CompleTel LLC Reports Its First Million-Dollar Quarter as Network Became Fully Operational in Several French Cities.ENGLEWOOD Englewood (ĕng`gəlw  d).1 City (1990 pop. 29,387), Arapahoe co., N central Colo., on the South Platte River, a residential and industrial suburb of Denver; inc. 1903. , Colo.--(BUSINESS WIRE)--Nov. 12, 1999-- CompleTel LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a growing facilities-based provider of switched local telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and related services to businesses and government end-users in Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , today reported third-quarter revenues that exceeded $1.0 million as the company's French network began full service in several cities. Revenues for the quarter ended September September: see month. 30, 1999, were $1.1 million; there were no revenues in the previous year's third quarter. Approximately $700,000 of the quarter's revenues were generated by CompleTel's two Internet service providers 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. , both of which were acquired earlier this year. The net loss for the most recent quarter was $12.8 million, compared to a net loss for the third quarter of 1998, when the company had no network facilities in place, of $2.0 million. For the nine months ended September 30, 1999, revenues were $1.4 million; there were no prior-year revenues. The net loss for the nine-month period was $28.3 million compared to a net loss of $4.0 million for the period from the commencement of operations on January January: see month. 8, 1998, through September 30, 1998. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. E. Dovey, chairman and chief executive officer, said: "We remain ahead of plan in several significant respects. We are building our local loop networks and launching services faster than we expected. At the end of September we had about 190 network route kilometers in place, and we have launched full-service networks See FSN. in Lyon Lyon English Lyons City (pop., 1999: city, 445,452; metro. area, 1,348,932), east-central France. Located at the confluence of the Rhône and Saône rivers, it was founded as the Roman military colony Lugdunum in 43 BC (see and Paris as well as Internet service provider businesses in London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. and Lyon. As of September 30, we had more than 40 customers, a large pipeline of pending orders, and launches planned in the next two quarters in Lille Lille (lēl), city (1990 pop. 178,301), capital of Nord dept., N France, near the Belgian border. With its central position in NW Europe, Lille became a great commercial, cultural, and manufacturing center, long known for its textile , Marseilles Marseilles (märsā`), Fr. Marseille, city (1990 pop. 807,726), capital of Bouches-du-Rhône dept., SE France, on the Gulf of Lions, an arm of the Mediterranean Sea. , Toulouse Toulouse (t  lz`), city (1990 pop. 365,933), capital of Haute-Garonne dept., S France, on the Garonne River. , Nice and Grenoble Grenoble (grənô`blə), city (1990 pop. 153,973), capital of Isère dept., SE France, on the Isère River at the foot of the Alps. It is the hydroelectric center of France and has an important nuclear-research center. in France and
in Munich Munich (my`nĭk), Ger. München (mün`khən), city (1994 pop. 1,255,623), capital of Bavaria, S Germany, on the Isar River near the Bavarian Alps. , Nuremberg Nuremberg (nr`əmbərg), Ger. Nürnberg (nürn`bĕrk'), city (1994 pop. , Essen Essen (ĕs`ən), city (1994 pop. 622,380), North Rhine–Westphalia, W Germany, on the Ruhr River. The major industrial center of the Ruhr district, it was the seat of the famous Krupp steelworks. and Berlin in Germany."With the $280 million financing package we announced this week, we have the capital to build out our networks in our first 11 markets -- all of which are expected to be producing revenues by the end of the first half of next year. And with our capital, licenses, interconnects and local managements all in place, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that we will maintain our first-to-market position in our initial portfolio of attractive European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. markets." CompleTel LLC is a European facilities-based competitive local exchange carrier (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) ). Founded in 1998, CompleTel is establishing itself as a leading facilities-based provider of switched local telecommunications and related services, including 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 services, to businesses, carriers and Internet service providers (ISPs) in Western Europe. CompleTel is licensed in the three largest European countries -- France, Germany and the United Kingdom -- and is initially deploying fiber-optic networks in 11 markets in France and Germany and 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. services in two markets, London and Lyon. CompleTel's portfolio of services to its directly connected customers include fiber-based local access combined with long distance resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. , retail private line services and wholesale special access for carriers, retail and wholesale Internet access See how to access the Internet. , and ISP data center services. CompleTel's European headquarters is in Paris. NOTE: The information contained in this press release contains "forward looking statements" within the meaning of the U.S. Federal Securities Law. Such statements are based on the current expectations of the management of CompleTel only, and the company's performance is subject to risks, uncertainties and other factors that could cause actual results to differ materially from these statements. Such risks include, but are not limited to, adverse regulatory, technological or competitive developments, decline in demand for the company's services or products, inability to timely develop and introduce new technologies, products and services, pressure on pricing resulting from competition, unforeseen delay, failure to receive on a timely basis necessary permits or other governmental approvals, and delays in the receipt of or failure to obtain any necessary financing which could cause the actual results or performance of the company to differ materially from those described herein. For a more detailed discussion of such risks and other factors please refer to the company's prospectuses and reports to be filed from time to time with the U.S. Securities and Exchange Commission.
COMPLETEL LLC AND SUBSIDIARIES
(A Company in the Development Stage)
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Stated in thousands of U.S. Dollars,
except unit and per unit amounts)
(Unaudited)
Commence- Commence-
-ment of -ment of
Nine Operations Operations
Months (Jan. 8, (Jan. 8,
Three Months Ended Ended 1998) to 1998) to
September September September September September
30, 30, 30, 30, 30,
1999 1998 1999 1998 1999
---- ---- ---- ---- ----
REVENUES $ 1,055 $ -- $ 1,376 $ -- $ 1,376
-------- -------- -------- -------- --------
OPERATING EXPENSES:
Network costs 871 -- 1,435 -- 1,435
Selling, general
and administrative 11,019 2,029 23,637 4,088 31,681
Depreciation and
amortization 1,412 29 1,851 37 1,910
-------- -------- -------- -------- --------
Total operating
expenses 13,302 2,058 26,923 4,125 35,026
OPERATING LOSS (12,247) (2,058) (25,547) (4,125) (33,650)
OPERATING INCOME
(EXPENSE)
Interest income 640 -- 2,231 -- 2,242
Interest expense,
net of capitalized
interest (2,174) -- (6,391) -- (6,391)
Other income
(expense), net (11) 102 (277) 102 (277)
-------- -------- -------- -------- --------
Total other
income (expense) (1,545) 102 (4,437) 102 (4,426)
-------- -------- -------- -------- --------
NET LOSS BEFORE
MINORITY INTEREST (13,792) (1,956) (29,984) (4,023) (38,076)
MINORITY INTEREST IN
LOSS OF CONSOLIDATED
SUBSIDIARIES 985 -- 1,695 -- 1,695
-------- -------- -------- -------- --------
NET LOSS BEFORE
INCOME TAXES (12,807) (1,956) (28,289) (4,023) (36,381)
INCOME TAX PROVISION -- -- -- -- --
-------- -------- -------- -------- --------
NET LOSS (12,807) (1,956) (28,289) (4,023) (36,381)
ACCRETION OF REDEEMABLE
CUMULATIVE CONVERTIBLE
PREFERRED UNITS (1,322) (190) (3,616) (256) (3,979)
-------- -------- -------- -------- --------
NET LOSS APPLICABLE
TO COMMON UNITS $(14,129) $ (2,146) $(31,905) $ (4,279) $(40,360)
======== ======== ======== ======== ========
BASIC AND DILUTED LOSS
PER COMMON UNIT $ (1,656) $ (395) $ (4,960) $ (1,088) $ (8,778)
======== ======== ======== ======== ========
WEIGHTED AVERAGE NUMBER
OF NON-FORFEITABLE
COMMON UNITS
OUTSTANDING 8,532 5,434 6,432 3,933 4,598
======== ======== ======== ======== ========
COMPLETEL LLC AND SUBSIDIARIES
(A Company in the Development Stage)
CONSOLIDATED CONDENSED BALANCE SHEETS
(Stated in thousands of U.S. Dollars)
(Unaudited)
September 30, December 31,
ASSETS 1999 1998
------ ------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 60,178 $ 3,744
Receivables 8,398 537
Other current assets 1,640 214
--------- ---------
Total current assets 70,216 4,495
--------- ---------
LONG-TERM ASSETS:
Property and equipment, net 54,864 3,441
Deferred financing costs 6,052 869
Licenses and other intangibles, net 3,864 950
Other long-term assets 431 287
--------- ---------
Total long-term assets 65,211 5,547
--------- ---------
TOTAL ASSETS $ 135,427 $ 10,042
========= =========
LIABILITIES AND MEMBERS' DEFICIT
--------------------------------
CURRENT LIABILITIES:
Trade accounts payable $ 22,112 $ 1,964
Accrued liabilities 5,632 3,308
--------- ---------
Total current liabilities 27,744 5,272
--------- ---------
LONG-TERM DEBT 77,129 --
--------- ---------
MINORITY INTEREST 2,085 --
--------- ---------
REDEEMABLE CUMULATIVE CONVERTIBLE
PREFERRED UNITS:
No par value, 65,750 and 61,950
units authorized, issued and
outstanding, respectively 69,729 13,188
--------- ---------
MEMBERS' DEFICIT:
Common units, no par value;
107,500 units authorized;
17,142 and 16,385 units issued
and outstanding, respectively 2,527 737
Deferred compensation (1,142) (540)
Other cumulative comprehensive loss (2,285) (160)
Deficit accumulated during the
development stage (40,360) (8,455)
--------- ---------
TOTAL MEMBERS' DEFICIT (41,260) (8,418)
--------- ---------
TOTAL LIABILITIES AND MEMBERS' DEFICIT $ 135,427 $ 10,042
========= =========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion