CAIS Internet Exceeds 2Q Analysts' Concensus by $0.02 Per Share.Business Editors/Hi-Tech Writers WASHINGTON--(BUSINESS WIRE)--Aug. 7, 2000 CAIS CAIS - Common APSE Interface Specification 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 , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CAIS) today reported its financial results for the second quarter ended June 30, 2000. Our quarterly revenues, cash earnings per share, and earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
"We had a great quarter from a financial perspective," said Ulysses G. Auger auger (ô`gər): see drill. auger Tool (or bit) used with a carpenter's brace for drilling holes, usually in wood. It looks like a corkscrew and produces extremely clean holes, almost regardless of how large the bit is. II, 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. , CAIS Internet. "Our increased revenues, continued roll-out in our targeted markets, and strategic alliances with key companies such as Microsoft and 3Com will continue to bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz our business model and our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. commitment to providing broadband Internet access Broadband Internet access, often shortened to just "broadband", is high speed Internet access—typically contrasted with dial-up access over modem. Dial-up modems are generally only capable of a maximum bitrate of 56 kbit/s (kilobits per second) and require the full use of a solutions on a nationwide basis." Net revenues for the second quarter of 2000 were $8.7 million, which represents an increase of 378% over the second quarter 1999 revenues of $1.8 million, and a 26% increase over first quarter 2000 revenues of $6.9 million. The Company reported a second quarter 2000 loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , excluding amortization of acquisition related costs and certain one-time charges, of $26.9 million, or $(1.17) per share, $0.02 per share better than the consensus forecasts of the analysts covering our stock. This compares to a loss from continuing operations, excluding amortization of acquisition related costs, of $21.0 million, or $(0.91) per share, for the first quarter of 2000. The above second quarter 2000 loss from continuing operations does not include $8.0 million of one-time charges related to the accounting treatment for accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the on 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. issued to strategic investor Kohlberg Kravis & Roberts (KKR KKR Korringa-Kohn-Rostoker (method) KKR Kohlberg, Kravis & Roberts & Co. KKR Kalkara (postal locality, Malta) KKR Kramers-Kronig Relations KKR Komarappa Gounder Ramalingam (hospital in India) ) and certain fees on preferred stock issued to KKR and 3Com Corporation during the quarter, most of which are non-cash items. It also does not include a one-time charge of $10.3 million related to non-cash stock charges to satisfy certain contractual rights A contractual right is a claim, on other persons, that is acknowledged and perhaps reciprocated among the principals associated with that claim. Specialized contractual rights exist as part of a "contract" or agreement between persons to whom these rights belong. and a premium paid on the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of treasury stock. These items are included in the net loss attributable to common stockholders for the three months ending June 30, 2000. Net revenues of $15.5 million for the six months ended June 30, 2000 represent a 354% increase over net revenues of $3.4 million for the six months ended June 30, 1999. Loss from continuing operations, excluding amortization of acquisition related costs and certain one-time costs, was $47.9 million, or $(2.08) per share, for the six months ended June 30, 2000. This compares to a loss from continuing operations, excluding amortization of acquisition related costs, of $13.8 million, or $(1.14) per share, for the six months ended June 30, 1999. Per share calculations are based on weighted average shares outstanding of 23.0 million for both the three month and the six month periods ended June 30, 2000, respectively, compared to 14.3 million and 12.1 million shares for the comparable 1999 periods. The increase in the number of shares is largely attributable to the company's sale of 6.8 million shares of common stock in its May 1999 initial public offering, the issuance of 2.9 million shares in May 1999 related to the conversion of preferred stock issued prior to the offering, and the issuance of 2.6 million shares for two acquisitions completed in September 1999. The following is a summary of the key developments during the second quarter. In addition, on Friday, August 4, 2000, CAIS announced the closing of a previously reported $40 million cash investment by Microsoft Corp. KEY CAIS ANNOUNCEMENTS DURING THE SECOND QUARTER 2000 06/26/00 CAIS Internet and Windsor Hospitality Group announce a deal to bring high-speed Internet See broadband. access in Windsor's nearly 5,500 suites and guest rooms. Windsor Hospitality Group, a division of Windsor Capital Group, owns and/or manages a portfolio of 24 hotels in 11 states. CAIS' solution will be among the first of its kind to be provided in Windsor's hotels and enables users to access the Internet at speeds up to 175 times faster than the standard dial-up connection. 06/21/00 CAIS Internet and INNCOM International will offer the most advanced, integrated, high speed Internet and in-room automation solutions for hotel guests nationwide. Using the existing in-building network that CAIS deploys, INNCOM's solution will result in a hotel room that is more convenient for the guest and more cost-efficient for the hotel owner. 06/15/00 CAIS Internet and 3Com announce the closing of 3Com's $20 million investment in CAIS. The investment, in the form of a convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". at $36.00 per share, is the final step in the alliance announced by CAIS and 3Com on March 20, 2000. 06/13/00 Business Anywhere USA Inc announce the launch of K.I.O.S.K.- a revolutionary design to provide unlimited business needs to tech-savvy travelers in a limited space. 05/31/00 Move.com Group and CAIS Internet announce that move.com, through its premier relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. site, www.rent.net, will exclusively promote CAIS as the preferred provider of high speed Internet services to the more than 13,000 client communities represented on Rent Net. The pact is PACT I - An early system on the IBM 701. Version PACT IA was for the IBM 704. [Listed in CACM 2(5):16 (May 1959)]. the second major agreement forged forge 1 n. 1. A furnace or hearth where metals are heated or wrought; a smithy. 2. A workshop where pig iron is transformed into wrought iron. v. between CAIS and affiliates of Cendant Corporation. In October 1999, Move.com's parent company, Cendant Corporation, announced an alliance with CAIS to bring high speed Internet connectivity to the company's franchised hotels. 05/10/00 PlanSoft Corporation and CAIS Internet announce a strategic relationship targeted at assisting meeting and event planners locate and contract with CAIS-serviced facilities. By working with CAIS, meeting and event planners using PlanSoft will now be able search for facilities that feature CAIS high speed Internet access See how to access the Internet. , giving them access to such amenities as email and other business services, e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. , and entertainment. 05/04/00 CAIS Internet and Akamai Technologies Akamai Technologies, Inc. (NASDAQ: AKAM) is a company that provides a distributed computing platform for global Internet content and application delivery, headquartered in Cambridge, Massachusetts. announce an expanded agreement that will enable greater network efficiency and streamlined delivery of media-rich content. The agreement will also protect the network against peak crowd usage of popular media-rich Web sites. 05/03/00 CAIS Internet and Microsoft Corporation (company) Microsoft Corporation - The biggest supplier of operating systems and other software for IBM PC compatibles. Software products include MS-DOS, Microsoft Windows, Windows NT, Microsoft Access, LAN Manager, MS Client, SQL Server, Open Data Base Connectivity (ODBC), MS Mail, announce a broad, three-tiered alliance that will bring enhanced broadband services See broadband and broadband service provider. and content to millions of customers nationwide, and in select international markets. The deal, highlighted by a $40 million equity investment by Microsoft, will result in a co-branded version of the MSN (1) (MicroSoft Network) A family of Internet-based services from Microsoft, which includes a search engine, e-mail (Hotmail), instant messaging (Windows Live Messaging) and a general-purpose portal with news, information and shopping (MSN Directory). portal that will include access to such award-winning MSN properties such as MSN Hotmail(R), MSN eShop, Expedia.com(R), MSNBC MSNBC Microsoft/National Broadcasting Company News, MSN Messenger Microsoft's instant messaging (IM) service, which provides text messaging and voice calling. Part of the MSN Network, MSN Messenger clients are available for non-XP versions of Windows, Mac, Pocket PC and MSN TV. For Windows XP, the IM client is Windows Messenger. Service, MSN MoneyCentral(TM), MSN Entertainment and MSN HomeAdvisor(TM). The deal will also give Microsoft the option to participate with CAIS in multifamily dwelling dwelling an abnormality of gait in a horse in which there is a momentary hesitation before the foot is placed on the ground. unit industries. 04/17/00 Kohlberg Kravis Roberts Kohlberg Kravis Roberts & Co (commonly referred to as KKR) is a New York City-based private equity firm that focuses primarily on late-stage leveraged buyouts. It was founded in 1976 by Jerome Kohlberg, Jr., and cousins Henry Kravis and George R. (KKR) purchase an additional $26.1 million of convertible preferred stock, with a conversion price of $16.50 per share. On Feb. 28, 2000, CAIS announced that it had successfully completed the sale of $73.9 million of convertible preferred stock. KKR has now invested $100 million in CAIS Internet. 04/03/00 CAIS Software Solutions and Copper Mountain Network (Nasdaq: CMTN) announce a deal that will bring CAISsoft's IPORT server to Copper Mountain Networks' CopperPowered Hotel(TM) Initiative, an industry-wide coalition serving the hotel industry. Using IPORT BPS (Bits Per Second) The measurement of the speed of data transfer in a communications system. 1. BPS - Basic Programming Support 2. bps - bits per second , the CopperPowered Hotel Initiative will provide a complete solution for ISPs serving the hospitality industry, thereby enabling hotel guests to access enterprise networks or the Internet, hotel billing, and in-room services such as guest room dining. About CAIS Internet CAIS Internet, Inc. (Nasdaq: CAIS) is a leading broadband access See broadband and wireless broadband. solutions company. CAIS provides customers with comprehensive high speed Internet solutions while in hotel guest and meeting rooms, at home in apartments, at work during the day in small-to-medium businesses, or on-the-go at airports, travel plazas, cruise ships This is a list of cruise ships, both those in service and those that have since ceased to operate. Both cruise ships and cruiseferries are included in this list. (Ocean liners are not included on this list, see List of ocean liners. , and retail stores. Whether it's creating a low cost in-building network and content service for multiple users with proprietary and patented technologies, providing a public area Internet kiosk kiosk Originally, in Islamic architecture, an open circular pavilion consisting of a roof supported by pillars. The word has been applied to a Turkish summer garden pavilion and a type of early Persian mosque. , or giving businesses daytime Daytime may refer to:
connectivity with DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary & leased-line dedicated access, the company delivers a cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. , easy and convenient Internet experience for customers. The customer experience is the result of a one-stop, integrated solutions package of innovative CAIS network access and technologies, IPORT software, customer support, portal content and systems.
CAIS INTERNET, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except share and per share data)
June 30, December 31,
2000 1999
--------- ---------
(Unaudited)
Current assets
Cash and cash equivalents $ 25,766 $ 17,120
Short-term investments 9,758 16,501
Accounts receivable, net 7,484 3,090
Prepaid expenses and other
current assets 7,437 2,571
--------- ---------
Total current assets 50,445 39,282
Property and equipment, net 157,740 90,476
Deferred debt financing
costs, net 1,230 1,499
Intangible assets and
goodwill, net 53,105 51,059
Receivable from officers 450 450
Other assets 6,232 4,185
--------- ---------
Total assets $ 269,202 $ 186,951
--------- ---------
Current liabilities
Accounts payable and
accrued expenses $ 67,926 $ 53,779
Obligations under capital
lease 44 312
Current portion of
long-term debt 12,231 2,680
Unearned revenues 1,870 846
--------- ---------
Total current liabilities 82,071 57,617
Long-term debt 15,078 --
Other long-term liabilities 668 718
--------- ---------
Total liabilities 97,817 58,335
--------- ---------
Series C cumulative mandatory
redeemable convertible
preferred stock 15,000 15,319
--------- ---------
Series D cumulative mandatory
redeemable convertible
preferred stock 101,846 --
--------- ---------
Series G cumulative mandatory
redeemable convertible
preferred stock 20,017 --
--------- ---------
Put warrants 1,267 1,267
--------- ---------
Stockholders' equity
Common stock, $0.01 par value;
100,000,000 shares authorized;
23,717,780 and 22,608,331 shares
issued, and 23,105,014 and
22,595,565 shares outstanding,
respectively 237 226
Additional paid-in capital 222,056 188,569
Warrants outstanding 51,386 13,234
Deferred compensation (1,844) (2,673)
Treasury stock, 612,766 shares
and 12,766 shares
of common stock, respectively (16,838) (150)
Accumulated deficit (221,742) (87,176)
--------- ---------
Total stockholders' equity 33,255 112,030
--------- ---------
Total liabilities and
stockholders' equity $ 269,202 $ 186,951
========= =========
CAIS INTERNET, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Net revenues $ 8,650 $ 1,811 $ 15,517 $ 3,420
Cost of revenues 7,600 1,518 13,612 2,568
Operating expenses:
Selling, general
and administrative 21,577 5,633 40,063 9,380
Research and
development 1,364 56 2,549 100
Depreciation and
amortization 8,531 397 14,283 747
Non-cash
compensation 410 2,729 829 3,121
Premium on treasury
stock and stock
charges 10,348 -- 10,348 --
Fair value of stock
issued to third
party for services -- 723 -- 723
-------- ------- -------- -------
Total operating
expenses 42,230 9,538 68,072 14,071
-------- ------- -------- -------
Loss from operations (41,180) (9,245) (66,167) (13,219)
Interest income
(expense), net:
Interest income 786 540 1,441 540
Interest expense (902) (455) (1,219) (1,132)
-------- ------- -------- -------
Total interest
income (expense),
net (116) 85 222 (592)
-------- ------- -------- -------
Loss from continuing
operations (41,296) (9,160) (65,945) (13,811)
Loss from
discontinued
operations -- -- -- (340)
-------- ------- -------- -------
Loss before
extraordinary item (41,296) (9,160) (65,945) (14,151)
Extraordinary item --
early extinguishment
of debt -- (551) -- (551)
-------- ------- -------- -------
Net loss (41,296) (9,711) (65,945) (14,702)
Dividends and
accretion on
preferred stock (9,773) (179) (68,621) (351)
-------- ------- -------- -------
Net loss attributable
to common stockholders $ (51,069) $ (9,890) $(134,566) $ (15,053)
======== ======= ======== =======
BASIC AND DILUTED
EARNINGS (LOSS) PER
SHARE:
Basic and diluted
loss per share:
Loss attributable to
common stockholders
before discontinued
operations and
extraordinary item $ (2.22) $ (0.65) $ (5.86) $ (1.16)
Discontinued
operations -- -- -- (0.03)
Extraordinary item -- (0.04) -- (0.05)
-------- ------- -------- -------
Total $ (2.22) $ (0.69) $ (5.86) $ (1.24)
======== ======= ======== =======
Basic and diluted
weighted-average
shares outstanding 23,036 14,307 22,977 12,139
======== ======= ======== =======
SUPPLEMENTAL LOSS
PER SHARE CALCULATION:
Loss from continuing
operations (41,296) (9,160) (65,945) (13,811)
Amortization of
acquisition related
costs 4,002 -- 7,695 --
Premium on treasury
stock and stock charges 10,348 -- 10,348 --
-------- ------- -------- -------
Loss from continuing
operations, excluding
amortization of
acquisition related costs $ (26,946) $ (9,160) $ (47,902) $ (13,811)
======== ======= ======== =======
Loss per share, excluding
dividends and accretion
on preferred stock:
Loss from continuing
operations $ (1.79) $ (0.64) $ (2.87) $ (1.14)
======== ======= ======== =======
Loss from continuing
operations, excluding
amortization of
acquisition related
costs and premium on
treasury stock and
stock charges $ (1.17) $ (0.64) $ (2.08) $ (1.14)
======== ======= ======== =======
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