BROOKS FIBER PROPERTIES REPORTS RECORD FIRST QUARTER REVENUES; RESULTS BEAT ANALYST EXPECTATIONS.ST. LOUIS--(BUSINESS WIRE)--April 28, 1997--Brooks Fiber Properties, Inc. (Nasdaq/NM:BFPT BFPT barrier-free proton transfer BFPT Brooks Fiber Properties, Inc. (stock symbol) BFPT boiler feed pump turbine BFPT Brouwer Fixed Point Theorem BFPT Bundesdeutsche Fachtagung für Plasmatechnologie BFPT Braque Francais de Petite Taille ), a nationwide provider of competitive local telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. , today announced results for the first quarter ended March 31, 1997. Net revenues for the first quarter ended March 31, 1997, totaled $20.6 million, a sequential quarterly growth rate of 18%, and an increase of 203% compared with $6.8 million for the first quarter ended March 31, 1996. 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 for the first quarter was ($6.3) million compared with ($2.7) million recorded in the first quarter of 1996. The net loss for the first quarter was $24.7 million, or $0.77 per share, compared with a net loss of $6.6 million, or $0.34 per share, in the prior year's first quarter. "We were very pleased with the Company's financial results for the first quarter of 1997 which were once again better than consensus analyst estimates," said James C. Allen James Cameron Allen (January 29, 1822 - January 30, 1912) was a U.S. Representative from Illinois. Born in Shelby County, Kentucky, Allen attended the public schools. He moved to Indiana in 1830. He studied law. , chief executive officer of Brooks Fiber Properties. "In addition to more than tripling revenues for the latest quarter from the comparable period in 1996, we achieved 18% sequential growth in revenues from the fourth quarter of 1996. We attribute the substantial increase in network utilization to the successful implementation of the Company's growth strategies as we aggressively pursue the opportunities resulting from deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the local telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. market. "By every measure, Brooks Fiber made impressive gains during the first quarter of 1997," Allen Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. continued. "Network utilization, as reflected in the number of total buildings connected to Brooks Fiber networks, increased 468% to 2,810 buildings as of March 31 1997, compared with 495 buildings as of March 31, 1996. As reflected in voice grade equivalent (VGE VGE Valery Giscard d'Estaing (French President 1974-81) VGE Venous Gas Emboli VGE Voice Grade Equivalent VGE Voluntary Group of Experts VGE Viral Gastroenteritis VGE Visual Gross Error VGE Vector Graphics Editor ) circuits, network utilization increased 305% to 668,494 VGE circuits at the end of the first quarter of 1997 compared with 165,122 VGE circuits at the end of the first quarter of 1996. The Company had operational networks that covered 1,253 route miles The number of miles that are spanned by a telecommunications network. It does not include combined wire mileage due to multiple wires or fibers within a single cable or by overlapping segments, just the total geographic distance between cities or other terminal points. as of March 31, 1997, a 147% increase compared with 507 route miles in service as of March 31, 1996. Total fiber miles increased to 97,200 the first quarter of 1997 compared with 26,659 at the end of the first quarter of 1996. Finally, CLEC (Competitive Local Exchange Carrier) An organization offering local telephone service that is not one of the traditional telephone companies. The Telecommunications Act of 1996 allowed competition to the incumbent telcos (ILECs), enabling new companies (CLECs) lines in service increased 72% sequentially to 36,075 for the first quarter from 21,013 at the end of the fourth quarter of 1996." Allen added, "The results of operations in the switched services markets have been particularly gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. as we continue to pursue the largest piece of the national local exchange market opportunity, representing over $50 billion of revenues nationally and over $10 billion in the markets where we have established operations. Local exchange revenues increased to $5.3 million in the first quarter of 1997, a 53% sequential quarterly growth from the $3.4 million in the fourth quarter of 1996. The increases in lines and revenues reflect continued growth in our Michigan markets, where we have the most experience in switched services, but also significant growth in the Company's other markets across the country. This is evidenced by the fact that the Company's installed CLEC lines in markets other than Grand Rapids Grand Rapids, city (1990 pop. 189,126), seat of Kent co., SW central Mich., on the Grand River; inc. 1850. The second largest city in the state, it is a distribution, wholesale, and industrial center for an area that yields fruit, dairy products, farm produce, have increased to 44% of the total lines as compared to 20% at the end of the fourth quarter of 1996. "Financial results from Grand Rapids (see attached table) continued to exceed our original expectations. Specifically, quarterly annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues for Grand Rapids increased to $17.4 million, a 33% sequential quarterly growth from the $13.1 million in the fourth quarter of 1996. EBITDA before corporate allocations increased 58% to $6.0 million, or 35% of revenues in the first quarter, compared to $3.8 million, or 29% of revenues in the fourth quarter of 1996. We believe that these positive results are a clear indication of the economic opportunity in switched services on a national basis and will continue to focus on generating high levels of revenue while at the same time controlling the level of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. required to generate the revenues and service to our customers. "As a result of strategic acquisitions and development activities, Brooks Fiber recently announced the signing of a definitive agreement with Century Telephone Enterprises, Inc. (NYSE NYSE See: New York Stock Exchange : CTL See control key. 1. CTL - Checkout Test language. 2. CTL - Compiler Target Language. 3. CTL - Computational Tree Logic ) for the merger of Metro Access Networks, Inc. ("MAN") consisting of networks in Dallas, Forth Worth, Houston, San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , Austin, Corpus Christi Corpus Christi, in Christianity Corpus Christi [Lat.,=body of Christ], feast of the Western Church, observed on the Thursday after Trinity Sunday (or on the following Sunday). , and Waco, Texas For the Branch Davidian siege in Waco, Texas, see . For other uses of "Waco", see Waco (disambiguation). Waco (pronounced: /ˈweɪkoʊ/) is the county seat of McLennan County, Texas. . This acquisition, expected to close in the second quarter, will significantly increase the Company's operating presence by expanding our networks to 44 markets from our existing 37 markets, and increasing our route miles by 26% to 1,580 from the 1,253 at the end of the first quarter. In addition, it represents a 38% increase in our addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be market potential from $21 billion to $29 billion. Finally, and most significantly, because certain of these markets have already attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. a substantial base of operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. , this acquisition will not change the expected timing of peak EBITDA losses or the subsequent EBITDA break-even of the Company." Additional operating milestones achieved by Brooks Fiber during the first quarter of 1997 included the following: -- 40% of the Company's currently operational dedicated access networks attained positive annualized EBITDA before corporate allocations of $13.4 million for the quarter. -- Announced the first national agreement between AT&T and a CLEC, whereby AT&T will begin utilizing the Company's networks for the origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real and termination of customer calls. The agreement represents a further expansion of Brooks Fiber's relationship with AT&T and provides for origination and termination of customer calls to be completed through the Brooks network nationwide, thus bypassing the incumbent local exchange carrier. -- Formed a joint venture with MaineCom Services, Inc., a wholly owned subsidiary of Central Maine Power, Inc., to develop telecommunications networks A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. in Portland, Maine Portland is the largest city in the U.S. state of Maine, with a 2004 population of 63,882. Portland is Maine's cultural, social and economic capital. Tourists are drawn to Portland's historic Old Port district along Portland Harbor, which is at the mouth of the Fore River and part , and in Manchester and Nashua, New Hampshire Nashua is a city in Hillsborough County, New Hampshire, USA. As of the 2000 census, Nashua had a total population of 86,605[1], making it the second largest city in the state after Manchester. As of 2005, the population is estimated to be 87,986. . -- Completed the acquisition of the assets of Phoenix Fiberlink ("PFI PFI Pay for Inclusion (web search engines) PFI Private Finance Initiative PFI Private Finance Initiative (UK) PFI Prison Fellowship International PFI Port Fuel Injection (engines) "), a provider of competitive local telecommunications services in the Salt Lake City, Utah For ships of the United States Navy of the same name, see . Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. and Reno, Nevada metropolitan markets with plans for the development of a telecommunications network in Boise, Idaho “Boise” redirects here. For other uses, see Boise (disambiguation). Boise is the capital and most populous city of the U.S. state of Idaho. It is the county seat of Ada County and the principal city of the Boise metropolitan area. . -- Completed a secondary offering of 6,724,979 shares of common stock, significantly increasing the liquidity of the Company's shares. Brooks Fiber Properties, Inc., headquartered in St. Louis, Missouri, is a leading full service provider of competitive local telecommunications services in cities across 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. . With networks installed or under construction in 44 markets, the company provides its customers with advanced and reliable high-capacity voice, video, data, and other enhanced services Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; . The statements contained in this release which are not historical facts are 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. that involve risks and uncertainties. Management wishes to caution the reader that these forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Company. Such risks include, but are not limited to, the Company's ability to move toward EBITDA breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations and the Company's ability to successfully market its services to current and new customers, access markets, identify, finance and complete suitable acquisitions, design fiber optic backbone routes, install cable and facilities, including switching, and obtain rights-of-way, building access rights and any required governmental authorizations, franchises and permits, all in a timely manner, at reasonable costs and on satisfactory terms and conditions, as well as favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. regulatory, legislative and judicial developments. You can now receive fax copies of recent Brooks Fiber news releases 24 hours a day by calling 1-888-329-2304 and or visit Brooks Fiber on the Internet at www.Brooks.net -0-
BROOKS FIBER PROPERTIES, INC.
Unaudited Financial Highlights
(In thousands, except per share data and statistical data)
Three Months Ended
March 31, 1997
Statements of Operations 1997 1996
Revenues $ 20,550 $ 6,795
Costs and expenses:
Services costs 11,003 2,868
Selling, general and administrative
expenses 15,852 6,621
Depreciation and
amortization 8,736 2,427
Loss from operations (15,041) (5,121)
Interest income
(expense), net (9,633) (2,042)
Net loss before
minority interest (24,674) (7,163)
Minority interest 8 523
Net loss $(24,666) $ (6,640)
Net loss per share $ (0.77) $ (0.34)
Weighted average number of shares
outstanding 32,171 19,524
EBITDA $ (6,305) $ (2,694)
Three Months Ended
June 30, Sept. 30, Dec. 31, March 31,
Statements of Operations 1996 1996 1996 1997
Revenues $ 8,409 $ 12,943 $ 17,428 $ 20,550
Costs and expenses:
Services costs 3,592 6,125 8,884 11,003
Selling, general and
administrative expenses 8,725 10,158 13,092 15,852
Depreciation and
amortization 3,166 4,265 6,437 8,736
15,483 20,548 28,413 35,591
Loss from operations (7,074) (7,605) (10,985) (15,041)
Interest income
(expense), net (3,296) (2,837) (6,471) (9,633)
Net loss before
minority interest (10,370) (10,442) (17,456) (24,674)
Minority interest 615 451 -- 8
Net loss $ (9,755) $ (9,991) $(17,456) $(24,666)
Net loss per share $ (0.40) $ (.35) $ (0.58) $ (0.77)
Weighted average number of
shares outstanding 24,323 28,368 30,294 32,171
EBITDA $ (3,908) $ (3,340) $ (4,548) $ (6,305)
BROOKS FIBER PROPERTIES, INC.
Condensed Consolidated Financial Results
(Unaudited)
(In thousands, except per share data)
March 31 Percent
Selected Statistical Data 1997 1996 Change
Cities in operation 26 13 100%
Cities under construction 11 12 n/a
Buildings connected on-net 1,071 495 116%
Buildings connected off-net 1,739 - n/a
Total buildings connected 2,810 495 468%
Route miles 1,253 507 147%
Switches installed 21 3 600%
CLEC lines in service 36,075 5,944 507%
VGE circuits 668,494 165,122 305%
Number of employees 1,054 456 131%
March 31, 1997 Dec. 31, 1996
Condensed Balance Sheets
ASSETS
Current assets $ 374,271 $ 470,162
Networks and equipment, net 383,694 290,341
Other assets, net 165,023 119,078
Total assets $ 922,988 $ 879,581
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 45,159 $ 34,937
Long-term debt, less
current portion 567,138 552,810
Total liabilities 612,297 587,747
Minority interests 3,452 --
Shareholders' equity 307,239 291,834
Total liabilities and
shareholders' equity $ 922,988 $ 879,581
BROOKS FIBER PROPERTIES, INC.
(Unaudited)
Grand Rapids Switch Services
Selected Financial and Statistical Data
(In thousands, except statistical data)
Condensed Financial Data
Qtr Ended Qtr Ended Qtr Ended
Sept. 30, Dec. 31, March 31,
1996 1996 1997
Annualized Annualized Annualized
Switched services revenues $ 8,774 $ 13,063 $ 17,432
Cost of goods sold 2,696 3,827 6,084
Gross profit 6,078 9,236 11,348
Service costs 1,185 1,460 998
Selling, general and
administrative expense 3,740 3,950 4,344
EBITDA before corporate
allocations $ 1,153 $ 3,826 $ 6,006
EBITDA% 13% 29% 35%
Statistical Data
Dec. 31, March 31,
Lines in Service (At End of Period) 1996 1997
Lines in Service:
Business 11,778 14,492
Residential 5,005 5,805
Total 16,783 20,297
Lines in Backlog 3,130 2,513
Total In Service and Backlog 19,913 22,810
Dec. 31, March 31,
Revenue/Cost per Line (for the Quarter Ended) 1996 1997
Revenue
Local Service $ 45.35 $ 47.59
Local Call Termination 21.12 23.07
Long Distance Call Termination/Origination 4.68 4.48
Other .22 0.23
$ 71.37 $ 75.37
Cost of Sales
Unbundled Local Loop Charge $ 6.33 $ 6.94
Call Termination Charges 10.78 12.04
Other 3.80 7.32
$ 20.91 $ 26.30
CONTACT: Brooks Fiber Properties Inc., St. Louis Waymon R. Tipton, 800/799-8914 ext. 313 |
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