-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NQyi2u/4naWKbs5u9ZAmxJP8U+kBcSoKTOlNrAXQlrEhSqTHqAP9eB/IfTv322c1 kc++XT+J7XafJ1SRaEJDZg== 0000950130-01-506295.txt : 20020413 0000950130-01-506295.hdr.sgml : 20020413 ACCESSION NUMBER: 0000950130-01-506295 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20011227 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20011227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GLOBIX CORP CENTRAL INDEX KEY: 0001003111 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 133781263 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14168 FILM NUMBER: 1823750 BUSINESS ADDRESS: STREET 1: 139 CENTRE STREET CITY: NEW YORK STATE: NY ZIP: 10013 BUSINESS PHONE: 2125945300 FORMER COMPANY: FORMER CONFORMED NAME: BELL TECHNOLOGY GROUP LTD DATE OF NAME CHANGE: 19951106 8-K 1 d8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ----------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) December 27, 2001 ----------------- GLOBIX CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) Delaware 1-14168 13-3781263 - -------------------------------------------------------------------------------- (State or other juris- (Commission (IRS Employer diction of Incorporation) File number) Identification No.) 139 Centre Street, New York, New York 10013 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (212) 334-8500 ------------------ ----------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Item 5. Other Events. - ------ ------------ Registrant's press release dated December 27, 2001 is filed herewith as Exhibit 99.1 and is incorporated entirely herein by reference. Item 7. Financial Statements and Exhibits. - ------ --------------------------------- (c) Exhibits. -------- Exhibit Number Description -------------- ----------- Exhibit 99.1 Press Release dated December 27, 2001. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GLOBIX CORPORATION By /s/ Peter L. Herzig --------------------------------------- Peter L. Herzig Chief Executive Officer Dated: December 27, 2001 2 EX-99.1 3 dex991.txt PRESS RELEASE DATED DECEMBER 27, 2001 Exhibit 99.1 [LETTERHEAD OF GLOBIX CORPORATION] FOR IMMEDIATE RELEASE GLOBIX REPORTS FOURTH QUARTER AND FISCAL 2001 RESULTS COMPANY IN DISCUSSIONS WITH BONDHOLDERS NEW YORK - December 27, 2001 - Globix Corporation (NASDAQ: GBIX) today reported financial results for its fourth quarter and fiscal year ended September 30, 2001. Revenue for the fourth quarter of 2001 was $25.0 million compared to $25.9 million in the prior year quarter. For the fiscal 2001 year, revenue was $104.2 million compared to $81.3 million in the previous year. EBITDA loss (loss before net interest, income taxes, depreciation and amortization and restructuring charges) was $22.2 million for the fourth quarter of 2001 compared to $15.3 million in the same quarter last year and $15.5 million in the fiscal 2001 third quarter. As compared to the fiscal 2001 third quarter, the fiscal 2001 fourth quarter was adversely affected by a $3.5 million write-off of network assets impaired by the financial viability of a supplier and a $4.0 million increase in bad debt expense. For fiscal 2001, EBITDA loss was $64.7 million as compared with $59.3 million in the prior year. During the fourth quarter of fiscal 2001, the Company recorded a restructuring charge of $18.0 million related to the estimated termination costs of certain leases, and the write-off of leasehold improvements, excess equipment and employee termination costs. For the fourth quarter of 2001, net loss attributable to common stockholders was $73.6 million, or $1.89 per share based on 38.9 million common shares. For the fiscal year, net loss attributable to common stockholders was $220.1 million, or $5.72 per share. "Cost reductions and the management of working capital remained a constant focus during the year," said Brian Reach, Chief Financial Officer. "We ended the fiscal 2001 year with $111.5 million in cash, which was ahead of expectations." Globix also announced that it is in discussions with an informal committee of bondholders representing approximately 48% of the Company's outstanding $600 million issuance of 12 1/2% senior notes. The discussions concern a financial reorganization of the Company through a pre-packaged bankruptcy proceeding that would be aimed at significantly reducing the Company's debt burden. The Company is in similar discussions with its preferred stockholders. While there can be no assurance that these discussions will lead to an agreement, it is likely that any such agreement would result in the bondholders and preferred stockholders owning nearly all of the equity in the reorganized company, resulting in a near total dilution of the existing common stockholders' interest in the Company. GLOBIX CORPORATION 139 CENTRE STREET, NEW YORK, NY 10013-4408 PHONE: 212 334-8500 FAX: 212 334-8603 WWW.GLOBIX.COM Peter Herzig, Chief Executive Officer, said, "We are encouraged by the overall results for the fiscal year and are optimistic that we will be able to reach agreement with our bondholders and preferred stockholders. This past year was a challenging one for our company and our industry in general. The events of September 11, coupled with turbulent market and economic conditions and the dot-com fall out, have affected all participants in our market. We are seeking to greatly reduce our debt burden so that we will have the necessary liquidity to focus on the competitive advantage Globix enjoys as a premium provider of complex hosting services. While I believe these most recent developments, along with the growth and operational accomplishments Globix achieved during this past fiscal year will provide a strong platform for our future, we do not believe we will meet the fiscal 2002 guidance previously provided. In light of ongoing discussions with our bondholders, we expect to provide new guidance when we release our financial results for the first quarter ended December 31, 2001." About Globix Globix is a leading provider of advanced Internet hosting, network and applications solutions for business. Globix delivers services via its secure state-of-the-art Internet Data Centers, its high-performance global backbone and content delivery network, and its world-class technical professionals. Globix provides businesses with cutting-edge Internet resources and the ability to deploy, manage and scale mission-critical Internet operations for optimum performance and cost efficiency. This press release contains forward-looking statements relating to the Company's or management's intentions, beliefs, expectations or predictions for the future. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in the forward-looking statements. These risks, assumptions and uncertainties include the ability to finance the operations and complete the planned expansion of our facilities and network; our reliance on the growth of the Internet and e-commerce; our success against competitors with significantly greater resources; our ability to develop, pursue, confirm and consummate a plan of reorganization and to achieve its expected benefits; and other risks listed under the heading of Risk Factors in the Company's filings with the Securities and Exchange Commission. -2 - Globix Corporation and Subsidiaries Consolidated Statements of Operations ( In thousands, except share and per share data )
Three months ended Year ended September 30, September 30, 2001 2000 2001 2000 ------------- ------------- ------------- ------------- (Unaudited) Revenue $ 24,952 $ 25,853 $ 104,210 $ 81,287 Cost of revenue 9,889 11,649 40,609 42,513 Gross profit 15,063 14,204 63,601 38,774 Selling, general and administrative 37,253 29,469 128,321 98,113 Restructuring charges 18,000 -- 56,109 -- Depreciation and amortization 12,583 5,582 36,657 18,228 ------------- ------------- ------------- ------------- Loss from operations (52,773) (20,847) (157,486) (77,567) Interest and financing expense, net (18,698) (8,729) (51,846) (33,082) Other income 236 1,238 2,147 2,816 Other expense (558) (60) (3,526) (1,037) ------------- ------------- ------------- ------------- Loss before extraordinary loss on early extinguishment of debt and cumulative effect of a change in accounting principle (71,793) (28,398) (210,711) (108,870) Extraordinary loss on early extinguishment of debt -- -- -- (17,577) Cumulative effect of a change in accounting principle -- -- (2,332) -- ------------- ------------- ------------- ------------- Net loss (71,793) (28,398) (213,043) (126,447) Dividends and accretion on preferred stock (1,818) (1,738) (7,104) (5,768) ------------- ------------- ------------- ------------- Net loss attributable to common stockholders $ (73,611) $ (30,136) $ (220,147) $ (132,215) ============= ============= ============= ============= EBITDA (a) $ (22,190) $ (15,265) $ (64,720) $ (59,339) ============= ============= ============= ============= Basic and diluted loss per share attributable to common stockholders before extraordinary loss on early extinguishment of debt and cumulative effect of a change in accounting principle $ (1.89) $ (0.81) $ (5.66) $ (3.23) Extraordinary loss per share -- -- -- -- Extraordinary loss on early extinguishment of debt -- -- -- (0.50) Cumulative effect of a change in accounting principle -- -- (0.06) -- ------------- ------------- ------------- ------------- Basic and diluted loss per share attributable to common stockholders $ (1.89) $ (0.81) $ (5.72) $ (3.73) ============= ============= ============= ============= Basic and diluted loss per share attributable to common stockholders excluding certain items (b) $ (1.43) $ (0.81) $ (4.20) $ (3.24) ============= ============= ============= ============= Weighted average common shares outstanding 38,946,043 37,085,711 38,476,909 35,484,040 ============= ============= ============= =============
(a) EBITDA is used in the Internet services industry as one measure of a company's operating performance and historical ability to service debt. Globix defines EBITDA as losses before interest expense and interest income, income taxes, depreciation and amortization and other non-operating expenses including restructuring charges. (b) For the year ended September 30, 2001, excludes $56.1 million of restructuring charges and $2.3 million from the cumulative effect of a change in accounting principle. For the three months ended September 30, 2001, excludes $18.0 million of restructuring charge. -3 - Globix Corporation and Subsidiaries Consolidated Balance Sheets ( In thousands, except share and per share data )
September 30, September 30, 2001 2000 ------------- ------------- Assets Current assets: Cash and cash equivalents $ 111,502 $ 363,877 Short term investments -- 9,948 Marketable securities 1,610 4,685 Accounts receivable, net 13,809 21,403 Prepaid expenses and other current assets 7,785 4,441 Restricted cash 6,984 7,093 ------------- ------------- Total current assets 141,690 411,447 Investments, restricted 26,886 36,085 Property, plant and equipment, net 356,149 248,424 Debt issuance costs, net 19,006 20,217 Intangible assets, net 4,362 6,650 Other assets 4,895 6,768 ------------- ------------- Total assets $ 552,988 $ 729,591 ============= ============= Liabilities and Stockholders' Deficit Current liabilities: Capital lease and other obligations $ 6,687 $ 2,173 Accounts payable 14,022 16,964 Accrued liabilities 30,141 13,669 Accrued interest 12,500 12,502 ------------- ------------- Total current liabilities 63,350 45,308 Capital lease obligations, net of current portion 10,309 1,135 Mortgage payable 20,441 20,674 Senior notes 600,000 600,000 Other long term liabilities 7,577 4,462 ------------- ------------- Total liabilities 701,677 671,579 Minority interest in Subsidiary 5,406 -- Redeemable Convertible Preferred Stock 83,230 76,042 Stockholders' Deficit: Common stock, $0.01 par value; 500,000,000 shares authorized; 41,920,229 and 37,307,315 shares issued and outstanding, respectively 419 373 Additional paid-in capital 171,176 165,890 Deferred compensation (7,097) -- Accumulated other comprehensive income (2,703) 1,784 Accumulated deficit (399,120) (186,077) ------------- ------------- Total stockholders' deficit (237,325) (18,030) ------------- ------------- Total liabilities and stockholders' deficit $ 552,988 $ 729,591 ------------- -------------
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