This is soon to be our stock, I hope.Remember it's .3866% of WAXS and hopefully it will be in August as reported. The island is showing a sale of 12.100 at 8:05 this morning. ART
World Access Reports Record Revenue and EBITDA for
Second Quarter; Revenue and Earnings Results Exceed
Consensus Estimates
PR Newswire - August 10, 2000 16:19
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Pro Forma Revenue up $71 Million, and EBITDA up $18 Million, Year-Over-Year; Strong Financial
Position Includes More Than $500 Million in Cash and Investments
ATLANTA, Aug. 10 /PRNewswire/ -- World Access, Inc. (Nasdaq: WAXS) announced today that
its second quarter revenue from continuing operations was a record $306.1 million, an increase of
$193.1 million or 171% over revenue realized in the second quarter of 1999. Second quarter revenue
represented sequential growth of 20% over revenues generated in the first quarter of 2000. For the
three months ended June 30, 2000, the Company realized record earnings before one-time items,
interest, foreign exchange gains or losses, taxes, depreciation and amortization ("EBITDA") from
continuing operations of $12.0 million, or $0.12 per diluted share, compared to $5.4 million in the
year-ago period.
Cash earnings, which adds back acquisition-related amortization expense, were $2.7 million, or $0.03
per share, compared to consensus analyst estimates of ($0.09) per share, and an actual result of
($0.11) in the first quarter of 2000. Cash earnings includes the impact of a restructuring credit of $2.4
million, net of taxes. Excluding this one-time credit, cash earnings were $300,000, or $0.00 per share.
The net loss from continuing operations was $11.8 million for the second quarter, which includes
$18.8 million of depreciation and amortization expense, and $7.7 million in net interest expense and
foreign exchange losses. This compares to net income from continuing operations of $700,000 in the
second quarter of 1999.
The Company realized roughly 40% of its total revenue from European originated traffic, of which
approximately 20% came from European retail customers. Comparing second quarter results with pro
forma results for the second quarter of 1999, assuming the acquisitions of FaciliCom and NETnet had
occurred as of January 1, 1999, revenue increased approximately $71 million, or 30%, and EBITDA
improved from a loss of approximately $6.0 million to a gain of $12.0 million.
World Access' balance sheet was strengthened during the second quarter by the sale of its Telco
Systems division for $260.8 million in cash and 9,600,000 shares of BATM Advanced
Communications Limited (London: BVC). Additionally, Brown Brothers Harriman & Co. exercised its
option to purchase a further $20 million in Series A preferred shares to add to its existing investment of
$50 million. As of June 30, 2000, World Access had more than $500 million in cash and investments,
leaving the Company in increasingly strong financial condition.
John D. Phillips, Chairman and Chief Executive Officer, said, "We are pleased to have had yet another
quarter of record revenue and increasing profitability. Our second quarter results have placed us ahead
of our own business plans and the Street's expectations and provide us a solid foundation for the
integration of our pending acquisitions. With a very strong balance sheet, we believe we can proceed
with our strategy of consolidating the European SME telecom market, while also weathering the
current competitive environment in long distance. This is precisely why we have always focused on
balance sheet strength and cash conservation.
"We continue to concentrate on our objective of being a leading consolidator and integrator in the
European telecom market. Over the last several quarters, we have succeeded in selling or liquidating
four equipment businesses and acquiring five telecom services businesses, in addition to the three
major acquisitions that are pending. In July, we announced a very important acquisition, that of
TelDaFax AG (NEUER MARKT: TFX). This acquisition brings us considerable scale, including more
than 80,000 SME customers, multiple service offerings, including Internet access, IP services and
mobile resale, and a strong retail sales presence in Germany, the largest European telecom market.
With the acquisition of TelDaFax, along with our pending acquisitions of Star Telecommunications and
WorldxChange Communications, we are proceeding very rapidly toward amassing a substantial base
of SME customers in Europe."
About World Access
World Access is focused on being a leading provider of bundled voice, data and Internet services to
small- to medium-sized business customers located throughout Europe. In order to accelerate its
progress toward a leadership position in Europe, World Access is acting as a consolidator for the
highly fragmented retail telecom services market, with the objective of amassing a substantial and fully
integrated business customer base. To date, the Company has acquired several strategic assets,
including Facilicom International, which operates a Pan-European long distance network and carries
traffic for approximately 200 carrier customers, and NETnet, with retail sales operations in 9 European
countries. NETnet's services include long distance, internet access and mobile services. Located
strategically throughout the United States and 13 European countries, World Access provides
end-to-end international communication services over an advanced asynchronous transfer mode
internal network that includes gateway and tandem switches, an extensive fiber network encompassing
tens of millions of circuit miles and satellite facilities. For additional information regarding World
Access, please refer to the Company's website at www.waxs.com .
This press release may contain financial projections or other forward- looking statements made
pursuant to the safe harbor provisions of the Securities Reform Act of 1995. Such statements involve
risks and uncertainties which may cause actual results to differ materially. These risks include: potential
inability to identify, complete and integrate acquisitions; difficulties in expanding into new business
activities; delays in new service offerings; the potential termination of certain service agreements or the
inability to enter into additional service agreements; and other risks described in the Company's SEC
filings, including the Company's Annual Report on Form 10-K for the year ended December 31,
1999, as amended, the Company's Quarterly Report on Form 10Q for the quarter ended March 31,
2000, as amended, and the Company's Registration Statements on Forms S-3 (No. 333-79097) and
S-4 (No. 333-37750), all of which are incorporated by reference into this press release.
World Access, Inc. and Subsidiaries
Summary Consolidated Financial Data
(In thousands, except per share data)
Three Months Ended June 30 Six Months Ended June 30
2000 1999 2000 1999
(Unaudited)
Statement of
Operations Data:
Carrier services $281,744 $112,916 $521,000 $198,014
Retail services 24,315 --- 40,600 ---
Total Revenue 306,059 112,916 561,600 198,014
Cost of services 266,475 102,650 490,330 182,804
Selling, general
and administrative 27,562 4,905 51,338 8,674
Depreciation and
network amortization 3,772 1,175 9,323 2,434
Amortization
of intangibles 14,981 1,185 27,189 2,163
Restructuring credit (3,995) --- (3,995) ---
Total Operating
Expenses 308,795 109,915 574,185 196,075
Operating Income
(Loss) (2,736) 3,001 (12,585) 1,939
Interest and
other income 6,635 689 9,254 872
Interest expense 14,027 1,976 28,572 4,315
Foreign exchange
gain (loss) (321) --- 211 ---
Income (Loss) From
Continuing Operations
Before Income Taxes (10,449) 1,714 (31,692) (1,504)
Income tax
expense (benefit) 1,345 986 (2,115) 224
Income (Loss) From
Continuing
Operations (11,794) 728 (29,577) (1,728)
Net income (loss) from
discontinued operations 225 3,539 (6,149) 8,148
Net gain (loss)on
disposals of
discontinued
operations 35,773 (12,342) 35,773 (12,342)
Net Income (Loss) 24,204 (8,075) 47 (5,922)
Preferred stock
dividends 531 413 1,163 413
Net Income (Loss)
Available to
Common Stockholders $23,673 $(8,488) $(1,116) $(6,335)
Income (Loss) Per Common Share:
Basic:
Continuing
Operations $(0.20) $0.01 $(0.53) $(0.06)
Discontinued
Operations 0.60 (0.24) 0.51 (0.11)
Net Income (Loss) $0.40 $(0.23) $(0.02) $(0.17)
Diluted (a):
Continuing
Operations $(0.20) $0.01 $(0.53) $(0.06)
Discontinued
Operations 0.60 (0.24) 0.51 (0.11)
Net Income (Loss) $0.40 $(0.23) $(0.02) $(0.17)
Weighted Average Shares Outstanding:
Basic 60,126 36,375 57,658 36,232
Diluted 97,750 43,401 92,952 41,474
Other Financial Data for Continuing Operations:
EBITDA Before Restructuring
Credit (b) $12,022 $5,361 $19,932 $6,536
EBITDA Before Restructuring
Credit Per
Diluted Share (b) $0.12 $0.12 $0.21 $0.16
Cash Earnings
(Loss) (c) $2,656 $1,500 $(3,551) $22
Cash Earnings
(Loss) Per Fully
Diluted Share (a) $0.03 $0.03 $(0.06) $---
(a)For purposes of reporting loss amounts per diluted share, potential
common shares consisting of shares subject to stock options and warrants,
convertible notes and convertible preferred stock are excluded as their
effect would be anti-dilutive. Therefore, the basic weighted average
shares were used in the computation of loss amounts per diluted share.
(b)EBITDA from continuing operations before restructuring credit consists
of earnings (loss) before net interest expense/income, income taxes,
foreign exchange gains or losses, depreciation and amortization.
(c)Cash earnings (loss) represents earnings (loss) from continuing
operations less preferred stock dividends and plus amortization of
intangibles.
World Access, Inc. and Subsidiaries
Consolidated Balance Sheet Data
(In thousands)
June 30 December 31
2000 1999
(Unaudited)
Cash and investments $520,585 $179,675
Accounts receivable 264,678 164,768
Accounts payable 246,436 182,107
Short-term debt 57,034 83,837
Long-term debt 417,946 408,338
Shareholder's equity 1,293,131 897,299
Total Assets 2,176,810 1,629,804
CONTACT: Michele Wolf, V.P. of Investor Relations of World Access, Inc.,
404-231-2025
SOURCE World Access, Inc.
/CONTACT: Michele Wolf, V.P. of Investor Relations of World Access, Inc.,
404-231-2025/
/Web site: waxs.com
(WAXS) |
