DENVER, Nov. 14 /PRNewswire/ -- RMI.NET, Inc. (Nasdaq: RMII), a national
e-commerce/Web solutions and connectivity company, today reported that revenue
for the first nine months of the year was up 66% over the same period in 1999,
to $34.4 million. Quarterly revenues of $10.7 million for the period ended
September 30, 2000, were up 17% from the same period a year ago.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO )
Gross profit in the third quarter improved to $4.8 million, up 14% from
the comparable period a year ago. The company also achieved a gross margin of
45% in the third quarter.
RMI.NET reported an EBITDA(1) loss per share of 12 cents for the third
quarter of 2000, a 40% improvement versus the same period in 1999 and a
29% improvement over the second quarter of 2000. RMI.NET reported an EBITDA
loss per share of $1.10 for the nine months ended September 30, 2000.
On an earnings per share (EPS) basis, the Company reported a loss of
$0.33 per share for the three months ended September 30, 2000, better by 16%
than EPS in the third quarter a year ago.
Douglas H. Hanson, RMI.NET's Chairman and Chief Executive Officer, said,
"Our primary emphasis this year has been to improve our bottom-line financial
results, and this quarter's results offer further proof of our ability to
achieve the goals we set. These results are in line with our objective of
getting to EBITDA breakeven in December 2000," said. "We are especially
pleased to have made so much progress during the third quarter and expect to
meet our target next month.
"We continue to focus on the implementation of our five-point strategic
action plan and have announced several achievements along those lines during
the third quarter and the first half of this fourth quarter," added Hanson.
(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 to be an alternative to the
net income measure of performance.
Note -- RMI.NET has scheduled a conference call for 4:15 PM Eastern time
on Tuesday, November 14, 2000, that can be accessed through the company's
website, http://www.rmi.net. Click on the Investor Relations link and then click on
either of the hyperlinks marked "Live Webcast." The event can be heard live
and will subsequently be accessible as an archived file and text-file
transcript.
About RMI.NET
Denver-based RMI.NET is a national e-commerce and connectivity company
focusing on Web solutions for small and medium-sized businesses. The company
specializes in e-business applications; hosting, co-location, and web
solutions, including design and marketing; and high-speed Internet access,
including digital subscriber line (DSL) service. RMI.NET has annualized
revenue of approximately $50 million and more than 100,000 customers
nationwide. The company wholly owns a shopping, e-commerce and portal site,
http://www.webzone.com. 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. Although the
company believes these statements are based on reasonable assumptions,
differences between assumed facts and actual results can be material,
depending on the circumstances. For example, RMI.NET may not correctly
predict or respond to changes in technology, may not be able to complete the
integration of its acquisitions effectively, may be adversely affected by
government regulation or competition, or may not have sufficient capital
available to execute its business plan. Investors should be aware of the
important factors and risks that could have a material impact on future
results and should refer to the cautionary statements sections of RMI.NET's
periodic filings with the Securities and Exchange Commission, including the
most recent forms 10-K and 10-Q.
OPERATING RESULTS - UNAUDITED
(In Thousands Except for Per Share Amounts)
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
Revenues
Connectivity
services $8,996,850 $8,058,486 $28,119,207 $17,859,424
Web solutions 1,689,977 1,073,115 6,293,157 2,923,935
Total Revenues $10,686,827 $9,131,601 $34,412,364 $20,783,359
Costs and Expenses
Cost of Revenues $5,878,079 $4,925,832 $19,706,569 $10,842,354
Selling 1,431,822 1,712,389 5,074,100 3,726,203
General &
Administrative 5,960,246 5,562,262 19,918,989 13,770,819
Depreciation &
Amortization 4,308,226 2,275,010 12,812,735 4,879,947
Total Costs
and Expenses $17,578,373 $14,475,493 $57,512,393 $33,219,323
Operating Loss $(6,891,546) $(5,343,892) $(23,100,029) $(12,435,964)
Other Income
(Expense)
Interest expense $(274,827) $(140,471) $(517,381) $(368,968)
Interest income 45,045 52,298 253,476 120,741
Preferred Stock
Dividends $-- $21,654 $-- $199,261
Net Loss $(7,121,328) $(5,453,719) $(23,363,934) $(12,883,452)
EBITDA $(2,583,320) $(3,090,536) $(10,287,294) $(7,755,278)
Loss per share $(0.33) $(0.35) $(1.10) $(1.09)
EBITDA Loss
Per Share $(0.12) $(0.20) $(0.48) $(0.66)
Weighted Average
Shares 21,629 15,471 21,294 11,806
SOURCE RMI.NET, Inc.
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Related links:
http://www.rmi.net
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO
PRN Photo Desk, 888-776-6555 or 201-369-3467
Company News On-Call:
http://www.prnewswire.com/comp/139760.html or fax,
800-758-5804, ext. 139760
CONTACT:
Jeremy Bronson of RMI.NET, Inc.,
303-672-0706, jeremy.bronson@corp.rmi.net
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