William
MFNX
I forgot who likes this stock,,,,,,(besides me)
But check out rev growth,, and contracts signed..
Banchee
Company Press Release
Metromedia Fiber Network, Inc. Reports Second
Quarter 1999 Results
-- Revenues Increase 174% for 2Q99 -- Total Contracts Signed As of June 30 Exceed $650 Million
-- Fiber Miles Exceed 420,000 as of June 30th
NEW YORK--(BUSINESS WIRE)--August 12, 1999-- Metromedia Fiber Network, Inc., (NASDAQ: MFNX - news), a
provider of dedicated fiber optic networks within major metropolitan areas, today reported second quarter 1999 results.
Revenues for the three months ended June 30, 1999 increased to $20.3 million from $7.4 million, or 174%, for the comparable
period in 1998. For the six months ended June 30, 1999, revenues increased to $38.7 million from $9.1 million, an increase of
325% compared with the same period in 1998.
For the three months ended June 30, 1999, the Company reported income from operations of $2.2 million, a $1.6 million
improvement over the $0.6 million income from operations for the comparable period in 1998. For the six months ended June
30, 1999, the Company reported income from operations of $5.0 million, a $10.4 million improvement over the $5.4 million
loss for the comparable period in 1998. The improvement in income from operations was attributable to increased revenues as
well as a reduction, as a percentage of sales, in cost of goods sold, selling, general and administrative expenses and
depreciation. In addition, the 1998 amount included a $3.4 million expense associated with a settlement agreement in the three
months ended March 31, 1998 due to the issuance of stock options and payment of cash.
Howard M. Finkelstein, President and Chief Operating Officer of Metromedia Fiber Network, Inc., said, ''In terms of our
performance, the fundamentals of our Company are stronger than ever. In the second quarter of 1999 our network reach
expanded to encompass more than 420,000 fiber miles and in excess of 1,200 route miles. In keeping with our build out
schedule, we launched network operations in Washington, DC, Chicago and Dallas. As we build our networks, our customer
base continues to grow as total contracts signed through June 30, 1999 exceeded the $650 million water mark.''
Mr. Finkelstein continued, ''Metromedia Fiber Network's corporate activity was broad in scope in the second quarter.
Geographically, the Company is expanding its presence internationally with planned intra-city infrastructure builds in Toronto,
London, Amsterdam, Stuttgart and Cologne, as well as an inter-city Pan European network. At the same time, we created a
coast-to-coast domestic network virtually overnight through an agreement with Williams Communications. Strategically, we are
extending our vision into the domain of Internet communications with the announced merger with AboveNet. With this merger,
we look forward to marrying the virtually unlimited capacity of MFN's fiber-optic network with AboveNet's Internet
infrastructure to become the dominant provider of optical network capability for next generation communications as we
participate in the explosive growth of Internet activity.
''The depth of MFN's customer base has now been extended to the broadcasting arena with our agreement with CBS News,
bringing, for the first time, the advantages of fiber optics to the airwaves,'' Mr. Finkelstein continued. ''In reaching a landmark
agreement with Bell Atlantic, we are broadening fiber distribution to CLEC customers and enhancing our independent position
in the competitive telecommunications marketplace as a compelling alternative for carrier customers. And finally, for corporate
customers, our alliances with technology service companies like Cisco, Comdisco and, more recently, Nortel, serve to enhance
the value of fiber-optic infrastructure for a wider customer base,'' Mr. Finkelstein concluded.
Net loss for the three months ended June 30, 1999 was $6.5 million compared with net income of $2.2 million for the
comparable period in 1998. The net loss was primarily attributable to the increase in net interest expense related to the issuance
and sale of the Company's 10% senior notes in November 1998.
For the three months ended June 30, 1999, cost of sales was $6.6 million compared with $3.3 million for the three months
ended June 30, 1998. Cost of sales as percentages of revenue were 32% and 43%, respectively, decreasing as a result of the
significant increase in the number of customers and revenues, as well as slower growth in costs associated with these revenues.
Depreciation and amortization expense was $3.9 million for the three months ended June 30, 1999 compared with $0.2 million
during the comparable period in 1998, increasing as a result of increased investment in the Company's completed fiber optic
network and additional property and equipment acquired.
Interest income, derived from investment of excess cash from the proceeds of the Company's $650 million note issuance in
November 1998, increased to $6.1 million for the three months ended June 30, 1999 from $1.9 million for the three months
ended June 30, 1998. Interest expense increased to $14.5 million from $6,000 for the respective periods, reflecting the
issuance and sale of senior notes.
As the Company is in the early stage of development, the Company expects to generate significant operating and net losses as it
continues to build out and market its fiber optic network. Management believes that its goals will be achieved through the
Company's successful implementation and execution of its growth strategy.
Metromedia Fiber Network, Inc., headquartered in White Plains, New York, provides technologically advanced,
high-bandwidth, private, fiber optic communications infrastructure within major U.S. markets, enabling sophisticated
organizations to implement the latest data, video, Internet and multimedia applications at a fixed cost. The Company provides
its infrastructure to communications carriers competing in the local, long distance, wireless and Internet markets, as well as
corporate and government customers requiring secure communications networks. In addition to its domestic markets, the
Company has filed for licensing to construct an intra-city network in Frankfurt, Germany, extending the reach of the Company's
planned German national ring into the local German loop. For more information about Metromedia Fiber Network, please visit
the company's Web site at www.mmfn.com.
This partial discussion of the statements of financial condition and operations of the Company should be read in conjunction
with the consolidated financial statements and related notes contained in the Company's Quarterly Report on Form 10-Q for
the three months ended June 30, 1999, as filed with the U.S. Securities and Exchange Commission.
This news release contains certain forward-looking statements that involve risks and uncertainties. Factors that could cause or
contribute to such risks and uncertainties include, but are not limited to, general economic and business conditions, competition,
changes in technology and methods of marketing, and various other factors beyond the Company's control. This also includes
such factors as are described from time to time in the U.S. Securities and Exchange Commission reports filed by Metromedia
Fiber Network, including the most recently filed Forms 10-K and 10-Q.
Metromedia Fiber Network, Inc. & Subsidiaries
Consolidated Statements of Operations (Unaudited)
(in 000's, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenue $ 20,294 $ 7,407 $ 38,673 $ 9,133
Expenses:
Cost of sales 6,561 3,319 14,819 4,553
Selling, general and
administrative 7,713 3,183 13,786 5,914
Consulting and employment
incentives - 103 - 195
Settlement agreement - - - 3,400
Depreciation and amortization 3,863 230 5,058 440
Income (loss) from operations 2,157 572 5,010 (5,369)
Other income (expenses):
Interest income 6,075 1,875 13,512 3,576
Interest expense (14,503) (6) (30,407) (12)
Loss from joint venture (193) (251) (393) (251)
'Net income (loss) $ (6,464) $ 2,190 $ (12,278) $ (2,056)
Net income (loss)
per share, basic $ (0.03) $ 0.01 $ (0.06) $ (0.01)
Net income (loss)
per share, diluted N/A $ 0.01 N/A N/A
Weighted average
number of shares
outstanding, basic 189,667 186,516 189,098 185,616
Weighted average
number of shares
outstanding, diluted N/A 217,216 N/A N/A
Metromedia Fiber Network, Inc. & Subsidiaries
Consolidated Balance Sheets
(in 000's, except share amounts)
June 30, Dec. 31,
1999 1998
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 341,897 $.569,319
Marketable securities 19,716 -
Pledged securities, current portion 63,142 61,384
Accounts receivable 86,258 30,910
Prepaid expenses and other current assets 2,761 2,210
Total current assets 513,774 663,823
Fiber optic transmission network
and related equipment, net 417,803 244,276
Property and equipment, net 3,909 2,716
Pledged securities - 30,512
Restricted cash 51,920 -
Investment in/advances to joint venture 6,763 4,156
Other assets 40,525 28,934
Total assets $ 1,034,694 $ 974,417
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 7,276 $ 6,106
Accrued liabilities 134,736 96,512
Deferred revenue, current portion 8,106 8,100
Capital lease obligations, current portion 55 55
Total current liabilities 150,173 110,773
Senior notes payable 650,000 650,000
Capital lease obligations 23,202 22,675
Deferred revenue 68,530 33,455
Commitments and contingencies (see notes)
Stockholders' equity:
Preferred stock, $.01 par value;
20,000,000 shares
authorized; none issued and outstanding - -
Class A common stock,
$.01 par value; 2,404,031,240
shares authorized; 156,293,412
and 155,210,220 shares
issued and outstanding,
respectively 1,563 1,552
Class B common stock, $.01 par value;
522,254,782 shares authorized;
33,769,272 shares
issued and outstanding 338 338
Additional paid-in capital 200,370 197,861
Accumulated deficit (54,515) (42,237)
Cumulative comprehensive loss (4,967) -
Total stockholders' equity 142,789 157,514
Total liabilities and
stockholders' equity $ 1,034,694 $.974,417
Contact:
Metromedia Fiber Network, Inc.
Ellen Strahs Fader
212/606-4389
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