* Revenue Up 20% From 1998 Second Quarter, 50% From 1997 Third Quarter
* Sales Force Increases 29% From 1998 Second Quarter, 175% From
1997 Third Quarter
VANCOUVER, Wash., Oct. 29 /PRNewswire/ -- Electric Lightwave, Inc.
(Nasdaq: ELIX), a leading facilities-based integrated communications provider,
today announced continued rapid revenue growth and further progress on its
strategic development for the third quarter ended September 30, 1998.
Revenues for the latest quarter were $25.7 million, or 50% above revenues
of $17.1 million in the third quarter of 1997 and 20% above second quarter
1998 revenues of $21.4 million. The company's loss before interest, taxes,
depreciation and amortization (EBITDA loss), excluding operating lease
expense, was $13.5 million in the third quarter this year, compared with
$2.3 million in the third quarter a year ago and $10.9 million in this year's
second quarter. The net loss in the 1998 third quarter was $18.4 million or
$0.37 per share, compared with a net loss of $5.9 million or $0.14 per share
in the prior year's third quarter.
"Our sequential revenue growth accelerated in the third quarter, as we
said it would at the end of the second quarter," commented Dave Sharkey,
president and chief operating officer of Electric Lightwave. "In line with
our plans, local dial tone revenue and enhanced data services continued to be
the strongest contributors to our revenue growth. During the quarter, we
expanded our sales force to 146 people from 53 a year ago. That total will
continue to grow to over 160 by the end of this year and will contribute to
further top-line growth. We also announced initial enhanced data services and
the opening of a sales office for customers in Las Vegas, as well as
implementation of the largest, ringed Synchronous Optical Network (SONET) in
the western U.S."
In the third quarter of 1998, local dial tone revenue, including ISDN
service, was $10.0 million, up 245% from the third quarter a year ago and up
29% from the second quarter of this year. Enhanced services revenue, which
includes frame relay, internet, asynchronous transfer mode (ATM) and
LAN-to-LAN services, was $4.2 million, or 77% above last year's third quarter
and 22% above this year's second quarter. Access line equivalents at the end
of the quarter were 62,657, an increase of 155% over the end of last year's
third quarter and 15% over the end of the second quarter of this year. 99% of
those access line equivalents are on-switch, representing high asset
utilization for Electric Lightwave.
For the nine months ended September 30, 1998, Electric Lightwave's revenue
was $67.2 million, or 61% above the first nine months of 1997. The EBITDA
loss, excluding operating lease expenses, for the first three quarters of 1998
was $32.9 million, compared to $13.9 million a year ago. The net loss for the
year-to-date period in 1998 was $47.9 million or $0.91 per share (before the
cumulative effect of a change in an accounting principle), compared with a net
loss of $26.0 million or $0.62 per share a year earlier.
"In the last few years, Electric Lightwave has been building the physical
assets and the corporate infrastructure to support a much larger company,"
concluded Sharkey. "We are now at the point where we can accelerate our
revenue growth further to take advantage of that foundation and the exciting
market opportunities in front of us. Our strategy targets expanded market
penetration in our growing western core cities, excellent data communications
services and expansion of our products and geographic reach. The
opportunities are large, and we are taking the operating steps to capitalize
on them."
Electric Lightwave is a facilities-based integrated communications
provider offering data, internet access and broadband transport services to
businesses nationwide. In the western U.S., the company is a full-service
provider offering local and long distance telephone service, videoconferencing
and prepaid services to business customers. As of September 30, the company
serves 84 municipalities with 62,657 access line equivalents, 2,782 route
miles and 711 on-net buildings connected. The company has interconnected its
market clusters with owned and leased long-haul fiber optic networks.
This press release contains forward-looking statements that are subject to
risks and uncertainties which could cause actual results to differ materially
from those expressed or implied in the statements. All forward-looking
statements are only predictions or statements of current plans, which are
constantly under review by Electric Lightwave (the Company). All
forward-looking statements may differ from actual future results due to, but
not limited to, changes in the local and overall economy, the nature and pace
of technological changes, the number and effectiveness of competitors in the
Company's markets, success in overall strategy, changes in legal and
regulatory policy, relations with Incumbent Local Exchange Carriers (ILECs)
and their ability to provide delivery of services including interoffice
trunking, implementation of back office service delivery systems, the
Company's ability to identify future markets and successfully expand existing
ones and the mix of products and services offered in the Company's target
markets. Readers should consider these important factors in evaluating any
statement contained herein and/or made by the Company or on its behalf. The
Company has no obligation to update or revise forward-looking statements to
reflect the occurrence of future events or circumstances.
Electric Lightwave, Inc.
Statements of Operations
(In thousands, except per share data)
Three Months Ended
Sept. 30, June 30, Sept. 30,
1998 1998 1997
Revenues $25,664 $21,443 $17,078
Operating Expenses:
Network Access 12,317 9,860 7,341
Operating Expenses 7,308 6,528 3,467
Depreciation and Amortization 4,090 3,780 1,998
Selling, General and Administrative 21,243 17,588 9,980
Total Operating Expenses 44,958 37,756 22,786
Loss from Operations (19,294) (16,313) (5,708)
Interest Expense, Net 2,742 1,467 211
Net Loss Before Income Taxes
and Cumulative Effect of Change
in Accounting Principle (22,036) (17,780) (5,919)
Income Tax Benefit (3,631) (3,022) --
Net Loss Before Cumulative Effect
of a Change in Accounting Principle (18,405) (14,758) (5,919)
Cumulative Effect of Change
in Accounting Principle -- -- --
Net Loss $(18,405) $(14,758) $(5,919)
EBITDA* $(13,533) $(10,894) $(2,314)
Weighted average shares outstanding 49,711 49,694 41,685
Net Loss Per Common Share:
Basic $(0.37) $(0.30) $(0.14)
Diluted $(0.37) $(0.30) $(0.14)
* Excludes operating lease expenses of $1,671, $1,639, and $1,396 for the
three months ended September 30, 1998, June 30, 1998, and September 30, 1997,
respectively.
Electric Lightwave, Inc.
Statements of Operations
(In thousands, except per share data)
Nine Months Ended
Sept. 30, Sept. 30,
1998 1997
Revenues $67,164 $41,843
Operating Expenses:
Network Access 31,389 19,287
Operating Expenses 19,082 11,990
Depreciation and Amortization 11,754 7,601
Selling, General and Administrative 54,206 28,487
Total Operating Expenses 116,431 67,365
Loss from Operations (49,267) (25,522)
Interest Expense, Net 4,953 513
Net Loss Before Income Taxes and Cumulative Effect
of a Change in Accounting Principle (54,220) (26,035)
Income Tax Benefit (9,102) --
Net Loss Before Cumulative Effect of a Change
in Accounting Principle (45,118) (26,035)
Cumulative Effect of Change in Accounting Principle 2,817 --
Net Loss $(47,935) $(26,035)
EBITDA* $(32,882) $(13,892)
Weighted average shares outstanding 49,697 41,685
Net Loss Before Cumulative Effect of Change
in Accounting Principle per Common Share:
Basic $(0.91) $(0.62)
Diluted $(0.91) $(0.62)
Net Loss Per Common Share:
Basic $(0.96) $(0.62)
Diluted $(0.96) $(0.62)
* Excludes operating lease expenses of $4,631 and $4,029 for the nine
months ended September 30, 1998 and September 30, 1997, respectively.
Selected Financial & Operating Data
(In thousands except selected operating data)
Sept. 30, June 30, Sept. 30,
1998 1998 1997
Selected Financial Data
Property, Plant & Equipment - Owned $462,844 $396,080 $249,499
Property, Plant & Equipment - Leased $108,541 $108,541 $87,426
Total $571,385 $504,621 $336,925
Selected Operating Data
Markets 9 9 5
Municipalities 84 83 59
Route Miles 2,782 2,656 2,087
Fiber Miles 156,949 153,002 123,257
Buildings Connected 711 682 540
Switches:
Voice 7 7 5
Internet Routers 21 18 11
ATM 10 9 --
Frame Relay 22 22 17
Access Lines 62,657 54,490 24,544
Access Lines/Switch 8,951 7,784 4,909
% on Switch 99% 98% 95%
Employees 1,010 841 482
Customers 1,475 1,330 1,085
SOURCE Electric Lightwave, Inc.
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Related links:
http://www.eli.net
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 117258
CONTACT:
investors/analysts, Fletcher Chamberlin,
360-816-3996, or fletcher_chamberlin@eli.net, or media, Jack
Hardy, 360-816-3602, or jack_hardy@eli.net, both of Electric
Lightwave, Inc.
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