There's trouble coming and I hate to see it as I think this company could pull of some good things eventually. They may be delisted from trade by NASDAQ. This could spell doom. What do you think? Details in todays earnings release.
Mark
People's Choice Announces 1st Quarter Results
SHELTON, Conn., May 15 /PRNewswire/ -- People's Choice TV Corp. (Nasdaq:NNM - news) today reported for the first quarter ending March 31, 1997 revenues of $8,544,000 compared with 1996 first quarter revenues of $8,548,000.
Net loss for the Company was $16,519,000 or $1.38 per share for the first quarter of 1997 compared with a net loss of $17,281,000 or $1.43 per share for the first quarter of 1996, a decrease of 4 percent (in net loss dollars) from the previous year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was negative $2,360,000 for the quarter ended March 31, 1997 compared to negative $3,337,000 for the quarter ended March 31, 1996. EBITDA was negative $2,870,000 for the 1996 fourth quarter. At March 31, 1997, PCTV had approximately $100,000,000 in cash and marketable securities.
The Company had 76,600 customers at March 31, 1997 compared to 81,300 customers at March 31, 1996, a decrease of 6 percent from 1996. Customer count at December 31, 1996 was 77,800.
Revenues remained flat for the quarter ended March 31, 1997 compared to the comparable 1996 period primarily as a result of a decrease in customer count offset by an increase in average revenues per customer. Net loss decreased for the quarter ended March 31, 1997 compared to the comparable 1996 period due to an improvement in EBITDA and decreased depreciation and amortization expense, partially offset by additional interest expense incurred on the Company's Senior Discount Notes issued in May 1995.
The Company has previously disclosed its plan to suspend growing its analog customer base in 1996 in order to conserve capital as the Company positions itself for the implementation of digital video compression technology in 1997. Already in use in satellite distribution of video, digital compression will enable the Company to substantially increase its channel capacity and allow the Company to use a portion of its spectrum for other telecommunications services. Also previously disclosed was the Company's digital set-top box order from the NextLevel Broadband Group of General Instrument Corporation. The Company anticipates launching a digital video system in one of its markets in 1997.
The Company has also ordered equipment and recently received the necessary digital authorizations from the Federal Communications Commission to provide high-speed Internet access service in its Detroit market. The Company plans to offer such service in Detroit during 1997.
The Company currently has negative tangible net assets as calculated pursuant to Nasdaq National Market System (``NNM'') listing criteria. Because of its negative tangible net assets, the Company is not currently in compliance with all applicable NNM listing criteria. The Company has requested that Nasdaq grant the Company a waiver with respect to the net tangible asset requirement so that the Company can remain listed on the NNM. The staff of Nasdaq has denied the Company's initial request for such a waiver. In addition, the Company understands that the staff of Nasdaq has determined that the Company's Common Stock is not eligible for listing on the Nasdaq SmallCap Market. The Company has not yet received from Nasdaq a written statement of the reasons for the denial of the waiver request. Nasdaq procedures allow the Company to appeal this determination by Nasdaq to a Nasdaq review committee. The Company expects that it will appeal this Nasdaq determination. During this appeal, the Company's Common Stock will continue to be listed on the NNM. The Company has no ability to predict at this time as to whether any such appeal would be successful. If the Company is unsuccessful in its appeal of this determination, the Company's Common Stock would be removed from listing on the Nasdaq NNM and would not be eligible for listing on the Nasdaq SmallCap Market. Removal of the Company's Common Stock from inclusion in NNM or the ineligibility of the Company's Common Stock to be listed on the Nasdaq SmallCap Market may make it more difficult to sell the Common Stock or obtain timely and accurate quotations as to offers to purchase and sell the Common Stock. In addition, the absence of a listing for the Common Stock on the Nasdaq NNM or the Nasdaq SmallCap Market could result in a decline in the trading volume of the Common Stock and could depress the price of the Common Stock.
All statements contained herein that are not historical facts are based on current expectations. These statements are forward-looking in nature and involve a number of risks and uncertainties. Actual results may differ materially. All such statements should be considered with regard to the risk factors described in the Company's reports filed with the Securities and Exchange Commission. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made.
People's Choice TV Corp. owns and operates wireless cable television systems in Chicago, Detroit, Houston, Phoenix, St. Louis, and Tucson and holds wireless cable frequency rights in Indianapolis, Kansas City and Milwaukee. The Company has a pending transaction in which it will exchange its Kansas City wireless cable assets for the Salt Lake City wireless cable assets. Wireless cable television service competes with traditional hard-wired cable systems and transmit satellite television channels and local off-air television stations to small receiving antennas at customer locations via super high frequencies.
PEOPLE'S CHOICE TV CORP.
For the Three Months Ended
March 31,
1997 1996
Revenues $8,544,000 $8,548,000
Net Loss $(16,519,000) $(17,281,000)
Net Loss Per Common Share (a) $(1.38) $(1.43)
Weighted Average Number of
Common Shares Outstanding (b) 13,151,000 13,069,000
(a) The three months ended March 31, 1997 and 1996 net loss per common share reflects net loss being adjusted by non-cash, pay-in-kind, preferred stock dividends in the amount of $1,588,000 and $1,465,000 respectively. (b) The weighted average number of shares were computed based on the weighted number of common shares and common share equivalents assumed outstanding. The shares include common equivalent shares issuable upon exercise of certain outstanding stock options and warrants.
SOURCE: People's Choice TV Corp. |
