Kenneth, I thought i would drop this buy, since its a private company,and we are supplying the optoelectronics for them.
21st CENTURY REPORTS A 40% INCREASE IN HOMES PASSED AND A BETTER THAN 60% INCREASE IN CONNECTIONS SOLD
Chicago, Illinois-July 31, 1998 - 21st Century Telecom Group, Inc. ("21st Century" or the "Company"), a franchise-based provider of bundled video, data and voice service to Chicago's Loop and lakefront residential and commercial buildings ("Chicago Area 1"), reported a 105% increase in constructed network to a total of over 36 miles of plant in its distributed ring star network (the "DRS Network") during the first fiscal quarter ended June 30, 1998. Active plant (transporting video, data and telephony signals) increased by 37% to over 22 miles. Homes passed by the DRS Network increased by 40% to 18,800, while customer connections sold increased by 60% to over 7,800 connections at June 30, 1998.
21st Century will hold a teleconference at 2:00 p.m. CDT (3:00 p.m. EDT) on Friday, July 31, 1998 to discuss fiscal first quarter ended June 30, 1998 results. Those wishing to participate should call (719) 457-2633, code 515395 five to ten minutes prior to the start time. Rebroadcasts will be available by calling (402) 220-4023 starting at 5 p.m. CDT.
Net revenues for the quarter ended June 30, 1998, increased by 114% over the preceding quarter ended March 31, 1998, to almost $140,000. EBITDA loss increased to $5.0 million for the quarter ended June 30, 1998, a 12% increase over the $4.5 million EBITDA loss posted for the preceding quarter ended March 31, 1998.
Capital expenditures during the quarter ended June 30, 1998, totaled $15.4 million, as compared with $5.3 million of capital expenditures during the quarter ended March 31, 1998, reflecting the increase in DRS Network construction following the successful February 1998 financing. As of June 30, 1998, 148 bulk contract and right of entry ("ROE") buildings had committed to the Company's video and data services. Fifty of these buildings have been connected to the DRS Network and are receiving service. Active customer connections increased by 55% over March 31, 1998, to 4,734 connections at June 30, 1998. Connections in backlog increased by 74% to 3,071 in that same period, resulting in 7,805 total connections sold as of June 30, 1998, a 62% increase over the March 31, 1998 total of 4,814 connections sold.
Robert J. Currey, President and recently named CEO of 21st Century, commented, "We are pleased with our continued progress in building our DRS Network and solid results from selling our video and data services. While our network construction has been particularly challenging, given the dense urban nature of our Chicago Area 1 franchise territory, I am happy to report that we have completed construction under the Chicago River and are beginning network deployment along the southern transport route."
Mr. Currey also noted, "Our introduction of telephone services remains on target for an initial launch during the third quarter of this calendar year. We currently plan an aggressive marketing program of bundled video, data and voice service in early 1999, after a brief period of "friendly user" trial enables us to ensure the quality of our new local and long distance services, to complete the implementation of operations support systems and to refine our overall bundled service offering."
21st Century's Chairman, Glenn W. Milligan, stated, "With Bob Currey's impressive progress in focusing our network construction, marketing and sales programs during the difficult start-up phase of these critical activities, I am pleased to announce his appointment as CEO to ensure the full implementation of our business plan. I will now be able to focus upon corporate development opportunities."
21st Century is a facilities-based competitive communications service provider, franchised in Chicago's Area 1 and Skokie, Illinois, communities. Its leading edge DRS Network, designed to provide video, high capacity data and telephone transport and distribution, establishes "last mile connectivity" which enables 21st Century to be the only ubiquitous provider of bundled video, data and voice services to residential and commercial consumers in its franchised service territories.
Except for historical and factual information contained herein, all other information set forth in this news release represents forward looking statements, including all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections that involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Investors are encouraged to consider these risks and uncertainties which are discussed in documents filed by the Company with the Securities and Exchange Commission. 21st Century undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
21st Century Telecom Group, Inc.
"Unaudited"
CONDENSED BALANCE SHEET
ASSETS June 30, 1998 March 31, 1998
Cash and cash equivalents $ 198,517,347 $ 217,640,238
Investments 10,000,000 10,000,000
Other current assets 2,432,368 2,170,201
Property plant and equipment (net) 33,986,035 19,405,726
Restricted cash collateral reserve 1,796,880 1,796,880
Other assets 11,459,296 11,719,559
Total assets $ 258,191,926 $ 262,732,604
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Current liabilities $ 7,149,322 $ 8,752,093
Senior Discount Notes - net of discount
of $153,451,107 and $159,656,983, respectively
respectively 209,683,893 203,478,017
Exchangeable Preferred Stock 48,479,933 46,492,812
Other noncurrent liabilities 50,727 71,052
Shareholders' equity (7,171,949) 3,938,630
Total liabilities and shareholders' equity $ 258,191,926 $ 262,732,604
Financial Highlights
Three Months
Ended June 30, Three Months
Ended March 31, Three Months
Ended June 30,
1998 1998 1997
Subscriber Revenues $ 139,878 $ 65,491 $ 42,497
Expenses
Network operations 978,395 518,408 16,063
Sales and marketing 1,046,835 948,991 -
General & administrative 3,124,214 3,082,412 1,172,530
Total Expenses 5,149,444 4,549,811 1,188,593
EBITDA $ (5,009,566) $ (4,484,320) $ (1,146,096)
Depreciation and
amortization 876,508 768,420 57,505
Interest (income)
expense, net 3,443,129 1,932,943 (18,852)
Net Loss $ (9,329,203) $ (7,185,683) $ (1,184,749)
Preferred Stock Requirements $ (2,894,399) $ (1,946,535) $ (736,192)
Net Loss attributable to
common shares $ (12,223,602) $ (9,132,218) $ (1,920,941)
Weighted Average Common Shares Outstanding 3,493,273.7 3,330,474.0 2,374,109.1
Loss per weighted
average share $ (3.50) $ (2.74) $ (0.81)
Capital spending -
full accrual basis $ 15,400,431 $ 5,279,509 $ 922,259
Certain expenses for the three months ended March 31,1998 have been reclassified to conform with the three months ended June 30,1998 presentation.
21ST CENTURY TELECOM GROUP
Selected Statistical and Operational Data
June 30, March 31, December 31, June 30,
1998 1998 1997 1997
Network Construction
Gross PP&E (000's) 35,999 20,598 15,255 1,169
Plant Miles Constructed 36.64 17.85 13.71 -
Plant Miles Activated 22.27 16.30 11.91 -
Total Homes Passed 18,826 13,389 1,310 -
Total Marketable Homes 5,222 1,682 1,285 -
Total Buildings Committed 156 98 3 -
Bulk
37 26 3 -
ROE
119 72 - -
Buildings Connected to DRS Network 50 8 3 -
Bulk
15 5 3 -
ROE
35 3 - -
Connections
Connections on DRS Fiber Network 3,931 1,418 1,292 -
Connections on Leased Network1 803 1,634 1,734 1,734
Active Customer Connections 4,734 3,052 3,026 1,734
Connection Orders in Backlog 3,071 1,762 - -
Total Connections Sold 7,805 4,814 3,026 1,734
Web Hosting
Web/Colocated Hosting Clients 7 - - -
Web/Colocated Orders in Backlog 5 5 - -
Total Web Hosting Orders 12 5 - -
Employees
Total Employees 147 127 85 24
Sales Employees 34 28 18 4
1 These subscribers will be migrated to the DRS Network as it is constructed to these buildings.
Tim |
