-----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, IvIwtGBgkValKfCPWwUBzMWcBy/hlVmsDmSnNHSzTHPEp2mpP0aAYzt/jc3MdbtJ LUDz2TyxWN9HJKePFZVuwQ== 0000950120-97-000049.txt : 19970225 0000950120-97-000049.hdr.sgml : 19970225 ACCESSION NUMBER: 0000950120-97-000049 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970220 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970224 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: ICG COMMUNICATIONS INC CENTRAL INDEX KEY: 0001013240 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 841342022 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11965 FILM NUMBER: 97541762 BUSINESS ADDRESS: STREET 1: 9605 E MAROON CIRCLE STREET 2: PO BOX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80155 BUSINESS PHONE: 3035735960 MAIL ADDRESS: STREET 1: 9605 E. MAROON CIRCLE STREET 2: P O OX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80155-6742 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTELCOM GROUP INC CENTRAL INDEX KEY: 0000786343 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 841128866 STATE OF INCORPORATION: A0 FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11052 FILM NUMBER: 97541763 BUSINESS ADDRESS: STREET 1: C/O INTELCOM GROUP (USA) INC STREET 2: 9605 EAST MAROON CIRCLE CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: 3035725960 MAIL ADDRESS: STREET 1: C/O INTELCOM GROUP (USA) INC STREET 2: PO BOX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80112 FORMER COMPANY: FORMER CONFORMED NAME: INTERTEL COMMUNICATIONS INC DATE OF NAME CHANGE: 19930107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTELCOM GROUP USA INC CENTRAL INDEX KEY: 0001001131 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 841128866 STATE OF INCORPORATION: CO FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-96540-01 FILM NUMBER: 97541764 BUSINESS ADDRESS: STREET 1: 9605 E MAROON CIRCLE STREET 2: P O BOX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80155-6742 BUSINESS PHONE: 3035725984 MAIL ADDRESS: STREET 1: P O BOX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80112 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) February 20, 1997 --------------------- 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.) 9605 E. Maroon Circle, P.O. Box 6742, Englewood, Colorado 80155-6742 ---------------------------------------------------------------------- (Address of principal executive offices) ICG HOLDINGS (CANADA), INC. ---------------------------------------------------------------------- (Exact name of registrant as specified in charter) Canada 1-11052 Not Applicable ---------------------------------------------------------------------- (State of Incorporation) (Commission (IRS Employer File Number) Identification No.) 1710-1177 West Hastings Street, Vancouver, British Columbia V6E 2L3 ---------------------------------------------------------------------- (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.) 9605 E. Maroon Circle, P.O. Box 6742, Englewood, Colorado 80155-6742 ---------------------------------------------------------------------- (Address of principal executive offices) Registrants' telephone numbers, including area codes (800) 650-5960 ----------------- or (303) 572-5960 ------------------ INTELCOM GROUP INC. ------------------- (Former Name) James D. Grenfell ICG Communications, Inc. 9605 East Maroon Circle P.O. Box 6742 Englewood, Colorado 80155-6742 (303) 572-5960 ------------------------------ (Address of United States Agent for Service) ITEM 5. OTHER EVENTS. ------ ------------ In a press release dated February 20, 1997, ICG Communications, Inc., a Delaware corporation (the "Corporation"), announced its earnings information and results of operations for the Corporation's transition period from October 1, 1996 through December 31, 1996. A copy of the press release is attached as Exhibit 99.1. ------------ ITEM 7. EXHIBITS. ------ -------- (c) Exhibits -------- 99.1 Press Release, dated February 20, 1997. 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: February 21, 1997 ICG COMMUNICATIONS, INC. By: /s/ James D. Grenfell ------------------------------ James D. Grenfell Executive Vice President, Chief Financial Officer and Treasurer ICG HOLDINGS (CANADA), INC. By: /s/ James D. Grenfell ------------------------------ James D. Grenfell Executive Vice President, Chief Financial Officer and Treasurer ICG HOLDINGS, INC. By: /s/ James D. Grenfell ------------------------------ James D. Grenfell Executive Vice President, Chief Financial Officer and Treasurer EXHIBIT INDEX ------------- Exhibit Number Description of Exhibit -------------- ---------------------- 99.1 Press Release, dated February 20, 1997. EX-99 2 EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 ICG NEWS RELEASE COMMUNICATIONS, INC. MEDIA CONTACT: TOM RAFFERTY (303) 572-2094 INVESTOR CONTACT: STEVE SMITH (303) 575-6595 ICG COMMUNICATIONS, INC. REPORTS RECORD REVENUE, INCREASING 61 PERCENT FOR THE QUARTER ENDED DECEMBER 31, 1996 ENGLEWOOD, CO. (FEBRUARY 20, 1997) - ICG Communications, Inc. (AMEX: "ICG"), today announced that total revenue increased 61 percent to $57.0 million for the quarter ended December 31, 1996, compared to $35.4 million posted for the corresponding quarter in 1995. Telecom Services (excluding enhanced services "Zycom"), ICG's core telephone business segment, reported that its revenue grew 117 percent for the three months ended December 31, 1996, to $27.3 million compared to $12.6 million recorded during the corresponding period in 1995. Telecom Services total revenue (including Zycom) increased 157 percent for the current quarter, to $34.8 million. "We are pleased to report that ICG achieved record revenue growth during the quarter, paralleling increased network usage," said J. Shelby Bryan, ICG's president and chief executive officer. "Commensurate with our sales and marketing initiatives, we are focused on accelerating our revenue growth as we begin offering local dial tone and data transmission services." For the three months ended December 31, 1996, the company's central office switches generated 607 million switched minutes of use, an increase of 158 percent over the same period in 1995. Customer circuits in service ("VGE"s), another measure of network usage, were 748,500 at December 31, 1996, compared to 488,400 at the end of 1995, a 53 percent increase. On December 31, 1996, ICG had 2,385 operational fiber route miles (with another 735 miles under construction), a 274 percent increase compared to 637 miles at the end of 1995. The company also expanded its buildings connected 34 percent, reaching 2,069 buildings at the end of the current quarter, compared to 1,539 buildings at the end of 1995. (more) page two - ICG 2/20/97 press release ICG had 14 operational voice grade switches, with 3 more in the process of installation, at the end of 1996. Additionally, the company had 7 operational frame relay data switches, with 8 more being installed, on December 31, 1996. REVENUE COMPONENTS: Telecom Services switched access revenue increased 222 percent, recording $16.4 million for the three months ended December 31, 1996, compared to $5.1 million for the corresponding period in 1995. Special access service revenue was $10.9 million for the quarter ended December 31, 1996, an increase of 45 percent over the same period last year. TELECOM SERVICES REVENUE COMPONENTS ($ IN MILLIONS) ---------------------------------------------------------- 1996 THREE MONTHS ENDED, DEC. 31 SEPT. 30 JUNE 30 MARCH 31 1996 ---------------------------------------------------------- SPECIAL $ 10.9 10.3 9.7 8.5 39.4 ACCESS -------------------------------------------------- SWITCHED 16.4 13.2 10.4 8.0 48.0 ACCESS -------------------------------------------------- ENHANCED 7.5 8.7 4.3 1.1 21.6 (ZYCOM) ---------------------------------------------------------- TOTAL REVENUE $ 34.8 32.2 24.4 17.6 109.0 ---------------------------------------------------------- ---------------------------------------------------------- 1995 THREE MONTHS ENDED, DEC. 31 SEPT. 30 JUNE 30 MARCH 31 1995 ----------------------------------------------------------- SPECIAL $ 7.5 6.6 6.8 6.2 27.1 ACCESS --------------------------------------------------- SWITCHED 5.1 2.9 1.9 0.7 10.6 ACCESS --------------------------------------------------- ENHANCED 0.9 0.8 0.5 0.1 2.3 (ZYCOM) ----------------------------------------------------------- TOTAL REVENUE $ 13.5 10.3 9.2 7.0 40.0 ----------------------------------------------------------- "Our switched access revenue continues to drive revenue growth while providing us with valuable operating experience in the switched services arena," said William J. Maxwell, ICG Telecom Group, Inc.'s president. "During the current quarter, we launched local dial tone services in selected California markets and will be launching this service during the first half of calendar 1997 in other key markets. Our strategy is for local dial tone revenue to ultimately become a significant component of our revenue stream." (more) page three - ICG 2/20/97 press release ICG owns a 70 percent interest in Zycom Corporation ("Zycom") which operates an 800/900 number service bureau and switch platform supplying information providers and commercial accounts with audiotext and customer support services. Because of its majority ownership ICG consolidates Zycom, which is the principal component of enhanced service revenue. For the quarter ended December 31, 1996, Zycom recorded revenue of $7.5 million, compared to $0.9 million for the three months ended December 31, 1995, an increase of $6.6 million. Approximately $5.5 million of this increase in Zycom revenue, comparing the quarters ended December 31, 1995 and 1996, relates to changes in the classification of certain operating costs as a result of the company entering into long-term contracts with its major customers. Network Services posted $16.0 million for the quarter ended December 31, 1996, from $15.7 million for the same period in fiscal 1995. As planned, revenue growth from Network Services has been moderate while the company repositioned its operations to improve its operating results. Satellite Services contributed $6.2 million to ICG's total revenue for the quarter ended December 31, 1996. In March 1996, Satellite Services sold four of its five teleports, retaining the Holmdel, New Jersey teleport. Consequently, on a pro forma basis, adjusting for the sale of these teleports, Satellite Services revenue increased 68 percent, to $6.2 million for the current quarter from $3.7 million for the three months ended December 31, 1995. OPERATING COSTS AND S,G & A EXPENSES Total operating costs for the quarter ended December 31, 1996, were $49.9 million, compared to $27.1 million recorded for the final quarter of calendar 1995. The increase in these costs was primarily attributable to the increase in switched access services and the addition of engineering personnel dedicated to the development of local exchange services. Selling, general and administrative ("SG&A") expenses for the fourth quarter of calendar 1996 were $24.3 million, a $5.6 million increase, or 30 percent, compared to the fourth quarter of calendar 1995. This increase was principally due to the continued rapid expansion of the (more) page four - ICG 2/20/97 press release company's Telecom Services networks and related additions to the company's marketing, sales and customer service, and management information systems staff dedicated to the expansion, development and implementation of ICG's switched services strategy and development of local and long distance telephone services. ICG anticipates that SG&A expenses will continue to increase over the near term as a result of hiring new staff to facilitate the development and marketing of its branded local and long distance telephone and data transmission services to end users. The company expanded its sales and marketing staff to 143 employees by the end of 1996, compared to 81 sales and marketing employees at September 30, 1996. The increase in sales and marketing staff coincides with the launch of ICG's dial tone and data services in most of its key markets in early 1997. EBITDA AND NET LOSSES For the three months ended December 31, 1996, ICG's EBITDA (earnings before interest, taxes, depreciation and amortization) deficit was $17.2 million, compared to a deficit of $10.3 million for the same period in 1995. ICG's operations require significant engineering and marketing investments in preparation for the launch of local telephone services, such as dial tone. Because these investments are required before revenue is generated, the company anticipates that there will continue to be disproportionate increases in both operating costs and SG&A expenses relative to revenue generation, resulting in an increased EBITDA deficit. The company believes that as higher margin local telephone services are carried on the company's network, the relationship between revenue and operating costs and SG&A expenses is expected to improve. Net loss for the quarter ended December 31, 1996, increased to $49.8 million compared to a net loss of $34.6 million recorded for the same three-month period last year. Loss per share for the three months ended December 31, 1996, was $1.56 compared to $1.38 for the same period in 1995. (more) page five - ICG 2/20/97 press release CAPITAL EXPENDITURES AND RESOURCES The company's capital expenditures for the quarter and year ended December 31, 1996, were $78.2 million and $227.5, respectively. ICG had $392.5 million in cash, cash equivalents and short-term investments at December 31, 1996. 1996 CAPITAL EXPENDITURES ($ IN MILLIONS) ----------------------------------------------------------------- THREE MONTHS ENDED, DEC. 31 SEPT. 30 JUNE 30 MARCH 31 1996 ----------------------------------------------------------------- CAPITAL LEASES $ 19.5 5.5 2.2 47.3 74.5 ---------------------------------------------------------- CAPITAL FOR PROPERTY 58.7 37.5 27.7 29.1 153.0 & EQUIPMENT ----------------------------------------------------------------- TOTAL CAPITAL EX. $ 78.2 43.0 29.9 76.4 227.5 ----------------------------------------------------------------- ICG changed its fiscal year end to December 31 (a calendar year basis) effective January 1, 1997. * * * ICG is a leading national competitive local exchange carrier ("CLEC") publicly traded on the American Stock Exchange under the symbol "ICG." The operations of ICG Communications, Inc. consist of Telecom Services provided primarily through ICG Telecom Group, Inc., Network Services provided primarily through ICG Fiber Optic Technologies, Inc. ("FOTI"), and Maritime Communications Services provided primarily through ICG Satellite Services, Inc. ICG Telecom Group, Inc. is ICG's CLEC and enhanced services business. ICG Fiber Optic Technologies, Inc. provides network integration and support services. ICG Satellite Services, Inc. provides maritime telecommunications network and international end-to-end voice and data services, and operates VSAT (very small aperture terminal) private data networks. On December 31, 1996, ICG had 1,424 full time employees. (more) page six - ICG 2/20/97 press release 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 BY ICG FOR THE YEAR ENDED SEPTEMBER 30, 1996, AND FOR THE THREE MONTH TRANSITION PERIOD ENDED DECEMBER 31, 1996. # # # Attachments: ICG Communications, Inc. key operating statistics ICG Communications, Inc. and subsidiaries Consolidated Statements of Operations ICG Communications, Inc. and subsidiaries Consolidated Balance Sheets ICG Press Release Attachment: A-1 Press Release Date: February 20, 1997 ICG COMMUNICATIONS, INC. KEY OPERATING STATISTICS ---------------------------------------------------------------------- AS OF, DEC. SEPT. JUNE MARCH DEC. SEPT. TELECOM 31, 30, 30, 31, 31, 30, SERVICES 1996 1996 1996 1996 1995 1995 ---------------------------------------------------------------------- FIBER ROUTE MILES Operational 2,385 2,143 886 780 637 627 Under construction 735 -- -- -- -- -- --------------------------------------------------------------------- FIBER STRAND MILES Operational 75,490 70,067 45,098 36,310 28,779 27,150 Under construction 33,747 -- -- -- -- -- --------------------------------------------------------------------- WIRELESS MILES 506 491 483 582 545 568 --------------------------------------------------------------------- BUILDINGS CONNECTED On network 522 478 384 327 304 280 Off network 1,547 1,589 1,493 1,401 1,235 1,095 --------------------------------------------------- Total buildings connected 2,069 2,067 1,877 1,728 1,539 1,375 --------------------------------------------------------------------- CUSTOMER 748,528 630,697 551,881 510,755 488,403 430,535 CIRCUITS IN SERVICE (VGEs) --------------------------------------------------------------------- SWITCHES OPERATIONAL 14 14 13 13 13 13 ---------------------------------------------------------------------- SWITCHED 607 563 475 362 235 144 MINUTES OF USE * (in millions) ---------------------------------------------------------------------- SATELLITE SERVICES ---------------------------------------------------------------------- VSATS 860 835 659 658 633 626 ---------------------------------------------------------------------- C-BAND INSTALLATIONS 54 48 48 36 33 28 ---------------------------------------------------------------------- L-BAND INSTALLATIONS 204 109 53 3 -- -- ---------------------------------------------------------------------- * Based on three-month periods. ICG ICG Press Release Attachment: A-2 COMMUNICATIONS, INC. Press Release Date: February 20, 1997 CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands except per share data) THREE MONTHS ENDED, ------------------------------------------------- Revenue Dec. 31, Sept. 30, June 30, Mar. 31, '96 '96 '96 '96 ------------------------- ------------------------ Telecom services Special access $ 10,896 10,330 9,693 8,504 Switched access 16,411 13,241 10,387 8,018 Enhanced (Zycom) 7,480 8,591 4,291 1,113 -------- -------- -------- -------- Total Telecom services 34,787 32,162 24,371 17,635 Network services 15,981 15,746 14,679 13,973 Satellite services 6,188 5,197 5,596 4,336 -------- -------- -------- -------- TOTAL REVENUE 56,956 53,105 44,646 35,944 Operating costs Telecom services (34,462) (29,306) (22,323) (15,194) Network services (12,287) (12,631) (10,569) (11,058) Satellite services (3,180) (2,728) (2,415) (1,919) ------- ------- -------- ------- Total costs of services (49,929) (44,665) (35,307) (28,171) Selling, general and (24,253) (21,397) (20,546) (16,154) admin. ------- ------- ------- ------- EBITDA (17,226) (12,957) (11,207) (8,381) Depreciation and amort. (9,825) (8,952) (9,055) (7,442) ------- ------- ------- ------- Operating loss (27,051) (21,909) (20,262) (15,823) Interest expense (24,454) (23,342) (32,940) (14,217) Interest income 5,962 6,868 5,957 2,725 Other, net 708 (6,039) (466) (1,554) Share of losses in JV - (555) (449) (582) Provisions (GW, AR) - (9,917) - - -------- ------- -------- -------- Loss before minority interest and taxes (44,835) (54,894) (48,160) (29,451) Minority interest & preferred dividend on sub pfr'd (4,988) (3,560) (16,561) (1,970) Income tax benefit - 649 - 4,482 Cumulative effect of - - - - accounting change -------- -------- -------- -------- Net loss $(49,823) (57,805) (64,721) (26,939) ======== ======== ======= ======= Loss per share $ (1.56) (1.91) (2.43) (1.04) ======== ======== ======= ======= Weighted average number of shares outstanding 31,840 30,296 26,580 25,803 =========================================================================== SUPPLEMENTAL PRO FORMA DATA Telecom services revenue $ 34,787 32,162 24,371 17,635 Total revenue 56,956 53,105 44,646 35,944 EBITDA (17,226) (12,957) (11,207) (8,381) Net loss (49,823) (57,805) (64,721) (26,939) -------------------------------------------------------------------------- During fiscal 1996 the company changed its method of accounting for long- term telecom services contracts to recognize revenue as services are provided. The company has reflected the effects of this change as if such change had been adopted as of 10/1/95, as is presenting the pro forma effects on prior periods assuming the change had been applied retroactively. =========================================================================== YEARS ENDED, ------------------------- Yr. vs. Yr. Revenue Dec. 31, Dec. 31, '96 '95 % Change ------------------------- ------------ Telecom services Special access 39,423 27,164 45.1% Switched access 48,057 10,608 353.0% Enhanced (Zycom) 21,475 2,276 843.5% --------- -------- Total Telecom services 108,955 40,048 172.1% Network services 60,379 59,203 2.0% Satellite services 21,317 23,124 -7.8% ---------- -------- TOTAL REVENUE 190,651 122,375 55.8% Operating costs Telecom services (101,285) (30,639) 230.6% Network services (46,545) (45,629) 2.0% Satellite services (10,242) (12,470) -17.9% --------- ---------- Total costs of services (158,072) (88,738) 78.1% Selling, general and admin. (82,350) (70,833) 16.3% ----------- --------- EBITDA (49,771) (37,196) 33.8% Depreciation and amort. (35,274) (18,212) 93.7% --------- ---------- Operating loss (85,045) (55,408) 53.5% Interest expense (94,953) (37,012) 156.5% Interest income 21,512 7,529 185.7% Other, net (7,351) (1,296) 467.2% Share of losses in JV (1,586) (843) 88.1% Provisions (GW, AR) (9,917) (7,000) 41.7% --------- ---------- Loss before minority interest and taxes (177,340) (94,030) 88.6% Minority interest & preferred dividend on sub pfr'd (27,079) (4,310) 528.3% Income tax benefit 5,131 36 14,152.8% Cumulative effect of accounting change - (3,453) -100.0% ----------- --------- Net loss (199,288) (101,757) 95.8% =========== =========== Loss per share (6.96) (4.17) =========== =========== Weighted average number of shares outstanding 28,630 24,410 ========================================================================== SUPPLEMENTAL PRO FORMA DATA Telecom services revenue 108,955 39,605 175.1% Total revenue 190,651 121,932 56.4% EBITDA (49,771) (37,639) 32.2% Net loss (199,288) (102,200) 95.0% -------------------------------------------------------------- During fiscal 1996 the company changed its method of accounting for long-term telecom services contracts to recognize revenue as services are provided. The company has reflected the effects of this change as if such change had been adopted as of 10/1/95, as is presenting the pro forma effects on prior periods assuming the change had been applied retroactively. ========================================================================== ICG COMMUNICATIONS, INC. ICG Press Release Attachment: A-3 CONSOLIDATED STATEMENTS OF Press Release Date: February 20, 1997 OPERATIONS (continued) ($ in thousands except per share data) YEARS ENDED SEPTEMBER 30, THREE MONTHS ENDED ---------------------------- DECEMBER 31, Revenue 1996 1995 1994 1996 1995 % --------- -------- -------------------------- change Telecom services Special access $ 36,102 25,116 14,834 10,896 7,575 43.8% Switched access 36,729 5,792 20 16,411 5,084 222.8% Enhanced 14,850 1,422 - 7,480 854 (Zycom) --------- ------- -------- ------- -------- 775.9% Total Telecom services 87,681 32,330 14,854 34,787 13,513 157.4% Network services 60,116 58,778 36,019 15,981 15,718 1.7% Satellite services 21,297 20,502 8,121 6,188 6,168 0.3% Other - - 118 - - --------- ------- -------- ------- -------- N/A TOTAL REVENUE 169,094 111,610 59,112 56,956 35,399 60.9% Operating costs Telecom services (78,705) (21,825) (7,050) (34,462) (11,882) 190.0% Network services (46,256) (45,928) (26,334) (12,287) (11,998) 2.4% Satellite services (10,292) (11,093) (4,697) (3,180) (3,230) -1.5% Other - - (84) - - --------- ------- ------- ------- -------- N/A Total costs of services (135,253) (78,846) (38,165) (49,929) (27,110) 84.2% Selling, general (76,725) (62,954) (28,015) (24,253) (18,628) and admin. -------- ------- ------- ------- ------- 30.2% EBITDA (42,884) (30,190) (7,068) (17,226) (10,339) 66.6% Depreciation and (30,368) (16,624) (8,198) (9,825) (4,919) amort. -------- ------- ------- ------- ------- 99.7% Operating loss (73,252) (46,814) (15,266) (27,051) (15,258) 77.3% Interest expense (85,714) (24,368) (8,481) (24,454) (15,215) 60.7% Interest income 19,300 4,162 1,788 5,962 3,750 59.0% Other, net (9,082) (764) (863) 708 (1,023) -169.2% Share of losses in JV (1,814) (741) (1,481) - (228) -100.0% Provisions (GW, (9,917) (7,000) - - - AR) -------- ------- -------- -------- -------- N/A Loss before minority interest and taxes (160,479) (75,525) (24,303) (44,835) (27,974) 60.3% Minority interest & preferred dividend on sub pfr'd (25,306) (1,123) 435 (4,988) (3,215) 55.1% Income tax benefit 5,131 - - - - N/A Cumulative effect of accounting (3,453) - - - (3,453) change -------- -------- -------- -------- ------- -100.0% Net loss $(184,107) (76,648) (23,868) (49,823) (34,642) ========= ======= ======= ======= ======= 43.8% Loss per share $ (6.83) (3.25) (1.56) (1.56) (1.38) ========= ======= ======= ======= ======= Weighted average number of shares outstanding 26,955 23,604 15,342 31,840 25,139 ========================================================================== SUPPLEMENTAL PRO FORMA DATA Telecom services revenue $ 87,681 31,617 14,395 34,787 13,513 157.4% Total revenue 169,094 110,897 58,653 56,956 35,399 60.9% EBITDA (42,884) (30,903) (7,527) (17,226) (10,339) 66.6% Net loss (184,107) (77,361) (24,327) (49,823) (34,642) 43.8% ------------------------------------------------------------------------ During fiscal 1996 the company changed its method of accounting for long-term telecom services contracts to recognize revenue as services are provided. The company has reflected the effects of this change as if such change had been adopted as of 10/1/95, as is presenting the pro forma effects on prior periods assuming the change had been applied retroactively. ========================================================================== ICG ICG Press Release Attachment: A-4 COMMUNICATIONS, INC. Press Release Date: February 20, 1997 CONSOLIDATED BALANCE SHEETS ($ in thousands) SEPTEMBER 30, DEC. 31, ----------------------- ASSETS: 1996 1996 1995 -------- ------- ------- Cash, cash equivalents and short-term investments $392,535 457,914 269,416 Receivables, net 48,624 40,835 32,691 Property and equipment, net 403,932 336,137 202,004 Other assets, net 99,042 104,465 79,442 -------- -------- -------- Total assets $944,133 939,351 583,553 ======== ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY: Accounts payable and accrued liabilities $ 62,122 51,881 33,058 Debt 691,175 669,784 397,246 Capital leases 95,829 78,325 35,599 Other liabilities - 2,851 6,739 -------- -------- -------- Total liabilities 849,126 802,841 472,642 -------- -------- -------- Minority interests 1,967 2,780 4,040 Redeemable preferred stock of subsidiary 159,120 153,318 14,986 Convertible series B preferred stock - - 9,350 Stockholders' equity (deficit) Common stock 278,686 275,355 190,753 Additional paid-in capital 23,874 23,874 26,492 Accumulated deficit (368,640) (318,817) (134,710) -------- -------- -------- Total stockholders' equity (66,080) (19,588) 82,535 (deficit) -------- -------- -------- -------- -------- -------- Total liabilities and $944,133 939,351 583,553 stockholders' equity ========= ======== ======== -----END PRIVACY-ENHANCED MESSAGE-----