Revenues, Gross Margin Up Significantly Year Over Year
DENVER, Aug. 13 /PRNewswire/ -- RMI.NET, Inc. (Nasdaq: RMII), a national
e-commerce/Web solutions and connectivity company, today reported quarterly
revenues of $11.8 million for the period ended June 30, 2000, up 84 percent
from the same period a year ago. Gross profit improved to $5.8 million, up
76 percent from the comparable period a year ago. The company also achieved
gross margin of 49.1 percent in the second quarter, up from 34.5% in the
quarter ended March 31, 2000.
RMI.NET reported an EBITDA(1) loss per share of $0.17 for the second
quarter of 2000, a 29 percent improvement versus the same period in 1999 and
an 11 percent improvement over the first quarter of 2000(2). On an earnings
per share basis, the Company reported a loss of $0.39 per share for the three
months ended June 30, 2000.
For the six months ended June 30, 2000, RMI.NET reported revenues of
$23.7 million, up 104 percent from the same period a year ago. Gross profit
for the first half of fiscal 2000 improved to $9.9 million, up 73 percent from
the first half of 1999.
RMI.NET reported an EBITDA loss per share of $0.36 for the six months
ended June 30, 2000, an 18 percent improvement from the same period a year
ago. On an earnings per share basis, the Company reported a loss of $0.76 per
share for the six months ended June 30, 2000.
"Our primary emphasis this year has been to improve our bottom-line
financial results, and this quarter continues a favorable trend toward our
EBITDA breakeven target of December 2000," said Douglas H. Hanson, RMI.NET's
Chairman and Chief Executive Officer. "We expect greater advances toward
profitability during the third and fourth quarters as the cost-savings
measures announced late in the second quarter are reflected in our subsequent
financial results."
The Company announced a 24 percent staff reduction, the outsourcing of its
billing to CSG Systems and a major vendor network contract renegotiation
during the second quarter of this year. These measures are expected to reduce
RMI.NET's monthly EBITDA loss by more than $500,000 by the fourth quarter.
"We continue to focus on the implementation of our five-point strategic
action plan and will make additional announcements during the balance of the
year," said Hanson. "It was critical for us to take measures to reduce
expenses first. Now we will focus on the other key elements of the plan."
Note -- the Company has scheduled a conference call for 4:15 PM EDT on
Monday, August 14, 2000 that can be accessed through its Web Site,
http://www.rmi.net . Click on the Investor Relations tab and then click on the
hyperlink, Live Webcast. The event can be listened to real time as well as
subsequently as it will be accessible as an archived file.
About RMI.NET
Denver-based RMI.NET, Inc. is a national e-commerce/Web solutions and
connectivity company focusing on solutions for small and medium-sized
businesses. The Company specializes in e-business applications; Web
solutions, including design, hosting and marketing; and high-speed Internet
access, including digital subscriber line (DSL). RMI.NET has an approximate
annualized revenue run rate of $50 million and more than 100,000 nationwide
customers. The Company wholly owns a shopping, e-commerce and portal site,
http://www.webzone.com , which includes the proprietary search engine, Infohiway.
For more information, call (800) 411-6066, or visit RMI.NET's web site at
http://www.rmi.net .
This press release may contain forward-looking statements within the scope
of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Although the company believes these statements are based on reasonable
assumptions, it can give no assurance that its goals will be achieved.
Differences between assumed facts and actual results can be material depending
on the circumstances and investors should be aware of the important factors
that could have a material impact on future results. Please refer to the
company's cautionary statements section of RMI.NET's 10-K dated December 31,
1999 and other Securities and Exchange Commission (SEC) filings subsequent to
this date.
(1) EBITDA represents operating loss before depreciation and amortization.
EBITDA is not a measurement of financial performance under generally
accepted accounting principles and should not be considered as an
alternative to the net income measure of performance.
(2) Pursuant to its SEC Form 10-Q/A for the period ended March 31, 2000
filed with the Securities and Exchange Commission on or about
August 14, 2000, RMI.NET's total revenues for the first quarter 2000
were reduced by approximately $434,000 to reflect billing adjustments
made to customer accounts that were discovered during the second
quarter of 2000 relating to the first quarter of 2000 and were
inadvertently excluded due to billing system conversion. Financial
exhibits contained herein reflect changes pursuant to that amended
filing. Please see amended filing for further details.
OPERATING RESULTS - UNAUDITED
(In Thousands Except for Per Share Amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues
Connectivity Services $9,280 $5,394 $19,122 $9,801
Web Solutions $2,492 $995 $4,603 $1,851
Total Revenues $11,772 $6,389 $23,725 $11,652
Cost of Revenues
Connectivity Services $5,626 $2,857 $12,937 $5,405
Web Solutions $371 $245 $892 $511
Total Cost of
Revenues $5,997 $3,102 $13,829 $5,916
Gross Margin $5,775 $3,287 $9,896 $5,736
Operating Expenses
Selling $2,063 $1,158 $3,642 $2,014
General &
Administrative $7,410 $4,634 $13,959 $8,208
Depreciation &
Amortization $4,651 $1,462 $8,504 $2,605
Total Operating
Expenses $14,124 $7,254 $26,105 $12,827
Operating Loss $(8,349) $(3,967) $(16,209) $(7,091)
EBITDA $(3,698) $(2,505) $(7,705) $(4,486)
Other Income
(Expense), Net $(56) $(97) $(34) $(160)
Preferred Dividends $- $79 $- $178
Net Loss $(8,405) $(4,143) $(16,243) $(7,429)
Loss Per Share $(0.39) $(0.39) $(0.76) $(0.73)
EBITDA Per Share $(0.17) $(0.24) $(0.36) $(0.44)
Weighted Average Shares 21,650 10,608 21,295 10,141
OPERATING RESULTS - UNAUDITED
(In Thousands Except for Per Share Amounts)
4Q99 1Q00 2Q00
Amount Amount Amount
% of Rev. % of Rev. % of Rev.
Revenues
Connectivity Services $8,004 $9,842 $9,280
Web Solutions $1,334 $2,111 $2,492
Total Revenues $9,338 $11,953 $11,772
Cost of Revenues
Connectivity Services $6,548 $7,311 $5,626
Web Solutions $425 $521 $371
Total Cost of Revenues $6,973 $7,832 $5,997
Gross Margin $2,365 25.3% $4,121 34.5% $5,775 49.1%
Operating Expenses
Selling $2,279 $1,579 $2,063
General & Administrative $8,224 $6,549 $7,410
Depreciation & Amortization $3,972 $3,853 $4,651
Total Operating Expenses $14,475 $11,981 $14,124
Operating Loss $(12,110) $(7,860) $(8,349)
EBITDA $(8,138) $(4,007) $(3,698)
Other Income (Expense), Net $(133) $21 $(56)
Preferred Dividends $- $- $-
Net Loss $(12,243) $(7,839) $(8,405)
Loss Per Share $(0.63) $(0.37) $(0.39)
EBITDA Per Share $(0.42) $(0.19) $(0.17)
Weighted Average Shares 19,360 21,019 21,650
SOURCE RMI.NET, Inc.
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Related links:
http://www.rmi.net
http://www.webzone.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO
CONTACT:
Steven P. Eschbach, CFA, Vice President -
Investor Relations of RMI.NET, 303-308-2272, or
steve.eschbach@corp.rmi.net
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