Electric Lightwave, Inc. Reports Third-Quarter Results.Business Editors STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , Conn.--(BUSINESS WIRE)--Nov. 13, 2001 Electric Lightwave Light in the infrared, visible and ultraviolet ranges, which falls between x-rays and microwaves. Wavelengths are between 10 nanometers and one millimeter. , Inc. (Nasdaq: ELIX E`lix´ v. t. 1. To extract. ) today reported financial results for the quarter ended September September: see month. 30, 2001. Revenue for the period totaled $53.3 million, compared to $63.6 million for the same period in 2000. Although revenue for the quarter was down 16 percent from the corresponding period in 2000, the Network Services component of revenue grew 21 percent due to sales of additional circuits to new and existing customers as ELI Eli (ē`lī), in the Bible, high priest and judge of Israel, teacher of the boy Samuel. 1. (language) ELI - An early system on the IBM 705 and IBM 650. [Listed in CACM 2(5):16 (May 1959)]. 2. concentrated upon its targeted customer base. The revenue decrease was primarily due to reduced rates for reciprocal Bilateral; two-sided; mutual; interchanged. Reciprocal obligations are duties owed by one individual to another and vice versa. A reciprocal contract is one in which the parties enter into mutual agreements. compensation, the non-renewal of a take-or-pay contract with a major customer, and reduced demand from ISPs and other carriers for Internet-related traffic. ELI revenue for the nine months ended September 30, 2001 was $176.3 million, a $4.7 million decrease compared to revenue of $181.0 million for the same period in 2000. ELI's gross margin during the third quarter of 2001 was 68 percent. ELI's third-quarter 2001 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 loss of $2.1 million was impacted by workforce reductions with an associated expense of $1.4 million, and lower-than-anticipated revenue for the quarter. ELI EBITDA for the third quarter of 2000 was $4.8 million. ELI EBITDA for the nine months ended September 30, 2001 was $5.2 million, compared to a $3.3 million EBITDA loss for the same period in 2000, an improvement of $8.5 million. Third quarter 2001 net loss was $47.3 million, or 92 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared to a net loss of $32.6 million, or 64 cents per share, for the third quarter of 2000. For the nine months ended September 30, 2001, net loss was $125.3 million, or $2.46 per share, compared to a net loss of $102.7 million, or $2.04 per share, for the same period of 2000. For 2001, guidance for ELI is being lowered to $228 million in revenue, $10 million in EBITDA, and capital expenditures of $55 million. ELI's Class A Common Stock is currently traded on the Nasdaq National Market System, but the stock does not meet minimum bid price and market value of public float requirements for continued listing that were applicable on September 27, 2001. On that date Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. , Inc. implemented a moratorium A suspension of activity or an authorized period of delay or waiting. A moratorium is sometimes agreed upon by the interested parties, or it may be authorized or imposed by operation of law. until January January: see month. 2, 2002, at which time compliance with the minimum requirements for listing on the Nasdaq National and SmallCap Markets will start anew a·new adv. 1. Once more; again. 2. In a new and different way, form, or manner. [Middle English : a, of (from Old English of; see of) + new . If ELI's Class A Common Stock does not meet the requirements of the National Market System for 30 consecutive days, and is unable to regain compliance within 90 days, the stock could be subject to delisting Delisting When the stock of a company is removed from a stock exchange. Notes: Reasons for delisting include violating regulations and/or failure to meet financial specifications set out by the stock exchange. at that time. About Electric Lightwave, Inc. Electric Lightwave, Inc. is a facilities-based competitive local exchange carrier providing 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 , data, voice and dedicated access services to communications-intensive businesses. The company owns and operates high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. fiber-optic See fiber optics. networks that interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. major markets in the West and operates a leading national Internet and data network. The company is 85 percent owned by Citizens Communications Citizens Communications is the parent company of Frontier Telephone, providing telephone and internet access in 24 states. The company headquarters are located at 3 High Ridge Park in Stamford, Connecticut. (NYSE NYSE See: New York Stock Exchange :CZN, CZB). More information about Electric Lightwave, Inc. may be found at www.eli.net. This press release contains 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. that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. All forward-looking statements are only predictions or statements of current plans, which are constantly under review by Electric Lightwave (the company). All forward-looking statements may differ from actual future results due to, but not limited to, changes in the local and overall economy, the nature and pace of technological changes, the number and effectiveness of competitors in the company's markets, success in overall strategy, changes in legal and regulatory policy, relations with Incumbent Local Exchange Carriers ILEC, short for incumbent local exchange carrier, is a local telephone company in the United States that was in existence at the time of the break up of AT&T into the Regional Bell Operating Companies (RBOCs) also known as the "Baby Bells". (ILECs) and their ability to provide delivery of services including interoffice in·ter·of·fice adj. Transmitted or taking place between offices, especially those of a single organization: an interoffice memo; interoffice conferences. trunking See port aggregation. , implementation of back office service delivery systems, the company's ability to identify future markets and successfully expand existing ones and the mix of products and services offered in the company's target markets. Readers should consider these important factors in evaluating any statement contained herein and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. made by the company or on its behalf. The company has no obligation to update or revise forward-looking statements to reflect the occurrence of future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . TABLES TO FOLLOW
Electric Lightwave, Inc.
Statements of Operations
Three Months Ended
September 30,
--------------------
(In thousands, except per share amounts) 2001 2000
-------- ------
Revenue
Network services $ 26,077 $ 21,627
Local telephone services 14,450 25,187
Long distance services 3,131 3,728
Data services 9,672 13,068
----------- -----------
Total revenue 53,330 63,610
Operating expenses
Network access expense 17,232 17,821
Operations expense 14,442 13,473
Selling, general and administrative 22,361 27,430
Severance expense 1,418 110
Depreciation and amortization 19,919 16,306
-------- ----------
Total operating expenses 75,372 75,140
Loss from operations (22,042) (11,530)
Interest expense and other 25,231 20,603
----------- ----------
Net loss before income taxes (47,273) (32,133)
Income tax expense 22 459
----------- -----------
Net loss $ (47,295) $ (32,592)
============= ============
EBITDA(1) $ (2,123) $ 4,776
============ ============
Net loss per common share:
Basic $ (0.92) $ (0.64)
Diluted $ (0.92) $ (0.64)
Weighted average shares outstanding 51,168 50,606
(1) EBITDA is Operating income plus depreciation and amortization.
Electric Lightwave, Inc.
Statements of Operations
Nine Months Ended
September 30,
---------------------
(In thousands, except per share amounts) 2001 2000
---------- --------
Revenue
Network services $ 77,966 $ 54,804
Local telephone services 58,114 75,412
Long distance services 9,314 12,590
Data services 30,927 38,202
---------- ------------
Total revenue 176,321 181,008
Operating expenses
Network access expense 51,014 56,811
Operations expense 40,820 38,494
Selling, general and administrative 76,112 88,875
Severance expense 3,141 152
Depreciation and amortization 58,647 43,782
------------ ---------
Total operating expenses 229,734 228,114
Loss from operations (53,413) (47,106)
Interest expense and other 71,401 54,643
----------- ---------
Net loss before income taxes (124,814) (101,749)
Income tax expense 449 940
------------ ---------
Net loss $ (125,263) $ (102,689)
============ ============
EBITDA(1) $ 5,234 $ (3,324)
============= ===========
Net loss per common share:
Basic $ (2.46) $ (2.04)
Diluted $ (2.46) $ (2.04)
Weighted average shares outstanding 50,995 50,404
(1) EBITDA is Operating income plus depreciation and amortization.
Electric Lightwave, Inc.
Selected Financial and Operating Data
(Dollars in thousands)
Sept. 30, 2001 June 30, 2001 Sept. 30, 2000
-------------- ------------- --------------
Selected Financial Data
Gross Property Plant
& Equipment:
Owned or under
capital lease $1,029,724 $1,023,783 $962,454
Under operating
lease(1) $108,541 $108,541 $108,541
---------- ------------ ----------
Total $1,138,265 $1,132,324 $1,070,995
========== ============ ===========
Selected Operating Data
Markets 25 25 25
Route miles(2) 6,737 6,734 5,921
Fiber miles(2) 353,785 349,455 297,208
Buildings connected
on-net 860 856 850
Switches and routers:
Internet routers 79 79 65
ATM switches 23 23 23
Frame relay switches 33 33 32
Voice switches 10 8 8
Access Line
Equivalents 172,372 187,981 203,911
Access Line Equivalents/
Voice switch 17,237 23,498 25,489
% on switch 99% 97% 92%
Employees 928 949 1,156
Customers 2,245 2,267 2,915
(1) Facilities under an operating lease agreement under which we
have the option to purchase the facilities at the end of the term.
(2) Route and fiber miles also include those to which we have
exclusive use pursuant to license and lease arrangements.
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