Annual Revenues Increase 95%
Access Lines Increase 291%
VANCOUVER, Wash., March 11 /PRNewswire/ -- Electric Lightwave, Inc.
(Nasdaq: ELIX), a facilities-based integrated communications services provider
operating in 73 cities in the western U.S., today announced its financial and
operating results for the quarter and year ended December 31, 1997.
1997 fourth quarter revenues were $19.2 million compared to $6.3 million
in the fourth quarter of 1996, an increase of 203%. 1997 fourth quarter
revenues reflect an increase of 13% compared to $17.1 million in the third
quarter of 1997. For the year, revenues increased 95% to $61.1 million, from
$31.3 million for the 12 months ended December 31, 1996.
The Company reported 1997 fourth quarter EBITDA (operating loss before
interest, taxes, depreciation and amortization) losses of $3.8 million,
compared to losses of $7.0 million in the fourth quarter of 1996. EBITDA
losses for the year totaled $17.7 million, compared to $19.5 million for the
prior 12-month period.
"We are extremely pleased with the results of our fourth quarter and the
organic growth we achieved during the year," said Dave Sharkey, president and
chief operating officer of Electric Lightwave.
Sharkey said revenues increased substantially in local switched services
-- which includes ISDN -- and grew 317%, with Internet services growing at
188% and frame relay services at 114%. "And 97% of our access lines are on-
switch, which further drives margin," he added. Access line growth for the
year increased 291% to 34,328.
Sharkey continued, "1997 was a year of unprecedented growth for Electric
Lightwave. We increased our revenues 95% while keeping our EBITDA losses in
check."
The company's wholesale (50% of total revenue) and retail sales (50% of
revenue) divisions showed aggressive growth, increasing 69% and 131%,
respectively.
Electric Lightwave further developed its Internet backbone, linked its
market clusters to long haul networks, and is preparing to offer new
technologies such as Asynchronous Transfer Mode (ATM).
Sharkey added that there were many achievements during the year that
underscored the Company's commitment to bring Electric Lightwave services into
new markets, expand existing markets, and extend data capacity and services to
a broader customer base.
Also in 1997: ELI completed a long-haul fiber route between Seattle and
Portland. The Company also began construction on three long haul routes:
Portland to Spokane, Portland to Eugene, and Portland to Los Angeles via
Boise, Salt Lake City and Las Vegas. These routes will link several of
Electric Lightwave's market clusters in the Western U.S. Additionally, the
Company began local switched services operations in Sacramento; and expanded
into 14 new markets including San Francisco, Los Angeles, Spokane, Boise,
Tacoma and Ogden, Utah.
"Looking forward," Sharkey added, "we are continuing to build-out new and
existing markets, and have earmarked $275 million in capital expenditures to
fuel this expansion. We were very successful at executing our strategy in
1997, and we are very excited about our prospects for the coming year."
In November 1997, ELI completed its initial public offering in which it
sold 8,000,000 shares of its Class A Common Stock at $16.00 per share. Also
in November 1997, ELI arranged a $400 million, five-year bank credit facility,
guaranteed by Citizens.
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. is a facilities-based integrated communications
services provider, offering a broad range of local, long distance, data &
video, and network access telecommunications. 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 73 municipalities with 34,328 local
access line equivalents, 2,494 route miles and 610 on-net buildings connected
as of December 31, 1997. The Company has interconnected its market clusters
with facilities-based owned and leased long-haul fiber optic networks.
ELECTRIC LIGHTWAVE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31 December 31
1997 1996 1997 1996
Revenues $19,241 $6,344 $61,084 $31,309
Operating expenses:
Network access 10,259 4,087 29,546 20,620
Sales and marketing 4,504 2,753 13,905 9,056
Depreciation and
amortization 3,566 2,195 11,167 7,192
Other operating
expenses 9,485 7,109 40,561 23,824
Total operating
expenses 27,814 16,144 95,179 60,692
Loss from operations (8,573) (9,800) (34,095) (29,383)
Interest expense, net 653 --- 1,166 ---
Net loss before
income tax benefit (9,226) (9,800) (35,261) (29,383)
Income tax benefit (1,316) --- (1,316) ---
Net Loss $(7,910) $(9,800) $(33,945) $(29,383)
Weighted average
shares outstanding 44,367 --- 42,352 ---
Net loss per share
Basic $(0.18) --- $(0.80) ---
Diluted $(0.18) --- $(0.80) ---
EPS for years prior to 1997 are not presented because the effects are not
meaningful.
SELECTED FINANCIAL & OPERATING DATA
(In thousands)
1997 1996
Selected Financial Data
EBITDA* (17,692) (19,468)
Property, plant &
equipment - owned 316,109 189,334
Property, plant &
equipment - leased 87,426 57,279
Total $403,535 $246,613
Revenue/Employee $107 $78
Selected Operating Data
Market Clusters 5 5
Markets 73 59
Route miles 2,494 1,428
Fiber miles 140,812 97,665
Buildings connected 610 438
Switches installed:
Voice 5 5
Internet Routers 17 8
ATM 8 ---
Frame Relay 20 15
Access lines 34,328 8,779
Access lines/switch 6,866 1,756
% on switch 97% 90%
Employees 573 402
* Excludes operating lease arrangement.
SOURCE Electric Lightwave, Inc.
 back to top
Related links:
http://www.eli.net
CONTACT:
Investors, John Unverferth, 360-816-3217, or
Media, Jack Hardy, 360-816-3602, both of Electric Lightwave, Inc.
|
