BROOKS FIBER PROPERTIES REPORTS RECORD SECOND QUARTER REVENUES; ACHIEVES SEQUENTIAL QUARTERLY REVENUE GROWTH OF 35%.ST. LOUIS--(BUSINESS WIRE)--July 21, 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 record results for the second quarter and six months ended June June: see month. 30, 1997. Net revenues for the second quarter ended June 30, 1997, totaled $27.8 million, a sequential quarterly growth rate of 35%, and an increase of 230% compared with $8.4 million for the second quarter ended June 30, 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 second quarter was ($8.6) million compared with ($3.9) million recorded in the second quarter of 1996. The net loss for the second quarter, before a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge related to the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt, was $34.1 million, or $0.94 per share, compared with a net loss of $9.8 million, or $0.40 per share, in the prior year~s second quarter. Net revenues for the six months ended June 30, 1997, totaled $48.3 million, an increase of 218% compared with $15.2 million for the six months ended June 30, 1996. EBITDA for the first six months of 1997 was ($15.0) million compared with ($6.6) million recorded in the same period in 1996. The net loss for the first six months of 1997, before a one-time charge related to the early extinguishment of debt, was $58.8 million, or $1.72 per share, compared with a net loss of $16.4 million, or $0.75 per share, in the first six months of 1996. 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, said "In the first quarter we experienced an industry leading sequential revenue growth rate of 18%, or 17% excluding acquisitions. We are extremely pleased to report that the sequential growth rate for the second quarter dramatically accelerated to 35%, or 28% excluding acquisitions. This growth rate was highlighted by strong across-the-board growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. in all four major divisions of the Company. Revenues for dedicated access were up 43%; switched service revenues were up 39%; long distance revenues were up 21%; and system integration revenues were up 49%. "The increase in revenues demonstrates the continued strong demand for our services and reflects the impact of the Company's successful acquisition and development strategy. One of the primary drivers of revenue growth has been the rapid increase in 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. During the first quarter we provisioned more lines in service than any other CLEC in the nation. This quarter's results reveal a 54% sequential growth rate in total lines served with 19,331 lines added bringing the lines in service to 55,406 at June 30, 1997. "By every measure, Brooks Fiber made impressive gains during the second 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 381% to 3,409 buildings as of June 30, 1997, compared with 709 buildings as of June 30, 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 275% to 911,006 VGE circuits at the end of the second quarter of 1997 compared with 243,171 VGE circuits at the end of the second quarter of 1996. The Company had operational networks that covered 2,084 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 June 30, 1997, a 196% increase compared with 705 route miles in service as of June 30, 1996. Total fiber miles increased to 171,928 at the end of the second quarter of 1997 compared with 43,152 at the end of the second quarter of 1996. Finally, CLEC lines in service increased 54% sequentially to 55,406 for the second quarter from 36,075 at the end of the first quarter of 1997." Allen added, "Of equal importance to the accelerating revenue growth rate is our increased confidence that EBITDA losses peaked during the second quarter, and we continue to expect to see the Company 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 by the end of the first half of 1998. Our belief in this concept is evidenced by the fact that all our operating networks that have been in existence for three years or longer currently have combined 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. EBITDA of $15.5 million, or 38% of revenues before corporate allocations. We will begin reporting this quarter combined dedicated and switched services operating results for every market that has been in operation for at least three years (we currently have four markets that meet this definition). We believe this will allow investors to better understand the total results of operations in all of our somewhat more mature markets. These results of operation are shown on Exhibit 1 and include the cities of Grand Rapids, Michigan “Grand Rapids” redirects here. For other uses, see Grand Rapids (disambiguation). Grand Rapids is a city in the U.S. state of Michigan. As of the 2000 census, the city population was 197,800. ; Tulsa, Oklahoma Tulsa is the second-largest city in the state of Oklahoma and 45th-largest in the United States. With an estimated population of 382,872 in 2006,[1] it is the principal municipality of the Tulsa Metropolitan Statistical Area, a region of 897,752 residents projected to ; Springfield, Massachusetts Springfield is a city in Massachusetts, United States. It is the county seat of Hampden County.GR6 In the 2000 census, the city population was 154,082. ; and Sacramento, California “Sacramento” redirects here. For other uses, see Sacramento (disambiguation). Sacramento is the capital of the State of California and the county seat of Sacramento County. ." Additional operating milestones achieved by Brooks Fiber during the second quarter of 1997 included the following: -- 48% of the Company's currently operational dedicated access networks 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. positive annualized EBITDA before corporate allocations of $16.3 million for the quarter. In addition, positive annualized EBITDA before corporate allocations of $7.6 million was recorded in the Company's 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, switched services operations. -- Completed the acquisition and integration of Century Telephone's MetroAccess Networks significantly expanding the Company's 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 into seven Texas cities. -- Increased the Company's investment in Verio Verio is an internet service provider (ISP) in the United States. Incorporated in 1996 in Denver, Colorado, it is currently a wholly owned subsidiary of Nippon Telegraph and Telephone (NTT) Communications, which purchased it in 2000. , Inc., an Englewood, Colorado Englewood is a city in Arapahoe County, Colorado, USA. As of 2005, the city is estimated to have a total population of 32,350.[5] It is part of the Denver-Aurora Metropolitan Area. based national Internet service provider 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. (ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. ) that targets small and mid-size business and institutional customers. Brooks Fiber owns approximately 23% of Verio Inc. -- Expanded 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. preferred provider dedicated access agreement to 37 cities, significantly expanding the Company~s relationship with the nation's second largest long distance provider. -- Completed a $250 million private placement of senior notes at an interest rate of 10% with a final maturity date of June 1, 2007. This financing was completed at a spread to treasuries of 327 basis points. -- Received commitment for a $250 million bank credit facility which fully funds the Company's known capital needs in our current 44 markets and further reduces the Company's overall borrowing costs. Brooks Fiber Properties, Inc., headquartered in St. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. , Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. , 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 operational or under construction in 44 U.S. cities, the
company provides its customers with advanced and reliable high- capacity
voice, video, data and other enhanced telecommunications services.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 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 Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.Brooks.net -0-
BROOKS FIBER PROPERTIES, INC.
Unaudited Financial Highlights
(In thousands, except per share data and statistical data)
Three Months Ended Six Months Ended
June 30, June 30,
Statements of Operations 1997 1996 1997 1996
Revenues $ 27,786 $ 8,409 $ 48,336 $ 15,204
Costs and expenses:
Services costs 15,801 3,592 26,804 6,459
Selling, general and
administrative
expenses 20,634 8,725 36,486 15,346
Depreciation and
amortization 12,287 3,166 21,023 5,594
Loss from operations (20,936) (7,074) (35,977) (12,195)
Interest income (expense),
net (13,212) (3,296) (22,845) (5,339)
Net loss before minority
interest (34,148) (10,370) (58,822) (17,534)
Minority interest 21 615 29 1,138
Net loss (34,127) (9,755) (58,793) (16,396)
Extraordinary loss on
debt extinguishment (2,857) -- (2,857) --
Net loss after
extraordinary loss $(36,984) $ (9,755) $(61,650) $(16,396)
Net loss per share $ (0.94) $ (0.40) $ (1.72) $ (0.75)
Net loss per share after
extraordinary loss $ (1.02) $ (0.40) $ (1.80) $ (0.75)
Weighted average number
of shares
outstanding 36,209 24,323 34,190 21,923
EBITDA $ (8,649) $ (3,908) $(14,954) $ (6,601)
BROOKS FIBER PROPERTIES, INC.
Unaudited Financial Highlights
(In thousands, except per share data and statistical data)
Three Months Ended
Sept. 30, Dec. 31, March 31, June 30,
Statements of Operations 1996 1996 1997 1997
Revenues $ 12,943 $ 17,428 $ 20,550 $ 27,786
Costs and expenses:
Services costs 6,125 8,884 11,003 15,801
Selling, general and
administrative expenses 10,158 13,092 15,852 20,634
Depreciation and
amortization 4,265 6,437 8,736 12,287
Loss from operations (7,605) (10,985) (15,041) (20,936)
Interest income (expense), net (2,837) (6,471) (9,633) (13,212)
Net loss before minority
interest (10,442) (17,456) (24,674) (34,148)
Minority interest 451 -- 8 21
Net loss $ (9,991) $(17,456) $(24,666) $(34,127)
Extraordinary loss on debt
extinguishment -- -- -- (2,857)
Net loss after extraordinary
item $ (9,991) $(17,456) $(24,666) $(36,984)
Net loss per share $ (0.35) $ (0.58) $ (0.77) $ (0.94)
Net loss per share after
extraordinary item $ (0.35) $ (0.58) $ (0.77) $ (1.02)
Weighted average number
of shares outstanding 28,368 30,294 32,171 36,209
EBITDA $ (3,340) $ (4,548) $ (6,305) $ (8,649)
BROOKS FIBER PROPERTIES, INC.
Condensed Consolidated Financial Results
(Unaudited)
(In thousands, except per share data)
June 30, Percent
Selected Statistical Data 1997 1996 Change
Cities in operation 31 18 72%
Cities under construction 13 8 63%
Buildings connected on-net 1,402 644 118%
Buildings connected off-net 2,007 65 n/a
Total buildings connected 3,409 709 381%
Route miles 2,084 705 196%
Fiber miles 171,928 43,152 298%
Switches installed 22 9 144%
CLEC lines in service 55,406 9,226 501%
VGE circuits 911,006 243,171 275%
Number of employees 1,348 571 136%
June 30, Dec. 31,
1997 1996
Condensed Balance Sheets
ASSETS
Current assets $392,724 $470,162
Networks and equipment, net 498,780 290,341
Other assets, net 283,138 119,078
Total assets $1,174,642 $879,581
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $36,250 $34,937
Long-term debt, less current portion 781,529 552,810
Total liabilities 817,779 587,747
Minority interests 3,431 --
Shareholders' equity 353,432 291,834
Total liabilities and shareholders'
equity $1,174,642 $879,581
Exhibit 1
BROOKS FIBER PROPERTIES, INC.
Condensed Combined Financial Results - Selected Markets
(Unaudited)
(In thousands)
Annualized Quarterly Results
of Selected Markets
June 30, March 31,
1997 1997
Revenues $ 41,108 $ 35,870
Cost of sales 7,674 6,934
Gross margins 33,434 28,936
Service costs 4,856 3,730
Selling, general and administrative 13,111 10,692
EBITDA before corporate allocations $ 15,467 $ 14,514
CONTACT: Brooks Fiber Properties Inc., St. Louis Waymon R. Tipton, 800/799-8914 ext. 313 |
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