-----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, TaDWnh7/29y6PwKjk3K2izPkseeK8OL/bZIqCaEsLKD9JvgoL8U5F3foj9mjW+3e 6CtZeXk1eCbbapZApyjyFQ== 0000950120-99-000137.txt : 19990503 0000950120-99-000137.hdr.sgml : 19990503 ACCESSION NUMBER: 0000950120-99-000137 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990430 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ICG COMMUNICATIONS INC /DE/ CENTRAL INDEX KEY: 0001013240 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 841342022 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11965 FILM NUMBER: 99606128 BUSINESS ADDRESS: STREET 1: 161 INVERNESS DRIVE WEST STREET 2: PO BOX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: 8004145000 MAIL ADDRESS: STREET 1: 161 INVERNESS DRIVE WEST STREET 2: P O OX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80112 FORMER COMPANY: FORMER CONFORMED NAME: ICG HOLDINGS CANADA CO DATE OF NAME CHANGE: 19990226 FORMER COMPANY: FORMER CONFORMED NAME: ICG COMMUNICATIONS INC DATE OF NAME CHANGE: 19960430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ICG HOLDINGS CANADA CO /CO/ CENTRAL INDEX KEY: 0000786343 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 841128866 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11052 FILM NUMBER: 99606129 BUSINESS ADDRESS: STREET 1: 161 INVERNESS DRIVE WEST STREET 2: P O BOX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80155-6742 BUSINESS PHONE: 3034145431 MAIL ADDRESS: STREET 1: 161 INVERNESS DRIVE STREET 2: PO BOX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80155-6742 FORMER COMPANY: FORMER CONFORMED NAME: ICG HOLDINGS CANADA INC DATE OF NAME CHANGE: 19970225 FORMER COMPANY: FORMER CONFORMED NAME: INTERTEL COMMUNICATIONS INC DATE OF NAME CHANGE: 19930107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ICG HOLDINGS INC CENTRAL INDEX KEY: 0001001131 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 841128866 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 033-96540 FILM NUMBER: 99606130 BUSINESS ADDRESS: STREET 1: 161 INVERNESS DRIVE WEST STREET 2: P O BOX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80155-6742 BUSINESS PHONE: 3034145000 MAIL ADDRESS: STREET 1: P O BOX 6742 STREET 2: SUITE 1610 CITY: ENGLEWOOD STATE: CO ZIP: 80155-6742 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ICG FUNDING LLC CENTRAL INDEX KEY: 0001049902 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 841434980 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 333-40495-01 FILM NUMBER: 99606131 BUSINESS ADDRESS: STREET 1: 161 INVERNESS DRIVE WEST STREET 2: P.O. BOX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: 3034145000 MAIL ADDRESS: STREET 1: 161 INVERNESS DRIVE WEST STREET 2: P O BOX 6742 CITY: ENGELWOOD STATE: CO ZIP: 80155-6742 8-K 1 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) April 30, ---------------- 1999 (April 28, 1999) -------------------------- ICG COMMUNICATIONS, INC. ---------------------------------------------------------------- (Exact name of registrant as specified in charter) Delaware 1-11965 84-1342022 ---------------------------------------------------------------- (State of Incorporation) (Commission (IRS Employer File Number) Identification No.) 161 Inverness Drive West, Englewood, Colorado 80112 --------------------------------------------------- (Address of principal executive offices) ICG HOLDINGS (CANADA) CO. ---------------------------------------------------------------- (Exact name of registrant as specified in charter) Canada 1-11052 Not Applicable ----------------------------------------------------------------- (State of Incorporation) (Commission (IRS Employer File Number) Identification No.) 161 Inverness Drive West, Englewood, Colorado 80112 --------------------------------------------------- (Address of principal executive offices) ICG HOLDINGS, INC. ----------------------------------------------------------------- (Exact name of registrant as specified in charter) Colorado 33-96540 84-1158866 ----------------------------------------------------------------- (State of Incorporation) (Commission (IRS Employer File Number) Identification No.) 161 Inverness Drive West, Englewood, Colorado 80112 --------------------------------------------------- (Address of principal executive offices) ICG FUNDING, LLC ----------------------------------------------------------------- (Exact name of registrant as specified in charter) Delaware 333-40495 84-1434980 ----------------------------------------------------------------- (State of Incorporation) (Commission (IRS Employer File Number) Identification No.) 161 Inverness Drive West, Englewood, Colorado 80112 --------------------------------------------------- (Address of principal executive offices) Registrants' telephone numbers, including area codes (888) 424- ---------- 1144 and (303) 414-5000 ----------------------- ITEM 5. OTHER EVENTS. ------ ------------ In a press release dated April 28, 1999, ICG Communications, Inc., a Delaware corporation (the "Corporation"), announced its earnings information and results of operations for the Corporation's 1999 first quarter. A copy of the press release is attached. ITEM 7. Exhibits. ------ -------- (c) Exhibits -------- 99.1 Press Release, dated April 28, 1999. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized. Dated: April 29, 1999 ICG COMMUNICATIONS, INC. By:/s/ H. Don Teague --------------------------- H. Don Teague Executive Vice President, General Counsel and Secretary ICG HOLDINGS (CANADA) CO. By: /s/ H. Don Teague --------------------------- H. Don Teague Executive Vice President, General Counsel and Secretary ICG HOLDINGS, INC. By: /s/ H. Don Teague -------------------------- H. Don Teague Executive Vice President, General Counsel and Secretary ICG FUNDING, LLC By: /s/ H. Don Teague --------------------------- H. Don Teague Executive Vice President, General Counsel and Secretary EXHIBIT INDEX -------------- Exhibits Description -------- ----------- 99.1 Press Release, dated April 28, 1999. EX-99 2 PRESS RELEASE DATED APRIL 28, 1999 EXHIBIT 99.1 [GRAPHIC OMITTED] FOR IMMEDIATE RELEASE For more information, contact: MEDIA CONTACT: INVESTOR CONTACT: Mark Stutz Steve Smith (303) 414-5529 (303) 414-5350 mark_stutz@icgcomm.com investor_relations@icgcomm.com ---------------------- ------------------------------- ICG COMMUNICATIONS, INC. REPORTS RECORD $10.5 MILLION EBITDA FOR FIRST QUARTER OF 1999 Total Revenue Grew 64 Percent 64,128 Lines Added ENGLEWOOD, CO. (APRIL 28, 1999) - ICG Communications, Inc. (Nasdaq: ICGX) ("ICG") today announced strong first quarter results. For the three months ended March 31, 1999, the company's total consolidated EBITDA (earnings before interest, taxes, depreciation and amortization, and non-recurring charges) was $10.5 million, compared to a deficit of $25.0 million reported in the corresponding period in 1998. ICG's total consolidated revenue for the first quarter of 1999 grew 64 percent to $129.5 million, compared to $78.9 million last year. During the first three months of 1999, ICG installed 64,128 net new access lines, of which 98.5 percent were on-switch, and ended the period with 418,610 total lines in service. "ICG finished the first quarter of 1999 very strong, both operationally and financially," said J. Shelby Bryan, ICG's president and chief executive officer. "More importantly, we are positioned for accelerated sequential growth due to the continued strength in our traditional CLEC business and the earlier than expected contribution of our ISP network services business." ICG's business strategy is to provide high-quality local, long distance, enhanced telephony and data services to small and medium-sized businesses in California, Colorado, Ohio, Texas, and parts of the southeastern United States. The company also provides high-speed network services to Internet service providers (ISPs) using its nationwide data network with 236 points of presence (POPs). ICS Press Release, 4/28/99, page 2 REVENUE COMPONENTS: ICG's Telecom services ("Telecom") revenue grew 78 percent to $104.3 million for the three months ended March 31, 1999, compared to $58.5 million recorded during the corresponding period in 1998. Telecom's local services revenue for the three months ended March 31, 1999 was $67.4 million, an increase of $43.1 million, or 178 percent, compared to the same period in 1998. Growth in local revenue was primarily attributed to the increase in access lines. Telecom's special access service (dedicated transport) revenue was $22.6 million for the quarter ended March 31, 1999, an increase of 40 percent over the first quarter last year. Long distance revenue for the current quarter was $5.1 million, compared to $3.9 million for the first quarter last year. Switched terminating access (terminating long distance) revenue was $9.2 million for the three months ended March 31, 1999, compared to $14.2 million for the same period in 1998. This decrease, as expected, was the result of the company's initiatives to raise prices. TELECOM SERVICES REVENUE COMPONENTS ($ IN MILLIONS) - ------------------------------------------------------------------------------- THREE MONTHS ENDED ANNUAL SEQUENTIAL 3/31/99 3/31/98 % CHANGE 12/31/98 % CHANGE - ------------------------------------------------------------------------------- LOCAL SERVICES $67.4 24.3 178% $60.5 11% LONG DISTANCE 5.1 3.9 32% 5.1 n/a SPECIAL ACCESS 22.6 16.1 40% 20.6 10% SWITCHED TERMINATION 9.2 14.2 (35%) 11.8 (22%) - ------------------------------------------------------------------------------- TOTAL TELECOM REV. 104.3 58.5 78% 98.0 6% - ------------------------------------------------------------------------------- ICG's Network services generated $13.5 million of revenue for the first quarter of 1999, an 18 percent increase, or a $2.1 million improvement, compared to the corresponding quarter in 1998. The company's Satellite services business had revenue of $11.7 million for the quarter ended March 31, 1999, a 31 percent increase compared to $8.9 million a year ago. ICS Press Release, 4/28/99, page 3 IMPROVING CORE TELECOM OPERATING MARGINS: Telecom services' gross operating margins improved to $50.7 million for the first quarter (49% of Telecom revenue), compared to $12.8 million reported in 1998. The improvement in gross operating margin was attributable to increases in higher margin revenue and better network utilization. TELECOM SERVICES' GROSS OPERATING MARGINS: ($ in millions) - ------------------------------------------------------------------------------- THREE MONTHS ENDED 3/31/99 12/31/98 9/30/98 6/30/98 3/31/98 ------------------------------------------------------ Revenue $104.3 98.0 82.6 64.2 58.5 ------------------------------------------------------ Operating costs (53.6) (50.1) (48.1) 43.3) (45.7) ------------------------------------------------------ Gross margin 50.7 47.9 34.5 20.9 12.8 ------------------------------------------------------ % of revenue 49% 49% 42% 33% 22% - ------------------------------------------------------------------------------- TOTAL OPERATING COSTS AND SG&A: Total operating costs for the quarter ended March 31, 1999 were $70.2 million, a 14 percent increase compared to $61.5 million recorded for the corresponding quarter last year. ICG's gross operating margin (revenue less operating costs) for the current quarter was $59.3 million, or 46 percent of total revenue compared to a gross operating margin of $17.4 million, or 22 percent of revenue, for the first quarter of 1998. Selling, general and administrative ("SG&A") expenses for the three months ended March 31, 1999 were $48.9 million, a 16 percent increase compared to $42.3 million recorded for the same three-month period in 1998. SG&A as a percentage of total revenue was 38 percent for the first quarter of this year, compared to 54 percent last year. NET INCOME (LOSS): Depreciation and amortization for the three months ended March 31, 1999 was $39.0 million, up $25.4 million compared to last year. This increase was due to an increase in depreciable assets and goodwill. Interest expense for the three months ended March 31, 1999 was $47.4 million, while interest income was $4.1 million. ICS Press Release, 4/28/99, page 4 During the first quarter of this year ICG disposed of its Netcom domestic and international operations and posted an extraordinary gain of $193.0 million. Total proceeds from this disposition were approximately $286.1 million. Net income for the three months ended March 31, 1999 was $106.7 million, compared to a net loss of $101.8 million recorded for the corresponding quarter in 1998. Loss from continuing operations for the three months ended March 31, 1999 was $86.3 million, compared to a loss from continuing operations of $81.6 million recorded for the first quarter last year. Earnings per share for the quarter ended March 31, 1999 was $2.29, compared to a loss of $2.30 recorded for the corresponding quarter in 1998. Loss per share from continuing operations for the quarter ended March 31, 1999 was $1.85 compared to a loss of $1.84 for the corresponding quarter in 1998. RESOURCES AND CAPITAL EXPENDITURES: ICG had $369.0 million in cash, cash equivalents and short-term investments at March 31, 1999. The company's capital expenditures for the quarter ended March 31, 1999 were $105.7 million. OPERATIONS: At March 31, 1999 ICG had 4,351 operational fiber route miles (with another 533 miles under construction), compared to 3,194 route miles at March 31, 1998. The company increased its buildings connected 56 percent, reaching 6,126 buildings at the end of the current quarter, compared to 3,931 buildings connected on March 31, 1998. ICG had 46 switches at the end of the first quarter in 1999, of which 29 were voice switches and 17 were data switches. This compares to 35 switches (20 voice and 15 data) at the end of March last year. ICS Press Release, 4/28/99, page 5 ABOUT ICG COMMUNICATIONS: With headquarters in Englewood, Colo., ICG Communications, Inc. (NASDAQ: ICGX) is a competitive telecommunications provider of high-quality, integrated communications solutions. ICG offers local, long distance, enhanced telephony and data communications to small and medium-sized businesses in California, Colorado, Ohio, Texas and the southeastern United States. The Company also provides high-speed data network capabilities and services to Internet service providers throughout the U.S., using ICG's nationwide network. Through other subsidiary operations, ICG designs and installs copper, fiber and wireless infrastructure for buildings and campuses; and offers international satellite voice and data services. At March 31, 1999 ICG had 2,665 full time employees. ### INFORMATION AND STATEMENTS CONTAINED IN THIS PRESS RELEASE CONTAIN, EXPRESSED OR IMPLIED, FORWARD-LOOKING DISCLOSURES THAT ARE BASED ON THE BELIEFS OF MANAGEMENT AS WELL AS ASSUMPTIONS MADE BASED ON INFORMATION CURRENTLY AVAILABLE TO MANAGEMENT. THESE FORWARD-LOOKING STATEMENTS AND INFORMATION INVOLVE RISKS AND UNCERTAINTY, INCLUDING, BUT NOT LIMITED TO, FUTURE DEMAND FOR THE COMPANY'S SERVICES, GENERAL ECONOMIC CONDITIONS, GOVERNMENT REGULATIONS, COMPETITION AND CUSTOMER STRATEGIES, CAPITAL DEPLOYMENT, THE IMPACT OF PRICING, AND OTHER RISKS AND UNCERTAINTIES. SHOULD ONE OR MORE OF THESE RISKS MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED HEREIN AS ANTICIPATED, BELIEVED, ESTIMATED OR EXPECTED. THESE RISKS ARE DETAILED FROM TIME TO TIME IN VARIOUS REPORTS FILED BY ICG WITH THE SEC, INCLUDING FORM 10-K FILED FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998 AND FORM 10-Q TO BE FILED FOR THE QUARTER ENDED MARCH 31, 1999. Attachments: Key Operating Statistics Consolidated Statements of Operations Consolidated Balance Sheet [GRAPHIC OMITTED] ICS Press Release, 4/28/99, page 6
KEY OPERATING STATISTICS ========================================================================================== AS OF, MARCH 31, DEC. 31, SEPT. 30, JUNE 30, TELECOM SERVICES 1999 1998 1998 1998 ========================================================================================== ACCESS LINES IN SERVICE 418,610 354,482 290,983 237,458 - ------------------------------------------------------------------------------------------ FIBER ROUTE MILES Operational 4,351 4,255 3,995 3,812 Under construction 533 -- -- -- - ------------------------------------------------------------------------------------------ FIBER STRAND MILES Operational 155,788 134,152 127,756 124,642 Under construction 15,863 -- -- -- - ------------------------------------------------------------------------------------------ BUILDINGS CONNECTED On network 789 777 684 665 Hybrid 5,337 4,620 4,217 3,733 Total buildings connected 6,126 5,397 4,901 4,398 - ------------------------------------------------------------------------------------------ SWITCHES Voice 29 29 21 20 Data 17 16 15 15 -------------------------------------------------------- Total switches 46 45 36 35 - ------------------------------------------------------------------------------------------ COLLOCATIONS WITH ILECS 111 59 47 45 - ------------------------------------------------------------------------------------------ SATELLITE SERVICES - ------------------------------------------------------------------------------------------ C-BAND INSTALLATIONS 78 76 69 66
KEY OPERATING STATISTICS ================================================================= AS OF, MARCH 31, DEC. 31, TELECOM SERVICES 1998 1997 ================================================================= ACCESS LINES IN SERVICE 186,156 141,035 - ----------------------------------------------------------------- FIBER ROUTE MILES Operational 3,194 3,043 Under construction -- -- - ----------------------------------------------------------------- FIBER STRAND MILES Operational 118,074 111,435 Under construction -- -- - ----------------------------------------------------------------- BUILDINGS CONNECTED On network 637 626 Hybrid 3,294 2,527 Total buildings connected 3,931 3,153 - ----------------------------------------------------------------- SWITCHES Voice 20 19 Data 15 15 ---------------------------- Total switches 35 34 - ----------------------------------------------------------------- COLLOCATIONS WITH ILECS 35 32 - ----------------------------------------------------------------- SATELLITE SERVICES - ----------------------------------------------------------------- C-BAND INSTALLATIONS 59 57 - ----------------------------------------------------------------- ICG Press Release, 4/28/99, Page 7 ICG COMMUNICATIONS CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) ($ in thousands except per share data)
Year-over-year comparison ------------------------- Three months ended, ------------------------- Revenue 3/31/99 3/31/98 % Change ------------ ------------ ---------- Telecom services Local services $ 67,399 24,277 178% Long distance 5,131 3,883 32% Special access 22,562 16,127 40% Switched terminating access 9,239 14,200 (35%) ------------ ------------ Total Telecom services 104,331 58,487 78% Network services (FOTI) 13,500 11,431 18% Satellite services 11,688 8,949 31% ------------ ------------ TOTAL REVENUE 129,519 78,867 64% Operating costs Telecom services (53,649) (45,658) 18% Network services (FOTI) (10,303) (10,865) (5%) Satellite services (6,224) (4,992) 25% ------------ ------------ Total operating costs (70,176) (61,515) 14% Selling, general and administrative (48,893) (42,326) 16% ------------ ------------ EBITDA (before nonrecurring charges) 10,450 (24,974) (142%) Depreciation and amortization (39,031) (13,603) 187% Net gain (loss) on disposal of long-lived assets 908 (505) (280%) Provision for impairment of long-lived assets - - NA ------------ ------------ Operating loss (27,673) (39,082) (29%) Interest expense (47,441) (34,471) 38% Interest income 4,105 5,502 (25%) Other, net (504) (321) 57% ------------ ------------ Loss before income taxes, preferred dividends and extraordinary gain (71,513) (68,372) 5% Income tax expense - - NA Preferred dividends on preferred securities of subsidiaries, net of minority interest (14,804) (13,192) 12% ------------ ------------ Loss from continuing operations before extraordinary gain (86,317) (81,564) 6% Discontinued operations Loss from discontinued operations - (20,191) (100%) Loss on disposal of discontinued operations - - NA ------------ ------------ Loss before extraordinary gain (86,317) (101,755) (15%) Extraordinary gain on sales of operations of NETCOM, net of income taxes 193,029 - NA ------------ ------------ Net income (loss) $ 106,712 (101,755) 205% ============ ============ Earnings (loss) per share - basic and diluted: Loss from continuing operations (1.85) (1.84) (1%) Loss from discontinued operations - (0.46) 100% Extraordinary gain 4.14 - NA ------------ ------------ Earnings (loss) per share 2.29 (2.30) 200% ============ ============ Weighted average number of shares outstanding 46,538 44,311 ============ ============ Sequential comparison -------------------------- Three months ended, --------------------------- Revenue 3/31/99 12/31/98 % Change ------------ ------------ --------- Telecom services Local services $ 67,399 60,457 11% Long distance 5,131 5,160 (1%) Special access 22,562 20,606 9% Switched terminating access 9,239 11,825 (22%) ------------ ------------- Total Telecom services 104,331 98,048 6% Network services (FOTI) 13,500 13,111 3% Satellite services 11,688 10,469 12% ------------ ------------- TOTAL REVENUE 129,519 121,628 6% Operating costs Telecom services (53,649) (50,147) 7% Network services (FOTI) (10,303) (11,689) (12%) Satellite services (6,224) (4,889) 27% ------------ ------------- Total operating costs (70,176) (66,725) 5% Selling, general and administrative (48,893) (50,766) (4%) ------------ ------------- EBITDA (before nonrecurring charges) 10,450 4,137 153% Depreciation and amortization (39,031) (40,224) (3%) Net gain (loss) on disposal of long-lived assets 908 (4,371) (121%) Provision for impairment of long-lived assets - (1,786) (100%) ------------ ------------- Operating loss (27,673) (42,244) (34%) Interest expense (47,441) (48,153) (1%) Interest income 4,105 6,226 (34%) Other, net (504) (624) (19%) ------------ ------------- Loss before income taxes, preferred dividends and extraordinary gain (71,513) (84,795) (16%) Income tax expense - (45) (100%) Preferred dividends on preferred securities of subsidiaries, net of minority interest (14,804) (14,409) 3% ------------ ------------- Loss from continuing operations before extraordinary gain (86,317) (99,249) (13%) Discontinued operations Loss from discontinued operations - (18,965) (100%) Loss on disposal of discontinued operations - (576) (100%) ------------ ------------- Loss before extraordinary gain (86,317) (118,790) (27%) Extraordinary gain on sales of operations of NETCOM, net of income taxes 193,029 - NA ------------ ------------- Net income (loss) $ 106,712 (118,790) 190% ============ ============= Earnings (loss) per share - basic and diluted: Loss from continuing operations (1.85) (2.16) 14% Loss from discontinued operations - (0.42) 100% Extraordinary gain 4.14 - NA ------------ ------------- Earnings (loss) per share 2.29 (2.58) 189% ============ ============= Weighted average number of shares outstanding 46,538 46,010 ============ =============
ICG Press Release, 4/28/99, Page 8 ICG COMMUNICATIONS CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) ($ in thousands except per share data)
Three months ended, ---------------------------------- Revenue 3/31/99 12/31/98 9/30/98 ----------- ---------- ---------- Telecom services Local services $ 67,399 60,457 46,171 Long distance 5,131 5,160 4,572 Special access 22,562 20,606 20,213 Switched terminating access 9,239 11,825 11,611 ----------- ---------- ---------- Total Telecom services 104,331 98,048 82,567 Network services (FOTI) 13,500 13,111 14,550 Satellite services 11,688 10,469 9,350 ----------- ---------- ---------- TOTAL REVENUE 129,519 121,628 106,467 Operating costs Telecom services (53,649) (50,147) (48,145) Network services (FOTI) (10,303) (11,689) (12,177) Satellite services (6,224) (4,889) (4,358) ----------- ---------- ---------- Total operating costs (70,176) (66,725) (64,680) Selling, general and administrative (48,893) (50,766) (45,435) ----------- ---------- ---------- EBITDA 10,450 4,137 (3,648) Depreciation and amortization (39,031) (40,224) (24,883) Net gain (loss) on disposal of long-lived assets 908 (4,371) 814 Restructuring costs - (1,786) - ----------- ---------- ---------- Operating loss (27,673) (42,244) (27,717) Interest expense (47,441) (48,153) (45,982) Interest income 4,105 6,226 8,196 Other, net (504) (624) (547) ----------- ---------- ---------- Loss before income taxes, preferred dividends and extraordinary gain (71,513) (84,795) (66,050) Income tax expense - (45) (45) Preferred dividends on preferred securities of subsidiaries, net of minority interest (14,804) (14,409) (13,987) ----------- ---------- ---------- Loss from continuing operations before extraordinary gain (86,317) (99,249) (80,082) Loss from discontinued operations - (18,965) (15,381) Loss on disposal of discontinued operations - (576) (1,201) ----------- ---------- ---------- Loss before extraordinary gain (86,317) (118,790) (96,664) Extraordinary gain on sales of operations of NETCOM, net of income taxes 193,029 - - ----------- ---------- ---------- Net income (loss) $ 106,712 (118,790) (96,664) =========== ========== ========== Earnings (loss) per share - basic and diluted: Loss from continuing operations (1.85) (2.16) (1.76) Loss from discontinued operations - (0.42) (0.36) Extraordinary gain 4.14 - - ----------- ---------- ---------- Earnings (loss) per share 2.29 (2.58) (2.12) =========== ========== ========== Weighted average number of shares outstanding 46,538 46,010 45,588 =========== ========== ========== Trailing 12 months ended -------------- Revenue 6/30/98 3/31/99 ----------- ------------ Telecom services Local services 30,328 $ 204,355 Long distance 4,940 19,803 Special access 17,543 80,924 Switched terminating access 11,404 44,079 ----------- ------------ Total Telecom services 64,215 349,161 Network services (FOTI) 14,759 55,920 Satellite services 11,683 43,190 ----------- ------------ Total revenue 90,657 448,271 Operating costs Telecom services (43,310) (195,251) Network services (FOTI) (12,590) (46,759) Satellite services (5,869) (21,340) ----------- ------------ Total operating costs (61,769) (263,350) Selling, general and administrative (45,156) (190,250) ----------- ------------ EBITDA (16,268) (5,329) Depreciation and amortization (22,835) (126,973) Net gain (loss) on disposal of long-lived assets 7 (2,642) Restructuring costs (553) (2,339) ----------- ------------ Operating loss (39,649) (137,283) Interest expense (41,521) (183,097) Interest income 8,490 27,017 Other, net (3,160) (4,835) ----------- ------------ Loss before income taxes, preferred dividends and extraordinary gain (75,840) (298,198) Income tax expense - (90) Preferred dividends on preferred securities of subsidiaries, net of minority interest (13,595) (56,795) ----------- ------------ Loss from continuing operations before extraordinary gain (89,435) (355,083) Loss from discontinued operations (11,401) (65,938) Loss on disposal of discontinued operations - (1,777) ----------- ------------ Loss before extraordinary gain (100,836) (402,607) Extraordinary gain on sales of operations of NETCOM, net of income taxes - 193,029 ----------- ------------ Net income (loss) (100,836) (209,578) =========== ============ Earnings (loss) per share - basic and diluted: Loss from continuing operations (1.99) Loss from discontinued operations (0.26) Extraordinary gain - ----------- Earnings (loss) per share (2.25) =========== Weighted average number of shares outstanding 44,865 ===========
ICG Press Release, 4/28/99, Page 9 ICG COMMUNICATIONS CONSOLIDATED BALANCE SHEETS (unaudited) ($ in thousands) MARCH 31, ASSETS: 1999 - ------- ------------------ Cash, cash equivalents and short-term investments $ 368,975 Receivables, net 197,702 Property and equipment, net 1,067,167 Other assets, net 243,415 ------------------ Total assets $ 1,877,259 ================== LIABILITIES AND STOCKHOLDERS' DEFICIT: - -------------------------------------- Accounts payable and accrued liabilities $ 161,160 Debt 1,677,815 Capital leases 76,538 Net current liabilities of discontinued operations 934 ------------------ Total liabilities 1,916,447 ------------------ Redeemable preferred securities of subsidiaries 478,924 Stockholders' deficit: Common stock 468 Additional paid-in capital 584,170 Accumulated deficit (1,102,750) Accumulated other comprehensive loss - ------------------ Total stockholders' deficit (518,112) ------------------ Total liabilities and stockholders' deficit $ 1,877,259 ================== Diluted shares (in thousands) 49,227 DECEMBER 31, ASSETS: 1998 - ------- ------------------ Cash, cash equivalents and short-term investments $ 262,831 Receivables, net 145,138 Property and equipment, net 934,134 Other assets, net 283,322 ------------------ Total assets $ 1,625,425 ================== LIABILITIES AND STOCKHOLDERS' DEFICIT: - ------------------------------------- Accounts payable and accrued liabilities $ 99,490 Debt 1,599,043 Capital leases 68,445 Net current liabilities of discontinued operations 23,272 ------------------ Total liabilities 1,790,250 ------------------ Redeemable preferred securities of subsidiaries 466,352 Stockholders' deficit: Common stock 584 Additional paid-in capital 577,820 Accumulated deficit (1,209,462) Accumulated other comprehensive loss (119) ------------------ Total stockholders' deficit (631,177) ------------------ Total liabilities and stockholders' deficit $ 1,625,425 ================== Diluted shares (in thousands) 56,183 -----END PRIVACY-ENHANCED MESSAGE-----