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:
March 7, 2002
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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 7. Financial Statements, Exhibits
(c) Exhibits
99.1 Press Release of Electric Lightwave, Inc. released March 7,
2002 announcing earnings for the quarter and year ended December
31, 2001.
FOR IMMEDIATE RELEASE
Contact:
Brigid M. Smith, Assistant Vice President
Corporate Communications
(203) 614-5042
bsmith@czn.com
Electric Lightwave Reports Financial Results
for 2001 Fourth Quarter and Year End
Stamford, Conn., March 7, 2002 - Electric Lightwave, Inc. (NASDAQ: ELIX) today
reported financial results for the fourth quarter and year ended December 31,
2001. The following information should be read in conjunction with our financial
statements and footnotes contained in our Form 10-K to be filed with the
Securities and Exchange Commission.
Revenue for 2001 totaled $226.6 million compared to $244.0 million for 2000, a
decrease of 7 percent. Fourth-quarter revenue for 2001 was $50.3 million
compared to $63.0 million in the prior year's fourth quarter, a decrease of 20
percent. The net loss for 2001 was $171.7 million or $3.37 per share, compared
to a net loss of $136.5 million or $2.71 per share in 2000.
Electric Lightwave, Inc. (ELI) EBITDA for 2001 was $5.8 million, a $4.0 million
increase over $1.8 million EBITDA for 2000. ELI fourth-quarter 2001 EBITDA was
$.6 million, a $4.5 million decrease from $5.1 million EBITDA for the 2000
fourth quarter. EBITDA is operating income plus depreciation and amortization.
EBITDA is a measure commonly used to analyze companies on the basis of operating
performance. EBITDA is not a measure of financial performance nor is it an
alternative to cash flow as a measure of liquidity and may not be comparable to
similarly titled measures of other companies.
ELI's results for the year ended December 31, 2001 were affected by severance
costs of $3.2 million and a restructuring related to exiting certain long-haul
markets with an associated expense of $4.2 million and lower-than-anticipated
revenue primarily due to a downturn in economic conditions that affected
Internet service providers and related businesses; a decline in data services
due to the expiration of a material contract; and a decrease in reciprocal
compensation.
ELI Class A Common Stock is currently traded on the Nasdaq National Market
System, but the stock does not meet minimum bid price and market value of public
float requirements for continued listing. If the stock is unable to regain
compliance by May 15, 2002, the stock could be subject to delisting at that
time.
Guidance for 2002 for ELI is reaffirmed at: Revenue of $250.0 million; adjusted
EBITDA of $22.0 million; and capital expenditures of $75.0 million, excluding
the exercise of the purchase option of $110 million under the synthetic lease.
About Electric Lightwave, Inc.
Electric Lightwave, Inc. is a facilities-based competitive local exchange
carrier providing Internet, data, voice and dedicated access services to
communications-intensive businesses in the western United States. 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.
TABLES TO FOLLOW
Electric Lightwave, Inc.
Statements of Operations
(In thousands, except per share amounts)
Three Months Ended
12/31/2001 9/30/2001 12/31/2000
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Revenue:
Network Services $ 23,372 $ 26,077 $ 22,633
Local Telephone Services 15,177 14,450 23,231
Long Distance Services 2,980 3,131 3,728
Data Services 8,790 9,672 13,377
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Total Revenues 50,319 53,330 62,969
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Operating Expenses:
Network Access 20,775 17,232 17,294
Operations 10,778 14,442 14,245
Selling, General and Administrative 18,109 22,361 26,263
Severance expense 62 1,418 54
Depreciation and Amortization 20,375 19,919 17,882
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Total Operating Expenses 70,099 75,372 75,738
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Loss from Operations (19,780) (22,042) (12,769)
Interest Expense and Other 25,943 25,231 21,544
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Net Loss Before Income Taxes (45,723) (47,273) (34,313)
Income Tax Expense 705 22 (540)
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Net Loss $(46,428) $(47,295) $ (33,773)
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EBITDA $ 595 $ (2,123) $ 5,113
=================== =================== ===================
Weighted average shares outstanding 51,103 51,107 50,494
Net Loss Per Common Share:
Basic $ (0.91) $ (0.93) $ (0.67)
Diluted $ (0.91) $ (0.93) $ (0.67)
Electric Lightwave, Inc.
Statements of Operations
(In thousands, except per share amounts)
Twelve Months Ended
12/31/2001 12/31/2000
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Revenue:
Network Services $ 101,338 $ 77,437
Local Telephone Services 73,291 98,643
Long Distance Services 12,294 16,318
Data Services 39,717 51,579
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Total Revenues 226,640 243,977
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Operating Expenses:
Network Access 71,789 74,105
Operations 51,598 52,740
Selling, General and Administrative 94,221 115,139
Severance expense 3,203 206
Depreciation and Amortization 79,022 61,663
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Total Operating Expenses 299,833 303,853
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Loss from Operations (73,193) (59,876)
Interest Expense and Other 97,345 76,186
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Net Loss Before Income Taxes (170,538) (136,062)
Income Tax Expense 1,154 400
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Net Loss $(171,692) $(136,462)
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EBITDA $ 5,829 $ 1,787
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Weighted average shares outstanding 50,978 50,274
Net Loss Per Common Share:
Basic $ (3.37) $ (2.71)
Diluted $ (3.37) $ (2.71)
Electric Lightwave, Inc.
Selected Financial & Operating Data
(In thousands, except selected operating data)
12/31/2001 9/30/2001 12/31/2000
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Selected Financial Data
Gross Property Plant & Equipment
Owned or under capital lease $ 1,037,349 $ 1,029,724 $ 978,327
Under operating lease (1) $ 108,541 $ 108,541 $ 108,541
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Total $ 1,145,890 $ 1,138,265 $1,086,868
Selected Operating Data
Markets 25 25 25
Route Miles (2) 6,754 6,737 5,924
Fiber Miles (2) 354,083 353,785 297,284
Buildings Connected On-Net 859 860 851
Switches and Routers:
Internet Routers 80 79 65
ATM Switches 23 23 23
Frame Relay Switches 33 32 32
Voice Switches 8 8 8
Access Line Equivalents 148,787 172,372 200,231
Access Line Equivalents/Voice Switch 18,598 21,547 25,029
% on Switch 98% 99% 96%
Employees 823 928 1,161
Customers 2,243 2,245 2,246
(1) Facilities under an operating lease agreement under which we have the
option to purchase the facilites at the end of the lease 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 Accounting Officer
Date: March 7, 2002