Intermedia Communications Announces First Quarter Results; Reports Record Revenue of $205 Million and Increased EBITDA.TAMPA, Fla.--(BUSINESS WIRE)--April 27, 1999-- -- Company Also Announces Strategic DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary Partnerships With NorthPoint Northpoint or North point may refer to:
Intermedia Intermedia - A hypertext system developed by a research group at IRIS (Brown University). Communications Inc. (Nasdaq:ICIX) today announced record revenue of $204.7 million and 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 (as defined below) of $15.1 million for the quarter ended March 31, 1999. Also today, Intermedia announced Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (DSL) partnerships with Rhythms NetConnections Rhythms NetConnections Inc. (Former NASDAQ: RTHM) was in the business of providing broadband local-access communication services to large enterprises, telecommunications carriers and their internet service provider (ISP) affiliates and other ISPs. and NorthPoint Communications NorthPoint Communications (Former NASDAQ: NPNT) was a CLEC (Competitive Local Exchange Carrier), focused on data transmission rather than voice. Its business plan involved leasing copper telephone lines from local phone companies, then selling them at wholesale prices to . Intermedia currently has the nation's largest DSL deployment in shared tenant services buildings. Combined with the deployments planned by Rhythms and NorthPoint, the Company will have access to the largest DSL deployment 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. . Also today, Intermedia's 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. subsidiary, DIGEX, Incorporated, filed its Form S-1 registration statement with the SEC for an offering of its Class A Common Stock. "In the first quarter, Intermedia secured additional funding to execute on the next phase of our growth strategy," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. M. Manning, Intermedia's Chief Financial Officer. "In addition, we have taken steps to create a public market for the stock of our DIGEX subsidiary and begin to fund DIGEX's expansion in the rapidly growing Web Hosting marketplace." SUMMARY OF FIRST QUARTER 1999 RESULTS Revenue for the first quarter of $204.7 million was up 50 percent over first quarter 1998 revenue of $136.8 million. Competitive Local and Enhanced Data and 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 continued their strong growth. Enhanced Data and Internet services revenue was up 64 percent versus first quarter 1998, and was up 10 percent sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen . Competitive Local services revenue was up 57 percent versus first quarter 1998, and was up 11 percent sequentially. EBITDA for the first quarter was positive $15.1 million, a $24.9 million improvement versus an EBITDA loss of $9.8 million for the first quarter of 1998, and an 11 percent improvement sequentially. "In the first quarter, we began to realize significant benefits based on our continued focus on the execution of our core Integrated Communications Provider strategy," said David C. Ruberg, Intermedia's Chairman, President, and Chief Executive Officer. "By selling multiple services to our customers, we have greatly increased customer loyalty and also generated substantial operational synergies. We believe the benefits of our strategy will become larger, and more obvious externally, over the course of the year." REVENUE ANALYSIS Enhanced Data and Internet Services Enhanced Data and Internet continued its growth. Revenue for the first quarter was $60.1 million, an increase of 64 percent over first quarter 1998 and an increase of 10 percent over fourth quarter 1998. Sequential One after the other in some consecutive order such as by name or number. growth was seen in all data product offerings. Internet grew 11 percent sequentially. Enterprise data services, principally frame relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. and ATM, 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. revenue grew 12 percent sequentially. Frame relay nodes in service increased sequentially by 3,903, from 35,268 at the end of the fourth quarter to 39,171, up 72 percent compared to first quarter 1998 and up 11 percent sequentially. "In the quarter, we were particularly pleased by the improving revenue growth at DIGEX, where Web Hosting revenue was up 25 percent sequentially," said Ruberg. "Our overall strength in Enhanced Data and Internet services is expected to be a core component of our growth." Competitive Local Services Competitive Local services continued its growth. Revenue for the quarter was $53.0 million, an increase of 57 percent over first quarter 1998 and an increase of 11 percent sequentially. Access lines in service grew to 376,742, a 71 percent increase versus first quarter 1998. At the end of the first quarter, 74 percent of the lines in service were on-switch. "Our focus on selling access lines that are on-switch has improved gross margins, operating efficiency and customer service," said Manning. "In the first quarter, we launched our line side local and long distance service, called Unified Voicesm, which we believe will increase our ability to provide integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. to small and medium sized businesses." Interexchange Services Interexchange revenue was $67.6 million in the first quarter, a 51 percent increase versus first quarter 1998, and up slightly versus fourth quarter 1998. Integration Services Integration Services revenue for the quarter was $24.0 million, an increase of 10 percent versus first quarter of 1998 and an increase of 2 percent sequentially. OUTLOOK "Overall, the first quarter results were consistent with our expectations," said Manning. "Our growth rate has increased, and we believe that the we are on track to further grow revenues, particularly in the second half of 1999." "As we continue to scale our business, we improve our ability to add revenue efficiently over the assets we have deployed," said Manning. "We are seeing meaningful improvements in provisioning productivity and customer loyalty. We anticipate this will also result in further improvements in network efficiencies and gross margins. We have made additional progress in integrating our acquisitions, and as a result we are seeing improved operating efficiencies in our core business." EBITDA consists of earnings before interest and other income, income taxes, depreciation, amortization and charges for in-process R & D and business restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and integration expenses. EBITDA does not represent funds available for management's discretionary use and is not intended to represent cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . EBITDA should not be considered as an alternative to net loss as an indicator of the Company's operating performance or to cash flows as a measure of liquidity. In addition, EBITDA is not a term defined by generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , and, as a result, the measure of EBITDA presented herein may not be comparable to similarly titled measures used by other companies. Statements contained in this news release regarding expected financial results and other planned events are 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. , subject to uncertainties and risks, including, but not limited to, the demand for Intermedia's services, the ability of Intermedia to complete its restructuring and integration program, and the ability of the Company to successfully implement its strategies, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Risk Factors" in 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. Annual Report for its fiscal year ended December December: see month. 31, 1998, and are updated periodically through the filing of reports and registration statements with the Securities and Exchange Commission. Intermedia Communications provides integrated solutions to business and government customers. These solutions include voice and data, local and long distance, and advanced network access services in major U.S. markets. Intermedia's enhanced data portfolio, including frame relay networking, ATM, and a full range of business Internet solutions and web hosting services A web hosting service is a type of Internet hosting service that allows individuals and organizations to provide their own websites accessible via the World Wide Web. Web hosts are companies that provide space on a server they own for use by their clients as well as providing , offers seamless end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. service virtually anywhere in the world. Intermedia Communications Inc. is headquartered in Tampa, Florida “Tampa” redirects here. For other uses, see Tampa (disambiguation). Tampa is a United States city in Hillsborough County, on the west coast of Florida. It serves as the county seat for Hillsborough County.GR6. . INTERNET USERS Internet user n → internauta m/f Internet user Internet n → internaute m/f : Intermedia news releases, investor contacts and other useful information are available on Intermedia's website at www.intermedia.com. To receive news releases by e-mail or to request that information be mailed to you, please visit the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of our website, and go to the "Request Information" link. -0-
INTERMEDIA COMMUNICATIONS INC.
Financial Highlights
(In thousands, except share data)
Three Months Ended
March 31,
1999 1998
Revenue:
Local network $ 52,982 $ 33,677
Enhanced data 60,093 36,537
Interexchange 67,613 44,751
Integration 24,034 21,821
Total revenue 204,722 136,786
Expenses:
Network operations 93,908 71,543
Facilities administration
and maintenance 22,636 15,033
Cost of goods sold 15,804 13,690
Selling, general and
administrative 57,314 46,347
Depreciation and amortization 71,611 40,776
Charge for in-process R&D -- 63,000
Business restructuring and
integration expenses 5,399 --
Total operating expenses 266,672 250,389
Loss from operations (61,950) (113,603)
Other income (expense):
Interest expense (62,178) (49,301)
Other income 6,558 10,729
Net loss (117,570) (152,175)
Preferred stock dividends
& accretions (22,483) (18,594)
Net loss attributable to common
shareholders $ (140,053) $ (170,769)
Loss per common share (1):
Net loss before charge for in-process
R&D and business restructuring including
other income, expenses and preferred
stock dividends and accretions $ (2.73) $ (3.05)
Charge for in-process R&D -- (1.78)
Charge for business restructuring (0.11) --
Net loss per common share $ (2.84) $ (4.83)
Weighted average shares
outstanding (1) 49,352,830 35,306,268
EBITDA (2) $ 15,060 $ (9,827)
(1) Share and per share amounts have been restated to reflect the
two-for-one stock split in June 1998.
(2) EBITDA consists of earnings before interest and other income,
income taxes, depreciation, amortization and charges for in-process R
& D and business restructuring and integration expenses. EBITDA does
not represent funds available for management's discretionary use and
is not intended to represent cash flow from operations. EBITDA should
not be considered as an alternative to net loss as an indicator of the
Company's operating performance or to cash flows as a measure of
liquidity. In addition, EBITDA is not a term defined by generally
accepted accounting principles, and, as a result, the measure of
EBITDA presented herein may not be comparable to similarly titled
measures used by other companies.
Other Data:
March 31, December 31,
1999 1998
Local and Long Distance Services: (1)
Buildings (2) 4,359 4,342
Voice switches in operation 23 23
Access line equivalents 376,742 347,584
Access line equivalents per local switch (3) 13,862 8,102
Enhanced Data Services: (1)
Data switches in operation 167 177
Nodes in service (4) 39,171 35,268
NNI connections 728 680
Employees 4,123 3,931
(1) Amounts reflected in the table are based upon information
contained in the Company's operating records.
(2) Includes both on-net direct connections with Intermedia-owned
fiber optic cable and on-net extended connections with leased
circuits.
(3) Calculated by dividing the number of on-switch access line
equivalents by the number of switches providing local service.
(4) Amount represents an individual point of origination and
termination of data served by the Company's enhanced network.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion