-----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, Lj3i3u94smlOz3jkjCGc1T73XmVIvpneVXeMEWOsMk8Pq7E8Rsdo4lwjg11+BqSW 6Cidr0k5QdGCoY0Z11yAnQ== 0000950120-98-000065.txt : 19980227 0000950120-98-000065.hdr.sgml : 19980227 ACCESSION NUMBER: 0000950120-98-000065 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980226 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980226 SROS: NASD 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: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11965 FILM NUMBER: 98550735 BUSINESS ADDRESS: STREET 1: 9605 E MAROON CIRCLE STREET 2: PO BOX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80155 BUSINESS PHONE: 3035725960 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: ICG HOLDINGS CANADA INC 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: 98550736 BUSINESS ADDRESS: STREET 1: C/O INTELCOM GROUP (USA) INC STREET 2: 9605 EAST MAROON CIRCLE P O BOX 6742 CITY: ENGLEWOOD STATE: CO ZIP: 80155-6742 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: 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: 98550737 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 STREET 2: SUITE 1610 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 26, 1998 ---------------------- 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 W., Englewood, Colorado 80112 -------------------------------------------------- (Address of principal executive offices) 9605 E. Maroon Circle, P.O. Box 6742, Englewood, Colorado 80155-6742 --------------------------------------------------------------------- (Former name or former address, if changed since last report.) 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.) 161 Inverness Drive W., Englewood, Colorado 80112 -------------------------------------------------- (Address of principal executive offices) 9605 E. Maroon Circle, P.O. Box 6742, Englewood, Colorado 80155-6742 --------------------------------------------------------------------- (Former name or former address, if changed since last report.) Registrants' telephone numbers, including area codes (800) 650-5960 or (303) 414-5000 ----------------- (303) 572-5960 --------------------- (Former telephone number of Registrants, if changed since last report.) ITEM 5. OTHER EVENTS. ------ ------------ In a press release dated February 26, 1998, ICG Communications, Inc., a Delaware corporation (the "Corporation"), announced its earnings information and results of operations for the Corporation's 1997 fourth quarter and year end. A copy of the press release is attached as Exhibit 99.1. ------------- ITEM 7. EXHIBITS. ------ -------- (c) Exhibits -------- 99.1 Press Release, dated February 26, 1998. 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 26, 1998 ICG COMMUNICATIONS, INC. By: /s/ James D. Grenfell --------------------------- James D. Grenfell Executive Vice President and Chief Financial Officer ICG HOLDINGS (CANADA), INC. By: /s/ James D. Grenfell --------------------------- James D. Grenfell Executive Vice President and Chief Financial Officer ICG HOLDINGS, INC. By: /s/ James D. Grenfell --------------------------- James D. Grenfell Executive Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit Description ------- ----------- 99.1 Press Release, dated February 26, 1998. EX-99 2 EXHIBIT 99.1 ICG NEWS RELEASE COMMUNICATIONS, INC. Media contact: Scott Chase (303) 626-3417 Investor contact: Steve Smith (303) 575-6596 ICG COMMUNICATIONS, INC. REPORTS FOURTH QUARTER AND YEAR END 1997 RESULTS: 43 percent annual revenue growth 141,035 Local Dial Tone Lines In Service ENGLEWOOD, CO. (FEBRUARY 26, 1998) - ICG Communications, Inc. (Nasdaq: ICGX) ("ICG") today announced that for the three-month and twelve-month periods ended December 31, 1997 total revenue increased 37 percent and 43 percent, respectively, compared to the same periods in 1996. Total revenue for the three months and twelve months ended December 31, 1997 was $77.8 million and $273.4 million, respectively, compared to $57.0 million and $190.7 million reported in 1996. For the three months ended December 31, 1997, ICG's earnings before interest, taxes, depreciation and amortization ("EBITDA") deficit improved $3.3 million when compared sequentially to the third quarter of 1997. The fourth quarter marks ICG's second consecutive quarter of EBITDA improvement since the peak EBITDA deficit recorded for the second quarter of 1997. The company's EBITDA deficit for the fourth quarter of 1997 was $28.4 million, compared to deficits of $31.7 million and $33.8 million for the third and second quarters of 1997, respectively. "We are pleased to report that ICG achieved record revenue and continued its trend toward positive EBITDA," said J. Shelby Bryan, ICG's president and chief executive officer. "Our ability to move favorably toward positive EBITDA was directly correlated with the accelerating growth and business demand for our higher-margin services. ICG made great strides in 1997 to become a full service integrated communications provider. As we begin 1998, we are steadfastly committed to providing better choices for innovative and competitive communication services." (more) Page 2 - ICG At December 31, 1997, ICG had 141,035 local dial tone lines in service, an increase of 90,484 lines compared to September 30, 1997. During the fourth quarter ICG added 42,228 dial tone lines through internal growth and counted 48,256 additional dial tone lines which were associated with the purchase of Communications Buying Group, Inc. ("CBG"), which was closed on October 17, 1997. CBG provides local exchange and Centrex reseller services to customers in the Cleveland, Columbus and Akron, Ohio markets. ICG also reported that during the twelve months ended December 31, 1997, the company sold 178,470 dial tone access lines. ICG is marketing and selling competitive local dial tone services in its primary markets: California, Ohio, Colorado, its southeastern markets (Louisville, KY; Nashville, TN; Birmingham, AL; and Charlotte, NC) and in Texas through its strategic alliance with CSW/ChoiceCom L. P. REVENUE COMPONENTS: ICG's core telephone business revenue grew 75 percent to $47.7 million for the three months ended December 31, 1997, compared to $27.3 million recorded during the corresponding period in 1996. ICG's core telephone business is represented by its Telecom Services segment excluding revenue derived from the company's majority owned subsidiary Zycom Corporation ("Zycom"). Total Telecom Services revenue (including Zycom) increased $19.7 million, or 57 percent, to $54.5 million for the current quarter, compared to $34.8 million for the same quarter last year. Total Telecom Services' fourth quarter revenue included $9.2 million resulting from the acquisition of CBG. Excluding CBG's revenue, Telecom Services' total revenue on a comparable basis for the three months ended December 31, 1997 was $45.3 million, an increase of 30 percent over the corresponding period in 1996. Local switched services revenue for the three months ended December 31, 1997 was $16.9 million, an increase of $13.8 million compared to (more) Page 3 - ICG $3.1 million recorded in the prior quarter. CBG contributed $9.2 million to this fourth quarter increase; therefore on a stand-alone basis, excluding CBG, the company's local switched services revenue for the current quarter was $7.7 million, an increased $4.6 million or 148 percent compared to the third quarter of 1997. Local switched services were launched during 1997 and as a result there are no comparables to 1996. Switched terminating access (terminating long distance) revenue decreased seven percent, recording $15.3 million for the three months ended December 31, 1997, compared to $16.4 million for the corresponding period in 1996. When compared sequentially to the third quarter of 1997, switched terminating access revenue decreased 20 percent, or $3.8 million compared to $19.1 million reported for the three months ended September 31, 1997. This decrease, as expected, was the result of the Company's recent initiatives to raise prices and free up switch port capacity for higher margin dial tone product. Special access service (dedicated transport) revenue was $15.5 million for the quarter ended December 31, 1997, an increase of 42 percent over the same period last year, and an eight percent increase compared to the three months ended September 30, 1997. TELECOM SERVICES REVENUE COMPONENTS ($ IN MILLIONS) - -------------------------------------------------------------------- THREE MONTHS ENDED 12/31/97 12/31/96 PERCENT[DELTA] - -------------------------------------------------------------------- SWITCHED LOCAL $16.9 -- n/a - -------------------------------------------------------------------- SWITCHED TERMINATION 15.3 16.4 (7%) - -------------------------------------------------------------------- SPECIAL ACCESS 15.5 10.9 42% - -------------------------------------------------------------------- CORE TELECOM 47.7 27.3 75% - -------------------------------------------------------------------- ENHANCED (ZYCOM) 6.8 7.5 (9%) - -------------------------------------------------------------------- TOTAL REVENUE 54.5 34.8 57 % - -------------------------------------------------------------------- (more) Page 4 - ICG ICG's Network Services generated $15.6 million of revenue while the company's Satellite Services business contributed revenue of $7.7 million for the quarter ended December 31, 1997. IMPROVING CORE TELECOM OPERATING MARGINS: Telecom Services, excluding Zycom, continued to see improvements in its gross operating margins (revenue less operating costs) for the fourth quarter of 1997. The company's core telephone business generated $4.5 million of gross operating margins for the three months ended December 31, 1997, compared to $1.3 million last quarter. Throughout 1997, Telecom Services, excluding Zycom, continually improved its gross operating margins consistent with the growth of higher margin switched local services. CORE TELEPHONE GROSS OPERATING MARGINS: ($ in millions) - ------------------------------------------------------------------------------ THREE MONTHS ENDED 12/31/97 9/30/97 6/30/97 3/31/97 1997 - ------------------------------------------------------------------------------ Revenue $ 47.7 36.5 34.4 30.7 149.3 Operating costs (43.2) (35.2) (35.0) (33.9) (147.3) - ------------------------------------------------------------------------------ Gross margin 4.5 1.3 (0.6) (3.2) 2.0 % of revenue 9.4% 3.6% (1.7%) (10.4%) 1.3% - ------------------------------------------------------------------------------ TOTAL OPERATING COSTS AND SG&A: Total operating costs for the quarter ended December 31, 1997 were $67.4 million, compared to $49.9 million recorded for the corresponding quarter last year. The increase in these costs was primarily attributable to the increase in local switched services and the addition of network operating costs which include engineering and operations personnel dedicated to the development and launch of local exchange services. Telecom Services' network operating costs for the three months ended December 31, 1997, were $11.0 million. The percentage of Telecom Services' network operating costs to its core revenue declined throughout 1997, from 29 percent in the first quarter to 23 percent for the fourth quarter. (more) Page 5 - ICG Selling, general and administrative ("SG&A") expenses for the three months ended December 31, 1997 were $38.8 million, compared to $24.3 million recorded for the same three-month period in 1996. This increase was principally due to the continued rapid expansion of the company's Telecom Services networks and related additions to the company's marketing, sales, customer service and management information systems staff dedicated to the expansion of the Company's networks, and implementation of ICG's expanded services strategy, primarily the development of local and long distance telephone and data services. NET LOSSES: Depreciation and amortization for the three and twelve months ended December 31, 1997 was $19.5 million and $57.1 million, respectively, increases of $9.6 million and $21.8 million compared to the same periods in 1996. Interest expense for the three and twelve months ended December 31, 1997 was $35.2 million and $117.5 million, respectively, compared to $24.5 million and $95.0 million recorded during these periods last year. During the fourth quarter of 1997, ICG elected to write off assets of approximately $12.0 million which were not related to its core Telecom Services business. Net loss for the three and twelve months ended December 31, 1997, increased to $103.2 million and $327.6 million, respectively, compared to net losses of $49.8 million and $199.3 recorded for the corresponding periods in 1996. Loss per share for the quarter and year ended December 31, 1997 was $3.09 and $10.11, respectively. RESOURCES AND CAPITAL EXPENDITURES: ICG had $217.0 million in cash, cash equivalents and short-term investments at December 31, 1997. On February 12, 1998, a subsidiary of ICG issued approximately $300.6 million of 10% Senior Discount Notes that mature in 2008 and pay no interest in cash for the first (more) Page 6 - ICG five years. The Company's capital expenditures for the quarter ended December 31, 1997 were $82.1 million. Total capital expenditures for the twelve months ended December 31, 1997 were $269.6 million. OPERATIONS: For the three months ended December 31, 1997, the company's central office switches generated 660 million switched minutes of use ("MOUs"), an increase of nine percent over the same period in 1996. Customer circuits in service ("VGEs"), another measure of network usage, were 1,111,697 at December 31, 1997, compared to 748,528 at December 31, 1996, a 49 percent increase. At December 31, 1997, ICG had 3,043 operational fiber route miles (with another 1,064 miles under construction), a 28 percent increase, compared to 2,385 miles at December 31, 1996. The company also increased its buildings connected reaching 2,321 buildings at the end of 1997, compared to 2,069 buildings on December 31, 1996. ICG continued to add switching capacity to its network during the current quarter. The company had 34 switches at the end of the fourth quarter in 1997, of which 19 were voice switches and 15 were data switches. This compares to 33 switches (18 voice and 15 data) at the end of the third quarter and 14 voice switches and one data switch at the end of 1996. NETCOM PERFORMANCE: On January 21, 1998, ICG completed its merger with NETCOM On-Line Communication Services, Inc. ("NETCOM"), a leading provider of Internet services. This combination will be accounted for as a pooling-of-interests beginning in the first quarter of 1998. (more) Page 7 - ICG NETCOM's total revenue for the three and twelve months ended December 31, 1997 was $40.5 million and $160.7 million, respectively. NETCOM reported EBITDA of $0.7 million for the fourth quarter of 1997, compared to an EBITDA deficit of $3.2 million for the same period in 1996, a 122 percent improvement. The EBITDA deficit for the twelve months ended December 31, 1997 and 1996, respectively, was $1.7 million and $20.3 million, a 92% improvement. ICG Communications, Inc. (NASDAQ: ICGX), headquartered in Englewood, Colorado, is a leading national competitive local exchange carrier (CLEC) and premier provider of high-quality communications services. ICG has extensive switched fiber optic networks and offers local, long distance and enhanced telephony and data services in California, Colorado, Ohio and parts of the southeastern United States. The Company provides Internet communication solutions, connectivity and Web site hosting to individuals and small and medium-sized businesses through its subsidiary, NETCOM On-Line Communication Services, Inc. (a subsidiary of ICG Services, Inc.). Further information is available on ICG's Web site located at http://www.icgcomm.com. At December 31, 1997, ICG had 2,219 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: FORMS 10-K FILED BY ICG FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1996, AND FOR THE THREE-MONTH TRANSITION PERIOD ENDED DECEMBER 31, 1996; FORMS 10-Q FILED FOR THE QUARTERS ENDED MARCH 31, 1997, JUNE 30, 1997 AND SEPTEMBER 30, 1997; AND FORM 10-K TO BE FILED FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997. Attachments: Key Operating Statistics Consolidated Statements of Operations Consolidated Balance Sheet ICG Press Release Attachment: A-1 Press Release Date: February 26, 1998 ICG COMMUNICATIONS, INC. Key Operating Statistics
- ----------------------------------------------------------------------------------------------------- AS OF, DEC. 31, SEPT 30, JUNE 30, MARCH 31, DEC. 31, SEPT. 30, 1997 1997 1997 1997 1996 1996 TELECOM SERVICES - ----------------------------------------------------------------------------------------------------- DIAL TONE LINES IN SERVICE 141,035 50,551 20,108 5,371 -- -- - ----------------------------------------------------------------------------------------------------- FIBER ROUTE MILES Operational 3,043 3,021 2,898 2,483 2,385 2,143 Under construction 1,064 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------- FIBER STRAND MILES Operational 111,435 109,510 101,788 83,334 75,490 70,067 Under construction 16,366 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------- WIRELESS MILES 511 511 511 511 506 491 - ----------------------------------------------------------------------------------------------------- BUILDINGS CONNECTED On network 596 590 560 545 522 478 Hybrid 1,725 1,726 1,704 1,550 1,547 1,589 ------------------------------------------------------------------------ Total buildings connected 2,321 2,316 2,264 2,095 2,069 2,067 - ----------------------------------------------------------------------------------------------------- CUSTOMER CIRCUITS IN SERVICE (VGES) 1,111,697 1,006,916 917,656 816,238 748,528 630,697 - ----------------------------------------------------------------------------------------------------- SWITCHES Voice 19 18 17 16 14 14 Data 15 15 15 10 1 -- ----------------------------------------------------------------------- Total switches 34 33 32 26 15 14 - ----------------------------------------------------------------------------------------------------- SWITCHED MINUTES OF USE 660 788 742 682 607 563 (MOU) (in millions)* - ----------------------------------------------------------------------------------------------------- SATELLITE SERVICES - ----------------------------------------------------------------------------------------------------- VSATS 957 934 895 875 860 835 - ----------------------------------------------------------------------------------------------------- C-BAND INSTALLATIONS 57 54 57 57 54 48 - ----------------------------------------------------------------------------------------------------- L-BAND INSTALLATIONS 1,239 768 671 355 204 109 - ----------------------------------------------------------------------------------------------------- * Based on three-month periods.
ICG Press Release Attachment: A-2 Press Release Date: February 26, 1998 ICG COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) ($ in thousands except per share data)
THREE MONTHS ENDED, --------------------------------- Revenue 31-Dec-97 31-Dec-96 % Change --------------- ------------- ------------- Telecom services Special access $ 15,500 10,896 42.3% Switched termination access 15,264 16,411 (7.0%) Switched local services 16,957 -- NA --------- --------- Core Telecom revenue 47,721 27,307 74.8% Enhanced (Zycom) 6,782 7,480 (9.3%) --------- --------- Total Telecom services 54,503 34,787 56.7% Network services 15,619 15,981 (2.3%) Satellite services 7,680 6,188 24.1% --------- --------- TOTAL REVENUE 77,802 56,956 36.6% Operating costs Telecom services (49,587) (34,462) 43.9% Network services (13,342) (12,287) 8.6% Satellite services (4,489) (3,180) 41.2% --------- --------- Total operating costs (67,418) (49,929) 35.0% Selling, general and administrative (38,824) (24,253) 60.1% --------- --------- EBITDA (28,440) (17,226) 65.1% Depreciation and amortization (19,457) (9,825) 98.0% Net gain (loss) on disposal of long-lived assets 364 -- NA Provision for impairment of long-lived assets (11,950) -- NA --------- --------- Operating loss (59,483) (27,051) 119.9% Interest expense (35,230) (24,454) 44.1% Interest income 4,623 5,962 (22.5%) Other, net (324) 708 (145.8%) --------- --------- Loss before income taxes, minority interest and share of losses (90,414) (44,835) 101.7% Income tax benefit -- -- 0.0% Minority interest & preferred dividends on preferred securities of subsidiaries (12,831) (4,988) 157.2% --------- --------- Net loss (103,245) (49,823) 107.2% ========= ========= Loss per share (3.09) (1.56) 98.1% ========= ========= Weighted average number of shares outstanding 33,396 31,840
TWELVE MONTHS ENDED, ------------------------------- Revenue 31-Dec-97 31-Dec-96 % Change --------------- ------------- ------------- Telecom services Special access $ 55,435 39,423 40.6% Switched termination access 72,671 48,057 51.2% Switched local services 21,252 -- NA --------- --------- Core Telecom revenue 149,358 87,480 70.7% Enhanced (Zycom) 28,332 21,475 31.9% --------- --------- Total Telecom services 177,690 108,955 63.1% Network services 65,678 60,379 8.8% Satellite services 29,986 21,317 40.7% --------- --------- TOTAL REVENUE 273,354 190,651 43.4% Operating costs Telecom services (175,829) (101,285) 73.6% Network services (53,911) (46,545) 15.8% Satellite services (16,678) (10,242) 62.8% --------- --------- Total operating costs (246,418) (158,072) 55.9% Selling, general and administrative (150,767) (82,350) 83.1% --------- --------- EBITDA (123,831) (49,771) 148.8% Depreciation and amortization (57,081) (35,274) 61.8% Net gain (loss) on disposal of long-lived assets (671) -- NA Provision for impairment of long-lived assets (11,950) (11,503) 3.9% --------- --------- Operating loss (193,533) (96,548) 100.5% Interest expense (117,545) (94,953) 23.8% Interest income 21,907 21,512 1.8% Other, net (660) (7,351) (91.0%) --------- --------- Loss before income taxes, minority interest and share of losses (289,831) (177,340) 63.4% Income tax benefit -- 5,131 (100.0%) Minority interest & preferred dividends on preferred securities of subsidiaries (37,812) (27,079) 39.6% --------- --------- Net loss (327,643) (199,288) 64.4% ========= ========= Loss per share (10.11) (6.96) 45.3% ========= ========= Weighted average number of shares outstanding 32,399 28,630
ICG Press Release Attachment: A-3 Press Release Date: February 26, 1998 ICG COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) ($ in thousands except per share data)
THREE MONTHS ENDED, ------------------------------------------------------------------- Revenue 31-Dec-97 30-Sep-97 30-Jun-97 31-Mar-97 YTD 1997 --------------- ------------- ------------- ------------- --------------- Telecom services Special access $ 15,500 14,355 13,501 12,079 $ 55,435 Switched termination access 15,264 19,063 19,743 18,601 72,671 Switched local services 16,957 3,125 1,170 -- 21,252 -------- -------- -------- -------- -------- Core Telecom revenue 47,721 36,543 34,414 30,680 149,358 Enhanced (Zycom) 6,782 7,121 6,829 7,600 28,332 -------- -------- -------- -------- -------- Total Telecom services 54,503 43,664 41,243 38,280 177,690 Network services 15,619 16,432 15,640 17,987 65,678 Satellite services 7,680 7,640 7,883 6,783 29,986 -------- -------- -------- -------- -------- TOTAL REVENUE 77,802 67,736 64,766 63,050 273,354 Operating costs Telecom services (49,587) (42,348) (42,444) (41,450) (175,829) Network services (13,342) (13,151) (12,883) (14,535) (53,911) Satellite services (4,489) (4,236) (4,366) (3,587) (16,678) -------- -------- -------- -------- -------- Total operating costs (67,418) (59,735) (59,693) (59,572) (246,418) Selling, general and administrative (38,824) (39,700) (38,864) (33,379) (150,767) -------- -------- -------- -------- -------- EBITDA (28,440) (31,699) (33,791) (29,901) (123,831) Depreciation and amortization (19,457) (13,667) (13,075) (10,882) (57,081) Net gain (loss) on disposal of long-lived assets 364 (1,177) 274 (132) (671) Provision for impairment of long-lived assets (11,950) -- -- -- (11,950) -------- -------- -------- -------- -------- Operating loss (59,483) (46,543) (46,592) (40,915) (193,533) Interest expense (35,230) (28,834) (28,341) (25,140) (117,545) Interest income 4,623 5,382 6,768 5,134 21,907 Other, net (324) 60 (289) (107) (660) -------- -------- -------- -------- -------- Loss before income taxes, minority interest and share of losses (90,414) (69,935) (68,454) (61,028) (289,831) Income tax benefit -- -- -- -- -- Minority interest & preferred dividends on preferred securities of subsidiaries (12,831) (10,112) (9,116) (5,753) (37,812) -------- -------- -------- -------- -------- Net loss (103,245) (80,047) (77,570) (66,781) (327,643) ======== ======== ======== ======== ========= Loss per share (3.09) (2.48) (2.42) (2.09) (10.11) ======== ======== ======== ======== ========= Weighted average number of shares outstanding 33,396 32,248 32,042 31,938 32,399
ICG Press Release Attachment: A-4 Press Release Date: February 26, 1998 ICG COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEETS (unaudited) ($ in thousands)
DECEMBER 31, DECEMBER 31, ASSETS: 1997 1996 - ------------------ ------------ ------------ Cash, cash equivalents and short-term investments $ 217,015 392,535 Receivables, net 69,337 48,624 Property and equipment, net 632,167 403,676 Other assets, net 189,145 99,298 ---------- ---------- Total assets $1,107,664 944,133 ========== ========== LIABILITIES AND STOCKHOLDERS' DEFICIT: - ----------------------------------------- Accounts payable and accrued liabilities $ 91,883 62,122 Debt 892,352 691,175 Capital leases 72,576 95,829 ---------- ---------- Total liabilities 1,056,811 849,126 ---------- ---------- Minority interests -- 1,967 Redeemable preferred securities of subsidiaries 420,171 159,120 Stockholders' deficit: Common stock 647 8,088 Additional paid-in capital 326,318 294,472 Accumulated deficit (696,283) (368,640) ---------- ---------- Total stockholders' deficit (369,318) (66,080) ---------- ---------- Total liabilities and stockholders' deficit $1,107,664 944,133 ========== ========== Fully diluted shares (treasury stock method) 43,119 34,096
-----END PRIVACY-ENHANCED MESSAGE-----