[GST misses estimates as CFO quits.]
March 23, 2000 8:51am
GST misses estimates as CFO
quits
By Tiffany Kary ZDII
GST Telecommunications Inc. (Nasdaq: GSTX), a
telecommunications company focused on markets in California and
the western United States, missed fourth quarter estimates, restated
its 1999 results and said its CFO is leaving the company.
Shares were down to 8 1/4 at Wednesday's close. The stock has
been sliding, and the company announced earlier this month it would
cut jobs. GST said it will eliminate 100 jobs, or 8 percent of its total
workforce.
GST said Dan Trampush, GST's current chief financial officer, is
leaving "to pursue other opportunities." The company will announce
his replacement, who has already accepted the position, March 28.
In its fourth quarter, GST reported a loss of $1.88 a share, much
wider than the loss of $1.30 a share predicted by First Call. In 1998,
the company reported a loss of $1.90 a share for its comparable
quarter.
Revenue for the quarter ending Dec. 31 was $69 million, up 38
percent over $49.9 million reported in 1998's corresponding quarter.
Revenue for the year was $321.9 million, up 97 percent from 1998's
total.
Fourth quarter loss, adjusted earnings before interest, taxes,
depreciation, and amortization (EBITDA), was $13.1 million, wider
than the loss of $12.3 million in the 1998's fourth quarter. For the
year, adjusted EBITDA was a loss of $20.9 million, an improvement
over the $55.5 million reported in 1998. Net loss per share was $5.11
compared with $4.52 in 1998.
GST said Securities and Exchange Commission (SEC) guidance has
led it to restate its quarterly results for 1999, primarily relating to
construction revenue and cost of construction revenue.
Its third quarter loss was restated as 52 cents a share, versus the
originally reported loss of 14 cents a share. Its second quarter loss
was restated as $1.28 a share compared to a loss of $1.30 a share.
The company said it saw tremendous growth and development of our
network assets in 1999. It recently retained Deloitte Consulting to
support management's assessment of the company's strategy, and
plans to release specifics of its five-year plan later this spring. GST
said it has also engaged Salomon Smith Barney to help it explore
financing options.
The company said it expects modest growth in our service business in
the first half of 2000, though cost cutting and restructuring are
expected to drive service revenue growth during the second half of
the year.
GST's top competitors are GTE (NYSE: GTE), SBC Communications
(NYSE: SBC) and US West (NYSE: USW). |
