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:
November 13, 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.
FOR IMMEDIATE RELEASE
Contact
Brigid M. Smith, Assistant Vice President
Corporate Communications
(203) 614-5042
bsmith@czn.com
ELECTRIC LIGHTWAVE REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2000
Stamford, Conn., November 13, 2000 - Electric Lightwave, Inc. (NASDAQ:ELIX), a
facilities-based competitive local exchange carrier, today reported financial
results for the quarter and nine months ended September 30, 2000.
Revenue for the quarter ended September 30, 2000 was $63.6 million, 31 percent
above revenue of $48.6 million in the third quarter of 1999. Third quarter 2000
EBITDA (earnings before taxes, interest, depreciation and amortization) was $4.8
million, compared to a $8.9 million loss in the third quarter of 1999, an
improvement of $13.7 million. The net loss in the 2000 third quarter was $32.6
million, or $0.64 per share, compared to a net loss of $30.4 million or $0.61
per share in the third quarter of 1999.
Revenue for the nine months ended September 30, 2000 was $181 million, up 36
percent from $132.9 million during the comparable period last year. The
company's nine-month EBITDA loss declined to $3.3 million, compared to a $48.4
million EBITDA loss for the prior year period. The net loss for the 2000
nine-month period was $102.7 million, or $2.04 per share, compared to a net loss
of $98.5 million or $1.98 per share for the comparable period in 1999.
"We continue to work toward an appropriate balance between growth of revenue and
margin expansion," said Rudy J. Graf, chief executive officer of Electric
Lightwave. "Our revenue and EBITDA growth for the quarter demonstrates our
progress toward this end."
About Electric Lightwave, Inc.
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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, Wash., Electric Lightwave is on the World
Wide Web at www.eli.net. The company is 86 percent owned by Citizens
Communications (NYSE:CZN).
This press release contains forward-looking statements that are subject to risks
and uncertainties that 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
9/30/00 6/30/00 9/30/99
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Revenue:
Network Services $ 21,627 $ 17,173 $ 14,024
Local Telephone Services 25,187 25,951 22,313
Long Distance Services 3,728 4,265 4,812
Data Services 13,068 13,231 7,453
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Total Revenue 63,610 60,620 48,602
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Operating Expenses:
Network Access 17,821 18,294 14,719
Operations 13,473 13,446 10,732
Selling, General and Administrative 27,540 30,315 32,017
Depreciation and Amortization 16,306 14,721 9,807
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Total Operating Expenses 75,140 76,776 67,275
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Loss from Operations (11,530) (16,156) (18,673)
Interest Expense and Other 20,603 18,556 11,424
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Net Loss Before Income Taxes (32,133) (34,712) (30,097)
Income Tax Expense 459 246 277
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Net Loss $ (32,592) $ (34,958) $ (30,374)
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EBITDA $ 4,776 $ (1,435) $ (8,866)
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Weighted average shares outstanding 50,606 50,418 49,915
Net Loss Per Common Share:
Basic $ (0.64) $ (0.69) $ (0.61)
Diluted $ (0.64) $ (0.69) $ (0.61)
Electric Lightwave, Inc.
Statements of Operations
(In thousands, except per share data)
Nine Months Ended
9/30/00 9/30/99
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Revenue:
Network Services $ 54,804 $ 37,431
Local Telephone Services 75,412 55,221
Long Distance Services 12,590 22,587
Data Services 38,202 17,674
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Total Revenue 181,008 132,913
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Operating Expenses:
Network Access 56,811 63,645
Operations 38,494 29,399
Selling, General and Administrative 89,027 88,231
Depreciation and Amortization 43,782 24,951
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Total Operating Expenses 228,114 206,226
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Loss from Operations (47,106) (73,313)
Interest Expense and Other 54,643 24,271
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Net Loss Before Income Taxes (101,749) (97,584)
Income Tax Expense 940 947
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Net Loss $ (102,689) $ (98,531)
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EBITDA $ (3,324) $ (48,362)
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Weighted average shares outstanding 50,404 49,846
Net Loss Per Common Share:
Basic $ (2.04) $ (1.98)
Diluted $ (2.04) $ (1.98)
Electric Lightwave, Inc.
Selected Data
9/30/00 6/30/00 9/30/99
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Selected Financial Data
($ in thousands)
Gross Property, Plant & Equipment:
Owned or under capital lease $ 962,454 $ 936,368 $ 723,141
Under operating lease $ 108,541 $ 108,541 $ 108,541
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Total $ 1,070,995 $ 1,044,909 $ 831,682
Selected Operating Data
Markets 25 25 26
Route Miles 5,921 5,911 4,047
Fiber Miles 297,208 295,157 214,656
Buildings Connected On-Net 850 838 808
Switches and Routers:
Internet Routers 65 63 42
ATM Switches 23 23 22
Frame Relay Switches 32 32 31
Voice Switches 8 8 7
Access Line Equivalents 203,911 196,259 142,433
Access Line Equivalents/Voice Switch 25,489 24,532 20,348
% on Switch 92% 92% 97%
Employees 1,156 1,195 1,172
Customers 2,915 2,788 2,102
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/ Robert J. Larson
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Robert J. Larson
Chief Accounting Officer
Date: November 14, 2000