[Advanced Radio Telecom Announces Financial Results for Third Quarter 1999]
BELLEVUE, WASH.--(BUSINESS WIRE)--Nov. 9, 1999--Advanced Radio Telecom Corp., a provider of broadband wireless Internet access services, today announced financial results for third quarter 1999.
Total revenues for the quarter ended September 30, 1999 were $359,000 compared with $187,000 for the same period last year. Operating costs and expenses for the third quarter of 1999 were $13,177,000 compared with $10,660,000 for the same period last year. The operating loss for the third quarter of 1999 was $12,818,000 compared to $10,473,000 for the same period last year. The net loss for the third quarter of 1999 was $18,047,000 or $4.65 per share, compared to $13,707,000 or $0.51 per share for the third quarter of 1998. The net loss per share for the 1999 period includes $3.99 loss per share representing deemed preferred stock dividends relating to the beneficial conversion feature of the company's preferred stock issued in September 1999. Excluding the deemed dividend, the net loss per share for the three months ended September 30, 1999 was $0.66 per share.
For the nine months ended September 30, 1999, total revenues were $924,000 compared with $629,000 for nine months ended September 30, 1998. Operating costs and expenses for the first nine months of 1999 were $43,204,000 compared with $25,120,000 for the same period in 1998. The operating loss for nine months ended September 30, 1999 was $42,280,000 compared with $24,491,000 for the same period in 1998. The net loss for nine months in 1999 was $61,055,000 or $6.25 per share compared to $32,379,000 or $1.33 per share for the same period in 1998. The net loss per share for the 1999 period includes $4.00 per share representing deemed preferred stock dividends relating to the beneficial conversion feature of the company's preferred stock issued in September 1999. Excluding the deemed dividend, the net loss per share for the nine months ended September 30, 1999 was $2.25 per share.
"Yesterday's announcement of a purchase agreement and vendor financing commitment from Cisco Systems, along with the recent $251 million equity investment by Qwest and others, we believe is a positive endorsement of our business model," said Robert McCambridge, ART interim president and CEO. "Early indications of customer acceptance in San Jose is validating the appeal of ART's value proposition, which is to deliver Internet access at speeds between 10Mbps and 100Mbps at a price comparable to what customers are currently paying for T-1 capacity. With our value proposition set and new sources of growth capital, our 40-market commercial build out is now underway and should accelerate over the next several quarters."
Advanced Radio Telecom Corp.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
1999 1998 1999 1998
------------------ -----------------
Revenues $359 $187 $924 $629
Costs and expenses
Technical and network
operations 4,222 1,442 12,078 4,627
Sales and marketing 1,402 1,741 4,320 4,484
General and administrative 3,604 2,873 9,697 8,437
Equipment impairment
and other 2,683 6,376 2,683
Depreciation and
amortization 3,949 1,921 10,733 4,889
------- ------- ------- -------
Total operating costs
and expenses 13,177 10,660 43,204 25,120
Loss from operations (12,818) (10,473) (42,280) (24,491)
Interest and other
income (expense)
Interest expense (7,323) (5,206) (22,096) (15,427)
Financing commitment
expense (411) (1,305) (411)
Other 147 (12) 697 (419)
Interest income 1,508 458 2,428 2,173
-------- ------- ------- -------
Total (5,668) (5,171) (20,276) (14,084)
Loss before income taxes (18,486) (15,644) (62,556) (38,575)
Deferred income tax benefit 439 1,937 1,501 6,196
Net loss $(18,047) $ (13,707) $(61,055) $(32,379)
Net loss $(18,047) $ (13,707) $(61,055) $(32,379)
Deemed preferred dividend (108,862) (108,862)
Net loss applicable to
common stockholders $(126,909) $ (13,707) $(169,917) $(32,379)
========== ========== ========== =========
Weighted average
common shares 27,307 26,701 27,185 24,275
========== ========== ========== =========
Basic net loss per
common share, including
$3.99 and $4.00 loss per
share relating to deemed
preferred dividend in 1999 $(4.65) $(0.51) $(6.25) $(1.33)
Advanced Radio Telecom Corp.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
Sept. 30, 1999 Dec. 31, 1998
-------------- -------------
Current assets $ 206,862 $ 31,208
Property and equipment, net 26,959 33,202
FCC licenses, net 181,980 186,514
Other 8,958 14,797
--------- ---------
Total $ 424,759 $ 265,721
Current liabilities $ 17,122 $ 34,138
Long term debt, net of current portion 108,808 117,846
Deferred income taxes 30,000 31,382
------------ -----------
Total liabilities 155,930 183,366
Convertible preferred stock 243,686
Stockholders' equity 25,143 82,355
------------ -----------
Total $ 424,759 $ 265,721
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