CapRock Communications Corp. Reports Record Third Quarter 1999 Financial Results
- EBITDA Increases 160% Sequentially -
DALLAS, Oct. 28 /PRNewswire/ -- CapRock Communications Corp. (Nasdaq: CPRK) today announced results for the third quarter and nine months ended September 30, 1999.
Operating revenue was $49.0 million in the third quarter of 1999, a sequential quarterly growth of 30% over the second quarter of 1999 and an increase of 39%, from $35.3 million reported in the third quarter of 1998. The Company's consolidated gross margin improved from 26% in the third quarter of 1998 to 41% in the third quarter of 1999. These increases boosted EBITDA to $6.7 million for the third quarter, compared with $4.0 million in the comparable quarter of last year (exclusive of $2.3 million in merger related expenses), and $2.6 million in the second quarter of 1999, representing a 160% sequential increase.
Operating revenue for the nine months ended September 30, 1999 totaled $123.6 million, an increase of 43% compared with $86.7 million for the first nine months of 1998. EBITDA for the nine months ended September 30, 1999 was $11.3 million, compared with $11.8 million for the same nine months last year (exclusive of $2.3 million in merger related expenses).
Carriers' Carrier revenue from the sale of fiber, long distance and broadband services was $35.1 million in the third quarter of 1999, a sequential quarterly growth of 39% over the second quarter of 1999, and an increase of $13.4 million, or 62%, over the third quarter of 1998. Carriers' carrier revenue for the nine months ended September 30, 1999 was $84.8 million, an increase of $34.7 million, or 69%, over the same period of 1998.
Integrated Services revenue from the sales of telecommunications products to business customers was $6.2 million in the third quarter of 1999, a sequential quarterly growth of 33% over the second quarter of 1999, and an increase of $838,000, or 16%, over the third quarter of 1998. Integrated Services revenue for the nine months ended September 30, 1999 was $15.3 million, an increase of $1.9 million, or 14%, over the same period of 1998.
Systems Services revenue from the sale of systems and services to the oil and gas industry was $7.8 million in the third quarter of 1999, a sequential quarterly growth of 2% over the second quarter of 1999, and a decrease of $498,000, or 6%, over the third quarter of 1998. Systems Services revenue for the nine months ended September 30, 1999 was $23.4 million, an increase of $334,000, or 1%, over the same period of 1998.
"We are pleased with our financial and operating results during the third quarter. We had record revenue and EBITDA," said Jere W. Thompson, Jr., Chairman and CEO of CapRock Communications. "Our Carriers' Carrier business grew strongly. Integrated Services had solid sales growth. Our total sales force grew to 184, of which, 149 are focusing on Integrated Services. We have begun to provision UNE and UNE-P local access lines which carry significantly higher margins than total service resale lines. Local lines sold increased sequentially from 30,000 to more than 38,000, and lines installed increased from 17,000 to 28,000. Our efforts to reduce backlog have been very successful. We also have two electronic bonding platforms in testing with Southwestern Bell which we expect to complete this year. On the network side, six collocation sites are operational, and a total of 28 sites are expected to be completed by year-end, eight more than originally projected. Our 6,100 mile fiber network build out is progressing on schedule, with more than 2,000 miles substantially completed at the end of the quarter and an additional 3,300 miles currently under construction."
CapRock is a southwestern U.S. facilities-based integrated communications provider (ICP) offering local, long distance, Internet, high-speed data transmission, remote location access, systems integration, virtual private networks and private line services to business customers. The company also provides switched and dedicated access, regional and international long-distance, private lines and dark fiber to carrier customers. The Company is building out a 6,100-mile fully redundant network in six Southwestern states. For more information, visit CapRock's web site at caprock.com. |
