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GLOBAL CROSSING LTD - Increases Estimates For Cash Revenue And Recurring - Adjusted EBITDA In 2000
New York, New York, Sep. 01, 2000 (Market News Publishing via COMTEX) -- Global Crossing Ltd., which is building and offering services over the world's most extensive global IP-based fiber optic network, today announced increased estimates of its financial performance for the current fiscal year ending December 31, 2000.
As mentioned in the Company's August 1, 2000 press release announcing its second quarter 2000 financial results, during the first and second quarters of 2000 Recurring Adjusted EBITDA exceeded both the Company's internal projections and the consensus estimates of analysts, leading Global Crossing to increase its expectations for the entire year. Global Crossing now expects its continuing operations, consisting of Telecommunications Services and Installation and Maintenance Services, to generate approximately $5.20 billion of Cash Revenue for the year. The Company's previous estimate of Cash Revenue for the year for continuing operations was approximately $4.84 billion. Pro forma for the effects of acquisitions in both years, Cash Revenue for the year is expected to be approximately $5.37 billion, a projected increase of 38% over 1999 results.
For continuing operations, Recurring Adjusted EBITDA for the year is now expected to be approximately $1.34 billion. The Company's previous estimate of Recurring Adjusted EBITDA for the year for continuing operations was approximately $1.21 billion. As the Company previously indicated, Recurring Adjusted EBITDA for the third quarter is expected to show insignificant growth from the second quarter's strong results, due to seasonality in capacity sales during the historically weak third quarter. Pro forma for the effects of acquisitions in both years, Recurring Adjusted EBITDA for the year is expected to be approximately $1.34 billion, a projected increase of approximately 56% over 1999 results.
The Company's estimated financial performance for its incumbent local exchange carrier (ILEC) business, now treated as a discontinued operation pending its sale to Citizens Communications, remains unchanged for the year, with Cash Revenue and Recurring Adjusted EBITDA expected to be approximately $760 million and $390 million, respectively.
The first section of the table below summarizes the Company's estimated financial results for continuing operations for the twelve months ended December 31, 2000. The table gives pro forma effect from the beginning of the year to the acquisition of IPC Communications, including IXnet, which closed on June 15, 2000.
The second section of the table summarizes the Company's estimated financial results for discontinued operations, consisting of the ILEC business for the twelve months ended December 31, 2000.
Change
Pro Forma Pro Amount Percent
2000 Forma
Forecast 1999
(in millions)
Consolidated Information:
Continuing Operations:
Cash Revenue $ 5,370(A) $ 3,887 $ 1,483 38%
Recurring Adjusted EBITDA $ 1,335(B) $ 857 $ 478 56%
Discontinued Operations:
Cash Revenue $ 760 $ 729 $ 31 4%
Recurring Adjusted EBITDA $ 390 $ 383 $ 7 2%
(A) On a reported basis, Global Crossing now expects approximately
$5.20 billion in Cash Revenue for continuing operations for the
year, or $360 million more than the Company's previous estimate.
(B) On a reported basis, Global Crossing now expects Recurring
Adjusted EBITDA to be approximately $1.34 billion for continuing
operations, or $130 million more than the Company's previous
estimate.
Definition of Terms Used In this press release, Cash Revenue refers to Revenue plus incremental cash deferred revenue. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) is calculated as operating income (loss), plus goodwill amortization, depreciation and amortization, non-cash cost of capacity sold, stock related expenses, incremental cash deferred revenue and amounts relating to the termination of an advisory services agreement. Recurring Adjusted EBITDA refers to Adjusted EBITDA plus one-time merger and integration expenses and other non-recurring expenses.
Global Crossing Ltd. presents Cash Revenue and Adjusted EBITDA because they are financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance and because management believes that Cash Revenue and Adjusted EBITDA are meaningful measures of performance and liquidity. This definition of Adjusted EBITDA is consistent with financial covenants contained in Global Crossing Ltd.'s major financial agreements. This information should not be considered as an alternative to any measure of performance as promulgated under GAAP. Global Crossing Ltd.'s calculation of Cash Revenue and Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.
About Global Crossing Global Crossing Ltd. (Nasdaq: GBLX chart, msgs) is building and offering services over the world's most extensive global IP-based fiber optic network, which will have more than 101,000 route miles, serving five continents, 27 countries and more than 200 major cities. Global Crossing's subsidiary, GlobalCenter Inc., is a leading Internet service company, and its customers own many of the largest and most densely trafficked sites on the Web. Global Crossing's operations are headquartered in Hamilton, Bermuda, with principal offices in Los Angeles, California; London, England; Amsterdam, The Netherlands; Madison, New Jersey; Rochester, New York; Sunnyvale, California; and Miami, Florida. Visit Global Crossing at www.globalcrossing.com on the Web.
Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete systems within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; changes in the nature of telecommunications regulation in the United States and other countries; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission. |
