VANCOUVER, Wash., May 4 /PRNewswire/ -- Electric Lightwave, Inc.
(Nasdaq: ELIX), an integrated communications provider operating in
75 municipalities in the western U.S., today announced its operating results
for the quarter ended March 31, 1998.
Revenues for the quarter were $20.1 million, compared to $10.5 million in
the first quarter of 1997, a 91% increase. EBITDA (operating loss before
interest, taxes, depreciation and amortization) losses for the quarter were
$9.8 million, representing a 49% EBITDA loss margin which compares favorably
to the $7.3 million EBITDA loss and 69% EBITDA loss margin for the first
quarter of 1997.
"We are pleased with our year-over-year revenue growth," said Electric
Lightwave President and Chief Operating Officer Dave Sharkey. "We are
witnessing the success of our bundled service strategy, as nearly 60% of our
customers purchased multiple products and services."
Sharkey added, "The continued enhancement to our provisioning system and
the deployment of our new billing system is a key strategic, competitive asset
which will position the company for future growth. This is a challenging
process as we continue to ramp-up these systems through the first part of
1998, however we are confident this state-of-the-art system will increase our
long-term productivity and profitability."
Enhanced services revenue and local dial tone revenue continue to be the
fastest growing component of Electric Lightwave's revenue stream. Enhanced
services revenue, which includes frame relay, Internet and LAN-to-LAN service
revenue totaled $3.1 million, up 83% from the $1.7 million in the first
quarter of 1997 and up from $2.5 million, or 22% over the fourth quarter of
1997. Local dial tone services revenue increased to $6.0 million, up 384% over
the $1.2 million in the first quarter of 1997 and up from $4.4 million, or 36%
over the fourth quarter of 1997.
The company grew its access lines by 181%, from 14,671 in the first
quarter of 1997 to 41,270 in the first quarter of 1998. Access lines grew from
34,328 in the fourth quarter of 1997 to 41,270 in the first quarter of 1998, a
20% improvement. The company's owned and leased PP&E at March 31, 1998 was
$457.3 million.
The company has previously announced a commitment to the expanding
Internet Protocol (IP) market both through a national frame relay network
expansion with Intermedia Communications and a three-year agreement to
purchase customer premise based ATM access units from Sonoma Systems, Inc.
"In fact," said Sharkey, "our recent recognition by Boardwatch Magazine
ranking ELI's Internet backbone network third for 'Best in Value' out of
39 companies across the nation is evidence of our engineering expertise and
commitment to IP."
Other significant milestones in the first quarter included an agreement
with the Bay Area Rapid Transit District (B.A.R.T.) in California to extend a
local network into the San Francisco Bay Area. The Sacramento market cluster
expanded into Roseville in January, establishing ELI as the first competitive
provider into that market.
"In addition, our direct sales force increased by 32% since year-end
1997 and the company opened new sales offices in San Francisco and Spokane,
expanded its sales efforts in the Los Angeles metropolitan area and in the
Boise market," said Sharkey.
In April 1998 the company announced the completion of a 569-mile long haul
route from Portland to Spokane and the execution of a contract to construct an
additional 300-mile long haul route from Spokane to Seattle that would
complete a northwestern SONET-ring network.
Electric Lightwave is one of the most mature facilities-based integrated
communications providers. It offers a broad range of local, long distance,
network access services and has nationally recognized expertise in providing
data services. ELI provides state-of-the-art voice and data communications
services through an extensive, high-quality fiber optic switched broadband
network to five major market clusters across the western U.S., including
service to 75 municipalities with 41,270 local access line equivalents,
2,525 route miles and 631 on-net buildings connected as of March 31, 1998.
The Company has interconnected its market clusters with facilities-based owned
and leased long-haul fiber optic networks.
Except for any historical information, the matters discussed in this press
release contain forward-looking statements that involve risks and
uncertainties that are described in the company's filings with the Securities
and Exchange Commission.
Electric Lightwave, Inc.
Statements of Operations
(In thousands, except per share data)
Three Months Ended
March 31, 1998 March 31, 1997 December 31, 1997
Revenues $ 20,057 $ 10,519 $ 19,241
Operating Expenses:
Network Access 9,212 4,930 10,259
Sales and Marketing 4,940 2,906 4,504
Depreciation and Amortization 3,884 2,817 3,566
Other Operating Expense 15,681 9,937 9,485
Total Operating Expenses 33,717 20,590 27,814
Loss from Operations (13,660) (10,071) (8,573)
Interest Expense, Net 744 91 653
Net Loss Before Income Taxes
and Cumulative Effect of
Change in Accounting
Principle (14,404) (10,162) (9,226)
Income Tax Benefit (2,449) -- (1,316)
Net Loss Before Cumulative
Effect of a Change in
Accounting Principle (11,955) (10,162) (7,910)
Cumulative Effect of Change
in Accounting Principle 2,817 -- --
Net Loss $(14,772) $(10,162) $ (7,910)
Weighted average shares
outstanding 49,685 41,685 44,367
Net Loss Before Cumulative Effect
of Change in Accounting
Principle per Common Share:
Basic $ (0.24) $ (0.24) $ (0.18)
Diluted $ (0.24) $ (0.24) $ (0.18)
Net Loss Per Common Share:
Basic $ (0.30) $ (0.24) $ (0.18)
Diluted $(0.30) $(0.24) $(0.18)
Selected Financial & Operating Data
(In thousands except selected operating data)
Three Months Ended
March 31, 1998 March 31, 1997 December 31, 1997
Selected Financial Data
EBITDA $(9,776) $(7,254) $(5,007)
Property, Plant & Equipment
- Owned $352,062 $190,818 $328,664
Property, Plant & Equipment
- Leased 105,226 65,363 87,426
Total Property, Plant &
Equipment $457,288 $256,181 $416,090
Selected Operating Data
Market Clusters 5 5 5
Markets 75 n/a 73
Route Miles 2,525 1,490 2,494
Fiber Miles 145,350 96,609 140,812
Buildings Connected 631 460 610
Switches:
Voice 5 5 5
Internet Routers 18 5 17
ATM 9 -- 8
Frame Relay 22 6 20
Access Lines 41,270 14,671 34,328
Access Lines/Switch 8,254 2,934 6,866
% on Switch 97% 93% 97%
Employees 670 463 573
Customers 1,226 861 1,165
SOURCE Electric Lightwave, Inc.
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Related links:
http://www.eli.net
CONTACT:
investors, John Unverferth, 360-816-3217, or
john_unverferth@eli.net, or media, Jack Hardy, 360-816-3602, or
jack_hardy@eli.net, both of Electric Lightwave, Inc.
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