Davel Communications, Inc. Reports Financial Results for the Quarter Ended March 31, 2004.Business Editors CLEVELAND--(BUSINESS WIRE)--May 14, 2004 Davel Communications, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DAVL DAVL Data Available-Low ) today announced financial results for the quarter ended March 31, 2004. The net loss for the quarter was $5.0 million, or $0.01 per common share, compared to a net loss of $4.7 million, or $0.01 per common share, in 2003. The reported net loss for both periods include adjustments to dial-around revenues of $1.2 million and $3.9 million in the quarters ended March 31, 2004 and 2003, respectively. These adjustments represent the recovery of prior years' dial-around compensation relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a mandatory industry-wide reconciliation among long-distance carriers and payphone payphone Noun a coin-operated telephone payphone pay n → Münztelefon nt; (card phone) → Kartentelefon nt providers resulting from 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 rate changes ordered by the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. . Without these adjustments, the Company's net loss would have declined by $2.4 million, or 27.9%. Total revenues for the first quarter of 2004 were $13.2 million compared to $22.9 million in the same period of 2003. A portion of the decline in total revenues relates to the dial-around compensation adjustments described above. Without these adjustments total revenues decreased $7.0 million, or 36.8%, primarily due to a reduction in the average number of payphones in service as well as a 7% decline in average revenues per phone. The decline in revenues per phone is attributable to the decline in payphone usage arising from the impact of wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. , which prompted the Company to aggressively pursue its previously announced strategy to remove low revenue payphones during 2003. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. declined by $9.4 million, or 36.0%, due to the decrease in the average number of payphones in service during the first quarter of 2004 and the cost saving measures initiated by the Company during 2003 and 2004. The Company expects further cost savings during 2004 as a result of its efforts to reduce telephone charges by utilizing competitive local exchange and alternate carriers, by outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. certain payphone collection and maintenance activities and other operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. reductions. The Company's first quarter losses from operations, which include the dial-around compensation adjustments described above, increased from $3.2 million in 2003 to $3.5 million in 2004. Without these adjustments, the Company's loss from operations would have declined by $2.4 million or 33.8%. The Company has continued discussions with its lenders regarding the possible restructuring of its $125.7 million secured debt. Any such restructuring could potentially include a debt-for-equity exchange that may substantially dilute di·lute v. To reduce a solution or mixture in concentration, quality, strength, or purity, as by adding water. adj. Thinned or weakened by diluting. the interests of the Company's existing non-lender shareholders. There can be no assurance that the Company's lenders, who own more than 95% of the Company's common stock, will be willing to negotiate a reduction in the outstanding balance due under the secured credit agreement. Founded in 1979, Davel is the largest independent provider of pay telephones and related services in 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. with operations in 46 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . Davel serves a wide array of customers operating principally in the shopping center 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 , hospitality, health care, convenience store, university, service station, retail and restaurant industries. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain of the statements contained herein may be, within the meaning of the federal securities laws, "forward-looking statements" that are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. See the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2003 and its Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2004 for a discussion of such risks, uncertainties, and other factors. These forward-looking statements are based on management's expectations as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company does not undertake any responsibility to update any of these statements in the future.
DAVEL COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for share and per share amounts)
---------------------------------------------------------------------
Quarter Ended
March 31
(Unaudited)
--------------------------
2004 2003
------------ ------------
Revenues
Coin calls $ 8,831 $ 13,179
Non-coin calls 3,136 5,811
Dial-around compensation adjustments 1,216 3,928
------------ ------------
13,183 22,918
Operating expenses 16,681 26,120
------------ ------------
Loss from operations (3,498) (3,202)
Interest expense, net (1,612) (1,586)
Other income 78 46
------------ ------------
Net loss $ (5,032) $ (4,742)
============ ============
Basic and diluted loss per share ($0.01) ($0.01)
============ ============
Weighted average shares outstanding, basic
and diluted 615,018,963 615,018,963
============ ============
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
---------------------------------------------------------------------
March 31
2004 December 31
(Unaudited) 2003
------------ ------------
Assets
Total current assets $ 13,570 $ 18,672
Property and equipment, net 20,162 22,878
Intangible assets, net 5,923 6,746
Other assets 1,956 2,026
------------ ------------
Total assets $ 41,611 $ 50,322
============ ============
Liabilities and shareholders' deficit
Current liabilities $ 24,194 $ 26,861
Long-term debt 124,950 125,962
Shareholders' deficit (107,533) (102,501)
------------ ------------
Total liabilities and shareholders'
deficit $ 41,611 $ 50,322
============ ============
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion