Advanced Radio Telecom Announces First Quarter 1999 Results
Recent Developments:
* Receipt of $7 million in proceeds from previously disclosed spectrum
transaction.
* Announcement of plans for first international market in Oslo, Norway.
* Agreement to provide customers with high-speed access to NBC and CNET's
Snap Internet portal service (www.snap.com)
BELLEVUE, Wash., May 17 /PRNewswire/ -- Advanced Radio Telecom Corp.
(Nasdaq: ARTT) today announced financial and operating results for first
quarter 1999.
Total revenues for the quarter ended March 31, 1999 were $225,962 compared
with $236,557 for the same period last year. Operating costs and expenses for
the first quarter of 1999 were $10,781,886, excluding a non-cash equipment
impairment charge of $6,375,996, compared with $7,089,860 for the same period
last year. Excluding the equipment impairment charge, the operating loss for
the first quarter of 1999 was $10,555,924 compared to $6,853,303 for the same
period last year. Including the equipment impairment charge, the net loss for
the first quarter of 1999 was $23,531,385 or $(0.87) per share, compared to
$9,100,795 or $(0.42) per share for the first quarter of 1998.
ART provides Internet services to business customers in the Seattle,
Phoenix and Portland metropolitan areas. In the first quarter ending
March 31, 1999, ART increased the number of customers ordering service from
116 to 250. ART acquired 61 additional buildings in these three markets
bringing the total acquired to 216. The total number of buildings connected
to ART's network increased from 85 to 126 in the first quarter.
"In the first quarter, we were very heavily focused on securing financing
to fund the company's growth as well as increasing our penetration of
previously acquired on-net buildings in our three markets," said Henry "Harry"
C. Hirsch, ART chairman and CEO. "Given our capital constraints during the
quarter, we were limited to working within existing markets and to
concentrating our efforts on growing our customer base in a relatively small
universe of buildings. Under the circumstances, we are satisfied with our
operating results.
"As to the status of the financing, although significant progress has been
made, it is taking longer than expected to complete the process," Hirsch
added.
About ART
Advanced Radio Telecom is a facilities-based, broadband ISP providing a
direct connection between the customer premises and the Internet. ART owns
and operates metropolitan area networks in Seattle, Portland and Phoenix using
fixed wireless and fiber optic technologies. ART owns or manages 38GHz
spectrum licenses in more than 210 markets in the U.S., including 49 of the
top 50 and 90 of the top 100 markets. ART also owns 26GHz and/or 38GHz
spectrum licenses in several European countries. With Lucent Technologies as
its network systems integrator and provider of wireless and data networking
solutions, ART offers a full range of Internet services including dedicated
Internet access at speeds up to 10Mbps, e-mail, web hosting and web design,
domain name server (DNS) registration, IP Fax and more. For more information,
please visit ART's website at art-net.net.
The above information includes forward-looking statements regarding
financing, potential deployment and business prospects. These statements are
not guarantees of future performance. Known and unknown risks, uncertainties,
and other factors, including without limitation, risks relating to securing
financing, availability of additional financial resources, capital
requirements, customer demand, technological risks, the ability to meet
financing conditions, management of growth, competition and government
regulation may cause actual results to differ materially from the future
results implied or expressed in the forward looking statements. Additional
information about the most significant of such factors is set forth in ART's
most recent annual report on Form 10-K. The Company does not undertake to
update or revise its forward-looking statements publicly even if experience or
future changes make clear that any projected results expressed or implied
herein will not be realized.
Advanced Radio Telecom Corp.
Consolidated Income Statement
For the Three Months Ended March 31, 1999 and 1998
(unaudited)
1999 1998
REVENUES:
Service revenue $225,962 $236,557
Total revenue 225,962 236,557
COSTS and EXPENSES:
Technical and network operations 3,540,308 1,750,726
Sales and marketing 1,465,559 1,512,078
General and administrative 2,646,035 2,398,088
Depreciation and amortization 3,129,984 1,428,968
Equipment impairment 6,375,996
Total operating
costs and expenses 17,157,882 7,089,860
Operating loss (16,931,920) (6,853,303)
Interest expense 6,679,665 5,121,701
Financing commitment expense 656,882
Interest income (432,068) (822,420)
Loss before income taxes (23,836,399) (11,152,584)
Deferred income tax benefit 305,014 2,051,789
Net loss $(23,531,385) $(9,100,795)
Net loss per common share ($0.87) ($0.42)
Weighted average common shares 27,035,220 21,736,800
Advanced Radio Telecom Corp.
Condensed Consolidated Balance Sheet
As of March 31, 1999 and December 31, 1998
March 31, 1999 December 31, 1998
(unaudited)
ASSETS:
Current assets $25,149,913 $31,207,985
Property and equipment, net 24,896,339 33,202,310
FCC licenses, net 190,553,944 186,513,591
Other assets 5,435,551 14,797,405
Total assets $246,035,747 $265,721,291
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $35,681,884 $34,138,413
Long term debt,
net of current portion 118,105,092 117,845,932
Other liabilities 31,195,929 31,382,026
Total liabilities 184,982,905 183,366,371
Stockholders' equity 61,052,842 82,354,920
Total liabilities
and stockholders' equity $246,035,747 $265,721,291
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