CAIS Internet Reports 3Q Earnings.WASHINGTON--(BUSINESS WIRE)--Nov. 8, 1999-- 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 third quarter ended September September: see month. 30, 1999. Net revenues for the third quarter of 1999 were $2.7 million, which represents an increase of 98% over the third quarter 1998 revenues of $1.4 million, and a 48% increase over second quarter 1999 revenues of $1.8 million. The Company reported a third quarter 1999 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 of $15.0 million, or $(0.73) per share. This compares to a loss from continuing operations of $2.9 million, or $(0.29) per share for the third quarter of 1998. After excluding certain non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. during the third quarter of 1999 for depreciation, amortization and stock option compensation charges, the Company's third quarter 1999 loss from continuing operations was $12.2 million, or $(0.59) per share. Net revenues of $6.1 million for the nine months ended September 30, 1999 represent a 56% increase over net revenues of $3.9 million for the nine months ended September 30, 1998. Loss from continuing operations was $28.8 million, or $(1.92) per share, for the nine months ended September 30, 1999. This compares to $7.5 million, or $(0.76) per share, for the nine months ended September 30, 1998. After excluding certain non-cash charges during the nine months ended September 30, 1999 for depreciation, amortization, fair value of stock issued for services and stock option compensation charges, the Company's loss from continuing operations for the nine months ended September 30, 1999 was $21.4 million, or $(1.43) per share. The nine month period ended September 30, 1999 also included the one-time extraordinary charge of $551,000 upon 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 and a loss of $340,000 from a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. , which was spun off during the first quarter of 1999. Per share calculations are based on average weighted shares outstanding of 20.6 million and 15.0 million for the three month and the nine month periods ending September 30, 1999, respectively, compared to 10.0 million and 9.8 million shares for the comparable 1998 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 and the issuance of 2.6 million shares for two acquisitions completed in September 1999. Also of note, CAIS Internet unveiled this morning its CAIS Content Portal prototype for testing in the existing CAIS properties under master agreement, and announced its plans to roll-out in January 2000 as new properties are installed. Key Developments: Bass Hotels Bass Hotels announced its letter of intent to put CAIS broadband access See broadband and wireless broadband. solutions under master agreement in its properties nationwide. The announcement solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. CAIS leadership in one of its key multi-user markets -- the hospitality industry, in which CAIS has master contracts covering in more than 9,000 properties in 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. . Cendant Corporation CAIS Internet announced that it was awarded the contract for Cendant Corporation, putting the largest market footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. in hospitality industry under CAIS Internet master agreement -- 700,000 guest rooms and 6,000 meeting rooms. CAIS will also integrate 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. solutions in lobbies and common areas, powered by IPORT (CAIS Software Solutions). CAIS is also the exclusive provider of the reservations and data network for all Cendant properties nationwide. Qwest Communications
CAIS Internet announced that Qwest Communications took a 6.2% ownership stake in the company through a $15 million investment, and made a multi-million dollar IRU Iru (ī`r  ), in the Bible, Caleb's eldest son. deal with Qwest to bring the total of
CAIS network POPs to 38 nationwide. The deal with Qwest put CAIS a year
ahead of schedule to build out its state-of-the-art network, and marked
a key equity stake by Qwest in the broadband broadbandTerm describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). company. Staybridge Suites Staybridge Suites is a brand name applied to hotels within the InterContinental Hotels Group. Staybridge Suites Staybridge Suites® is an innovative all-suite hotel brand designed to meet the needs of extended-stay guests. by Holiday Inn CAIS Internet announced a master agreement for broadband access and content with Staybridge Suites by Holiday Inn. The agreement marked the first brand standard for broadband access in the extended stay hospitality market. Carlson Properties Worldwide CAIS Internet inked a deal to service more than 420 properties worldwide, including top hospitality brands like Radisson, and others. The master agreements, brokered with VirtuaLINC for IP video networking, gave CAIS wide coverage with significant chains in a key CAIS market. Tarragon tarragon (târ`əgŏn), perennial aromatic Old World herb (Artemisia dracunculus) of the family Asteraceae (aster family), of the same genus as wormwood and sagebrush. Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Trust CAIS Internet was chosen as the in-residence solution for 75 properties, or 16,000 residences. Tarragon announced its plans to use the CAIS customer support, lobby Internet kiosk powered by IPORT, content and access system to create a property-wide network to serve its residents. Acquisition - CAIS's Business AnywhereTM CAIS Internet acquired Business Anywhere, to expand its public area services portfolio. Business Anywhere centers are self-operated, self-contained units that offer the most popular business services to travelers on-the-go, including round-the-clock access to printers, fax machines, copiers, and PCs with Internet connectivity. The services are activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. by touch-screen, and are remotely monitored. Acquisition - CAIS Software Solutions (formerly Atcom, Inc.) Developer of the IPORT server and software solutions, CAIS Software Solutions became a part of CAIS, with the deal closing in September. CAISsoft developed the industry-leading IPORT software line, which provides advanced feature-set server software and kiosk client solutions for multi-user environments like hotels and apartment communities, as well as remote locations like shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into , airports, travel plazas and lobbies and common areas. About CAIS Internet, Inc. CAIS is a leading broadband access solutions provider - reaching captive captive said of naturally wild or feral animals kept in captivity for educational and scientific investigation with no attempt being made to domesticate them. audiences with its connectivity, software, content and systems in new and emerging Internet markets. Internet access See how to access the Internet. and enhanced Internet services represent two of the fastest growing segments of the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. marketplace - and works to lead that growth. From initial order, to installation, to customer support, to online content and interactive services, CAIS delivers a total broadband solution in places like hotels, SOHOs, airports, single family homes, 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. , truck stops, apartment communities and businesses. CAIS Internet works in partnership with its subsidiaries CAIS Software Solutions and Business AnywhereTM centers. CAIS's third quarter conference call replay information will be available at www.cais.com. Cautionary Notice Concerning Forward Looking Statements This release contains statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc CAIS's future expectations and business strategies or other "forward-looking" information. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the statements. Important factors that may cause actual results to differ from projections include, among others: changes in business conditions; changes in the Internet services industry and the general economy; our limited operating history; our ability to manage rapid growth; our ability to enter into joint ventures and other strategic relationships with companies on terms acceptable to us; and the impact of computer and related problems that may arise from the Year 2000 problem Year 2000 problem, Y2K problem, or millennium bug, in computer science, a design flaw in the hardware or software of a computer that caused erroneous results when working with dates beyond Dec. 31, 1999. on our business. -0-
CAIS INTERNET, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
Net revenues $2,682 $1,357 $6,102 $3,924
Cost of services 2,558 776 5,126 2,243
Operating expenses:
Selling, general and
administrative 13,333 2,471 22,813 6,712
Depreciation and
amortization 1,738 374 2,485 944
Fair value of stock
issued to third party
for services - - 723 -
Non-cash compensation 1,009 356 4,130 1,068
------------------- -------------------
Total operating
expenses 16,080 3,201 30,151 8,724
------------------- -------------------
Loss from operations (15,956) (2,620) (29,175) (7,043)
Interest income (expense),
net
Interest income 1,190 - 1,730 -
Interest expense (198) (295) (1,330) (469)
------------------- -------------------
Total interest
income (expense),
net 992 (295) 400 (469)
------------------- -------------------
Loss from continuing
operations before income
taxes (14,964) (2,915) (28,775) (7,512)
Provision for income
taxes - - - -
------------------- -------------------
Loss from continuing
operations (14,964) (2,915) (28,775) (7,512)
Income (loss) from
discontinued
operations - (249) (340) 116
------------------- -------------------
Loss before extraordinary
item (14,964) (3,164) (29,115) (7,396)
Extraordinary item --
early extinguishment
of debt - - (551) -
------------------- -------------------
Net loss 14,964) (3,164) (29,666) (7,396)
Dividends on preferred
stock (3,851) - (4,201) -
------------------- -------------------
Net loss attributable to
common stockholders $(18,815) $(3,164) $(33,867) $(7,396)
=================== ===================
Basic and diluted earnings
(loss) per share:
Continuing operations,
less dividends on
preferred stock $(0.91) $(0.29) $(2.20) $(0.76)
Discontinued operations - (0.03) (0.02) 0.01
Extraordinary item - - (0.04) -
------------------- -------------------
Total $(0.91) $(0.32) $(2.26) $(0.75)
=================== ===================
Weighted-average common
shares outstanding --
basic and diluted 20,586 9,966 14,955 9,834
=================== ===================
CAIS INTERNET, INC.
CONSOLIDATED SELECTED BALANCE SHEET DATA
(in thousands)
Sept. 30, 1999 Dec. 31, 1998
(Unaudited)
Cash and cash equivalents $52,981 $95
Short term investments 16,501 -
Working capital (deficit) 32,376 (9,374)
Total assets 192,976 14,521
Long term debt, net of current portion - 10,767
Stockholders' equity (deficit) 134,912 (14,761)
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