Exhibit 99.1
(LEXENT LOGO)
CONTACT:
Susan Burns
Citigate Sard Verbinnen
212-687-8080
sburns@sardverb.com
Lexent Reports Second Quarter 2003 Results
NEW YORK, JULY 28, 2003 - Lexent Inc. (OTCBB: LXNT), an infrastructure services
provider delivering a full spectrum of design, program management and deployment
services in the nation's largest metropolitan markets, today announced revenue
of $ 20.9 million and a net loss of $5.1 million or $0.12 per share for the
quarter ended June 30, 2003.
This announcement constitutes neither a solicitation of a proxy, an offer to
purchase nor an offer to sell shares of Lexent. Lexent intends to file and
deliver all forms, proxy statements, notices and documents required under
federal and state law with respect to its previously announced proposed merger,
including a proxy statement filed with the Securities and Exchange Commission
("SEC"). Upon completion of the SEC's review of the preliminary proxy materials
to be filed by Lexent with the SEC, Lexent will call a special meeting of
stockholders to vote on the merger and will mail to its stockholders definitive
proxy materials. Stockholders are advised to read Lexent's definitive proxy
materials before making any decisions regarding the merger because the
definitive proxy materials will contain important information regarding the
merger. Stockholders may obtain free copies of the proxy materials (when
available) and other documents filed by Lexent and the acquirer with the SEC at
the SEC's web site at www.sec.gov. The proxy statement and such other documents
relating to Lexent may also be obtained for free by contacting Lexent's
principal executive offices, Three New York Plaza, New York, New York 10004,
Telephone Number: (212) 981-0700.
Lexent, its directors, executive officers and certain employees and members of
management, including Hugh J. O'Kane, Jr., Lexent's Chairman, and Kevin M.
O'Kane, Lexent's Chief Executive Officer and Vice Chairman of the Board, may be
considered participants in the solicitation of proxies from Lexent's
stockholders in connection with the proposed merger. These individuals may have
interests in the proposed merger which may differ from or may be in addition to
those of Lexent's stockholders generally. Information regarding such persons and
their interests in Lexent is contained in Lexent's proxy statements and annual
reports on Form 10-K filed with the SEC and are available from the SEC's website
or from Lexent as described above. Additional information regarding those
persons and their interests in the proposed merger will be contained in the
proxy materials relating to the proposed merger when they become available.
ABOUT LEXENT INC.
Leveraging more than fifty years of experience, Lexent (OTCBB: LXNT) is an
infrastructure services company that designs, deploys and maintains fiber optic,
electrical and life safety systems for telecommunications carriers and
enterprise organizations in some of the largest national metropolitan markets.
Supporting the above offerings, Lexent provides a full spectrum of project
management and specialized maintenance services to utility, telecommunications,
real estate, government and large enterprise customers. The Company has offices
in New York, Washington D.C, Long Island, and the states of New Jersey and
Florida. For additional information on the Company, see Lexent's web site at
http://www.lexent.net.
FORWARD-LOOKING STATEMENTS:
This press release contains forward-looking statements, which may be identified
by the use of words such as "believes", "anticipates", "expects", "intends", and
other similar expressions, including statements regarding the Company's planned
appeal of the Nasdaq notice of delisting and the outcome of such appeal. These
statements are subject to risks and uncertainties that could cause actual
results to differ materially from those anticipated. These risks are more fully
outlined in the Company's registration statement on Form S-1 and other SEC
filings.
# # #
LEXENT INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
COMPARISON TO PRIOR YEAR
(UNAUDITED)
($ 000's, except per share amounts)
FOR THE THREE MONTHS FOR THE SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
2003 2002 2003 2002
-------- -------- -------- --------
Revenues $ 20,867 $ 33,152 $ 41,212 $ 64,465
Cost of revenues 21,352 31,373 43,881 60,808
-------- -------- -------- --------
Gross margin (485) 1,779 (2,669) 3,657
General & administrative expenses 3,879 4,085 6,733 8,517
Depreciation & amortization 479 1,233 992 2,522
Restructuring charges* -- -- -- 1,441
Non-cash stock based compensation * 478 760 1,159 1,781
-------- -------- -------- --------
Loss from operations (5,321) (4,299) (11,553) (10,604)
Interest income, net (229) (272) (454) (555)
Other expense 11 40 (40) 1,448
-------- -------- -------- --------
Loss before taxes (5,103) (4,067) (11,059) (11,497)
Provision for taxes (benefit) 18 (1,614) 56 (2,315)
-------- -------- -------- --------
Net loss $ (5,121) $ (2,453) $(11,115) $ (9,182)
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Net loss per share
Basic $ (0.12) $ (0.06) $ (0.26) $ (0.22)
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Diluted (a) (a) (a) (a)
Weighted average common shares
Basic 42,245 41,832 42,220 41,766
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Diluted (a) (a) (a) (a)
* Substantially all of these amounts would be classified as general and
administrative expenses.
(a) Not presented because result is anti-dilutive.
LEXENT INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
($ 000's)
JUNE 30, 2003 DECEMBER 31, 2002
------------- -----------------
Current Assets:
Cash and cash equivalents $ 39,850 $ 28,109
Certificate of deposit (restricted cash) 2,009 2,012
Available-for-sale-investments 34,973 44,302
Receivables, net 23,361 28,311
Other current assets 1,800 2,048
Taxes receivable -- 14,750
-------- --------
Total Current Assets $101,993 $119,532
Property and equipment, net 3,515 4,033
Other assets 834 880
-------- --------
Total Assets $106,342 $124,445
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Current Liabilities:
Accounts payable $ 2,606 $ 7,494
Accrued liabilities 7,020 6,229
Accrued restructure reserve 2,773 4,023
Provisions for contract losses 1,696 3,472
Other current liabilities 3,761 3,870
-------- --------
Total Current Liabilities $ 17,856 $ 25,088
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Notes payable -- 396
Accrued restructure reserve - non current 5,875 6,566
Equipment and lease obligations 14 70
Other liabilities 900 600
-------- --------
Total Liabilities 24,645 32,720
Stockholders' Equity 81,697 91,725
-------- --------
Total Liabilities and Stockholders' Equity $106,342 $124,445
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