Clearnet Announces Third Quarter 1997 Results.PICKERING Pick·er·ing , Edward Charles 1846-1919. American astronomer noted for his work on stellar photometry. His brother William Henry Pickering , ONTARIO--(BUSINESS WIRE)--Nov. 13, 1997--Clearnet Communicati(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :NET.A.) (ME:NET.A.) (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 :CLNTF) Clearnet Clearnet may refer to:
Financial Highlights
3 Months Ended 3 Months Ended
Sept. 30, 1997 Sept. 30, 1996
-------------- --------------
(unaudited) (unaudited)
Revenue $ 22,628,000 $8,262,000
EBITDA (30,118,000) (9,361,000)
Net Loss before income taxes (54,510,000) (14,237,000)
Net Loss for the period (55,190,000) (14,564,000)
Loss per share (1.33) (0.36)
Capital Expenditures 234,943,000 42,538,000
Other Data:
Mike: -net subscriber
additions 11,175 n/a
-total end of period 29,650 n/a
-ARPU $77.76 n/a
Analogue: -net subscriber
additions (1,800) (157)
-total end of period 59,670 54,473
-ARPU $22.47 $24.50
Total Subscribers 89,320 54,473
9 Months Ended 9 Months Ended
Sept. 30, 1997 Sept. 30, 1996
-------------- --------------
(unaudited) (unaudited)
Revenue $ 57,966,000 $26,310,000
EBITDA (77,010,000) (17,519,000)
Net Loss before income taxes (140,453,000) (34,471,000)
Net Loss for the period (142,577,000) (35,416,000)
Loss per share (3.52) (0.99)
Capital Expenditures 429,635,000 101,421,000
Other Data:
Mike: -net subscriber additions 24,585 n/a
-total end of period 29,650 n/a
-ARPU $72.44 n/a
Analogue: -net subscriber additions 5,467 (155)
-total end of period 59,670 54,473
-ARPU $22.38 $23.55
Total Subscribers 89,320 54,473
CORPORATE DEVELOPMENTS Clearnet PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. Launch - In mid-October n. 1. the middle part of October. Noun 1. mid-October - the middle part of October period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" , Clearnet commercially launched Clearnet PCS, its national Personal Communications Services See PCS. ("PCS") network. Clearnet successfully launched its all-digital PCS service in the greater metropolitan areas of Vancouver Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. and Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing providing direct digital coverage to approximately 11.5 million people (POPs). Beyond its digital service areas, Clearnet PCS phones also work nationally everywhere traditional analogue (electronics) analogue - (US: "analog") A description of a continuously variable signal or a circuit or device designed to handle such signals. The opposite is "discrete" or "digital". cellular phones work in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Clearnet's unique dual-mode, dual-band PCS phones operate as digital phones in digital service areas and as cellular phones in the balance of Clearnet's national service area. As such, Clearnet believes it is the first commercial operator to successfully provide coverage through seamless intercarrier PCS CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. to AMPS hand-off. Clearnet PCS clients receive one bill at one talk-time rate from Clearnet, no matter where they use their phone in Canada. Clearnet PCS network performance since launch has been excellent and client feedback indicates that the network's digital call clarity is near landline Land based. Refers to standard telephone and data communications systems that use in-ground and telephone pole cables in contrast to wireless cellular and satellite services. quality. Clearnet launched PCS with a comprehensive and innovative marketing program including two affordable rate plans, TALK and TALK-A-LOT, a major television and print advertising campaign, no binding long term contracts, no activation activation /ac·ti·va·tion/ (ak?ti-va´shun) 1. the act or process of rendering active. 2. the transformation of a proenzyme into an active enzyme by the action of a kinase or another enzyme. 3. fees, a 30 day money-back satisfaction phone guarantee and a unique set of special benefits including free local calling on clients' birthdays. Market response has been very positive to date. In response, Clearnet has accelerated the delivery time and increased the order quantity of PCS hand-sets from its supplier, as well as expanded the capacity of its client operations areas in order to achieve desired service levels. Increased PCS Distribution - Clearnet has been successful in establishing a comprehensive distribution network for Clearnet PCS from the date of launch. Clearnet has expanded this distribution network by 25% since the mid-October launch to over 750 outlets currently with the addition of Canadian Tire Canadian Tire (TSX: CTC, CTC.A) is one of Canada's 35 largest publicly traded companies and operates an inter-related network of businesses engaged in retailing (hardgoods, apparel and petroleum) and services (financial and automotive). , Computer City, Lebeau LeBeau is a common French surname which may refer to:
This page or section lists people with the surname Vitres d'autos and Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) Stores to a roster that includes retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → operated by Blockbuster block·bust·er n. 1. Something, such as a film or book, that sustains widespread popularity and achieves enormous sales. 2. A high-explosive bomb used for demolition purposes. 3. Video, Business Depot, Future Shop, Grand & Toy, London Drugs London Drugs is a large chain of Canadian retail stores that provides a wide range of products and health services. The store carries a range of merchandise from personal care products to electronics and computers. , Battery Depot, Doppler Doppler /Dop·pler/ (dop´ler) see under ultrasonography. color Doppler color flow Doppler imaging. Computer Superstores This is a list of superstores by country. Multi-national
PCS Roaming The ability to use a communications device such as a cellphone or PDA and be able to move from one cell or access point to another without losing the connection. Agreement Providing National US Coverage - On September September: see month. 30, 1997 Clearnet announced a roaming agreement with Sprint PCS of Kansas City, Missouri Kansas City is the largest city in the state of Missouri. It encompasses parts of Jackson, Clay, Cass, and Platte counties and is the anchor city of the Kansas City Metropolitan Area, the second largest in Missouri, which includes counties in both Missouri and Kansas. , which will provide Clearnet PCS clients with extensive digital PCS coverage 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. . Clearnet expects to announce other important US roaming agreements in the fourth quarter. Clearnet expects to offer US roaming by early 1998. Mike Subscriber Growth Increases - As previously announced, Clearnet experienced increased Mike subscriber loading in the third quarter, continuing a trend since February February: see month. when the first of a series of significant handset The part of the telephone that contains the speaker and the microphone. On a desktop phone, the part you hold in your hand is the handset. On a cellphone, the entire phone is the handset. See multihandset cordless and headset. cost reductions were passed on by Clearnet to the market. Mike subscriber net additions were a record 11,175 for the third quarter (as compared to 8,631 and 4,779 in the second and first quarters, respectively) and represented a 60% increase in total Mike subscribers to 29,650. Clearnet is experiencing a continuation of increased demand for Mike to date in the fourth quarter. Mike Results Again Show Significantly Improved Operating Metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. - In addition to significant subscriber growth, in the third quarter, Clearnet experienced another significant increase in average revenue per subscriber unit A Subscriber Unit, or SU is a broadband radio that is installed at a business or residential location to connect to an Access Point to send/receive high speed data wired or wirelessly. Devices commonly referred to as a Subscriber Unit include cable modems, mobile phones, etc. per month ("ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. "), stable marketing costs per gross subscriber addition and a lower churn rate (1) The percentage of customers who cancel their online, cellphone or other subscription service during a certain time period. (2) The percentage of employees who leave the company during a certain time period. See churning. . Mike ARPU continued to increase in the third quarter to $77.76 per month from $69.20 per month for the second quarter, representing the third consecutive quarter of greater than 12% quarter over quarter increases. Based on publicly disclosed results, Clearnet believes Mike ARPU significantly exceeded the ARPU of any public cellular or PCS competitor in the third quarter. Clearnet was also encouraged by the continued reduction in the churn rate as well as the stable marketing cost per gross subscriber addition. The churn rate for the Mike network decreased to 1.52% per month for the third quarter as compared to 1.68% and 3.14% in the second and first quarters respectively. The marketing cost per gross subscriber addition was $563 in the third quarter and $582 for the nine months ended September 1997. Expanded Mike Coverage - On September 15, 1997 Clearnet launched the Mike network in the Ottawa-Hull market. Clearnet increased its population covered (POPs) in the Ontario-Quebec market by 1.1 million in the third quarter to total approximately 13.8 million as at September 30. Executive Announcements - Today Clearnet announces the promotion of Kevin Salvadori Kevin Salvadori (born December 30 1970, in Wheeling, West Virginia) is an American former professional basketball player. A 7'0" center from the University of North Carolina, Salvadori went undrafted but did manage to play for the Sacramento Kings of the National Basketball to Vice President, Client Operations and the expanded responsibilities of Eros Spadotto. Mr. Salvadori was previously Director, PCS Launch and Director, Activations and Client Care. Mr. Spadotto, a Vice President since joining Clearnet in 1995 has been appointed Clearnet's Vice President, Network and Information Services See Information Systems. and is assuming complete responsibilities for Clearnet's Information and Technology function in addition to the areas of engineering and network services for which he was previously responsible. Regulatory Developments - In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Clearnet's long standing request, Industry Canada Industry Canada is the department of the Government of Canada with responsibility for regional economic development, investment, and innovation/research and development. The department employs 6104 FTEs across Canada. has reduced Clearnet's ESMR ESMR Enhanced Specialized Mobile Radio ESMR Extended Specialized Mobile Radio (Nextel) ESMR Expert Systems Message Router ESMR Electrically/Electronically Scanned/ing Microwave Radiometer ESMR Engine Starter Motor Relay licence fees by 50% retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a to April 1, 1997 to acknowledge the efficiencies of frequency re-use. This reduction will put Clearnet's Mike network on a fee scale approximately equal to cellular service providers on a per channel basis. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL RESULTS Revenue --------------------------------------------------------------- Increase (decrease) $ in millions percent --------------------------------------------------------------- 3 month periods ended September 30: Network Revenue 5.2 131.1 Equipment sales, rental and service sales 9.1 213.9 --------------------------------------------------------------- 9 month periods ended September 30: Network Revenue 9.8 86.8 Equipment sales, rental and service sales 21.8 145.6 --------------------------------------------------------------- The increase in network revenue resulted from an increase in total subscribers to 89,320 as of September 30, 1997 from 54,473 one year earlier and a significant increase in average revenue per subscriber unit ("ARPU") per month for the third consecutive quarter to $77.76 from $69.20 per month for the second quarter representing a 12.4 percent increase. The increase in subscribers includes Mike net subscriber additions in the third quarter of 1997 of 11,175 as compared to 8,631 in the second quarter. Total subscribers on the digital Mike network were 29,650 at September 30, 1997. The increase in Mike ARPU was a result of the propensity for clients to increase usage the longer their tenure as clients and because lower revenue generating dealer units now represent a small percentage of total subscriber units. The year to date Mike ARPU for the first nine months was $72.44. The churn churn: see butter. for the Mike network decreased to 1.52 percent per month for the third quarter as compared to 1.68 percent and 3.14 percent in the second and first quarters, respectively. The significant reduction in churn rate since the first quarter is largely attributed to network coverage enhancements implemented in the past six months. The year to date Mike churn rate is 1.81 percent per month. Analogue subscribers increased to 59,670 at September 30, 1997 from 54,473 at September 30, 1996 despite conversions for the quarter to the Mike network of 2,733 and year to date conversions to Mike of 5,012. The increase was primarily due to approximately 10,000 analogue subscribers acquired in the Mobilair acquisition in the first quarter of 1997. Analogue ARPU decreased to $22.47 per month for the third quarter from $24.50 per month for the third quarter of 1996 as a result of the inclusion of the lower revenue generating Mobilair subscribers. The analogue "churn rate" (number of subscriber units disconnected, excluding conversions to the Mike network, divided by the average number of units on the network) for the three month period ended September 30, 1997 increased slightly to 1.45 percent from 1.34 percent per month for the three month period ended September 30, 1996. Equipment sales, rental and service revenue increased significantly during the third quarter and year to date as compared to the same periods one year earlier primarily as a result of significant Mike subscriber unit sales recorded in 1997 versus none in the comparative periods, as well as from sales generated by the Mobilair operations. Operating, selling, general and administrative expenses ------------------------------------------------------------- Increase (decrease) $ in millions percent ------------------------------------------------------------- 3 month periods ended September 30 35.1 199.3 9 month periods ended September 30 91.1 208.0 ------------------------------------------------------------- Operating costs operating costs npl → gastos mpl operacionales with respect to equipment sales, rental and service increased to $11.1 million and $33.1 million for the three and nine month periods ended September 30, 1997 from $2.2 million and $7.4 million for the three and nine month periods ended September 30, 1996. The increase was attributed primarily to increased Mike handset sales. Operating costs for network service increased $3.4 million and $8.2 million to $3.8 million and $9.5 million for the three and nine month periods ended September 30, 1997, respectively, as compared to the corresponding periods one year earlier, primarily as a result of increased transmission and site related costs reflecting an increase in the number of cell sites in service, expanded geographic coverage and an increased client base. Advertising and promotion expenditures increased to $4.1 million and $7.8 million for the three and nine month periods ended September 30, 1997 from $2.7 million and $3.1 million for the corresponding periods ending September 30, 1996. Expenditures in the third quarter of 1997 included $0.5 million related to the marketing and promotion of the new PCS service. The remaining costs were substantially all related to marketing the Mike service. The cost per gross Mike subscriber addition increased slightly in the third quarter of 1997 to $563 from $549 in the second quarter of 1997 and includes the full cost of handset subsidies incurred in the period. General and administrative expenses increased $21.5 million and $52.8 million to $33.7 million and $84.8 million for the three and nine month periods ended September 30, 1997, respectively, as compared to the same periods one year earlier. The increase primarily consisted of higher payroll expenses related to organizational development with respect to the October October: see month. launch of the PCS network as well as to a lesser extent, increased operations of the Mike service. As at September 30, 1997, Clearnet had 1,546 employees as compared to 585 employees at September 30, 1996 and 680 employees at December 31, 1996. Consistent with the Company's business plan, increases in operating, selling, general and administrative expenses are expected to continue to be significant and to exceed revenue generation in 1997 and 1998. Negative 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 increased in the third quarter of 1997 to $30.1 million as compared to $9.4 million for the third quarter of 1996. Negative EBITDA of $77.0 million for the nine months ended is consistent with the Company's previously disclosed projection of negative $130.0 million for the twelve months ended December 31, 1997. Negative EBITDA is expected to continue to significantly increase for at least the next 12 months until the subscriber base grows to a sufficient extent that recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. service revenues exceed the variable costs related to subscriber growth. ---------------------------------------------------------------- Depreciation and amortization ---------------------------------------------------------------- Increase (decrease) $ in millions percent ---------------------------------------------------------------- 3 month periods ended September 30 13.3 320.2 9 month periods ended September 30 35.3 291.8 ---------------------------------------------------------------- Depreciation and amortization increased for the three and nine month periods ended September 30, 1997 due primarily to the depreciation of capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) with respect to the Mike network which commenced commercial operations in the fourth quarter of fiscal 1996. ---------------------------------------------------------------- Foreign exchange ---------------------------------------------------------------- Increase (decrease) $ in millions percent ---------------------------------------------------------------- 3 month periods ended September 30 0.8 n/a 9 month periods ended September 30 1.5 n/a ---------------------------------------------------------------- The foreign exchange amount resulted from the translation of the U.S. dollar short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments and accounts payable and the amortization of foreign exchange gains and losses on the translation of the U.S. denominated senior discount notes due 2005 which are deferred and amortized on a straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. basis over the remaining life of the notes. Interest expense, net ---------------------------------------------------------------- Increase (decrease) $ in millions percent ---------------------------------------------------------------- 3 month periods ended September 30 7.0 4,607.9 9 month periods ended September 30 12.8 283.3 ---------------------------------------------------------------- Clearnet generated interest income of $3.4 million and $9.8 million for the three and nine month periods ended September 30, 1997 and $5.5 million and $13.0 million for the respective periods ended September 30, 1996, on its short-term investments. Interest expense increased to $10.5 million and $23.5 million for the three and nine month periods ended September 30, 1997 from $5.6 million and $17.5 million for the respective periods ended September 30, 1996. Interest expense increased due to the compound effect on the accreted interest for the discount notes due in 2005 and the interest 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 the discount notes issued in August 1997 which are due in 2007. Interest expense is net of interest capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. for assets under development for the three and nine month periods ended September 30, 1997 and 1996 which was $6.6 million, $10.2 million, $4.1 million and $10.4 million, respectively. Capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of interest for assets under development is for the PCS digital network build-out Build-out is an urban planner’s estimate of the amount and location of potential development for an area. Build-out is one step of the land use planning process. Evaluation of potential development impacts begins with a build-out analysis. in the periods ended September 30, 1997 and for the Mike digital network build-out for the periods ended September 30, 1996. Net loss per share ---------------------------------------------------------------- Increase (decrease) $ in millions percent ---------------------------------------------------------------- 3 month periods ended September 30 0.97 269.4 9 month periods ended September 30 2.53 255.6 ---------------------------------------------------------------- The average Class A Non-voting non-voting adj non-voting shares → azioni fpl senza diritto di voto shares outstanding for the three and nine month periods ended, assuming full conversion rights are exercised by the Class B, C and D shareholders, were 41,562,000 and 40,548,000 at September 30, 1997, respectively, and 39,981,000 and 35,892,000 at September 30, 1996, respectively. In addition, as at September 30, 1997 there were 1,211,100 warrants and 2,513,005 options outstanding. The increase in the average number of shares outstanding was principally a result of the August 1997 issuance of 2,900,000 Class A Non-Voting Shares and the May 1996 issuance of 9,200,000 million Class A Non-Voting shares. As of September 30, 1997, there were 43,022,275 Class A shares outstanding, assuming full conversion rights are exercised by the Class B, C and D shareholders. Cash Flows Clearnet used $20.4 million and $27.9 million in cash from operating activities for the three and nine month periods ended September 30, 1997, as compared to cash used in operations of $7.8 million and $0.2 million for the three and nine month periods ended September 30, 1996. Cash used in operations increased due to negative EBITDA associated with the expansion of the Mike subscriber base and expenditures in preparation for the PCS commercial launch which launched in October 1997. Cash provided by financing activities was $409.7 million and $469.9 million for the three and nine month periods ended September 30, 1997, as compared to $1.9 million and $216.4 million for the three and nine month periods ended September 30, 1996. Senior discount notes due in 2007 and 2,900,000 Class A Non-voting shares were issued in August 1997 for net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $308.5 million and $50.5 million, respectively, of which $46.8 million was used to repay amounts outstanding under the Mike bank credit facility. In addition, there was a net increase of $96.7 million and $109.4 million in non-interest bearing accounts payable for capital assets in the three and nine month periods ended September 30, 1997 with respect to the PCS build-out and the Mike network expansion. In May 1996, the Company issued 9,200,000 Class A Non-Voting shares for net proceeds of $226.5 million. Cash used in investing activities was $242.6 million and $458.7 million for the three and nine month periods ended September 30, 1997 and consisted primarily of capital asset additions of $234.9 million and $429.6 million, respectively. Capital additions consisted primarily of digital network equipment, assets under development and computer hardware and software. Total network infrastructure capital asset additions, excluding internal costs capitalized, were $343.5 million of which $279.4 million was attributable to the PCS build-out for the nine months ended September 30, 1997. Assets under development include all labour, material, transmission and related equipment, engineering, site development, building, capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. and other direct costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the construction and development of Clearnet's Mike and PCS networks in major markets prior to commercial launch. Clearnet had approximately $330.7 million in cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has on hand as of September 30, 1997. In addition, Clearnet had $640.2 million in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. outstanding consisting primarily of the senior discount notes due 2005 and 2007. As of September 30, 1997, Clearnet had shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $346.8 million.
CONSOLIDATED BALANCE SHEETS
Sept. 30 December 31
1997 1996
(In thousands of Canadian dollars) (Unaudited) (Audited)
--------------------------------------------------------------
ASSETS
Current assets
Cash and short-term investments 330,721 347,506
Trade accounts receivable
(net of allowances) 29,576 14,531
Prepaid expenses 6,239 3,959
Inventories 15,999 16,440
--------------------------------------------------------------
Total current assets 382,535 382,436
--------------------------------------------------------------
Deferred foreign exchange 1,060 -
Capital assets, net 653,157 252,313
Intangible and other assets 193,275 168,787
--------------------------------------------------------------
1,230,027 803,536
--------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities 242,669 83,922
Deferred revenue 64 97
Total current liabilities 242,733 84,019
--------------------------------------------------------------
Long-term debt 640,193 280,987
Deferred revenue 257 386
Deferred foreign exchange - 1,027
--------------------------------------------------------------
Total liabilities 883,183 366,419
--------------------------------------------------------------
Shareholders' equity
Capital and contributed surplus 584,576 532,272
Deficit (237,732) (95,155)
--------------------------------------------------------------
Total shareholders' equity 346,844 437,117
--------------------------------------------------------------
1,230,027 803,536
--------------------------------------------------------------
CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
(unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
(In thousands of
Canadian dollars,
except share and
per share data) 1997 1996 1997 1996
------------------------------------------------------------------
REVENUE
Network 9,226 3,992 21,160 11,326
Equipment sales,
rental and service 13,402 4,270 36,806 14,984
------------------------------------------------------------------
22,628 8,262 57,966 26,310
------------------------------------------------------------------
Operating, selling,
general and
administration
expenses 52,746 17,623 134,976 43,829
Operating loss before
depreciation and
amortization (30,118) (9,361) (77,010) (17,519)
Depreciation and
amortization 17,515 4,168 47,347 12,084
------------------------------------------------------------------
Operating loss (47,633) (13,529) (124,357) (29,603)
Foreign exchange
gain (loss) 279 (556) 1,166 (364)
Interest expense, net (7,156) (152) (17,262) (4,504)
------------------------------------------------------------------
Loss before income
taxes (54,510) (14,237) (140,453) (34,471)
Income tax provision 680 327 2,124 945
------------------------------------------------------------------
Net loss for the
period (55,190) (14,564) (142,577) (35,416)
------------------------------------------------------------------
Deficit, beginning of
period (182,542) (41,195) (95,155) (20,343)
------------------------------------------------------------------
Deficit, end of
period (237,732) (55,759) (237,732) (55,759)
------------------------------------------------------------------
AVERAGE NUMBER OF CLASS A EQUIVALENT SHARES OUTSTANDING DURING THE
PERIOD
(in thousands) 41,562 39,981 40,548 35,892
NET LOSS PER SHARE (1.33) (0.36) (3.52) (0.99)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
(In thousands of
Canadian dollars) 1997 1996 1997 1996
-----------------------------------------------------------------
OPERATING ACTIVITIES
Net loss for the
period (55,190) (14,564) (142,577) (35,416)
Adjustments to
reconcile net loss
to cash provided by
(used in) operating
activities
Depreciation and
amortization 17,515 4,168 47,347 12,084
Accreted interest on
long-term debt 9,777 5,584 27,337 17,389
-----------------------------------------------------------------
Funds used in operating
activities (27,898) (4,812) (67,893) (5,943)
Decrease (increase)
in non-cash working
capital 7,464 (2,940) 39,974 5,704
-----------------------------------------------------------------
Cash used in operating
activities (20,434) (7,752) (27,919) (239)
-----------------------------------------------------------------
FINANCING ACTIVITIES
Increase (decrease) in
accounts payable for
capital assets 96,692 379 109,406 (13,640)
Proceeds from issuance
of shares, net
of share issue costs 51,504 123 52,304 226,838
Repayment of Mike
credit facility (46,840) - - -
Issuance of long-term
debt, net of debt issue
costs 308,330 1,355 308,164 3,212
-----------------------------------------------------------------
Cash provided by
financing activities 409,686 1,857 469,874 216,410
-----------------------------------------------------------------
INVESTING ACTIVITIES
Acquisition of capital
assets (234,943) (42,538) (429,635) (101,421)
Interest on long-term
debt capitalized 6,621 4,138 10,239 10,404
Acquisition of
intangible and other
assets (14,299) (8,099) (18,295) (10,419)
Proceeds from sale of
capital assets - 33 - 33
Business acquisitions - - (21,049) -
Cash used in investing
activities (242,621) (46,466) (458,740) (101,403)
-----------------------------------------------------------------
Net increase (decrease)
in cash during the
period 146,631 (52,361) (16,785) 114,768
Cash and short-term
investments, beginning
of period 184,090 439,478 347,506 272,349
-----------------------------------------------------------------
Cash and short-term
investments, end of
period 330,721 387,117 330,721 387,117
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CONTACT: Clearnet Communications Inc. Mark Langton Langton may refer to: In places:
(905) 837-3454 (Office) mlangton@clearnet.com (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 ) Doug DOUG Dumb Old Utility Guy French, 416/ 684-3710 (Mike) (905) 837-3710 (Office) investorrelations@clearnet.com (Internet) |
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