on our networks in existing markets rather than through rapid geographic expansion." "In the fourth quarter, we have begun to see increased customer orders from both our wholesale and retail sales channels," said Robert S Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. . McCambridge, president and COO. "In San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , our most mature market, our wholesale channel partners are placing orders bundling value-added applications with ART's broadband IP connectivity to provide end users a high speed internet solution. In addition, we are seeing progress in our direct sales of high speed Internet access See how to access the Internet. to customers in on-net buildings in existing markets." During the third quarter, ART announced wholesale customer agreements with OnLight (formerly B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business Connect) in California, EasyStreet in Oregon and NetVoice and T-Speed in Texas. ART also began provisioning data centers for customers in Portland, Seattle and Washington D.C. The Company has continued to add strength and depth to its senior management team. On November 6, 2000, the Company announced that it had named Rivers as chief executive officer. Rivers, most recently from Cable & Wireless North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , brings more than a decade of experience in executive positions for telecommunication companies such as Cable & Wireless, Ameritech and MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device. (2) (Microwave Communications Inc. . In October, ART named Paul Palmiter as senior vice president of engineering and operations. Palmiter has over 20 years experience in building and deploying complex telecommunications systems and networks. In the third quarter, the Company brought in Darla Norris, a 20-year finance veteran, as senior vice president of finance. In August, ART issued a total of 9.7 million common shares to acquire the 39 GHz licenses of Broadstream Communications Inc. and Bachow Communications. ART is one of the leading 39 GHz spectrum holders with nationwide coverage and averages 400 MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc. of spectrum depth in its top 40 markets. About Advanced Radio Telecom Advanced Radio Telecom Corp. (ART) is a Cisco Powered Network Service(TM) provider headquartered in Bellevue, Wash. The company provides broadband fixed wireless Internet Protocol 'Wireless Internet Protocols' are the suite of wireless protocols after Wireless Application Protocol 2.0 (WAP). It includes XHTML Basic, Nokia's XHTML Mobile Profile, and future developments of WAP by the Open Mobile Alliance. (IP) services to Internet Service Providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. (ISPs), Application Service Providers (ASPs) and interexchange carriers See IXC. (IXCs). ART offers a point-to-consecutive-point ring design with speeds up to 100 Mbps, as well as dedicated, protected and redundant OC-3 connectivity with speeds up to 155 Mbps. Using ART's highly scalable network architecture, ASPs, ISPs and IXCs can extend Local Area Networks to Wide Area Networks at native LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. speeds for their own end-user customers. ART provides this last-mile connectivity without the delay and disruption that can occur with phone company hook-up or fiber optic installation. ART currently owns and operates broadband wireless metropolitan area networks in Dallas/Ft. Worth, Houston, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Phoenix, Portland, San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , San Jose, Seattle and Washington, D.C. ART has a nationwide footprint of 39GHz spectrum licenses in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and spectrum licenses in the United Kingdom and several Scandinavian countries Noun 1. Scandinavian country - any one of the countries occupying Scandinavia Scandinavian nation European country, European nation - any one of the countries occupying the European continent . For more information, visit ART's website at www.ipsp.com. The above information includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding services and network deployment. These statements are not guarantees of future performance. Known and unknown risks, uncertainties, and other factors, including without limitation, capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. , need for additional financing and other financial risks, changes to the strategy and business plan, customer demand, technological risks, management of growth, satisfying borrowing conditions, competition and government regulation may cause actual results to differ materially from the future results implied or expressed in the forward looking statements. Additional information about the most significant of such factors is set forth in ART's most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . The Company does not undertake to update or revise its forward-looking statements publicly even if experience or future changes make clear that any projected results expressed or implied herein will not be realized.
Advanced Radio Telecom Corp.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------------------------
2000 1999 2000 1999
---------------------------------------------
Revenues $ 243 $ 359 $ 1,004 $ 924
---------------------------------------------
Operating costs
and expenses:
Technical and
network operations 5,059 4,222 15,669 12,078
Sales and marketing 1,672 1,402 4,627 4,320
General and
administrative 3,864 3,604 12,663 9,697
Equipment impairment
and other -- -- -- 6,376
Depreciation and
amortization 3,847 3,949 10,346 10,733
---------------------------------------------
Total operating
costs and expenses 14,442 13,177 43,305 43,204
---------------------------------------------
Loss from operations (14,199) (12,818) (42,301) (42,280)
Interest and other:
Interest expense (5,443) (7,323) (16,024) (23,401)
Other -- 147 -- 697
Interest income 2,437 1,508 8,490 2,428
---------------------------------------------
Total interest
and other (3,006) (5,668) (7,534) (20,276)
---------------------------------------------
Loss before
income taxes
(17,205) (18,486) (49,835) (62,556)
Deferred income
tax benefit 873 439 1,495 1,501
---------------------------------------------
Net loss $(16,332) $(18,047) $(48,340) $(61,055)
=============================================
Net loss $(16,332) $(18,047) $(48,340) $(61,055)
Deemed preferred
dividend (40,804) (108,862) (47,740) (108,862)
---------------------------------------------
Net loss applicable
to common stockholders $(57,136) $(126,909) $(96,080) $(169,917)
=============================================
Basic net loss per
common share, including
$1.22 and $1.57 loss per
share relating to deemed
preferred dividends for
the three and nine
months, respectively,
in 2000 and $3.99 and
$4.00 in 1999 $ (1.71) $ (4.65) $ (3.17) $ (6.25)
=============================================
Weighted average
common shares 33,437 27,307 30,355 27,185
=============================================
Advanced Radio Telecom Corp.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
September 30, December 31,
2000 1999
---------------------------
Cash, cash equivalents
and short-term investments $ 112,406 $ 184,048
Pledged securities -- 9,407
Notes receivable 13,328 --
Other current assets 560 461
Property and equipment, net 34,490 14,747
FCC licenses, net 368,725 180,754
Other assets 9,925 8,719
--------- ---------
Total $ 539,434 $ 398,136
========= =========
Accrued FCC auction licenses payable $ 61,575 --
Other current liabilities 23,870 $ 24,162
Long term debt, net of current portion 118,060 109,047
Deferred income taxes 49,233 29,326
--------- ---------
Total liabilities 252,738 162,535
Convertible preferred stock 243,536 243,536
Stockholders' equity (deficit) 43,160 (7,935)
--------- ---------
Total $ 539,434 $ 398,136
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