FIRSTCOM ANNOUNCES RECORD FIRST QUARTER 1999 RESULTS
Business Wire
May 4 1999 9:33PM ET
Business Editors/High Tech Writers
CORAL GABLES, Fla.--(BUSINESS WIRE)--May 4, 1999--
Record results fueled by increase in Data and Internet services
to business customers in Chile and Colombia
Peru's Data/Internet fiber optic network
activated in late March 1999
FirstCom Corporation (NASDAQ: FCLX) ("FirstCom" or "the Company") an emerging next generation
telecommunications carrier with facilities based fiber optic networks in Chile, Peru and Colombia,
announced record revenues of $9.5 million for the first quarter of 1999.
The Company's first quarter results representing a 185% and 12% increase over first and fourth
quarter of 1998, respectively. The 12% increase over the fourth quarter of 1998 was due to a
substantial increase in Data/Internet revenues.
FirstCom's revenues from Data/Internet services during the first quarter of 1999, which were primarily
generated by FirstCom Chile and FirstCom Colombia(a), totaled approximately $2.2 million, an
increase of approximately 158% over the previous quarter comparable revenues of approximately
$850,000. Approximately $1.9 million of the first quarter 1999 Data/Internet revenues were generated
from the sale of high speed dedicated Data/Internet access lines while $0.3 million was generated
from dial up Internet and other value added services. The increase in Data/Internet revenues reflect the
inclusion of two months of revenues related to the commencement of operations in Colombia in
February 1999, increased revenues associated with Chile's Internet operations, and the activation of
the Company's state-of-the-art fiber-optic network in Chile during the first quarter of 1999. FirstCom
Peru activated its state-of-the-art fiber-optic network in late March 1999 and will be increasing its
contribution to the Company's Data/Internet revenues beginning with the second quarter of 1999.
Revenues generated from long distance services in Chile were approximately $7.2 million during the
first quarter of 1999 reflecting a slight increase from the superior results of approximately $7.1 million
achieved during the fourth quarter of 1998. Total minutes increased approximately 15% to
approximately 26.6 million minutes during the first quarter of 1999 versus approximately 23.2 million
minutes in fourth quarter 1998. The average revenue per minute decreased to approximately $.27 in
the first quarter of 1999 compared to $.31 in the fourth quarter of 1998 primarily due to an increase in
the percentage of minutes attributable to domestic long distance.
The Company's EBITDA (earnings before interest, taxes, depreciation and amortization) losses for the
three months ended March 31, 1999 were $2.2 million. EBITDA losses continued to narrow from the
previous quarter's loss of $2.6 million and reflect FirstCom's ongoing process of moving toward
EBITDA positive results prior to the end of 1999.
Mr. Patricio E. Northland, Chairman, President and CEO of FirstCom stated, "FirstCom continued to
achieve very significant milestones during the first four months of 1999 including the acquisition of
Teleductos in Colombia, the receipt of licenses to provide international, domestic and local services in
Peru, execution of the long distance interconnection agreement with Telefonica to interconnect our
networks in Peru, and the formal announcement of our Internet strategy for Latin America. I am very
pleased with the Company's first quarter results as we continue to position the company as the
telecommunications carrier of choice for business customers who need high speed integrated
broadband services."
Mr. Douglas G. Geib II, Executive Vice President and Chief Financial Officer added the following, "At
of the end of the first quarter the Company had substantially completed the build-out of its fiber optic
and long distance networks in Chile and Peru. As a result, capital expenditures should become more
variable in the future driven by the growth in customers. In addition, we are pleased to see that an
increasing mix of FirstCom's revenues is moving toward higher margin Data/Internet services and
expect this trend to continue during the second quarter of 1999."
FirstCom's total cash position at March 31, 1999 was $51.4 million (of which, $40.2 million is
restricted to pay interest on the Company's Senior Notes until 2001). Available credit facilities with
Cisco and Nortel are $18.2 million and provide financing for equipment purchased from each respective
vendor for the Peruvian and Chilean operations.
FirstCom's total investment in gross property, plant and equipment at March 31, 1999 was
approximately $81.5 million (which included $21.4 million attributable to FirstCom Colombia which
may be adjusted prior to year end after completion of final purchase price allocations based on
independent appraisals). At the end of the first quarter of 1999, FirstCom's networks included 1,366
route kilometers of fiber optic cable representing 38,057 fiber kilometers and 717 buildings wired.
At March 31, 1999 FirstCom's had 502 employees, representing a 51% increase over total employees
of 332 at December 31, 1998. (a) FirstCom's first quarter 1999 performance included the operating
results of Teleductos, S.A., ("FirstCom Colombia") from February
2, 1999, which represented the date of acquisition by the
Company. FirstCom Colombia earned approximately $1.1 million of
revenues during February and March 1999, which are included in
the Company's consolidated results.
FirstCom Corporation is a rapidly emerging telecommunications carrier with facilities based state of
the art fiber optic networks in Chile, Peru and Colombia providing high-speed connectivity and value
added services to the business community and other high volume users. FirstCom also operates a
long-distance carrier in Chile and plans to offer similar services in Peru in the near future. FirstCom's
mission is to become the leading next generation telecommunications carrier focused on providing
high bandwidth integrated services on its own facilities based networks to businesses and other high
volume users operating in key Latin American markets.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The foregoing
statements involve known and unknown risks and uncertainties that may cause the Company's actual
results or outcomes to be materially different from those anticipated and discussed herein. The
matters discussed in this press release contain forward-looking statements that involve risks and
uncertainties, including but not limited to economic, competitive, governmental and technological
factors detailed in the Company's filings with the Securities and Exchange Commission which readers
are urged to read carefully in assessing the forward looking statements contained herein. -0- *T
FirstCom Corporation
Condensed Consolidated Statements of Operations
(Thousands of US dollars, except share data)
Three Months Ended
March 31,
1999 1998
(unaudited) (unaudited)
(as restated) Revenues:
Long Distance $ 7,188 $ 2,927
Internet 666 --
Data 1,516 153
Other 75 247
9,445 3,327 Operating Expenses:
Cost of Revenues 7,191 2,609
Selling, general and administrative 4,427 1,831
Depreciation and amortization 893 523 Loss from operations (3,066) (1,636) Interest expense (4,504)
(5,403) Interest income and other 422 1,761 Net loss $ (7,148) $ (5,278) Net basic and diluted loss
per share $ (0.37) $ (0.28) Weighted average common shares
outstanding 19,115,555 19,084,300 EBITDA $ (2,173) $ (1,113)
FirstCom Corporation
Condensed Consolidated Balance Sheets
(Thousands of US dollars, except share data)
3/31/99 12/31/98
(unaudited) (audited) Current Assets Cash and cash equivalents $ 3,174 $ 8,892 Restricted cash and
investments 27,969 42,269 Trade accounts receivable, net 7,902 6,935 Other current assets 1,188
624
Total current assets 40,233 58,720 Telecommunications networks, net 78,454 45,901 Restricted
investments 20,292 20,021 Intangible assets, net 15,373 15,765 Deferred financing costs and other
15,080 14,437
Total assets $ 169,432 $ 154,844 Current liabilities: Accounts payable $ 11,098 $ 8,238 Accrued
interest 8,925 3,695 Bank debt and promissory notes 8,991 254 Other current liabilities 1,914 2,570
Total current liabilities 30,928 14,757 Senior notes, net 132,538 132,338 Other liabilities 6,755 1,575
Total liabilities 170,221 148,670
Total stockholders
equity (deficit) (789) 6,174
Total liabilities
and equity $ 169,432 $ 154,844
FirstCom Corporation
Condensed Consolidated Statement of Cash Flows
Three Months Ended March 31, 1999
(Thousands of US dollars) Cash flows from Operating Activities Net Loss $ (7,148)
Adjustments
Depreciation and amortization 893
Amortization of Debt
Costs and OID 357
Accretion of discount on
restricted investments (542)
Capitalized Interest (1,532)
Stock Options Issued
and Exercised 101 Changes in Assets
and Liabilities
Accounts Receivable (152)
Prepaid expenses (518)
Other Assets 159
Accounts Payable and
Accrued Expenses 4,420
Other current liabilities 540 Cash used in operating activities (3,422) Cash flows from investing
activities
Purchases of Telecommunications
Networks (12,072)
Use of restricted cash 14,572
Acquisition of Teleductos, net (4,936) Cash used in investing activities (2,436) Cash flow from
financing activities
Vendor Debt 178
Payments under capital
lease obligations (37) Cash provided by financing activities 141 Net decrease in cash (5,717) Cash,
beginning of year 8,891 Cash, end of period $ 3,174
A summary of key metrics as of March 31, 1999 follows (unaudited):
Chile Peru Colombia Corporate Total |
