WRDP - Worldport reports record revenues for 1Q 1999
Company Press Release
SOURCE: WorldPort Communications, Inc.
WorldPort Communications Reports Record Revenues for First Quarter 1999
-- Revenues Increase 29% over Fourth Quarter 1998 -- Gross Margin Rises 56% over Previous Quarter -- 482 Million Minutes of use, an increase of 21% -- Net PPE Rises 16% over Fourth Quarter -- Over $23 Million in Capital Expenditures
ATLANTA, April 30 /PRNewswire/ -- WorldPort Communications, Inc. (Nasdaq: WRDP - news) today announced record revenues for its first quarter ended March 31, 1999. First quarter 1999 revenues totaled approximately $18.3 million, a 1,828% increase over first quarter 1998, and a 29% growth over fourth quarter 1998. Revenues continue to be driven primarily by Internet related and international long distance services in Europe. WorldPort's net property and equipment increased to $105.4 million from approximately $4.8 million for the same period in 1998. Additionally, sequential growth for PPE was approximately a 16% increase when compared to fourth quarter 1998. Net loss for the first quarter 1999 was down 38% from the previous quarter. EBITDA improved from approximately ($14.8) million to approximately ($6.4) million while gross margin was up 56% over fourth quarter.
WorldPort Communications, Inc.
Consolidated Results (in thousands)
1Q1999 4Q1998 Change
Revenue $ 18,275 $14,181 29% improvement
EBITDA (6,442) (14,824) 57% improvement
Gross Margin 6,207 3,974 56% improvement
Operating Loss (11,714) (24,957) 53% improvement
Net Loss (27,001) (43,873) 38% improvement
EPS $(1.43) $(2.42) 41% improvement
Net PPE 105,387 91,226 16% increase
Total Minutes 482,000 400,000 21% increase
1Q1999 1Q1998 Y-o-Y
Revenue $18,275 $948 +1,828%
EBITDA (6,442) (2,198) (193%)
Gross Margin 6,207 57 10,789%
Operating Loss (11,714) (2,829) 314%
Net Loss (27,001) (3,005) (799%)
EPS $(1.43) $(0.17) (740%)
Net PPE 105,387 4,791 2,100%
Total Minutes 482,000 N/A N/A
First Quarter Financial Highlights
Revenues from Internet Related and International Long Distance Services
WorldPort generates revenues primarily from international long distance services, national long distance services (i.e. within The Netherlands) and Internet-related transmission and termination services over owned-network facilities and facilities leased from other telecommunications service providers. Total minutes of use in the first quarter were approximately 482 million minutes, an increase of 21% over the previous quarter results. Revenues in the first quarter 1999 totaled approximately $18.3 million.
Other Financial Information
WorldPort's net property, plant and equipment increased to approximately $105.4 million as of March 31, 1999 from approximately $91.2 million as of December 31, 1998. In addition, WorldPort's net loss for the three months ended March 31, 1999 decreased approximately 38% compared to the three months ended December 31, 1998.
Operational Highlights
* First quarter gross margin increased 56% to $6.2 million from
$4 million for the three months ending December 31, 1998
* Net loss for the quarter was $27 million, down 38% from $43.9 million
reported the previous quarter
* EnerTel, WorldPort's operating subsidiary in the Netherlands, turned
EBITDA positive in March, only eight months after the acquisition. This
represents a 92% revenue improvement and a 114% improvement in EBITDA
as compared to July 1998, EnerTel's first month under WorldPort's
control
* Switched first international minutes out of New York gateway
* Accepted delivery of London and Miami switch sites
* Invested approximately $23 million into our network to be used for
accelerated network expansion and market penetration
* Expanded the capacity on existing Siemen's switches located in The
Netherlands
* Completion of the Beverwick ring increasing customer revenue and
capacity for local access that will allow for increased customer
revenue
* Strengthened Operations management with the selection of Steven Parrish
as Senior Vice President of Global Operations, and Malcolm Arnold as
Vice President of European Operations
Sales and Marketing Highlights
* During the three-month period ending March 31, 1999, WorldPort
completed 58 customer contracts, including 38 carriers, 7 ISPs and 13
Corporate customers
* Signed major strategic agreement with Star Telecom for $8 million in
private line European capacity. In addition, the contract allows for
the purchase of up to $55 million in fiber capacity between the two
carriers over the next three years
* Strengthened sales team with the addition of Stephen Cadley and Paul
Williams
* Launched ATM (Asynchronous Transfer Mode) product line, which will
enable major corporate customers to use ATM technology to interconnect
their offices for data, voice and multimedia applications
* During the first quarter 1999, WorldPort completed provisioning of 15
new carriers worldwide
About WorldPort
WorldPort Communications, Inc., headquartered in Atlanta, Georgia (USA), is a network enabler providing international telecommunications and Internet services for ISPs, long distance carriers, medium and large corporate customers in Europe and North America. WorldPort offers domestic and international voice, data, video, Internet and other telecommunication services over a network of terrestrial and undersea cables, switches, and other network equipment and through interconnection agreements with major carriers in Europe and North America. For more information, please visit the WorldPort web site at www.wrdp.com .
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward looking statements. Factors which would cause or contribute to such differences include, but are not limited to factors detailed in the Company's Securities and Exchange Commission filings.
SOURCE: WorldPort Communications, Inc.
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