PrimaCom Reports Third Quarter 2000 Results.Business Editors MAINZ Mainz (mīnts), city (1994 pop. 185,487), capital of Rhineland-Palatinate, W Germany, a port on the E bank of the Rhine River opposite the mouth of the Main River. Its French name, also sometimes used in English, is Mayence. , Germany--(BUSINESS WIRE)--Nov. 28, 2000 PrimaCom AG (Neuer Markt Frankfurt, "PRC"/ID No. 625910; Nasdaq: PCAG PCAG Performance Confidence Assessment Group ) today reported its results for the third quarter ended 30 September September: see month. 2000. Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Presentation Including Multikabel On September 18, 2000 PrimaCom AG acquired N.V. Kabeltelevisie Kop Noord-Holland ("Multikabel"). The following comments assume that the acquisition occurred on January January: see month. 1, 1999. Three Months Pro Forma For the third quarter ended September 30, 2000 pro forma revenues increased by 13% from (euro)31,551,000 to (euro)35,652,000. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 84.3 % or (euro)3,455,000 of the pro forma increase was derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the analog cable television business and 15.7% came from the Company's 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). products and services group. Adjusted EBIDTA EBIDTA Earnings Before Interest Depreciation Taxes and Amortization declined 16% from (euro)16,537,000 in the third quarter of 1999 to (euro)13,874,000 in the third quarter of 2000. The primary factor responsible for the decline was added costs and expenses related to the start up of broadband products and services in both Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). and The Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. . The following tables highlight the contributions made from each sector in the third quarters ended on September 30, 2000 and 1999 respectively:
Pro Forma Third Quarter September 30, 2000
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Analog Broadband Total
Cable Television
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(euro) (euro) (euro)
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Revenue 34,849,000 803,000 35,652,000
Adjusted EBITDA 18,323,000 (4,449,000) 13,874,000
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Margin 52.6% -- 38.9%
Pro Forma Third Quarter September 30, 1999
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Analog Broadband Total
Cable Television
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(euro) (euro) (euro)
---------------------------------------------------
Revenue 31,394,000 157,000 31,551,000
Adjusted EBITDA 16,602,000 (65) 16,537,000
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Margin 52.9% -- 52.4%
Analog Cable Television For the quarter ended September 30, 2000, Analog CATV (Community Antenna TV) The original name for cable TV. It used a single antenna at the highest location in the community in order to deliver a quality signal to homes in areas with hilly terrain or other interference. subscribers reached approximately 1,238,000, or approximately 95,000 above the same period in 1999. Acquisitions in both Germany and the Netherlands accounted for most of the growth. Revenue from analog cable television increased by 11.0% from (euro)31,394,000 in the third quarter ended September 30, 1999 to (euro)34,849,000 in the third quarter ended September 30, 2000. Acquired cable systems and rate increases accounted for the growth. Cable systems acquired in Germany during the third quarter have yet to make full contributions. Subscribers and revenue contributions from these properties will increase as integration continues. The Company announced the acquisition of an additional 50,000 subscribers in Germany since the quarter ended September 30, 2000. Adjusted 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 in the analog CATV sector increased by 10.4 % from (euro)16,602,000 in the quarter ended September 30, 1999 to (euro)18,323,000 in the quarter ended September 30, 2000. The Adjusted EBITDA margin declined slightly from 52.9% in the quarter ended September 30, 1999 to 52.6% in the quarter ended September 30, 2000. Almost all of this decrease can be linked to the first time inclusion of copyright royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. expenses in Germany of (euro)277,000 during the period. Broadband Products and Services At September 30, 2000, PrimaCom had approximately 375,000 fully upgraded and ready for service homes. High speed Internet access See how to access the Internet. has been marketed in all ready for service homes for the past twelve months. For the period ended September 30, 2000, 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 subscribers reached 14,624. The following table reflects high speed Internet access growth and penetration levels.
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4th Quarter 1st Quarter 2nd Quarter 3rd Quarter
1999 2000 2000 2000
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Ready for service
homes 332,000 344,000 350,855 375,302
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Internet
subscribers 3,238 5,297 8,499 14,624
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Penetration 1.0% 2.4% 2.4% 3.9%
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In the third quarter ended September 30, 2000, high speed Internet access subscription fees contributed (euro)516,000 to revenue. As of September 2000, Digital Television has been actively marketed in the Netherlands and soft launched in a test environment in Germany. The following table reflects the Digital Television subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. growth and penetration:
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4th Quarter 1st Quarter 2nd Quarter 3rd Quarter
1999 2000 2000 2000
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Ready for service
homes 332,000 344,000 350,855 375,302
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Digital Television - - 1,067 2,453
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Penetration - - .3% .7%
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In the third quarter ended September 30, 2000, Digital Television subscription fees contributed (euro)29,000 to revenue. Data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. , advertising, e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. and other operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. associated with the broadband services See broadband and broadband service provider. group contributed approximately (euro)258,000 to revenue in the quarter ended September 30, 2000. Adjusted EBITDA losses for broadband services were (euro)4,449,000 for the period ended September 30, 2000. For the third quarter, the analog CATV business in both Germany and the Netherlands continued to generate sound results. The Company expects to see continued growth in this business as it further integrates its recently closed acquisitions and selectively increases rates. After investing in both operating and capital expenditures over the past twelve months, the roll out of broadband services is now underway and in the Netherlands the results are above expectations. It's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have a clear case of offering the right products at the right time. In Germany the results are somewhat less than anticipated but the development of this market is clearly behind the Netherlands. The Company believes it is just a matter of time before demand for services reaches the same level in Germany as in the Netherlands and the sales materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. . All demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. and research support the strategy. Nine Months Pro Forma For the nine months ended September 30, 2000, pro forma revenues increased by 11.4% to (euro)106,214,000 from (euro)95,351,000 in the nine months ended September 30, 1999. Approximately 83.6% of the growth was derived from analog cable television, with 16.4% of the growth coming from broadband products and services. Adjusted EBITDA declined from (euro)52,314,000 to (euro)47,452,000. The added costs and expenses related to the start up of the broadband services group and launch of new services was the factor responsible for the decline.
Pro forma Nine Months - September 30, 2000
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Analog Cable Television Broadband Total
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(euro) (euro) (euro)
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Revenue 103,970,000 2,244,000 106,214,000
Adjusted EBITDA 56,498,000 (9,046,000) 47,452,000
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Margin 54.3% -- 44.7%
Pro forma Nine Months - September 30, 1999
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Analog Cable Television Broadband Total
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(euro) (euro) (euro)
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Revenue 94,887,000 464,000 95,351,000
Adjusted EBITDA 52,115,000 199,000 52,314,000
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Margin 54.9% 42.9% 54.9%
PrimaCom and Subsidiaries (without Multikabel) Third Quarter and Nine Months 2000 For the 2000 third quarter, revenues increased 5.6% to (euro)27,200,000 from (euro)25,752,000 in the third quarter of 1999. Adjusted EBITDA for the 2000 third quarter amounted to (euro)10,869,000 compared with (euro)13,462,000 in the year ago period. The decrease in adjusted EBITDA was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased costs related to the aggressive roll-out of the Company's Broadband Services Group and the inclusion of the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. related to the possible charge of copyright royalties for programming (GEMA GEMA Gesellschaft für Musikalische Aufführungs- und Mechanische Vervielfältigungsrechte (German musical copyright monitoring body) GEMA Groupement des Entreprises Mutuelles d'Assurances (French) accrual). For the third quarter of 2000, the Company reported a net loss of (euro)19,749,000, or (euro)1.00 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with a net loss of (euro)5,563,000, or (euro)0.28 per basic and diluted share, a year ago. Included in the Company's 2000 third quarter results was an extraordinary charge of (euro)7,560,000, or (euro)0.38 per basic and diluted share, related to the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of the unamortized portion of the fees and expenses of the Company's existing bank facility, which PrimaCom refinanced and cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. on September 18, 2000, in conjunction with its acquisition of Multikabel. For the 2000 nine-month period, revenues increased 4.9% to (euro)81,673,000 versus (euro)77,850,000 in the first nine months of 1999. Adjusted EBITDA for the first nine months of 2000 amounted to (euro)34,851,000, versus (euro)41,077,000 in the same period a year ago, primarily as a result of start-up Start-up The earliest stage of a new business venture. costs related to the Company's Broadband Services Group and the inclusion of the GEMA accrual. Including the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. extraordinary charge in the third quarter, the Company reported a net loss for the 2000 nine-month period of (euro)36,804,000, or (euro)1.87 per basic and diluted share, versus a net loss of (euro)18,897,000, or (euro)1.00 per basic and diluted share, in the same period last year. Excluding this charge, the net loss for the first nine months of 2000 was (euro)29,244,000, or (euro)1.48 per basic and diluted share. Financial Position As of September 30, 2000, PrimaCom had outstanding indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. of (euro)679.5 million. On a pro forma basis, adjusted EBITDA covers pro forma interest approximately 1.4 times. As a result of the completion of the syndication See syndication format. of the Company's previously announced (euro)1.0 billion Reducing Revolving Credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. and its (euro)375.0 million capital markets bridge facility, the Company currently has access to an additional (euro)690.0 million to fund future growth initiatives. Recent Events On October October: see month. 5, 2000, the Company announced that it had acquired two cable companies, Steinert & Kuhn Kuhn , Richard 1900-1967. Austrian chemist. He won a 1938 Nobel Prize for research on carotenoids and vitamins but declined the award by order of the Nazi government. GmbH GmbH Gesellschaft mit Beschränkter Haftung (German: limited liability company; business entity) & Co. KG and MKM MKM Mathematical Knowledge Management MKM Mitsubishi Kagaku Media MKM Mortal Kombat Mythologies (gaming website) MKM Mukah, Sarawak, Malaysia (airport code) MKM Marksman MKM Myopic Keratomileusis Kabelfernsehen. On November November: see month. 6, the Company announced that it had acquired three additional cable operators, Televis Grimma GmbH, Plauen Plauen (plou`ən), city (1994 pop. 69,387), Saxony, E central Germany, on the White Elster River and at the northwestern foot of the Erzgebirge. It has been a textile-milling center since the 15th cent. , Komco Kommunikationstechnik GmbH, and Kutz Kabel Kabel may refer to:
Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Thomason Thomason can refer to:
The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. in all sectors of our business. The company has a sound financial position and, with the network of our Dutch subsidiary Multikabel almost 100% upgraded and the rollout of Internet and digital-TV services quickly moving to break even, PrimaCom's funding requirements are expected to decline over the next six months. PrimaCom continues to have a fully funded 10 year business plan." Hans HANS Head and Neck Support/System (brace worn by motor sport drivers; trademark of Hubbard/Downing, Inc.) HANS Health Action Network Society HANS Heavy Aromatic Naphtha Solvent Wolfert, Chief Corporate Development Officer, added, "Overall we are pleased with our progress. At the entrance of a new exciting era (i.e. the introduction of the set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. ), PrimaCom's upgraded network in combination with the universal set-top box will give us the basic fundamentals for solid growth into digital services, whether it will be TV, Internet or telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. ." This press release includes 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because these statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially, including PrimaCom's absence of an operating history for its merged operations, its possible future need for additional financing, competitive factors and restrictions imposed by existing and possible future debt instruments.
PRIMACOM AG
Three months Three months
September 30, 1999 September 30, 2000
Euro 000 Euro 000 %
------------------------------------
Revenues 25,752 27,200 5.62
Operating costs and expenses
Operations 6,104 5,876 -3.74
Selling, general and
administrative 3,710 7,067 90.49
Corporate overhead 3,284 4,442 35.26
Depreciation and amortization 15,029 15,553 3.49
------------------------------------
Total 28,127 32,938 17.10
Operating loss -2,375 -5,738 141.60
Interest Expense 2,961 6,302 112.83
------------------------------------
Loss from continuing operations
Before minority interest and
income taxes -5,336 -12,040 125.64
Minority interest in net
income of subsidiaries 41 15 -63.41
Income tax expense 186 134 -27.96
------------------------------------
Net loss before extraordinary
items -5,563 -12,189 119.11
Extraordinary items 7,560
------------------------------------
Net loss -5,563 -19,749 255.01
====================================
Loss per share basic and
diluted 0.28 1.00 257.14
====================================
Weighted average shares 19,728,552 19,728,552
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EBITDA 12,654 9,815 -22.44
EBITDA-MARGIN 49.1% 36.1%
ADJUSTED EBITDA 13,462 10,869 -19.26
ADJUSTED EBITDA MARGIN 52.3% 40.0%
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Average CATV subscribers 906,852 938,205
Average monthly revenue per
CATV subscriber 9.47 9.53
Average Internet subscribers 0 757
Average monthly revenue per
Internet subscriber 0 37.00
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PRIMACOM AG
9 months 9 months
September 30, September 30,
1999 2000
Euro 000 Euro 000 %
---------------------------------------
Revenues 77,850 81,673 4.91
Operating costs and expenses
Operations 18,410 18,745 1.82
Selling, general and
administrative 11,455 17,871 56.01
Corporate overhead 8,841 13,254 49.92
Depreciation and amortization 44,751 46,576 4.08
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Total 83,457 96,446 15.56
Operating loss -5,607 -14,773 163.47
Interest expense 12,085 13,658 13.02
--------------------------------------
Loss from continuing operations
Before minority interest and
income taxes -17,692 -28,431 60.70
Minority interest in net
income of subsidiaries 60 114 90.00
Income tax 1,145 699 -38.95
--------------------------------------
Net loss before extraordinary
items -18,897 -29,244 54.75
Extraordinary items -7,560
--------------------------------------
NET LOSS -18,897 -36,804 94.76
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Loss per share - basic and
diluted 1.00 1.87 87.00
======================================
Weighted average shares 18,962,535 19,728,552
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EBITDA 39,144 31,803 -18.75
EBITDA MARGIN 50.3% 38.9%
ADJUSTED EBITDA 41,077 34,851 -15.16
ADJUSTED EBITDA MARGIN 52.8% 42.7%
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Average CATV subscribers 905,402 931,368
Average monthly revenue per
CATV subscriber 9.56 9.69
Average Internet subscribers 0 542
Average monthly revenue per
Internet subscriber 0 32.60
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PRIMACOM AG
PrimaCom Multikabel Adjustments Pro forma
9 Months 9 Months 9 Months
September 30, September 30, September 30,
2000 2000 2000
Euro 000 Euro 000 Euro 000
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Revenues 81,673 24,541 106,214
Operating costs
and expenses
Operations 18,745 6,250 24,995
Selling,
general and
administrative 17,871 4,713 22,584
Corporate
overhead 13,254 957 14,211
Depreciation
and
amortization 46,576 11,138 15,221 72,935
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Total 96,446 23,058 15,221 134,725
Operating loss -14,773 1,483 -15,221 -28,511
Interest expense 13,658 5,644 13,752 33,054
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Loss from
continuing
operations
Before minority
interest and
income taxes -28,431 -4,161 -28,973 -61,565
Minority
interest in
net income of
subsidiaries 114 0 0 114
Income tax 699 -697 2
----------------------------------------------------
Net loss before
extraordinary
items -29,244 -3,464 -28,973 -61,681
Extraordinary
items -7,560 285 -7,275
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NET LOSS -36,804 -3,179 -28,973 -68,956
====================================================
Loss per share
- basic and
diluted 1.87 -3.50
====================================================
Weighted average
shares 19,728,552 19,728,552
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EBITDA 31,803 12,601 44,404
EBITDA MARGIN 38.9% 51.3% 41.8%
ADJUSTED EBITDA 34,851 12,601 47,452
ADJUSTED EBITDA
MARGIN 42.7% 51.3% 44.7%
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Average CATV
subscribers 931,368 293,000 1,224,368
Average Internet
subscribers 542 8,123 8,665
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