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:
August 8, 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
August 8, 2000.
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FOR IMMEDIATE RELEASE
Contacts:
Financial Community Media
Alan H. Oshiki, Assistant Vice President Brigid M. Smith, Assistant Vice
Investor Relations President, Corporate Communications
(203) 614-5629 (203) 614-5042
aoshiki@czn.com bsmith@czn.com
ELECTRIC LIGHTWAVE REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2000
STAMFORD, Conn., August 8, 2000 - Electric Lightwave, Inc. (NASDAQ:ELIX), a
facilities-based competitive local exchange carrier, today announced financial
results for the second quarter of 2000.
Revenue for the quarter ended June 30, 2000 was $60.6 million, 32% above revenue
of $46.1 million in the second quarter of 1999. The company's EBITDA loss
declined to $1.4 million in the second quarter of 2000, compared to a $16.7
million loss in the second quarter of 1999, an improvement of $15.3 million. The
net loss in the 2000 second quarter was $35.0 million, or $0.69 per share,
compared to a net loss of $33.2 million or $0.67 per share in the second quarter
of 1999.
Revenue for the first six months of 2000 was $117.4 million, up 39% from $84.3
million during the comparable period last year. The company's six-month EBITDA
loss declined to $8.1 million compared to a $39.5 million loss for the prior
year period. The net loss for the first six months of 2000 was $70.1 million, or
$1.39 per share, compared to a net loss of $68.2 million or $1.37 per share for
the first six months of 1999.
"Revenue in every category of our current product mix has grown significantly at
solid margins," said Rudy J. Graf, chief executive officer of Electric
Lightwave. "We continue to make excellent progress toward our goal of positive
EBITDA in the second half of this year."
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 83% owned by Citizens
Communications (NYSE:CZN).
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
06/30/2000 03/31/2000 06/30/1999
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Revenue:
Network Services $ 17,173 $ 16,004 $ 12,983
Local Telephone Services 25,951 24,274 18,600
Long Distance Services 4,265 4,596 9,245
Data Services 13,231 11,904 5,267
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Total Revenues 60,620 56,778 46,095
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Operating Expenses:
Network Access 18,294 20,696 23,702
Operations 13,446 11,575 9,633
Selling, General and Administrative 30,315 31,172 29,447
Depreciation and Amortization 14,721 12,755 8,150
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Total Operating Expenses 76,776 76,198 70,932
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Loss from Operations (16,156) (19,420) (24,837)
Interest Expense and Other 18,556 15,484 8,068
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Net Loss Before Income Taxes (34,712) (34,904) (32,905)
Income Tax Expense 246 235 300
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Net Loss $ (34,958) $ (35,139) $ (33,205)
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EBITDA $ (1,435) $ (6,665) $ (16,687)
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Weighted average shares outstanding 50,418 50,183 49,822
Net Loss Per Common Share:
Basic $ (0.69) $ (0.70) $ (0.67)
Diluted $ (0.69) $ (0.70) $ (0.67)
Electric Lightwave, Inc.
Statements of Operations
(In thousands, except per share data)
Six Months Ended
06/30/2000 06/30/1999
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Revenue:
Network Services $ 33,177 $ 23,407
Local Telephone Services 50,225 32,908
Long Distance Services 8,862 17,775
Data Services 25,134 10,221
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Total Revenues 117,398 84,311
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Operating Expenses:
Network Access 38,990 48,926
Operations 25,021 18,667
Selling, General and Administrative 61,487 56,214
Depreciation and Amortization 27,476 15,144
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Total Operating Expenses 152,974 138,951
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Loss from Operations (35,576) (54,640)
Interest Expense and Other 34,040 12,847
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Net Loss Before Income Taxes (69,616) (67,487)
Income Tax Expense 481 670
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Net Loss $ (70,097) $ (68,157)
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EBITDA $ (8,100) $ (39,496)
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Weighted average shares outstanding 50,289 49,812
Net Loss Per Common Share:
Basic $ (1.39) $ (1.37)
Diluted $ (1.39) $ (1.37)
Electric Lightwave, Inc.
Selected Financial & Operating Data
(In thousands, except selected operating data)
06/30/2000 03/31/2000 06/30/1999
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Selected Financial Data
Gross Property Plant & Equipment
Owned or under capital lease $ 936,368 $ 824,671 $ 693,449
Under operating lease $ 108,541 $ 108,541 $ 108,541
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Total $ 1,044,909 $ 933,212 $ 801,990
Selected Operating Data
Markets 25 25 25
Route Miles 5,911 5,905 3,128
Fiber Miles 295,157 293,687 192,213
Buildings Connected On-Net 838 834 795
Switches and Routers:
Internet Routers 63 62 42
ATM Switches 23 23 22
Frame Relay Switches 32 32 31
Voice Switches 8 8 7
Access Line Equivalents 196,259 180,935 121,516
Access Line Equivalents/Voice Switch 22,526 21,712 17,359
% on Switch 92% 96% 99%
Employees 1,195 1,182 1,233
Customers 2,788 2,593 1,961
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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Kerry D. Rea
Vice President and Controller
Date: August 9, 2000