You could have sold TCTY this morning for a 1/2 gain at least.. Tooooo greedy mr.red :~P
Oh man hope voyn dont tank tomorrow.. I hate this less than 100% Q2Q growth..
Voyager.net Reports Year Over Year Revenue Growth of 777 Percent
and Strong Cash Flow Growth
Subscribers Grow 28 Percent in Second Quarter to 240,000
Voyager.net, Inc. (Nasdaq: VOYN), a leading Internet service provider focused on the
midwestern United States, today announced its financial results for the fiscal quarter
ended June 30, 1999.
Second quarter 1999 revenue of $10.7 million increased 777 percent when compared to
second quarter 1998 revenue of $1.2 million, and 26 percent over first quarter 1999
revenue of $8.5 million.
Earnings before interest, taxes, depreciation and amortization, and non-recurring,
non-cash compensation charges ("EBITDA") for the quarter ended June 30, 1999 was $2.8
million, or 26 times greater than the second quarter of 1998, and a 22 percent increase
when compared to $2.3 million for on amortization and non-recurring, non-cash
compensation charges ("EPS+A+NR") of $0.01 per basic and diluted share for the quarter
ended June 30, 1999, compared to approximately a the quarter ended March 31, 1999. EBITDA
for the second quarter of 1999 represented 26 percent of total revenue.
Voyager.net reported earnings per share, which excludes acquisitiloss of $.01 per
basic and diluted share for the comparable period in 1998. Voyager.net's net loss for the
three months ended June 30, 1999 was $4.3 million, or $0.19 per basic and diluted share,
as compared to a net loss of $78,000, or $0.01 on a per basic and diluted share basis,
for the three months ended June 30, 1998. The increase in the net loss is primarily
attributable to increased amortization costs associated with Voyager.net's acquisition
activity.
Voyager.net's subscriber base grew to 240,000 at June 30, 1999, an increase of 28
percent when compared with 188,000 subscribers at March 31, 1999 and 12 times its 19,000
subscribers at June 30, 1998. Total subscribers include: 6,800 Web hosting customers,
more than 1,000 dedicated Internet access accounts, 1,200 cable modem customers and 250
DSL subscribers.
"The second quarter of 1999 was an exciting period for Voyager.net," said Chris Torto,
president and chief executive officer, Voyager.net, Inc. "In addition to our initial
public offering, we continued to grow both internally and through strategic acquisitions
in the Midwest. The acquisitions we made in the second quarter added approximately 38,000
new subscribers to Voyager.net. And, due to our efforts to provide superior customer care
to our subscribers, we grew internally by approximately 14,000 subscribers while we
further reduced our low churn, or cancellation, rates."
For the six months ended June 30, 1999, total revenue increased 716 percent to $19.2
million from $2.4 million for the six months ended June 30, 1998. Voyager.net recorded
EPS+A+NR, as previously defined, of $0.03 per basic and diluted share for the first six
months ended June 30, 1999, compared to a loss of approximately $0.01 per basic and
diluted share for the comparable period of 1998. Voyager.net's net loss for the six
months ended June 30, 1999 was $7.8 million, which compares to a net loss of $14,000 for
the same period in 1998. EBITDA, as previously defined, for the six months ended June 30,
1999 was $5.1 million, which compares to EBITDA of $333,000 for the six months ended June
30,1998.
OTHER RECENT ACTIVITY
-- On July 21, 1999 Voyager.net completed its initial public
offering, raising gross proceeds of $135 million by selling 9
million shares of common stock, increasing the total number of
common shares of stock outstanding to 31.5 million. The proceeds
from the offering were used to retire all senior debt, preferred
stock and notes payable. Also during the second quarter,
Voyager.net increased the amount available for borrowing under
its credit facility from $40 million to $70 million. The result
of these activities provided Voyager.net with approximately $90
million of liquidity available from cash on hand and funds
available under it's credit facility.
-- Voyager.net announced that it will be offering its Voyager.netTV
system in the third quarter of 1999. The new product is designed
to allow individuals without a computer or who need a second
Internet terminal to access the Internet easily and inexpensively
through their television. The complete Voyager.netTV service,
including a set-top box, keyboard, remote control unit, all
necessary cables and unlimited Internet access, is anticipated to
retail for a $24.95 monthly subscription rate, with no additional
equipment, installation or set-up costs.
-- Voyager.net acquired the following businesses since March 31,
1999:
- GDR Enterprises, Inc., headquartered in Dayton, Ohio, which
provides service to 20,000 customers in southwestern Ohio.
- PCLink.com, which has 5,500 customers and serves communities
in and around Minneapolis and St. Paul, Minnesota.
- Core Digital Communications, Inc., based in Stevens Point,
Wisconsin, provides Internet services to its 4,000 customers
in central Wisconsin.
- American Information Services, Inc., and StarNet, Inc.,
serving 3,100 and 5,900 Internet customers in the Chicago
area, respectively.
"The successful completion of our initial public offering in late July provided
significant capital for Voyager.net and has resulted in a strong balance sheet,"
continued Mr. Torto. "We were able to repay all of our senior debt and redeem all notes
payable and preferred stock. We intend to use the remainder of our proceeds and available
funds from our credit facility to expand and strengthen our position as the premier
Internet service provider throughout the Midwest."
ABOUT VOYAGER.NET
Voyager.net is the largest Internet service provider focused on the midwestern United
States, with approximately 240,000 subscribers as of June 30, 1999. Serving residential
and business customers, the Company operates the largest dial-up Internet network in the
Midwest in terms of geographic coverage, with approximately 165 Voyager.net-owned points
of presence in Michigan, Wisconsin, Ohio, Illinois, Indiana and Minnesota. Voyager
services include dial-up Internet access, high-speed dedicated business connectivity,
Digital Subscriber Line (DSL) services, Web hosting, electronic commerce, server
co-location and high-speed cable modem access. Additional service and pricing information
is available at voyager.net.
Neither EPS+A+NR nor EBITDA is 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.
Special Note: Certain statements in this release and the Voyager.net Web site,
including, without limitation, regarding Voyager.net's continuing focus on providing
superior customer care, its plans to offer Voyager.netTV in the third quarter of 1999,
and the Company's plans to expand and strengthen its current leadership position are
forward-looking statements for purposes of the Private Securities Litigation Reform Act.
There are a number of important factors that could cause actual results to differ
materially from those suggested or indicated by such forward-looking statements. These
include, among others, Voyager.net's ability to bring the Voyager.netTV system to market,
the Company's ability to continue providing superior customer care, the success of its
growth strategy, its ability to integrate acquisitions successfully, increasing
competition from regional and national ISPs, and general economic conditions and the
other important cautionary statements and risk factors described in Voyager.net's
Registration Statement declared effective July 20, 1999 and filed with the Securities and
Exchange Commission.
VOYAGER.NET, INC.
Financial Summary
(unaudited and in thousands except for per
share data and subscriber counts)
Statement of Operations Data
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------------------
1999 1998 1999 1998
Revenue:
Internet
access service $ 10,538 $ 1,221 $ 18,943 $ 2,353
Other 176 1 290 4
-------- -------- -------- --------
Total revenue 10,714 1,222 19,233 2,357
-------- -------- -------- --------
Operating expenses:
Internet access
service costs 3,602 429 6,392 799
Sales and
marketing 1,229 224 2,198 405
General and
administrative 3,081 465 5,544 820
Depreciation
and amortization 5,005 144 8,532 270
Compensation
charge for
issuance of common
stock and
stock options 1,044 -- 2,509 --
-------- -------- -------- --------
Total operating
expenses 13,961 1,262 25,175 2,294
-------- -------- -------- --------
Income (loss)
from operations
before interest
expense, net (3,247) (40) (5,942) 63
Interest expense, net (1,043) (38) (1,814) (77)
-------- -------- -------- --------
Net loss (4,290) (78) (7,756) (14)
Preferred
stock dividends (165) (50) (331) (100)
-------- -------- -------- --------
Net loss
applicable to
common
stockholders $ (4,455) $ (128) $ (8,087) $ (114)
======== ======== ======== ========
Per Share Data:
Basic and
diluted net
loss per |
