EX-99.1 3 g85950exv99w1.txt PRESS RELEASE EXHIBIT 99.1 TERREMARK WORLDWIDE INC. PRESS RELEASE 2601 S. Bayshore Drive, 9th Floor, Miami, Florida 33133 Office (305) 856-3200 o Fax (305) 856-8190 FOR IMMEDIATE RELEASE TERREMARK WORLDWIDE REPORTS SECOND QUARTER RESULTS NAP of the Americas Revenues Increased 18% Over Prior Quarter MIAMI, FL (NOVEMBER 14, 2003) - Terremark Worldwide, Inc. (AMEX:TWW), a leading operator of integrated Tier-1 Network Access points (NAPs) and best-in-class network services, today reported its quarterly results for the quarter ended September 30, 2003. Terremark's consolidated revenue for the quarter ended September 30, 2003 was approximately $4.0 million compared to approximately $3.4 million for the quarter ended June 30, 2003, an increase of 18%. Revenue generated by the NAP of the Americas increased 18% to approximately $3.9 million for the quarter ended September 30, 2003 from approximately $3.3 million the quarter ended June 30, 2003. Data Center revenue for quarter ended September 30, 2003 increased by approximately $1.5 million or 63% over the quarter ended September 30, 2002. The increase in revenue was primarily the result of new customer growth and of services, including the procurement of equipment and connectivity, provided under a U.S. Federal Government contract. Total revenue for the quarter ended September 30, 2003 increased 10%, to $4.0 million compared to the quarter ended September 30, 2002. Total revenues for the September 30, 2002 quarter included approximately $1.3 million in revenue from development, management and technology construction contracts that accounted for the lower total revenue growth. Loss from operations was $6.7 million for the quarter ended September 30, 2003 compared to a loss of $3.8 million for the quarter ended June 30, 2003. The increase in the operating loss for the quarter ended September 30, 2003 was primarily attributable to an approximately $2million non-cash compensation expense related to former employees and expenses resulting from the opening of the NAP/West facility. -more- TERREMARK WORLWIDE REPORTS 2Q RESULTS PAGE 2 OF 5 Net cash used in operating activities improved from a use of approximately $10.0 million for the quarter ended June 30, 2003 to a use of approximately $3.8 million for the quarter ended September 30, 2003. The company anticipates continued improvement in operating cash flow with a projected use of cash from operating activities for the quarter ended December 31, 2003 ranging from $0.5 to $1.5 million. Additional information regarding the Company's financial performance and liquidity as of and for the quarter ended September 30, 2003 and a comparison of the financial performance for the quarter ended September 30, 2002 can be found on the attached balance sheet and statement of operations and in the Company's Quarterly Report on Form 10-Q. HIGHLIGHTS OF THIS QUARTER INCLUDE: o Expanding the NAP of the Americas to the third floor of the Technology Center of the Americas (TECOTA), doubling the NAP's footprint to accommodate anticipated growth in the public and private sectors. o Cementing relationship with Hewlett Packard by moving the NAP do Brasil to HP's new data center in high tech suburb of Sao Paulo, Brazil. o Surpassing the 135 customers mark at the NAP of the Americas, including contracts with Hostopia, Interland, Intelcomm, WAN Communications and Wiltel Communications. A representative list of NAP of the Americas and NAP do Brasil customers is available at HTTP://WWW.TERREMARK.COM. o Expanding additional services to existing customers, including Bell South, Belize Telecom, France Telecom, InterNAP, Norpster, T-Systems/Deutsche Telecom, The Treaty and Savvis. o Launching the new portfolio of "Utility Based" services to address customers' growing data storage needs. "We have had significant activities this quarter" said Manuel D. Medina, Chairman and CEO of Terremark Worldwide, Inc. "We continue to focus on leveraging our concentration of connectivity and carrier-neutrality to attract new customers and service providers to our network of NAP's. Continued Medina, "There is great interest around the world in our brand of quality, state-of-the-art, neutral connectivity points because of the scalable, reliable, secure and industry leading solutions we provide our customers." -more- TERREMARK WORLWIDE REPORTS 2Q RESULTS PAGE 3 OF 5 ABOUT TERREMARK WORLDWIDE, INC. Terremark Worldwide Inc. (AMEX:TWW) is a leading operator of integrated Tier-1 Network Access Points (NAPs) and best-in-class network services, creating technology marketplaces in strategic global locations. Terremark is the owner and operator of the NAP of the Americas, the 5th Tier-1 Network Access Point in the world and the model for the carrier-neutral TerreNAP(sm) Data Centers the company has in Santa Clara, California (NAP of the Americas/West), in Sao Paulo, Brazil (NAP do Brasil) and in Madrid, Spain (NAP de las Americas - Madrid). The carrier-neutral NAP of the Americas is a state-of-the-art facility that provides exchange point, collocation and managed services to carriers, Internet service providers, network service providers, government entities, multi-national enterprises and other end users. The NAP, which connects fiber networks in Latin America, Europe, Asia and Africa to those in the U.S., enables customers to freely choose among the many carriers available at the TerreNAP Centers to do business. Terremark is headquartered at 2601 S. Bayshore Drive, 9th Floor, Miami, Florida USA, (305) 856-3200. More information about Terremark Worldwide can be found at http://www.terremark.com. Statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Terremark's actual results may differ materially from those set forth in the forward-looking statements due to a number of risks, uncertainties and other factors, as discussed in Terremark's filings with the SEC. These factors include, without limitation, Terremark's ability to obtain funding for its business plans, uncertainty in the demand for Terremark's services or products and Terremark's ability to manage its growth. Terremark does not assume any obligation to update these forward-looking statements. Contacts: Terremark Worldwide, Inc., Miami Sandra Gonzalez-Levy, 305-860-7829 sgonzalez-levy@terremark.com Media Relations Edelman Jim Burke, 305-358-5299 jim.burke@edelman.com Investor Relations RCG Capital Markets Group, Inc. Joe Diaz, 480-675-0400 jdiaz@rcgonline.com -more- TERREMARK WORLWIDE REPORTS 2Q RESULTS PAGE 4 OF 5 TERREMARK WORLDWIDE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED FOR THE THREE MONTHS ENDED --------------------------------------------------- 30-SEP-03 30-JUN-03 30-SEP-02 ------------- ------------- ------------- Revenues Data center $ 3,448,513 $ 3,010,615 $ 2,424,280 Data center - contract termination fee -- 291,537 -- Data Center - other 492,160 -- -- Development, commission and construction fees -- 41,081 59,216 Management fees 42,800 64,269 35,031 Construction contracts 65,277 33,695 1,173,882 ------------- ------------- ------------- Operating revenues 4,048,750 3,441,197 3,692,409 ------------- ------------- ------------- Expenses Data center operations, excluding depreciation 3,473,230 2,556,550 2,768,744 Data center operations - other 476,707 -- -- Construction contract expenses, excluding depreciation 62,199 46,456 937,805 General and administrative 4,823,636 2,645,782 3,192,623 Sales and marketing 760,992 772,318 1,209,396 Depreciation and amortization 1,167,654 1,184,029 1,333,977 Impairment of long-lived assets -- -- 350,000 ------------- ------------- ------------- Operating expenses 10,764,418 7,205,135 9,792,545 ------------- ------------- ------------- Loss from operations (6,715,668) (3,763,938) (6,100,136) ------------- ------------- ------------- Other income (expense) Gain on debt restructuring -- 8,475,000 -- Interest expense (4,378,482) (1,832,070) (3,258,055) Dividend on preferred stock (7,497) (7,497) (7,497) Interest income 32,474 23,255 23,486 Other 261,768 35,065 (75,993) ------------- ------------- ------------- Total other income (expenses) (4,091,737) 6,693,753 (3,318,059) ------------- ------------- ------------- Income (loss) before income taxes (10,807,405) 2,929,815 (9,418,195) Income taxes -- -- -- ------------- ------------- ------------- Net Income (loss) $ (10,807,405) $ 2,929,815 $ (9,418,195) ------------- ------------- ------------- Basic and diluted net income (loss) per common share: $ (0.04) $ 0.01 $ (0.04) ------------- ------------- ------------- Weighted average common shares outstanding 308,617,668 289,886,832 225,154,386 ------------- ------------- -------------
-more- TERREMARK WORLWIDE REPORTS 2Q RESULTS PAGE 5 OF 5 TERREMARK WORLDWIDE, INC. CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, MARCH 31, 2003 2003 ------------- ------------- (UNAUDITED) ASSETS Current assets: Cash and cash equivalents $ 3,464,528 $ 1,408,190 Accounts receivable, net of allowance for doubtful accounts of $143,367 and $120,340 865,258 494,736 Contracts receivable 60,089 29,204 Other assets 1,249,178 -- ------------- ------------- Total current assets 5,639,053 1,932,130 Investment in unconsolidated entities, net 824,343 827,667 Restricted cash 777,965 768,905 Property and equipment, net 53,059,062 54,482,964 Other assets 1,101,606 1,589,977 Goodwill 9,999,870 9,999,870 ------------- ------------- TOTAL ASSETS $ 71,401,899 $ 69,601,513 ============= ============== LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Current portion of notes payable (includes $3,991,964 and $138,000 due to related parties) $ 8,904,915 $ 1,464,963 Construction payables 496,874 22,012,162 Accounts payable and accrued expenses 5,213,613 8,434,373 Current portion of capital lease obligations 2,255,767 2,477,467 Interest payable 1,334,635 4,492,805 Net liabilities of discontinued operations 446,911 1,199,531 Convertible debt 2,750,000 900,000 ------------- ------------- Total current liabilities 21,402,715 40,981,301 ------------- ------------- Notes payable, less current portion (includes $32,293,335 and $4,100,000 due to related parties) 56,174,938 32,428,851 Convertible debt, with a face value of 38,880,000 and 14,005,000 (includes $3,785,000 and $3,450,000 due to related parties) 29,796,667 14,005,000 Deferred rent 4,510,664 2,610,623 Capital lease obligations, less current portion 523,849 762,470 Deferred revenue 1,187,359 971,150 Series H redeemable convertible preferred stock: $.001 par value, 294 shares issued and outstanding 571,723 556,729 ------------- ------------- TOTAL LIABILITIES 90,421,828 116,062,211 ------------- ------------- Commitments and contingencies Series G convertible preferred stock: $.001 par value, 20 shares issued and outstanding 1 1 Common stock: $.001 par value, 500,000,000 shares authorized; 310,186,720 and 256,276,864 shares issued 310,186 256,277 Paid in capital 203,986,853 169,204,208 Accumulated deficit (222,201,729) (214,324,140) Common stock warrants 2,339,385 1,857,581 Common stock options 1,545,375 1,545,375 Note receivable - related party (Note 4) (5,000,000) (5,000,000) ------------- ------------- TOTAL STOCKHOLDERS' DEFICIT (19,019,929) (46,460,698) ------------- ------------- TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 71,401,899 $ 69,601,513 ============= ==============