Terremark Worldwide Reports Second Quarter Results; Company's NAP of the Americas Customer Base Continues to Grow.Business Editors/Technology Writers MIAMI--(BUSINESS WIRE)--Nov. 14, 2002 Terremark Worldwide, Inc. (AMEX AMEX See: American Stock Exchange :TWW TWW The West Wing (TV show) TWW The Wind Waker (Nintendo Zelda video game) TWW Teaming with Wildlife TWW Two-Week Wait TWW The War Within (Transformers comics) ), the preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae designer, builder and operator of integrated Tier-1 Network Access Points (NAPs) and best-in-class See best-of-class. data centers, achieved a 17% quarterly increase in Data Center revenue generated by its NAP (1) See network access protection. (2) (Network Access Point) The first public Internet exchange points (IXPs). Established by the National Science Foundation in the early 1990s, they were set up to provide a standard way to exchange packets for of the Americas A·mer·i·cas , the See America. with revenues increasing to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.4 million for the quarter ended September September: see month. 30, 2002 from approximately $2.1 million for the quarter ended June June: see month. 30, 2002. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenue for TWW subsidiaries, including non-recurring items, for the quarter ended September 30, 2002 was $3.7 million compared to $5.2 million for the quarter ended June 30, 2002. This overall decrease primarily resulted from a $1.1 million of non-recurring "Data Center - contract termination Defense procurement: the cessation or cancellation, in whole or in part, of work under a prime contract or a subcontract thereunder for the convenience of, or at the option of, the government, or due to failure of the contractor to perform in accordance with the terms of the contract (default). fee" recorded in the June 30, 2002 quarter, and from a reduction in general contracting fees, consistent with the Company's decreased emphasis on activities unrelated to telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. projects. Terremark reported that its 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 narrowed to $4.4 million for the quarter, from $4.9 million for the quarter ended June 30, 2002. The net loss for the quarter ended September 30, 2002 was $9.4 million, or $0.04 per share, compared with a net loss of $8.0 million, or $0.04 per share for the quarter ended June 30, 2002. Company Developments During the past few months, the Company signed an agreement to convert debt to equity, and has added new customers, expanding a key customer within the NAP of the Americas and maintained a robust customer pipeline. Highlights of the activities include: -- Signing an agreement to convert when closed $18.5 million in debt to equity at $0.75 per share. -- Adding 11 new customers at the NAP of the Americas, including Bacardi, Boliviatel, CAF (Corporacion Andina de Fomento), IM1 Webhosting, Navega.com, NTT/Verio, SysteComm, WebUseNet and Williams Communications. A representative list of NAP of the Americas customers is available at http://www.terremark.com. -- Significantly expanding the presence at the NAP of Latin American Nautilus USA, one of the major regional broadband telecommunication providers, whose stakeholders are Telecom Italia, Telecom Argentina, Entel Bolivia and Entel Chile. "The second quarter performance showed solid improvement as the NAP of the Americas revenues increased," said Manuel Manuel may refer to:
ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" interest in our facility and services." Business Outlook Speaking on Terremark's outlook, Medina said, "Our sales pipeline looks better than ever. In addition, we continue to see consolidation and contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction in the industry, which places Terremark and its NAPs in a unique position of strength based on our exclusive experience in designing, owning and operating carrier-neutral Tier-1 NAPS. During the third quarter, we will continue to focus on strengthening our balance sheet by looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. additional opportunities to convert debt to equity, signing strategic new customers, working closely with existing customers to identify additional managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality critical to their operations and seeking to raise the additional capital funds needed." About Terremark Worldwide, Inc. Terremark Worldwide Inc. (AMEX:TWW) is the preeminent designer, builder and operator of integrated Tier-1 Network Access Points (NAPs) and best-in-class data centers, creating technology marketplaces in strategic global locations. Terremark is the owner and operator of the NAP of the Americas, the 5th Tier-1 Network Access Point in the world and the model for TerreNAP(sm) Data Centers the company is deploying in Sao Paulo Paulo is the Portuguese form of the given name Paul:
v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects v.intr. To be connected with each other: The two buildings interconnect. v.tr. between global carriers, ISPs and others, as well as connecting fiber networks in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Asia and Africa to those in the U.S.
Terremark is headquartered at 2601 S. Bayshore Bayshore may refer to:Communities:
Miami is a major city in southeastern Florida, in the United States. It is the county seat of Miami-Dade County. Miami is a gamma world city with an estimated population of 404,048. USA, (305) 856-3200. More information about Terremark Worldwide can be found at http://www.terremark.com. Statements contained in this press release may constitute "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 the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Terremark's actual results may differ materially from those set forth in the forward-looking statements due to a number of risks, uncertainties and other factors, as discussed in Terremark's filings with the SEC. These factors include, without limitation, Terremark's ability to obtain funding for its business plans and uncertainty in the demand for Terremark's services or products and Terremark's ability to manage its growth. Terremark does not assume any obligation to update these forward-looking statements.
Terremark Worldwide, Inc.
Condensed Consolidated Statements of Operations
Unaudited
For the three months ended
---------------------------------------
30-Sept-02 30-June-02 30-Sept-01
------------ ------------ -------------
Revenues
Data center $2,424,280 $2,059,128 $393,508
Data center - contract
termination fee - 1,090,638 -
Development, commission and
construction fees 59,216 17,604 1,144,696
Management fees 35,031 82,545 405,658
Construction contracts 1,173,882 1,932,969 2,452,678
------------ ------------ -------------
Operating revenues 3,692,409 5,182,884 4,396,540
------------ ------------ -------------
Expenses
Data center operations 2,768,744 3,094,680 3,167,068
Construction contract
expenses 937,805 1,833,509 1,915,247
General and administrative 3,192,623 3,285,921 4,753,031
Sales and marketing 1,209,396 769,606 1,398,464
Depreciation and amortization 1,333,977 1,231,244 2,048,748
Impairment of long-lived
assets 350,000 - 6,462,315
------------ ------------ -------------
Operating expenses 9,792,545 10,214,960 19,744,873
------------ ------------ -------------
Loss from operations (6,100,136) (5,032,076) (15,348,333)
------------ ------------ -------------
Other expense
Interest income 23,486 28,865 32,911
Interest expense (3,258,055) (3,015,627) (2,264,556)
Other income (expense) (75,993) 53,916 368,188
Dividend on preferred stock (7,497) (7,497) (7,497)
Gain on sale of real estate
held for sale - - 3,882,020
------------ ------------ -------------
Total other expense (3,318,059) (2,940,343) 2,011,066
------------ ------------ -------------
Loss from continuing operations
before income taxes (9,418,195) (7,972,419) (13,337,267)
Income taxes
Current tax expense - - -
Deferred tax - - -
------------ ------------ -------------
Total income tax expense - - -
------------ ------------ -------------
Net loss $(9,418,195) $(7,972,419) $(13,337,267)
------------ ------------ -------------
Reconciliation of Loss from
Operations to EBITDA
Loss from operations (6,100,136) (5,032,076) (15,348,333)
Depreciation and amortization 1,333,977 1,231,244 2,048,748
Impairment of long-lived assets 350,000 - 6,462,315
Data center - contract
termination fee - (1,090,638) -
------------ ------------ -------------
EBITDA $(4,416,159) $(4,891,470) $(6,837,270)
============ ============ =============
Terremark Worldwide, Inc.
Condensed Consolidated Balance Sheets
September 30, March 31,
2002 2002
------------- -------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $848,594 $283,078
Restricted cash 768,905 757,573
Accounts receivable, net of allowance for
doubtful accounts of $249,687 and $234,767
respectively 1,443,889 1,621,978
Contracts receivable 382,206 1,362,836
------------- -------------
Total current assets 3,443,594 4,025,465
Investment in unconsolidated entities 688,296 489,855
Property and equipment, net 58,423,997 61,088,987
Other assets 2,036,624 2,199,454
Identifiable intangible assets and goodwill 13,220,170 13,220,170
------------- -------------
Total assets $77,812,681 $81,023,931
------------- -------------
Liabilities and Stockholders' Deficit
Current liabilities:
Current portion of notes payable (includes
$4,600,000 and $4,250,000 due to related
parties) $50,578,180 $50,752,209
Construction payables - property and
equipment 21,715,884 26,250,729
Trade payables and other liabilities 11,071,339 10,240,698
Current portion of capital lease
obligations 1,972,052 2,079,294
Interest payable 2,450,740 2,347,742
Net liabilities of discontinued operations 1,246,731 1,394,010
Convertible debt (includes $4,450,000 due
to related parties) 30,655,000 -
------------- -------------
Total current liabilities 119,689,926 93,064,682
Convertible debt (includes $4,450,000 due
to related parties) - 30,655,000
Notes payable, less current portion
(includes $ 0 and $2,950,000 due to
related parties) 164,567 3,128,091
Capital lease obligations, less current
portion 1,729,052 2,136,076
Deferred revenue 1,006,005 815,826
------------- -------------
Total liabilities 122,589,550 129,799,675
------------- -------------
Series H redeemable convertible preferred
stock: $.001 par value, 294 shares
authorized, issued and outstanding,
respectively 500,000 500,000
------------- -------------
Series G convertible preferred stock: $.001
par value, 20 shares authorized, issued
and outstanding 1 1
Common stock: $.001 par value, 300,000,000
shares authorized; 232,631,074 and
200,882,250 shares issued, of which 0 and
1,400,000 shares are held in treasury,
respectively 232,631 200,882
Paid in capital 144,620,555 125,652,119
Retained deficit (190,487,449) (173,096,835)
Common stock subscriptions - 950,000
Common stock warrants 3,790,592 2,879,413
Common stock options 1,566,801 1,566,801
Less cost of shares of common stock in
treasury - (2,428,125)
Note receivable - related party (5,000,000) (5,000,000)
Commitments and contingencies - -
------------- -------------
Total stockholders' deficit (45,276,869) (49,275,744)
------------- -------------
Total liabilities and stockholders'
deficit $77,812,681 $81,023,931
------------- -------------
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