Financial Data:
Total
Service
Connections
3Q99 4Q99 1Q00
Advanced Fiber
On-Net
Voice 56,209 62,733 68,550
Video 120,353 138,577 160,665
Data 17,985 21,654 26,698
Subtotal On-Net 194,547 222,964 255,913
Off-Net
Voice 49,271 46,986 45,262
Video 164,859 153,627 139,383
Data 535,107 523,728 500,495
Subtotal Off-Net 749,237 724,341 685,140
Total Service Connections 943,784 947,305 941,053
Advanced Fiber
Homes Passed 550,771 713,823 808,023
Marketable Homes 440,112 551,006 601,745
Quarterly Yearly
2Q00 3Q00 Change Change
Advanced Fiber
On-Net
Voice 95,065 113,270 -- --
Video 216,810 239,221 -- --
Data 40,292 52,348 -- --
Subtotal On-Net 352,167 404,839 15% 108%
Off-Net
Voice 41,428 45,435 -- --
Video 134,627 146,995 -- --
Data 488,054 472,761 -- --
Subtotal Off-Net 664,109 665,191 -- --
Total Service
Connections 1,016,276 1,070,030 -- --
Advanced Fiber
Homes Passed 1,051,174 1,263,199 20% 129%
Marketable Homes 830,989 1,006,031 21% 129%
PRO FORMA TOTAL RCN(1)
RCN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
QUARTER ENDED
Sept 30, June 30, Sept 30,
2000 2000 1999
SALES:
VOICE $20,014 $17,290 $14,291
VIDEO 42,014 38,772 32,001
DATA 33,065 28,127 29,051
OTHER 12,500 11,982 9,859
TOTAL SALES 107,593 96,171 85,202
COSTS & EXPENSES, EXCLUDING
DEPRECIATION AND AMORTIZATION:
DIRECT EXPENSES 51,329 47,921 39,343
OPERATING AND SG&A 142,102 124,097 78,469
EBITDA BEFORE NON-CASH STOCK
BASED COMPENSATION (85,838) (75,847) (32,610)
NON-CASH STOCK BASED
COMPENSATION 16,185 10,284 --
DEPRECIATION AND AMORTIZATION 90,284 75,441 41,829
OPERATING (LOSS) (192,307) (161,572) (74,439)
INTEREST INCOME 38,411 31,221 23,815
INTEREST EXPENSE (55,638) (55,362) (44,822)
GAIN ON SALE OF LANCIT MEDIA -- -- --
OTHER INCOME (LOSS), NET 1,647 (1,388) (941)
(LOSS) BEFORE INCOME TAXES (207,887) (187,101) (96,387)
(BENEFIT) FOR INCOME TAXES (880) (725) (1,438)
(LOSS) BEFORE EQUITY IN
UNCONSOLIDATED ENTITIES
AND MINORITY INTEREST (207,007) (186,376) (94,949)
EQUITY IN (LOSS) OF
UNCONSOLIDATED ENTITIES (2,245) 2,856 (7,382)
MINORITY INTEREST IN LOSS
OF CONSOLIDATED ENTITIES 11,214 10,660 10,557
NET (LOSS) BEFORE
EXTRAORDINARY ITEM (198,038) (172,860) (91,774)
EXTRAORDINARY ITEM:
DEBT PREPAYMENT COSTS 0 0 0
NET (LOSS) (198,038) (172,860) (91,774)
PREFERRED DIVIDEND AND
ACCRETION REQUIREMENTS 35,760 35,170 4,446
NET (LOSS) TO COMMON
SHAREHOLDERS $(233,798) $(208,030) $(96,220)
NINE MONTHS ENDED
Sept 30, Sept 30,
2000 1999
SALES:
VOICE $52,770 $43,841
VIDEO 114,869 93,799
DATA 88,578 84,403
OTHER 35,686 24,183
TOTAL SALES 291,903 246,226
COSTS & EXPENSES, EXCLUDING
DEPRECIATION AND AMORTIZATION:
DIRECT EXPENSES 141,337 116,377
OPERATING AND SG&A 381,059 208,630
EBITDA BEFORE NON-CASH STOCK BASED
COMPENSATION (230,493) (78,781)
NON-CASH STOCK BASED COMPENSATION 27,632 --
DEPRECIATION AND AMORTIZATION 216,046 117,350
OPERATING (LOSS) (474,171) (196,131)
INTEREST INCOME 106,093 56,516
INTEREST EXPENSE (164,337) (112,285)
GAIN ON SALE OF LANCIT MEDIA -- 8,930
OTHER INCOME (LOSS), NET (871) (467)
(LOSS) BEFORE INCOME TAXES (533,286) (243,437)
(BENEFIT) FOR INCOME TAXES (2,401) (3,971)
(LOSS) BEFORE EQUITY IN UNCONSOLIDATED
ENTITIES AND MINORITY INTEREST (530,885) (239,466)
EQUITY IN (LOSS) OF UNCONSOLIDATED
ENTITIES (8,496) (11,991)
MINORITY INTEREST IN LOSS OF CONSOLIDATED
ENTITIES 30,362 28,571
NET (LOSS) BEFORE EXTRAORDINARY ITEM (509,019) (222,886)
EXTRAORDINARY ITEM: DEBT PREPAYMENT COSTS 0 (424)
NET (LOSS) (509,019) (223,310)
PREFERRED DIVIDEND AND ACCRETION
REQUIREMENTS 86,392 8,529
NET (LOSS) TO COMMON SHAREHOLDERS $(595,411) $(231,839)
(1) The Pro Forma Total RCN results reflect the consolidation of all
domestic joint ventures and show the ownership share of its joint
venture partners as minority interests.
GAAP BASIS
RCN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
QUARTER ENDED
Sept 30, June 30, Sept 30,
2000 2000 1999
SALES $88,245 $78,952 $69,622
COSTS & EXPENSES, EXCLUDING
DEPRECIATION AND AMORTIZATION:
DIRECT EXPENSES 45,286 43,501 36,344
OPERATING AND SG&A 126,106 108,147 65,865
EBITDA BEFORE NON-CASH
STOCK BASED COMPENSATION (83,147) (72,696) (32,587)
NON-CASH STOCK BASED
COMPENSATION 16,185 10,284 --
DEPRECIATION AND
AMORTIZATION 83,059 68,802 36,133
OPERATING (LOSS) (182,391) (151,782) (68,720)
INTEREST INCOME 38,190 31,020 23,729
INTEREST EXPENSE (55,638) (55,362) (44,822)
GAIN ON SALE OF LANCIT MEDIA -- -- --
OTHER INCOME (LOSS) NET 1,522 (1,388) (941)
(LOSS) BEFORE INCOME TAXES (198,317) (177,512) (90,754)
(BENEFIT) FOR INCOME TAXES (880) (725) (1,437)
(LOSS) BEFORE EQUITY IN
UNCONSOLIDATED ENTITIES
AND MINORITY INTEREST (197,437) (176,787) (89,317)
EQUITY IN (LOSS) OF
UNCONSOLIDATED ENTITIES (7,030) (1,939) (10,198)
MINORITY INTEREST IN LOSS OF
CONSOLIDATED ENTITIES 6,429 5,866 7,741
(LOSS) BEFORE
EXTRAORDINARY ITEM (198,038) (172,860) (91,774)
EXTRAORDINARY ITEM:
DEBT PREPAYMENT COSTS 0 0 0
NET (LOSS) (198,038) (172,860) (91,774)
PREFERRED DIVIDEND AND
ACCRETION REQUIREMENTS 35,760 35,170 4,446
NET (LOSS) TO COMMON
SHAREHOLDERS $(233,798) $(208,030) $(96,220)
BASIC AND DILUTED (LOSS)
PER AVERAGE COMMON SHARE:
(LOSS) BEFORE EXTRAORDINARY
ITEM $(2.70) $(2.45) $(1.26)
EXTRAORDINARY ITEM:
DEBT PREPAYMENT COSTS -- -- --
NET (LOSS) TO COMMON
SHAREHOLDERS $(2.70) $(2.45) $(1.26)
WEIGHTED AVERAGE SHARES
OUTSTANDING 86,470,290 84,877,774 76,184,604
NINE MONTHS ENDED
Sept 30, Sept 30,
2000 1999
SALES $238,454 $203,939
COSTS & EXPENSES, EXCLUDING
DEPRECIATION AND AMORTIZATION:
DIRECT EXPENSES 126,868 105,662
OPERATING AND SG&A 333,816 177,719
EBITDA BEFORE NON-CASH
STOCK BASED COMPENSATION (222,230) (79,442)
NON-CASH STOCK BASED
COMPENSATION 27,632 --
DEPRECIATION AND AMORTIZATION 196,274 98,948
OPERATING (LOSS) (446,136) (178,390)
INTEREST INCOME 105,531 56,222
INTEREST EXPENSE (164,337) (112,285)
GAIN ON SALE OF LANCIT MEDIA -- 8,930
OTHER INCOME (LOSS) NET (996) (467)
(LOSS) BEFORE INCOME TAXES (505,938) (225,990)
(BENEFIT) FOR INCOME TAXES (2,401) (3,971)
(LOSS) BEFORE EQUITY IN UNCONSOLIDATED
ENTITIES AND MINORITY INTEREST (503,537) (222,019)
EQUITY IN (LOSS) OF UNCONSOLIDATED
ENTITIES (22,170) (20,714)
MINORITY INTEREST IN LOSS
OF CONSOLIDATED ENTITIES 16,688 19,847
(LOSS) BEFORE EXTRAORDINARY ITEM (509,019) (222,886)
EXTRAORDINARY ITEM: DEBT PREPAYMENT COSTS 0 (424)
NET (LOSS) (509,019) (223,310)
PREFERRED DIVIDEND AND ACCRETION
REQUIREMENTS 86,392 8,529
NET (LOSS) TO COMMON SHAREHOLDERS $(595,411) $(231,839)
BASIC AND DILUTED (LOSS) PER AVERAGE COMMON SHARE:
(LOSS) BEFORE EXTRAORDINARY ITEM $(7.14) $(3.28)
EXTRAORDINARY ITEM: DEBT PREPAYMENT COSTS -- (0.01)
NET (LOSS) TO COMMON SHAREHOLDERS $(7.14) $(3.29)
WEIGHTED AVERAGE SHARES OUTSTANDING 83,434,647 70,416,096
GAAP BASIS
RCN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
Sept 30, December 31,
2000 1999
ASSETS
Current assets
Cash, temporary cash investments and
short-term investments $2,159,747 $1,793,289
Accounts receivable from related parties 42,255 8,015
Accounts receivable, net of reserve for
doubtful accounts of $15,222 at September 30,
2000 and $12,258 at December 31, 1999 37,730 30,558
Interest and dividends receivable 17,795 15,049
Material and supply inventory, at average cost 78,423 21,064
Prepayments and other 24,995 13,853
Investments restricted for debt service 11,492 23,111
Total current assets 2,372,437 1,904,939
Property, plant and equipment, net of accumulated
depreciation of $368,726 at September 30, 2000
and $230,581 at December 31, 1999 1,713,482 893,179
Investments restricted for debt service 5,521 48
Investments 220,412 190,571
Intangible assets, net of accumulated
amortization of $238,949
at September 30, 2000 and $158,384 at
December 31, 1999 409,636 138,491
Deferred charges and other assets 74,723 64,886
Total assets $4,796,211 $3,192,114
GAAP BASIS
RCN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
Sept 30, December 31,
2000 1999
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt and
capital lease obligations $499 $1,225
Accounts payable to related parties 77,712 35,809
Accounts payable 91,384 92,785
Advance billings and customer deposits 21,030 16,901
Deferred income taxes 1,487 1,464
Accrued expenses 141,499 101,261
Total current liabilities 333,611 249,445
Long-term debt 2,230,760 2,143,096
Other deferred credits 22,528 24,598
Minority interest 83,059 129,234
Redeemable preferred stock 1,954,253 253,438
Common shareholders' equity 172,000 392,303
Total liabilities and shareholders' equity $4,796,211 $3,192,114
SOURCE: RCN Corporation |
