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 7, 2001
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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)
No change since last report
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(Former name or address, if changed since last report)
Item 5. Other Events.
We have filed an application for listing our Class A Common Stock on the Nasdaq
SmallCap Market because it no longer meets the critieria for inclusion on the
Nasdaq Market System. As part of the application process Citizens Communications
will convert 25,288,688 shares of our Class B Common Stock that it owns into the
same number of shares of our Class A Common Stock.
Item 7. Financial Statements, Exhibits
(c) Exhibits
99.1 Press Release of Electric Lightwave, Inc. released August 7,
2001 announcing earnings for the three and six months ended June
30, 2001.
Contact:
Brigid M. Smith, Assistant Vice President
Corporate Communications
(203) 614-5042
bsmith@czn.com
ELECTRIC LIGHTWAVE, INC. REPORTS
2001 SECOND-QUARTER FINANCIAL RESULTS
Stamford, Conn., August 7, 2001 - Electric Lightwave, Inc. (NASDAQ:ELIX) today
reported financial results for the quarter ended June 30, 2001.
Revenue for the 2001 second quarter was $60.4 million, $0.2 million below
revenue of $60.6 million for the second quarter of 2000. Second quarter 2001
EBITDA was $4.1 million, compared to a $1.4 million EBITDA loss for the second
quarter of 2000, an improvement of $5.5 million.
For the six months ended June 30, 2001, revenue was $123.0 million, a $5.6
million increase over revenue of $117.4 million for the same period of 2000.
EBITDA for the six months ended June 30, 2001 was $7.4 million, compared to an
$8.1 million EBITDA loss for the same period of 2000, an improvement of $15.5
million.
Second quarter 2001 net loss was $40.3 million, or 79 cents per share, compared
to a net loss of $35.0 million, or 69 cents per share, for the second quarter of
2000. For the six months ended June 30, 2001, net loss was $78.0 million, or
$1.53 per share, compared to a net loss of $70.1 million, or $1.39 per share,
for the same period of 2000.
The Nasdaq Stock Market, Inc. has informed ELI that its Class A Common Stock has
failed to maintain a minimum bid price of $5.00 for 30 consecutive trading days
and thus does not meet the minimum listing criteria of Nasdaq for shares listed
on the National Market System. ELI has filed an application for its listing to
be transferred to the Nasdaq SmallCap Market. As part of the application
process, Citizens Communications has agreed to convert approximately 25.3
million shares of ELI's Class B Common Stock into the same number of shares of
ELI's Class A Common Stock. Listing on Nasdaq's SmallCap Market requires that
the market capitalization of ELI's Class A Common Stock be at least $35 million.
About Electric Lightwave, Inc.
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Electric Lightwave, Inc. is a facilities-based competitive local exchange
carrier providing Internet, data, voice and dedicated access services to
communications-intensive businesses and the 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. The company
is 85 percent owned by Citizens Communications (NYSE:CZN, CZB). More information
about Electric Lightwave, Inc. may be found at www.eli.net.
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.
Electric Lightwave, Inc.
Statements of Operations
Three Months Ended
June 30,
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(Dollars in thousands, except per share amounts) 2001 2000
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Revenue
Network services $ 26,121 $ 17,173
Local telephone services 21,868 25,951
Long distance services 3,098 4,265
Data services 9,342 13,231
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Total revenue 60,429 60,620
Operating expenses
Network access expense 17,051 18,294
Operations expense 13,759 13,446
Selling, general and administrative 25,555 30,315
Depreciation and amortization 19,834 14,721
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Total operating expenses 76,199 76,776
Loss from operations (15,770) (16,156)
Interest expense and other 24,241 18,556
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Net loss before income taxes (40,011) (34,712)
Income tax expense 264 246
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Net loss $ (40,275) $(34,958)
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EBITDA (1) $ 4,064 $ (1,435)
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Net loss per common share:
Basic $ (0.79) $ (0.69)
Diluted $ (0.79) $ (0.69)
Weighted average shares outstanding 50,969 50,418
(1) EBITDA is Operating income plus depreciation and amortization.
Electric Lightwave, Inc.
Statements of Operations
Six Months Ended
June 30,
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(Dollars in thousands, except per share amounts) 2001 2000
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Revenue
Network services $ 51,889 $ 33,177
Local telephone services 43,664 50,225
Long distance services 6,183 8,862
Data services 21,255 25,134
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Total revenue 122,991 117,398
Operating expenses
Network access expense 33,782 38,990
Operations expense 26,735 25,021
Selling, general and administrative 55,117 61,487
Depreciation and amortization 38,728 27,476
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Total operating expenses 154,362 152,974
Loss from operations (31,371) (35,576)
Interest expense and other 46,171 34,040
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Net loss before income taxes (77,542) (69,616)
Income tax expense 427 481
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Net loss $(77,969) $(70,097)
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EBITDA (1) $ 7,357 $ (8,100)
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Net loss per common share:
Basic $ (1.53) $ (1.39)
Diluted $ (1.53) $ (1.39)
Weighted average shares outstanding 50,906 50,289
(1) EBITDA is Operating income plus depreciation and amortization.
Electric Lightwave, Inc.
Selected Financial and Operating Data
(Dollars in thousands) June 30, 2001 March 31, 2001 June 30, 2000
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Selected Financial Data
Gross Property Plant & Equipment:
Owned or under capital lease $ 1,023,783 $ 983,041 $ 936,368
Under operating lease (1) $ 108,541 $ 108,541 $ 108,541
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Total $ 1,132,324 $ 1,091,582 $ 1,044,909
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Selected Operating Data
Markets 25 25 25
Route miles (2) 6,734 5,924 5,911
Fiber miles (2) 349,455 296,173 295,157
Buildings connected on-net 856 852 838
Switches and routers:
Internet routers 79 65 63
ATM switches 23 23 23
Frame relay switches 33 32 32
Voice switches 8 8 8
Access Line Equivalents 187,981 195,215 196,259
Access Line Equivalents/Voice switch 23,498 24,402 22,526
% on switch 97% 96% 92%
Employees 949 1,031 1,195
Customers 2,267 2,228 2,788
(1) Facilities under an operating lease agreement under which we have the option
to purchase the facilities at the end of the term.
(2) Route and fiber miles also include those to which we have exclusive use
pursuant to license and lease arrangements.
Signature
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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 thereunto duly authorized.
ELECTRIC LIGHTWAVE, INC.
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(Registrant)
By: /s/ Robert J. Larson
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Robert J. Larson
Vice President and Chief Accouting Officer
Date: August 10, 2001