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we have some metrics now
biz.yahoo.com
Wednesday July 19, 6:01 am Eastern Time
Company Press Release
SOURCE: Allied Riser Communications Corporation
Allied Riser Communications ('ARC') Reports 45%
Revenue Growth in Second Quarter
Surpasses Internal Goals for Construction of Its Fiber Optic Network; Begins Construction in 52nd Market
DALLAS, July 19 /PRNewswire/ -- Allied Riser Communications Corporation (Nasdaq: ARCC - news) today announced
substantial sequential revenue growth during the second quarter ended June 30, 2000, and the construction of its
broadband fiber optic network inside an additional 105 million square feet of prime commercial office space, with
expansion into 19 new markets during the quarter.
Network services revenue for the quarter ended June 30, 2000 was $1,972,000, compared to revenue of $1,358,000 in
the first quarter of 2000, a 45 percent sequential increase, and a nearly 400 percent increase compared to the same
period last year. Revenue for the second quarter of 1999 was $401,000.
ARC has now completed construction and installed its broadband communication infrastructure in buildings with potential
customers occupying more than 245 million square feet of space in 49 markets across the United States. Since June 30,
ARC has begun construction in 3 new markets.
``We are excited about the continued rapid expansion of our 'first-mile' broadband network,'' said David Crawford,
ARC's chief executive officer. ``We have achieved construction efficiencies that have enabled us to exceed our
installation goals at a cost that is substantially under budget. If we sustain these cost efficiencies over the course of our
domestic business plan, the savings could ultimately total as much as $200 million.''
ARC had previously budgeted approximately $140,000,000 for the construction of its network across this square
footage. Actual capital expenditures have been approximately $100,000,000.
The Company invested $61,159,000 during the second quarter in infrastructure to support its fiber-optic network. As of
June 30, 2000, the Company had cash and investments of $363,207,000.
The net income (loss) applicable to common stock for the second quarter of 2000 was $(44,068,000) compared with
$(37,025,000) for the quarter ended March 31, 2000 and $(16,285,000) in the quarter ended June 30, 1999. Earnings
before net interest, taxes, depreciation and amortization (EBITDA) for the quarter ended June 30, 2000 were negative
$35,420,000 compared with negative $31,438,000 for the quarter ended March 31, 2000 and a negative $8,655,000 for
the quarter ended June 30, 1999.
``Our acquisition this quarter of dark fiber in downtown Dallas, and our trials of new free-space optics technology in
Chicago, further demonstrate that ARC is the leading 'first-mile' broadband service provider in the country,'' added
Crawford. ``As we've said from the beginning, we are customer-centric, not building-centric.''
About Allied Riser Communications:
Allied Riser Communications, based in Dallas, is the nation's leading provider of high-speed broadband Internet data,
video and voice communications services and applications to small- and medium-sized businesses. ARC delivers these
services over fiber-optic networks that it designs, constructs, owns and operates inside large- and medium-sized office
buildings. These Internet access services provide an ``always on'' direct connection to the Internet at speeds of 10
Mbps, more than six times as fast as T-1 and digital subscriber lines (DSL) and more than 175 times faster than standard
dial-up service.
Additional information about Allied Riser Communications can be obtained by accessing the company's Web site at
www.arcbroadband.com
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995:
The statements contained in this release that are not historical facts may be deemed to contain forward-looking
statements, including but not limited to statements regarding overall market demand for market acceptance of the
Company's services, the intention to deploy fiber-optic networks in additional buildings or markets and the timing and
breadth of penetration in each building or market. Actual results may differ materially from those anticipated in any
forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the intense
competition for the Company's service offerings, dependence on growth in demand for the Company's services, ability to
manage growth of our operations, the ability to raise additional capital and other risks and uncertainties detailed in the
Company's Securities and Exchange Commission filings. Prospective investors are cautioned not to place undue reliance
on such forward-looking statements. The Company disclaims any obligation to update any of the forward-looking
statements contained herein to reflect future events or developments.
ALLIED RISER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
(In thousands except per share data)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1999 2000 1999 2000
Statement of Operations Data:
Network Services Revenue $ 401 $ 1,972 $ 547 $ 3,330
Operating Expenses:
Network operations 1,651 10,198 2,819 15,878
Selling expense 1,801 11,302 2,406 24,024
General and
administrative
expenses 5,599 15,892 9,207 30,286
Amortization of deferred
compensation and other
stock based expenditures 5,435 3,693 5,556 8,405
Amortization of real
estate access rights -- 3,873 -- 7,342
Depreciation and
amortization 504 3,947 890 5,522
Total operating
expenses 14,990 48,905 20,878 91,457
Operating Income (Loss) (14,589) (46,933) (20,331) (88,127)
Other Income (Expense):
Interest expense (390) (848) (461) (1,310)
Interest income 344 3,713 830 8,344
Total other income
(expense) (46) 2,865 369 7,034
Net Income (Loss) Before
Income Taxes (14,635) (44,068) (19,962) (81,093)
Provision For Income Taxes -- -- -- --
Net Income (Loss) (14,635) (44,068) (19,962) (81,093)
Accrued Dividends On
Preferred Stock (1,650) -- (3,300)
Net Income (Loss) Applicable
To Common Stock $ (16,285) $ (44,068) $ (23,262) $ (81,093)
Net Income (Loss)
Per Common Share $ (.71) $ (.81) $ (1.03) $ (1.51)
Weighted Average Number
Of Shares Outstanding 22,886 54,272 22,686 53,795
Other Data:
EBITDA (a) $ (8,655) $ (35,420) $ (13,890) $ (66,858)
Capital expenditures $ 5,264 $ 61,159 $ 8,650 $ 88,336
Dec. 31, 1999 June 30, 2000
Selected Balance Sheet Data:
Cash, cash equivalents and
short term investments $314,577 $363,207
Property and equipment, net 46,577 129,775
Total assets 475,054 660,702
Total capital lease obligations 7,728 32,772
Convertible debentures (7.5% interest
payable in stock or cash) 0 150,000
Total stockholders' equity 452,414 429,685
(a) As used in the table above, EBITDA consists of net loss excluding net
interest, income taxes, depreciation and amortization. EBITDA does
not reflect our non-cash expenses, which we expect will increase
considerably as we deploy our infrastructure. We believe that
because EBITDA is a measure of financial performance that it is
useful as an indicator of a company's ability to fund its operations
and to service or incur debt. EBITDA is not a measure calculated
under generally accepted accounting principles. Other companies may
calculate EBITDA differently from us. It is not an alternative to
operating income as an indicator of our operating performance or an
alternative to cash flows from operating activities as a measure of
liquidity and these other measures should be considered as well.
SOURCE: Allied Riser Communications Corporation
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