Here are the earnings :
biz.yahoo.com
Tuesday October 24, 7:33 am Eastern Time
Press Release
Metromedia Fiber Network, Inc. Reports Third Quarter 2000 Results
-- Revenues increase 385% over Q3 1999 to $51.9M -- Fiber miles in service increase to 1.2 million
NEW YORK--(BUSINESS WIRE)--Oct. 24, 2000-- Metromedia Fiber Network, Inc. (MFN) (Nasdaq: MFNX - news), the leader in deployment of optical IP Internet infrastructure within key metropolitan areas internationally, reported third quarter results for the period ended September 30, 2000. Revenues for the quarter ended September 30, 2000 increased 385% to $51.9 million, compared with $10.7 million for the quarter ended September 30, 1999.
The company reported a net loss of $95.3 million, or $(.17) per share, for the quarter ended September 30, 2000, compared with a net loss of $32.0 million, or $(.16) per share, for the quarter ended September 30, 1999. The increased net loss was primarily attributable to the amortization of goodwill related to the September 8, 1999 acquisition of AboveNet Communications, Inc., the cost of additional debt acquired related to the issuance and sale of 10% senior notes in October 1999, as well as the convertible subordinated notes issued in March 2000, and to a change in accounting treatment for certain contracts.
``Metromedia Fiber Network's revenue grew significantly this past quarter as the marketplace continued to endorse our unique value proposition and rapidly expanding worldwide optical IP network,'' said Nick Tanzi, president and chief operating officer for Metromedia Fiber Network. ``In addition, our recently announced acquisition of SiteSmith, Inc. leverages the value of the MFN network and allows us to address the managed Internet infrastructure requirements of our customers around the world.''
The company demonstrated aggressive business development in the third quarter, securing contracts to deploy optical networks and IP services for a host of leading companies, including:
* AOL
* Intellispace
* DLJDirect
* Telseon
* Datek
Additional achievements since June 30, 2000 include:
* providing, for the first time in telecommunications history, dark fiber directly into the central offices of the major Incumbent Local Exchange Carriers (ILECs), including SBC, BellSouth and Verizon. This was accomplished by MFN's signing of separate, multi-state agreements with these ILECs;
* agreeing to acquire SiteSmith, a leading provider of Internet infrastructure management services, to complete MFN's IP services solution;
* signing of European customers Storm Telecommunications, FirstMark Communications and sevenL Communications.
For the third quarter of 2000, cost of sales was $50.7 million, compared with $9.6 million for the same quarter in 1999. The increase was primarily the result of Internet connectivity costs associated with the acquisition of AboveNet. Depreciation and amortization expense was $46.0 million for the quarter ended September 30, 2000, compared with $10.6 million for the quarter ended September 30, 1999, resulting primarily from amortization of goodwill relating to the acquisition of AboveNet and increased investment in the company's fiber-optic network and additional property and equipment acquired.
Interest income increased to $31.3 million for the quarter ended September 30, 2000, compared with $5.6 million for the quarter ended September 30, 1999. The increase is a result of the investment of a portion of the proceeds from the issuance and sale of the company's 10% senior notes due in 2009, as well as from the convertible subordinated notes issued in March 2000.
Interest expense increased for the quarter ended September 30, 2000 to $41.9 million, compared with $14.5 million during the same period of 1999. The increase in interest expense reflects the issuance and sale of the company's 10% senior notes due in 2009, as well as the subordinated notes issued in March 2000.
As the company is in the early stage of development, it expects to generate significant operating and net losses as it continues to build out and market its fiber-optic network and Internet infrastructure and services. Management believes that its goals will be achieved through the company's successful implementation and execution of its growth strategy.
Metromedia Fiber Network, Inc., the leading provider of end-to-end optical network solutions, is revolutionizing the fiber-optic industry. By offering virtually unlimited, unmetered bandwidth at a fixed cost, Metromedia Fiber Network is eliminating the bandwidth barrier and redefining the way broadband capacity is sold. Metromedia Fiber Network is extending metropolitan fiber-optic infrastructure to the end user in strategic top-tier markets, enabling its customers to implement the latest data, video, Internet and multimedia applications. In addition to its current expansion in 51 cities in North America, Metromedia Fiber Network is establishing an international presence with planned fiber-optic network builds in 16 cities throughout Europe.
Together with its subsidiaries, AboveNet Communications, Inc., a leading provider of co-location and Internet connectivity solutions, and PAIX.net, Inc., the leading neutral Internet exchange, Metromedia Fiber Network is unleashing the full potential of the Internet. The combined company facilitates the explosive growth of e-commerce and advanced Internet applications by delivering secure, reliable and scaleable optical networks and IP services to Internet content and service providers, carriers and enterprise users worldwide. For more information about Metromedia Fiber Network, please visit the company's Web site at www.mmfn.com.
This news release contains forward-looking statements that involve risks and uncertainties. Factors that could cause or contribute to such risks and uncertainties include, but are not limited to, general economic and business conditions, competition, changes in technology and methods of marketing, and various other factors beyond the Company's control. This also includes such factors as are described from time to time in the SEC reports filed by Metromedia Fiber Network, including the most recently filed Forms S-3 and 10-K, and its quarterly report on Form 10-Q for the quarter ended September 30, 2000.
* (Tables to follow)
Metromedia Fiber Network, Inc. & Subsidiaries
Consolidated Statements of Operations (Unaudited)
(in 000's, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
=================== =====================
2000 1999 2000 1999
======== ======== ========= =========
Revenue $ 51,882 $ 10,723 $ 127,118 $ 49,397
Expenses:
Cost of sales 50,742 9,595 133,466 24,414
Selling,
general and
administrative 38,735 13,581 94,363 27,369
Deferred
compensation 919 -- 919 --
Depreciation
and
amortization 46,033 10,588 118,567 15,645
-------- -------- --------- ---------
Income (loss)
from operations (84,547) (23,041) (220,197) (18,031)
Other income
(expenses):
Interest income 31,306 5,615 93,194 19,127
Interest
expense (41,876) (14,504) (142,745) (44,911)
Loss from joint
venture (198) (82) (2,739) (475)
-------- -------- --------- ---------
Net loss (95,315) (32,012) (272,487) (44,290)
======== ======== ========= =========
Net loss per
share, basic $ (0.17) $ (0.16) $ (0.51) $ (0.23)
======== ======== ========= =========
Net loss per
share, diluted N/A N/A N/A N/A
======== ======== ========= =========
Weighted average
number of
shares
outstanding,
basic 549,471 199,789 538,811 190,639
======== ======== ========= =========
Weighted average
number of
shares
outstanding,
diluted N/A N/A N/A N/A
======== ======== ========= =========
Metromedia Fiber Network, Inc. & Subsidiaries
Consolidated Balance Sheets
(in 000's, except share amounts)
September 30, December 31,
2000 1999
------------ ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 1,492,513 $ 1,262,391
Marketable securities 188,433
Pledged securities -- 31,960
Accounts receivable 86,249 72,166
Prepaid expenses and other current assets 33,291 10,948
----------- -----------
Total current assets 1,800,486 1,377,465
Fiber optic transmission network and
related equipment, net 2,049,166 796,684
Property and equipment, net 32,613 9,215
Restricted cash 52,605 82,193
Marketable securities -- 29,628
Investment in/advances to joint venture 23,068 23,130
Other assets 97,642 102,573
Intangibles, net 1,604,259 1,539,097
----------- -----------
Total assets $ 5,659,839 $ 3,959,985
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 91,242 $ 43,344
Accrued expenses 257,674 186,528
Deferred revenue, current portion 21,048 12,867
Capital lease obligations and notes
payable, current portion 8,037 6,781
----------- -----------
Total current liabilities 378,001 249,520
Senior notes payable 1,660,900 1,660,900
Convertible subordinated notes payable 975,281 --
Capital lease obligations and notes
payable 34,389 38,414
Deferred revenue 226,278 175,405
Other long term liabilities 16,445 1,070
Commitments and contingencies (see notes)
Stockholders' equity:
Class A common stock, $.01 par value;
4,808,062,482 shares authorized;
480,436,326 and 411,116,800 shares
issued and outstanding, respectively 4,829 4,111
Class B common stock, $.01 par value;
1,044,509,564 shares authorized;
67,538,544 shares issued and outstanding 676 676
Additional paid-in capital 2,812,671 1,995,741
Accumulated deficit (429,661) (157,175)
Cumulative comprehensive loss (19,970) (8,677)
----------- -----------
Total stockholders' equity 2,368,545 1,834,676
----------- -----------
Total liabilities and stockholders'
equity $ 5,659,839 $ 3,959,985
=========== ===========
------------------------------------------------------------------------
Contact:
Metromedia Fiber Network
Media Relations:
Kara Carbone, 914/683-6386
kcarbone@mmfn.com
or
Investor Relations: |
