SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report:
May 15, 2000
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(Date of earliest event reported)
Electric Lightwave, Inc.
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(Exact name of Registrant as specified in charter)
Delaware 0-23393 93-1035711
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
3 High Ridge Park, Stamford, CT 06905
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(Address of principal executive offices) (Zip Code)
(203) 614-5600
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(Registrant's telephone number, including area code)
Changes since last report
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(Former name or address, if changed since last report)
4400 NE 77th Avenue, Vancouver, WA 98662
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(360)816-3000
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Item 5. Other Events.
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This report is being filed to make available the following press release dated
May 15, 2000.
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NEWS RELEASE
Contact:
Alan Oshiki, Assistant Vice President
Investor Relations
(203) 614-5629
AOSHIKI@CZN.COM
ELECTRIC LIGHTWAVE REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2000
STAMFORD, Conn., - May 15, 2000 - Electric Lightwave, Inc. (NASDAQ:ELIX), a
leading facilities-based integrated communications provider, today announced
financial results for the first quarter of 2000.
Revenue for the quarter ended March 31, 2000 was $56.8 million, or 49% above
revenue of $38.2 million in the first quarter of 1999. The company's EBITDA
loss, including operating lease expense, was $6.7 million in the first quarter
of this year, compared to $22.8 million in the first quarter a year ago. The net
loss in the 2000 first quarter was $35.1 million or $0.70 per share, compared to
a net loss of $35.0 million or $0.70 per share in the prior year's first
quarter.
"We made solid progress toward our near-term goal of positive EBITDA in 2000,"
said Rudy Graf, chief executive officer of Electric Lightwave. "We continue to
drive growth by aggressively pursuing both the expanding data and Internet
markets and the local telephone business in the West, where we have extensive
fiber optic networks."
"This year, we expect continuing growth in our data and Internet businesses to
contribute to overall revenue growth of about 50% and our first positive EBITDA
quarter in the second half of this year. We are confident that 2000 will be a
significant turning point for Electric Lightwave," said Graf.
Electric Lightwave, Inc. is a broadband integrated communications company
providing Internet, data, voice and dedicated access services to
communications-intensive businesses and the growing e-commerce market. The
company owns and operates high-speed fiber optic networks that interconnect
major markets in the West and operates a leading national Internet and data
network. Headquartered in Vancouver, Washington, Electric Lightwave is on the
World Wide Web at www.eli.net. The company is 82% owned by Citizens Utilities
(NYSE:CZN, CZNPr).
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.
(tables follow)
Electric Lightwave, Inc.
Statements of Operations
(in thousands, except per share data)
Three Months Ended
3/31/00 12/31/99 3/31/99
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Revenue:
Network Services ...................... $ 16,004 $ 15,818 $ 10,424
Local Telephone Services .............. 24,274 22,370 14,308
Long Distance Services ................ 4,596 4,111 8,530
Data Services ......................... 11,904 11,796 4,954
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Total Revenue ................... 56,778 54,095 38,216
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Operating Expenses:
Network Access ........................ 20,696 16,303 25,224
Operations ............................ 11,575 11,823 9,034
Selling, General and Administrative ... 31,172 35,168 26,767
Depreciation and Amortization ......... 12,755 11,554 6,994
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Total Operating Expenses ........ 76,198 74,848 68,019
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Loss from Operations .................. (19,420) (20,753) (29,803)
Interest Expense and Other ................. 15,484 14,312 4,779
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Net Loss Before Income Taxes .......... (34,904) (35,065) (34,582)
Income Tax (Expense) Benefit ............... (235) 49 (370)
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Net Loss .............................. $(35,139) $(35,016) $(34,952)
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EBITDA* ............................... $ (6,665) $ (9,199) $(22,809)
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Weighted Average Shares Outstanding ........ 50,183 50,034 49,801
Net Loss Per Common Share:
Basic $ (0.70) $ (0.70) $ (0.70)
Diluted $ (0.70) $ (0.70) $ (0.70)
* Includes operating lease expenses of $1,748, $1,616, and $1,477 for the three
months ended March 31, 2000, December 31, 1999 and March 31, 1999, respectively.
Electric Lightwave, Inc.
Selected Financial and Operating Data
(In thousands)
3/31/00 12/31/99 3/31/99
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Selected Financial Data
Gross Property Plant & Equipment:
Owned or under capital lease ............ $824,671 $771,947 $585,533
Under operating lease ................... 108,541 108,541 108,541
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Total ............................. $933,212 $880,488 $694,074
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Electric Lightwave, Inc.
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Registrant
By: /s/ Kerry D. Rea
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Vice President and Controller
Date: May 15, 2000