Conversent Communications Achieves Free Cash Flow Status.Business Editors/High-Tech Writers MARLBORO Marlboro or Marlborough (märl`bərō), city (1990 pop. 31,813), Middlesex co., E Mass.; settled on the site of a Native American village 1657, inc. as a city 1890. , Mass.--(BUSINESS WIRE)--April 7, 2003 Company exceeds financial expectations to become one of the first CLECs in the nation to become profitable; News corresponds with Conversent's expansion into 20 new markets Conversent Communications, a leading integrated communications provider, today announced that it has achieved "free cash flow" status, becoming one of the first CLECs in the nation to reach profitability. The company attained positive free cash flow in January 2003 - three months ahead of schedule - further bolstering its financial strength. Conversent had already reached its first significant financial milestone in March of 2002 by achieving positive 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 . The company also announced it is expanding into 20 new markets within its operating area, which stretches from Maine to New Jersey. Conversent forecasts the expansion will result in 13 percent new growth opportunity. "This is an exciting time for everyone at Conversent. We have built a dependable, financially stable company that continues to exceed all financial and growth expectations," said Robert Shanahan, president and 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. of Conversent Communications. "The key to our success has been our continued commitment to providing customers with the most effective communications services backed by a network that is second to none. Now that we have turned profitable, the opportunities for growth are immense. We are quickly proceeding with our move into 20 new markets while also investigating other options for growth within our territory." Conversent currently provides voice and data services to more than 33,000 business customers and employs 570 sales, technical and support staff in 22 offices. The company will add 20 new sales associates over the course of the year to support its growing customer base and market opportunity. Conversent milestones: -- June 1998 - Conversent Communications enters the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. market with $3.5 million in private equity -- March 2001 - Conversent secures $186 million in private equity and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay -- February 2002 - Conversent secures $10 Million in private equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. -- March 2002 - Conversent reaches cash flow positive -- August 2002 - Conversent acquires REON Broadband broadband Term 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). Corporation -- January 2003 - Conversent achieves free cash flow About Conversent Communications Conversent Communications was co-founded in 1998 by cable entrepreneur Robert Fanch and Conversent's president and CEO, Robert Shanahan. A facilities-based communications provider with six Class 5 telephone switches and 80 Data switches and more than 2000 miles of fiber optic network, Conversent designs and delivers bundled telecommunications and broadband services See broadband and broadband service provider. that meet the specific needs of individual businesses from small neighborhood companies to enterprise customers. The company provides its customers with a broad portfolio of voice, data and Internet services, including Web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. and collocation collocation - co-location , broadband, and virtual private network services. Conversent is committed to providing the highest level of customer service and the right communications solution to all its clients, with a focus on improving business productivity, performance, and managing cost. More information is available at www.conversent.com. |
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