ICG Communications, Inc. (Nasdaq: ICGX) ("ICG") today reported that its Telecom Services business segment generated $681,000 of positive EBITDA (earnings before interest, taxes, depreciation and amortization, and before nonrecurring charges) for the third quarter of 1998.
The company also reported that its consolidated EBITDA deficit narrowed to $3.6 million for the three months ended Sept. 30, 1998, compared to an EBITDA deficit of $31.2 million recorded for same period in 1997. Total consolidated revenue for the three months ended Sept. 30, 1998 was $106.5 million, compared to $60.6 million reported for the third quarter of 1997.
"Telecom Services achieved a significant milestone by reaching positive EBITDA for the third quarter," said J. Shelby Bryan, ICG's president and chief executive officer. "Delivering high margin competitive telecommunications services to small and medium-sized business customers is fundamental to ICG's strategy. I am confident that the continued execution of this strategy will translate into positive EBITDA for the fourth quarter of 1998, and throughout 1999."
ICG's continued EBITDA improvement is primarily related to increases in local dial tone lines in service. At Sept. 30, 1998, ICG had 290,983 local dial tone lines in service, an increase of 53,525 lines compared to June 30, 1998. Ninety-eight percent of the lines installed during the third quarter of 1998 were "on-switch." ICG also reported that it sold 55,792 dial tone lines for the three months ended Sept. 30, 1998.
Telecom Services' revenue for the quarter ended Sept. 30, 1998, was $82.6 million, compared to $36.5 million for the three months ended Sept. 30, 1997, a 126 percent increase. Telecom Services had gross operating margins of $34.4 million for the third quarter of 1998, which was 42 percent of this business unit's total revenue.
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