Allied Riser Communications ('ARC') Confirms Third Quarter Results Exceeded Expectations; Announces Gerald Dinsmore as New CEO
DALLAS, Oct 13, 2000 /PRNewswire via COMTEX/ -- Allied Riser Communications Corporation (Nasdaq: ARCC chart, msgs), one of the nation's leading providers of high-speed, IP-based broadband data applications and services, today announced substantial sequential revenue growth during the third quarter ended September 30, 2000, confirming that the company exceeded third quarter expectations. In addition, ARC announced the hiring of Gerald Dinsmore as president and chief executive officer.
Revenue for the quarter ended September 30, 2000, was $4,403,000, compared to revenue of $1,972,000 in the second quarter of 2000, a 123-percent sequential increase, and a nearly 900-percent increase compared to the same period last year. Revenue for the third quarter of 1999, was $442,000.
The net income (loss) applicable to common stock for the third quarter of 2000, was $(47,217,000) compared with $(44,068,000) for the quarter ended June 30, 2000, and $(18,270,000) in the quarter ended September 30, 1999. Earnings before net interest, taxes, depreciation and amortization (EBITDA) for the quarter ended September 30, 2000, were negative $35,320,000 compared with negative $35,420,000 for the quarter ended June 30, 2000, and a negative $10,975,000 for the quarter ended June 30, 1999.
The company also announced today that ARC co-founder and Chief Executive Officer David Crawford will step down and will be succeeded by Gerald Dinsmore, who will assume the role of President and Chief Executive Officer, and will join the Board of Directors.
"We are tremendously excited that Jerry has joined our team. His vision and experience will secure our position as the leader in providing 'first mile' data, Internet, and Web solutions to business customers across North America," said Stephen Schovee, ARC's chairman of the board. "David Crawford and I will be working closely with Jerry over the next several weeks to insure a seamless transition as we look to take the company to new levels of execution and performance."
Dinsmore most recently served as President, Chief Executive Officer, and Director of Jato Communications, an Englewood, Co.-based provider of high speed internet and Web-enabled services to small and mid-sized business customers. Prior to joining Jato, Dinsmore spent more than 20 years at GTE where he served in a variety of executive and management positions including President - Business Development & Integration.
"I am delighted to join the ARC team," said Dinsmore. "I am extremely impressed with the quality of the organization that David Crawford, and the rest of the management team have built here. I look forward to the opportunity to lead this company to even greater success in the future."
"It has been my great privilege to have played a role in bringing together this incredible group of people," said Crawford. "It is extremely gratifying to pass the torch to someone with the vision, experience, and the character of Jerry Dinsmore. As a co-founder of the company, and, more importantly, as a shareholder, I welcome Jerry to ARC."
"David has done an excellent job developing the vision for ARC, and building and leading a world-class organization during our very rapid market entry phase. On behalf of the Board and his many friends and colleagues at the company, I personally want to thank David for his tireless efforts," Schovee concluded.
In addition to Crawford's departure, Margaret Wilderotter and Jeffrey Weitzen have resigned from the Board.
About Allied Riser Communications
ARC is one of the nation's leading providers of broadband data and Internet services, as well as video and voice applications. ARC delivers its services primarily over fiber-optic networks that it designs, constructs, owns and operates inside high-quality, investment-grade commercial office buildings. The company also delivers its branded applications and services using an array of broadband technologies including fiber, wireless optics, and digital subscriber lines to some of the nation's largest law offices, the Chicago Board of Trade, Chicago Mercantile, numerous high-tech companies, as well as some of the largest accounting and consulting firms.
For more information about ARC visit the company's Web site at arcbroadband.com
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995:
The statements contained in this release that are not historical facts may be deemed to contain forward-looking statements, including but not limited to statements regarding overall market demand for market acceptance of the Company's services, the intention to deploy fiber-optic networks in additional buildings or markets and the timing and breadth of penetration in each building or market. Actual results may differ materially from those anticipated in any forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the intense competition for the Company's service offerings, dependence on growth in demand for the Company's services, ability to manage growth of our operations, the ability to raise additional capital and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings. Prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any of the forward-looking statements contained herein to reflect future events or developments.
ALLIED RISER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
(In thousands except per share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 2000 1999 2000
Statement of
Operations Data:
Network services
revenue $ 396 $ 3,351 $ 846 $ 6,161
Value added
services revenue 46 1,052 143 1,572
Total Revenue 442 4,403 989 7,733
Operating Expenses:
Network operations 1,967 14,165 4,776 29,658
Cost of value
added services 5 716 15 1,101
Selling expense 2,556 10,401 4,962 34,425
General and
administrative
expenses 6,889 14,441 16,096 44,728
Amortization of deferred
compensation and other
stock based
expenditures 4,357 4,246 9,913 12,651
Depreciation and
amortization 830 9,781 1,720 22,645
Total operating
expenses 16,604 53,750 37,482 145,208
Operating Income
(Loss) (16,162) (49,347) (36,493) (137,475)
Other Income (Expense):
Interest expense (399) (3,323) (861) (4,632)
Interest income 531 5,453 1,362 13,797
Total other income
(expense) 132 2,130 501 9,165
Net Income (Loss)
Before Income Taxes (16,030) (47,217) (35,992) (128,310)
Provision For
Income Taxes -- -- -- --
Net Income (Loss) (16,030) (47,217) (35,992) (128,310)
Accrued Dividends On
Preferred Stock (2,240) -- (5,540) --
Net Income (Loss)
Applicable To
Common Stock $ (18,270) $(47,217) $(41,532) $(128,310)
Net Income (Loss)
Per Common Share $ (.68) $ (.87) $ (1.73) $ (2.38)
Weighted Average Number
Of Shares
Outstanding 26,809 54,565 24,076 53,911
Other Data:
EBITDA (1) $(10,975) $(35,320) $(24,860) $(102,178)
Capital expenditures $5,709 $36,354 $14,359 $124,548
Dec. 31, Sept. 30,
1999 2000
Selected Balance Sheet Data:
Cash, cash equivalents
and short term
investments $314,577 $300,176
Property and equipment, net 46,577 167,194
Total assets 475,054 635,625
Total capital lease obligations
and other long term debt 7,728 53,752
Convertible debentures
(7.5% interest; payable in stock or cash) -- 150,000
Total stockholders' equity 452,414 372,158
(1) As used in the table above, EBITDA consists of net loss excluding net
interest, income taxes, depreciation and amortization. EBITDA does
not reflect our non-cash expenses, which we expect will increase
considerably as we deploy our infrastructure. We believe that because
EBITDA is a measure of financial performance that it is useful as an
indicator of a company's ability to fund its operations and to service
or incur debt. EBITDA is not a measure calculated under generally
accepted accounting principles. Other companies may calculate EBITDA
differently from us. It is not an alternative to operating income as
an indicator of our operating performance or an alternative to cash
flows from operating activities as a measure of liquidity and these
other measures should be considered as well.
Source: Allied Riser Communications Corporation
Contact:
ARC Media & Investor Relations, Joey D. Mooring, Sr. Mgr.
Corporate Communications, Allied Riser Communications, 214-560-2357, or
jmooring@arcmail.com
(ARCC) |
