OneMain.com Reports Record Pro forma First Quarter Results --Details
Company Exceeds Published Analyst Estimates for Subscribers, Pro forma Revenues and EBITDA
VIENNA, Va.--(BUSINESS WIRE)--April 29, 1999--OneMain.com (Nasdaq: ONEM - news) today announced record pro forma first quarter results for the period ending March 31, 1999. OneMain is a leading U.S. Internet service provider focused on providing high levels of customer service to individuals and businesses located outside of large metropolitan areas. The Company completed its initial public offering on March 25, 1999 raising $215 million through the sale of 9.75 million shares at $22 per share. The pro forma financial results presented below assume the OneMain.com initial public offering and related acquisitions had taken place as of January 1, 1998 and that the Company operated as a consolidated entity from this date.
Pro forma total revenues for the first quarter of 1999 were $19.5 million, an increase of 70.0% over pro forma revenues of $11.5 million for the first quarter of 1998, and an increase of 15.2% over pro forma revenues of $16.9 million for the fourth quarter of 1998. OneMain had approximately 371,000 subscribers at March 31, 1999, an increase from approximately 198,000 at March 31, 1998, and an increase from approximately 332,000 at December 31, 1998.
Pro forma EBITDA for the first quarter of 1999 was $771,000 exclusive of $2.5 million of one-time non-cash equity compensation charges associated with hiring one executive and certain other consultants. Pro forma EBITDA for the first quarter of 1999 included $910,000 of corporate overhead associated with the OneMain corporate entity. EBITDA for the first quarter of 1998 was $510,000 and did not reflect any OneMain corporate overhead charges.
For the first quarter of 1999, after non-cash amortization charges of $20.8 million, the Company reported a net loss of $21.0 million or ($1.02) per share. Exclusive of the amortization charges and the $2.5 million one-time non-cash equity compensation charges and the related tax benefit, the net loss would have been $578,000 or ($.03) per share. For the first quarter of 1998, after non-cash amortization charges of $19.7 million, the Company reported a net loss of $17.6 million or ($.86) per share. Exclusive of amortization charges, the net loss would have been $560,000 or ($.03) per share.
''We are pleased with the business and financial performance of OneMain,'' said Stephen Smith, Chairman and Chief Executive Officer.
''We exceeded published analyst estimates with respect to subscribers, pro forma revenues and EBITDA. These record results are especially gratifying, as we completed our public offering just five days before the end of the first quarter. We remain focused on driving organic growth, consummating selective strategic acquisitions and building the administrative infrastructure that will add value to our subscribers and shareholders.''
OneMain.com, based in Vienna, Virginia, provides Internet access and related services throughout the United States to individuals and businesses located predominantly outside of large metropolitan areas. The Company believes individuals in these markets have traditionally been under-served by national on-line service providers and that great opportunity exists to fill that void. Today, the Company is one of the ten largest independent Internet service providers with 371,000 subscribers.
This press release contains forward-looking statements related to OneMain.com's opportunities and future growth. Any or all of our forward-looking statements in this press release or in any other public statements we make may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties, including risks related to the Company's consolidation strategy, its ability to complete and integrate acquisitions, and other factors affecting the Company's prospects.
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ONEMAIN.COM, INC.
Selected Pro forma Financial Statement Information
(Dollars in thousands, except per share amounts)
(a) EBITDA represents earnings before interests, income taxes,
depreciation and amortization. EBITDA is not a measurement of
financial performance under generally accepted accounting
principles and should not be considered an alternative to net
income as a measure of performance.
March 31, March 31,
1999 1998
---- ----
(In Thousands, except earnings per share data)
Pro Forma Statements of Operations Data
(Unaudited):
Revenues:
Access revenues $ 17,968 $ 10,317
Other revenues 1,534 1,154
Total revenues 19,502 11,471
Costs and expenses:
Cost of access revenues 7,717 4,050
Cost of other revenues 373 271
Total costs of revenues 8,090 4,321
Gross margin 11,412 7,150
Operating expenses:
Operations and customer support 2,783 1,631
Sales and marketing 2,370 1,359
General and administrative 5,499 3,482
Equity compensation expense 2,469 --
Other (income) expenses, net (11) 168
Total operating expenses 13,110 6,640
EBITDA (a) (1,698) 510
Amortization 20,814 19,675
Depreciation 1,302 1,036
Loss from operations (23,814) (20,201)
Interest income 50 12
Interest expense (97) (46)
Loss before benefit for income taxes (23,861) (20,235)
Benefit for income taxes 2,883 2,604
Net loss $(20,978) $(17,631)
Pro forma basic and diluted net loss per share $ (1.02) $ (0.86)
Shares used in the calculation of basic
and diluted net loss per share 20,522 20,422
Balance Sheet Data: 1999
Cash and cash equivalents $ 91,399
Current assets other than cash 4,913
Property and equipment, net 16,672
Intangible and other assets 250,488
Total assets 363,472
Current liabilities 34,401
Long-term liabilities 25,079
Stockholders' equity 303,992
Other Operating Data:
Approximate number of
subscribers at end of period 371,000
Number of employees at end of period 652
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