High Speed Access Corp. Announces Fourth-Quarter and 1999 Results; HSA posts 890% Growth in Revenue; Residential Cable Modem Subscribers Exceed 16,000
DENVER, Feb 22, 2000 (BUSINESS WIRE) -- High Speed Access Corp. (Nasdaq: HSAC),
a leading provider of high-speed Internet access via cable modem to residential
and commercial end-users in exurban markets, today announced net revenue of
$1,436,000 for the fourth quarter ended December 31, 1999, an increase of 890%
over net revenue of $145,000 generated for the fourth quarter ended December 31,
1998. HSA's residential cable modem subscribers increased 73% from 9,307 at
September 30, 1999, to 16,099 at the end of the fourth quarter.
As of December 31, 1999, HSA and its cable partners are now able to deliver
high-speed Internet access to more than 1.9 million homes deployed including
more than 1.1 million Charter Communications (Nasdaq: CHTR) cable homes. In 1999,
Charter deployed more than 400,000 homes over its original commitment of 750,000
homes with HSA. In total, HSA currently has the right to offer its services to
approximately 2.0 million homes passed under existing contracts or letters of
intent. Homes under contract or letter of intent exclude approximately 600,000
homes deployed under interim agreements, of which over 400,000 homes are the
Charter homes referenced above.
Sept. 30 Dec. 31
1999 1999
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Homes under contract
or letter of intent 1,900,000 2,000,000 (a)
Homes deployed 1,500,000 1,900,000
Subscribers:
Residential 9,307 16,099
Commercial 528 685
Dial up 5,813 6,648
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(a) Excludes approximately 600,000 homes deployed under interim
agreements.
The net loss available to common stockholders for the quarter was $23.3 million,
or 43 cents per share, compared with a net loss available to common stockholders
of $117.8 million, or $18.99 per share, for the quarter ended December 31, 1998.
The net loss available to common stockholders for the fourth quarter of 1998
includes a $112.8 million non-cash charge to accumulated deficit to increase the
carrying value of the company's previously outstanding preferred stock to its
redemption value at the time of the IPO (See Attached Unaudited Condensed
Consolidated Statements of Operations).
The net loss before certain non-cash charges for the current quarter was $22.5
million, or a pro forma net loss before non-cash charges of 41 cents per share.
This compares with a net loss of $4.5 million before non-cash charges for the
quarter ended December 31, 1998, or a pro forma net loss before non-cash charges
of 22 cents per share.
Non-cash charges for the fourth quarter of 1999 included $341,000 of non-cash
compensation expense from the issuance of stock options, $225,000 for the
amortization of distribution agreement costs and $282,000 of amortization of
goodwill and other intangible assets. Non-cash charges for the amortization of
distribution agreement costs during the quarter related to the issuance of
warrants to strategic partners. From time to time, HSA will incur these charges
as strategic partners earn the right to purchase additional shares and HSA is
provided with additional homes passed. For the fourth quarter of 1998, non-cash
charges included $216,000 for the amortization of goodwill and other intangible
assets.
For the year ended December 31, 1999, HSA reported net revenue of $3.4 million
and a net loss available to common stockholders of $291.2 million, or $8.69 per
share. The net loss available to common stockholders for the year ended December
31, 1999, includes a $229.1 million non-cash charge to accumulated deficit to
increase the carrying value of the company's previously outstanding preferred
stock to its redemption value at the time of its IPO. The net loss before
certain non-cash charges for the year ended December 31, 1999, was $53.2
million, or a pro forma net loss before non-cash charges of $1.20 per share.
Non-cash charges for the year ended December 31, 1999, included $3.0 million of
non-cash compensation expense from the issuance of stock options, $3.7 million
for the amortization of distribution agreement costs and $1.0 million of
amortization of goodwill and other intangible assets.
HSA also announced the promotion of President and Chief Operating Officer, Dan
O'Brien, to the post of President and Chief Executive Officer. "Dan's leadership
and tenacity have helped HSA distinguish itself as one of the leaders in
broadband connectivity. His commitment to quality service and world-class
customer care has already yielded clear results - both to our customers and our
cable partners," said David Jones, Jr., HSA's Chairman.
Dan O'Brien added: "HSA's extraordinary growth in 1999 has been the result of
the outstanding efforts of our employees, cable affiliates and strategic
partners. HSA now enjoys associations with 43 cable partners coast to coast, and
we are now deployed in 107 cable systems. In addition, 1999 marked the
completion of our IP telephony trials in conjunction with Charter Communications
and the roll-out of a commercial wireless solution to business customers not
passed by cable. These solutions have already enhanced HSA's multiple-technology
arsenal that will benefit our cable partners and shareholders. During the fourth
quarter, we continued our aggressive rollout of cable systems and increased our
subscriber count more than eight-fold from the end of 1998. Going forward, HSA
is committed to creating more avenues to deliver broadband to the customer and
for creating value for our shareholders and our partners."
About High Speed Access Corp.
High Speed Access Corp. (www.hsacorp.net) is a leading provider of high speed
Internet access via cable modem to residential and commercial end users in
exurban areas. The company believes that it provides the most comprehensive
turnkey solution available to the cable operator. Its service enables
subscribers to receive Internet access at speeds substantially faster than
traditional Internet access at minimal cost to the cable operator. High Speed
Access Corp. enters into long-term exclusive contracts with cable operators to
provide them with the company's services. The company pays its cable partners a
portion of the monthly fees it receives from the end users in exchange for the
opportunity to access and provide service to the cable partner's subscribers.
This press release contains statements about future events and expectations,
which are "forward-looking statements." Any statement in this press release that
is not a statement of historical fact may be deemed to be a forward-looking
statement. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the company's actual results,
performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Specific factors that might cause such a difference include, but are
not limited to: the company's unproven business model; the company's history of
losses and anticipation of future losses; the potential fluctuations in the
company's operating results; the company's competition; the company's potential
inability to attract and retain end users; the company's potential inability to
establish or maintain relationships with cable operators, including Charter; the
possibility that the company's contract with Road Runner may not benefit it; and
those risks and uncertainties discussed in filings made by the company with the
Securities and Exchange Commission, including those risks and uncertainties
contained under the heading "Risk Factors" in the company's most recent
quarterly report on Form 10-Q as filed with the Securities and Exchange
Commission. |
