People's Choice Announces 4th Quarter and Year-End 1997 Results
SHELTON, Conn., March 31 /PRNewswire/ -- People's Choice TV Corp. (Nasdaq-NNM: PCTV - news) today reported for the fiscal year ending December 31, 1997 revenues of $32,690,000 compared with 1996 revenues of $33,425,000, a decrease of 2 percent. The Company had 1997 fourth quarter revenues of $7,485,000 compared with 1996 fourth quarter revenues of $8,211,000, a decrease of 9 percent.
Net loss for the Company was $69,580,000 or $5.80 per share for the year ending December 31, 1997 compared with a net loss of $75,887,000 or $6.26 per share for 1996, an improvement of 8 percent (in net loss dollars) from the previous year. Net loss for the 1997 fourth quarter was $19,264,000 or $1.60 per share, compared with a net loss for the 1996 fourth quarter of $24,074,000 or $1.95 per share, an improvement of 20 percent (in net loss dollars) from the previous year. The net loss for the year ending December 31, 1997 includes an extraordinary gain of $827,000 or $.06 per share. Earnings before interest, taxes, depreciation and amortization (EBITDA) was negative $9,252,000 for the year ended December 31, 1997 compared to negative $11,561,000 for the year ended December 31, 1996. EBITDA was negative $2,716,000 for the 1997 fourth quarter compared to negative $2,653,000 for the 1996 fourth quarter. The year ended December 31, 1996 includes a $616,000 non-cash expense associated with the settlement of a lawsuit. Excluding this charge, EBITDA was negative $10,945,000 for the year ended December 31, 1996. At December 31, 1997, PCTV had $80,275,000 in cash and marketable securities.
The Company had 67,300 video customers at December 31, 1997 compared to 77,800 video customers at December 31, 1996, a decrease of 13 percent from 1996. Video customer count at September 30, 1997 was 72,800. As previously disclosed, based on its proposed transition to a digital video product, the Company did not add to its analog video customer base in 1997. The 1997 decrease was also affected by the sale of 8,800 multiple dwelling units in St. Louis which accounted for 3,900 analog video customers.
In October 1997 and March 1998, the Company launched a high speed internet access service in its Detroit and Phoenix markets, respectively, marketed under the name SpeedChoice(TM). As of this date, it is too early to gauge market response for the SpeedChoice service. The Company expects the launch of a digital video service to occur in the second half of 1998.
On December 1, 1997, the Company sold service contracts and equipment in St. Louis to ResNet Communications, LLC., representing approximately 3,900 analog video customers. The net proceeds from this sale were approximately $3.4 million. The Company has also entered into a letter of intent to sell service contracts and equipment representing approximately 17,000 analog video customers in its Chicago, Houston, and Phoenix markets. It is still uncertain at this time whether a definitive agreement will be executed or whether any such transaction will be completed.
During the first quarter of 1998 the Federal Communications Commission (FCC) held an auction of wireless frequencies designated as Local Multipoint Distribution Service (''LMDS''). LMDS operates at a higher frequency than the Company's other wireless frequencies. The Company was the successful bidder for the Phoenix, Arizona 150 mhz ''B block'' license and the Prescott, Arizona 1150 mhz ''A block'' license. The total payment required to the FCC for the two licenses is $3,221,400 which amount includes the Company's small business discount. The licenses will not be granted to the Company until the Company submits required applications and the FCC licensing process is completed.
All statements contained herein that are not historical fact are based on current expectations. These statements are forward looking in nature and involve a number of risks and uncertainties. Actual results may differ materially. All such statements should be considered with regard the risk factors described in the Company's report filed with the Securities and Exchange Commission. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and as such, speak only as of the date made.
People's Choice TV Corp. is a wireless communications company with wireless transmission capacity in nine major cities located in the southwest and midwest. The Company provides wireless cable television service in Chicago, Houston, Phoenix, Detroit, St. Louis and Tucson and provides wireless high speed internet access service marketed under the name of SpeedChoice(TM) in the Detroit and Phoenix markets.
For the Year Ended
December 31,
1997 1996
Revenues $32,690,000 $33,425,000
Net Loss (a) $(69,580,000) $(75,887,000)
Basic and Diluted Loss
Per Common Share (a)(b) $(5.80) $(6.26)
Weighted Average Number of Common
Shares Outstanding (c) 13,149,000 13,100,000
For the Three Months Ended
December 31,
1997 1996
Revenues $7,485,000 $8,211,000
Net Loss $(19,264,000) $(24,074,000)
Basic and Diluted Loss
Per Common Share (b) $(1.60) $(1.95)
Weighted Average Number of Common
Shares Outstanding (c) 13,148,000 13,138,000
(a) The year ended December 31, 1997 includes an extraordinary gain of
$827,000 or $.06 per common share.
(b) The year ended December 31, 1997 and 1996 basic and diluted loss per
common share reflects net loss being adjusted by non-cash, pay-in-kind,
preferred stock dividends in the amount of $6,699,000 and $6,123,000
respectively. The three months December 31, 1997 and 1996 basic and
diluted logs per common share reflects a similar adjustment in the amount
of $1,734,000 and $1,582,000 respectively.
(c) The weighted average number of shares were computed based on the
weighted number of common shares and common share equivalents assumed
outstanding. The shares include common equivalent shares issuable upon
exercise of certain outstanding stock options and warrants. |
