PhoneTel Technologies, Inc. Reports Third Quarter 2000 Financial Results
CLEVELAND--(BUSINESS WIRE)--Nov. 15, 2000--PhoneTel Technologies, Inc. (OTCBB:PHTE) Tuesday reported financial results for the three month and nine month periods ended September 30, 2000.
Revenues for the third quarter of 2000 were $17.9 million, compared to $20.6 million in the prior year's third quarter. In spite of the revenue decline, third quarter EBITDA increased by $0.4 million, when compared to the prior year's third quarter EBITDA results of $1.8 million. This increase is principally due to the Company's focus on asset management resulting in the removal of unprofitable payphones. Process improvement initiatives also provided additional operational efficiencies.
The net loss for the third quarter 2000 was $7.8 million, or $0.77 per common share, compared to a net loss of $13.0 million, or $0.72 per common share, in the third quarter of 1999. The third quarter of 2000 included a non-cash charge of $2.8 million, or $0.28 per common share, for the write-off of intangible assets related to 1,500 pay telephones removed from service during the quarter as part of the Company's continuing program of evaluating and removing phones that are no longer profitable. The third quarter of 1999 included an extraordinary loss for early extinguishment of debt of $2.1 million or $0.11 per share.
Revenues for the third quarter 2000 were $17.9 million, which is an increase of $0.9 million compared to the second quarter 2000 revenues of $17.0 million. EBITDA for the third quarter was $2.2 million and was comparable to second quarter 2000 EBITDA of $2.2 million. The net loss for the third quarter of $7.8 million, or $0.77 per common share, increased $2.9 million, or $0.29 per common share, when compared to the second quarter 2000 net loss of $4.9 million, or $0.48 per common share. The increase in net loss resulted from a $2.8 million non-cash charge for the write-off of intangible assets described above.
Revenues for the nine months ended September 30, 2000 were $51.0 million, compared to $60.3 million for the same period in 1999. EBITDA increased in the first nine months from $4.0 million in 1999 to $5.9 million in 2000 as a result of the Company's process improvement initiatives and cost reduction programs. The net loss (including the $2.8 million non-cash charge) for the nine months ended September 30, 2000 was $18.2 million, or $1.79 per common share, compared to a net loss after extraordinary item of $33.6 million, or $1.86 per common share for the same period in 1999.
As previously reported, PhoneTel completed a prepackaged plan of reorganization (the "Plan") on November 17, 1999. At that date, PhoneTel refinanced its $46 million secured debt and converted its 12% Senior Notes into approximately 95% of the reorganized Company's new common stock. Former equity holders received the remaining 5% of the new common stock. The net loss for the three month and nine month periods ended September 30, 1999 included interest expense of $3.9 million and $11.8 million, respectively, relating to the 12% Senior Notes converted to common stock.
As a result of the above changes in the Company's debt and outstanding shares, and the adoption of fresh start reporting, the reported net loss and per share amounts for the current year are not comparable to the corresponding amounts in 1999. Depreciation and amortization, interest expense and the number of shares used in determining loss per share are less than the amounts and number of shares that would have been reported if the reorganization had not been completed. |
