Sales up 111% and a profit too.
Pac-West Telecomm Increases Revenues 111% and Reports Second Quarter Net Income of $1.3 Million Internet Agreements, Business Usage, and Geographic Expansion Fuel Growth
STOCKTON, Calif., Jul 27, 2000 /PRNewswire via COMTEX/ -- Pac-West Telecomm, Inc. (Nasdaq: PACW chart, msgs), a rapidly growing provider of integrated telecommunications services, today announced its results for the second quarter and six months ended June 30, 2000. Pac-West's total revenues for the second quarter of 2000 were $33.3 million, an increase of 111 percent from revenues of $15.8 million in the second quarter of 1999. Net income for the second quarter was $1.3 million, an increase of 550 percent over net income of $0.2 million in the second quarter of 1999. Diluted earnings per share for the second quarter of 2000 were $0.04, compared to a loss per share of ($0.06) for the second quarter of 1999. As of June 30, 2000, the Company had cash and short-term investments totaling $134.9 million.
Increased Internet usage and growth in the number of Pac-West's small and medium business customers helped fuel the Company's revenues. Pac-West has agreements with more than 90 Internet service providers (ISPs), which represent approximately 18 percent of the Internet traffic in California. Pac-West currently serves over 13,000 small and medium businesses, ISPs, and residential customers.
Wally Griffin, Pac-West's president and chief executive officer, said, "We are continuing to execute our business plan to deliver bundled voice and data services to the underserved small and medium business market. We are continuing to expand our network throughout the western U.S. utilizing our "smart-build" expansion strategy in which we build and own the intelligent components of our network, while leasing fiber transport from other carriers until we build enough traffic to justify purchasing fiber. This strategy results in significant cost and time-to-market advantages over our competitors that own their switches and construct their own fiber network. As we extend our facilities into Colorado and Arizona, we expect to encounter the same high demand for our bundled service packages as we have experienced in our current markets. We are a real economy company, with real earnings and real cash flow."
The following chart highlights some of the unaudited results for the second quarters of 2000 and 1999, and the first six months of 2000 and 1999:
Q2 2000 Q2 1999 Change 6 Months 6 Months Change
Q2'99 to Ended Ended 1999 to
Q2'00 6/30/00 6/30/99 2000
Total Revenue $33.3 mil $15.8 mil 111% $64.1 mil $30.3 mil 112%
EBITDA * $10.3 mil $ 5.8 mil 78% $20.9 mil $11.9 mil 76%
Net Income $ 1.3 mil $0.2 mil 550% $ 3.6 mil $ 0.8 mil 350%
Earnings (Loss)
Per Share
(diluted) $0.04 $(0.06) NA $0.10 $(0.09) NA
Lines in Service 151,957 76,263 99% 151,957 76,263 99%
Minutes of Use 5.6 bil 3.5 bil 60% 11.0 bi l6.6 bil 67%
* EBITDA equals earnings before interest (net), income taxes, depreciation
and amortization. |
