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 (Date of earliest event reported) November 5, 1998
(November 4, 1998)
ICG COMMUNICATIONS, INC.
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(Exact name of registrant as specified in charter)
Delaware 1-11965 84-1342022
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(State of (Commission (IRS Employer
Incorporation) File Number) Identification No.)
161 Inverness Drive West, Englewood, Colorado 80112
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(Address of principal executive offices)
ICG HOLDINGS (CANADA), INC.
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(Exact name of registrant as specified in charter)
Canada 1-11052 Not Applicable
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(State of Incorporation) Commission (IRS Employer
File Number) Identification No.)
1710-1177 West Hastings Street, Vancouver,
British Columbia V6E 2L3
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(Address of principal executive offices)
ICG HOLDINGS, INC.
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(Exact name of registrant as specified in charter)
Colorado 33-96540 84-1158866
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(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
161 Inverness Drive West, Englewood, Colorado 80112
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(Address of principal executive offices)
Registrants' telephone numbers, including area codes
(888) 424-1144 or (303) 414-5000
N/A
-----------
(Former name or former address, if changed since last report.)
<PAGE>
ITEM 5. OTHER EVENTS.
- ------ ------------
In a press release dated November 4, 1998, ICG Communications, Inc., a
Delaware corporation (the "Corporation"), announced its earnings information and
results of operations for the Corporation's third quarter of 1998. A copy of the
press release is attached as an Exhibit hereto.
ITEM 7. EXHIBITS.
- ------ --------
(c) Exhibits
--------
99.1 Press Release, dated November 4, 1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each
of the Registrants have duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Dated: November 5, 1998 ICG COMMUNICATIONS, INC.
By: /s/ H. Don Teague
--------------------------
H. Don Teague
Executive Vice President,
General Counsel and
Secretary
ICG HOLDINGS (CANADA), INC.
By: /s/ H. Don Teague
---------------------------
H. Don Teague
Executive Vice President,
General Counsel and
Secretary
ICG HOLDINGS, INC.
By: /s/ H. Don Teague
---------------------------
H. Don Teague
Executive Vice President,
General Counsel and
Secretary
<PAGE>
EXHIBIT INDEX
Exhibit Description
------- -----------
99.1 Press release, dated November 4, 1998
<PAGE>
FOR IMMEDIATE RELEASE
For more information, contact:
Heathere Evans Steve Smith
Public Relations Manager Director of Investor Relations
303 414-5388 303 414-5350
[email protected] [email protected]
ICG Communications, Inc. Reports Third Quarter 1998 Results:
Positive EBITDA for Telecom Services
Consolidated EBITDA Deficit Narrowed to $3.6 Million
42 Percent Telecom Services' Gross Margin to Revenue Ratio
53,525 New Local Dial Tone Lines In Service
ENGLEWOOD, CO. (Nov. 4, 1998) - ICG Communications, Inc. (Nasdaq: ICGX) ("ICG")
today reported that its Telecom Services business segment generated $681,000 of
positive EBITDA (earnings before interest, taxes, depreciation and amortization,
and before nonrecurring charges) for the third quarter of 1998. The company also
reported that its consolidated EBITDA deficit narrowed to $3.6 million for the
three months ended September 30, 1998, compared to an EBITDA deficit of $31.2
million recorded for same period in 1997. Total consolidated revenue for the
three months ended September 30, 1998 was $106.5 million, compared to $60.6
million reported for the third quarter of 1997.
"Telecom Services achieved a significant milestone by reaching positive EBITDA
for the third quarter," said J. Shelby Bryan, ICG's president and chief
executive officer. "Delivering high margin competitive telecommunications
services to small and medium-sized business customers is fundamental to ICG's
strategy. I am confident that the continued execution of this strategy will
translate into positive EBITDA for the fourth quarter of 1998, and throughout
1999."
ICG's continued EBITDA improvement is primarily related to increases in local
dial tone lines in service. At September 30, 1998, ICG had 290,983 local dial
tone lines in service, an increase of 53,525 lines compared to June 30, 1998.
Ninety-eight percent of the lines installed during the third quarter of 1998
were "on-switch." ICG also reported that it sold 55,792 dial tone lines for the
three months ended September 30, 1998.
- more -
<PAGE>
ICG NETCOM 3rd Quarter 1998 Results
Page - 2 -
Telecom Services' revenue for the quarter ended September 30, 1998, was $82.6
million, compared to $36.5 million for the three months ended September 30,
1997, a 126 percent increase. Telecom Services had gross operating margins of
$34.4 million for the third quarter of 1998, which was 42 percent of this
business unit's total revenue.
<TABLE>
<CAPTION>
Telecom Services:
($ in millions)
- ---------------------------- ---------------- --------------- --------------- ---------------- -------------- ---------------
Three months ended 9/30/98 6/30/98 3/31/98 12/31/97 9/30/97 6/30/97
- ---------------------------- ---------------- --------------- --------------- ---------------- -------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Revenue $82.6 $64.2 58.5 47.7 36.5 34.4
Operating costs (48.2) (43.3) (45.7) (43.2) (35.2) (35.0)
- ---------------------------- ---------------- --------------- --------------- ---------------- -------------- ---------------
Gross margin 34.4 20.9 12.8 4.5 1.3 (0.6)
% of revenue 42% 33% 22% 9% 4% (2%)
Lines in service 290,983 237,458 186,156 141,035* 50,551 20,108
- ---------------------------- ---------------- --------------- --------------- ---------------- -------------- ---------------
* Includes 48,256 lines acquired.
</TABLE>
Revenue Components:
Telecom Services' local services revenue for the three months ended September
30, 1998, was $44.1 million, an increase of $41.0 million compared to $3.1
million recorded for the same period in 1997, and compared to $29.5 million
recorded for the prior quarter. Long distance revenue for the quarter ended
September 30, 1998 was $6.7 million, an increase of $0.9 million compared to
$5.8 million recorded in the second quarter of 1998. There is no comparable long
distance revenue in 1997, as the company had not launched this service in the
corresponding quarter last year. Special access service (dedicated transport)
revenue was $20.2 million for the quarter ended September 30, 1998, an increase
of $5.9 million over the same period last year.
Telecom Services' local, long distance, and special access revenue combined,
were $71.0 million for the current quarter, compared to $17.4 million for the
same period last year for a $53.6 million increase. On a sequential basis this
combination of core Telecom revenue increased $18.2 million from $52.8 million
for the three months ended June 30, 1998, a 34 percent increase.
- more -
<PAGE>
ICG NETCOM 3rd Quarter 1998 Results
Page - 3 -
Switched terminating (terminating long distance) access revenue was $11.6
million for the three months ended September 30, 1998, compared to $19.1 million
for the corresponding period in 1997. When compared sequentially to the second
quarter of 1998, switched terminating access revenue was relatively flat,
compared to $11.4 million reported for the three months ended June 30, 1998. The
company anticipates reductions in revenue from switched terminating access due
to initiatives to raise prices and free up switch port capacity for higher
margin dial tone services.
<TABLE>
<CAPTION>
Telecom Services Revenue Components
($ in millions)
- --------------------------------------- ---------------- ------------- -------------- ---------------
Three months ended 9/30/98 9/30/97 $ (CHANGE) % (CHANGE)
- --------------------------------------- ---------------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
Local $44.1 3.1 $41.0 1,323%
- --------------------------------------- ---------------- ------------- --------------
Long distance 6.7 -- 6.7 NA
- --------------------------------------- ---------------- ------------- --------------
Special access 20.2 14.3 5.9 41%
- --------------------------------------- ---------------- ------------- --------------
Core Telecom revenue 71.0 17.4 53.6 308%
- --------------------------------------- ---------------- ------------- --------------
Switched terminating access 11.6 19.1 (7.5) (39%)
- --------------------------------------- ---------------- ------------- --------------
Total Telecom revenue 82.6 36.5 46.1 126%
- --------------------------------------- ---------------- ------------- -------------- ---------------
</TABLE>
ICG's Network Services' revenue was $14.6 million for the third quarter of 1998,
compared to $16.4 million reported for the same quarter last year. The company's
Satellite Services business generated revenue of $9.4 million for the three
months ended September 30, 1998, compared to $7.6 million reported for the third
quarter last year. Satellite Services' MarineSat Communications, Inc. (mobile
satellite communications) was recently sold and the company expects the sale of
Nova-Net Communications, Inc. (VSAT) to close during the fourth quarter of 1998.
- more -
<PAGE>
ICG NETCOM 3rd Quarter Results
Page - 4 -
Total Operating Costs and SG&A Expenses:
Total operating costs for the quarter ended September 30, 1998 were $64.7
million, compared to $52.6 million recorded for the corresponding quarter last
year. The increase in these costs was primarily attributable to the increase in
local services and the addition of network operating costs.
Selling, general and administrative ("SG&A") expenses for the three months ended
September 30, 1998 were $45.4 million, compared to $39.2 million reported for
the same three-month period in 1997. As a percentage of total revenue, the
company's SG&A expenses for the current reported quarter were 43 percent,
compared to 50 percent for the prior quarter, and 65 percent for the third
quarter of 1997. ICG anticipates that this relationship of total SG&A expenses
to total revenue will continue to improve.
Discontinued Operations:
The company's "800/888/900" inbound service bureau business (Zycom) announced
plans to wind down and ultimately discontinue operations, primarily due to the
loss of a major customer. For the current quarter, Zycom generated a net loss of
$1.5 million, compared to a net loss of $0.7 million for the three months ended
September 30, 1997.
During the third quarter, the company took steps to become better focused on its
core business strategy - delivering a wide range of competitive
telecommunications solutions to small and medium-sized business end users. The
company has initiated plans to discontinue certain operations not associated
with this strategy.
Today, ICG is announcing plans to dispose of Netcom's businesses and non-core
assets which will not be used in future Telecom operations. The company's plan
of disposal consists of the sale of these businesses and assets to one or more
third parties in one or more transactions over the next twelve months. ICG
expects to record a gain on the sale, and has commenced an active plan to locate
a buyer.
- more -
<PAGE>
ICG NETCOM 3rd Quarter 1998 Results
Page - 5 -
Netcom's total revenue increased $0.4 million to $40.8 million, compared to
$40.4 million posted for the second quarter of 1998. This marked Netcom's first
sequential revenue increase in 1998. Netcom generated a net loss of $13.9
million for the three months ended September 30, 1998, compared to a net loss of
$6.8 million for the third quarter of 1997, and a net loss of $10.6 million for
the prior quarter (second quarter 1998).
At the end of the third quarter 1998, Netcom provided Internet services to
501,631 subscribers, compared to 511,806 subscribers at the end of the second
quarter of 1998. The decline in dial-up subscribers accounted for this
reduction. During the third quarter Netcom began marketing initiatives intended
to stabilize and then grow its dial-up customer base. The second-to-third
quarter (1998) sequential rate of dial-up subscriber reductions improved to 3
percent, compared to a 4 percent first-to-second quarter sequential dial-up
subscriber decline.
In accordance with Generally Accepted Accounting Principles ("GAAP"), ICG has
reclassified its financial statements to present the operations of Zycom and
Netcom as discontinued for all historical periods.
Net Losses:
Loss from discontinued operations, including an accrual of $1.2 million for the
estimated loss on disposal of Zycom, was $16.6 million for the three months
ended September 30, 1998, compared to a net loss of $7.5 million for the
corresponding period in 1997.
Depreciation and amortization for the three months ended September 30, 1998 was
$24.9 million, an increase of $11.4 million compared to the same period in 1997.
The increase in depreciation and amortization expense is primarily attributable
to increased capital expenditures. Interest expense and interest income for the
three months ended September 30, 1998 were $46.0 million and $8.2 million,
respectively, compared to $28.8 million and $5.4 million for the same period
last year. Minority interest and preferred dividends were $14.0 million for the
three months ended September 30, 1998, compared to $10.1 million recorded in the
third quarter of 1997.
- more -
<PAGE>
ICG NETCOM 3rd Quarter 1998 Results
Page - 6 -
ICG reported a net loss of $96.7 million for the three months ended September
30, 1998, compared to a net loss of $86.9 million recorded for the corresponding
period in 1997. The company's loss from continuing operations was $80.1 million
for the current quarter, compared to a $79.4 million loss recorded for the third
quarter of 1997. Net loss per share for the quarters ended September 30, 1998
and 1997 was $2.12 and $2.05, respectively. Net loss per share from continuing
operations for the third quarter of 1998 was $1.76, compared to $1.87 for the
corresponding period in 1997.
Resources and Capital Expenditures:
ICG had $470.4 million in cash, cash equivalents and short-term investments at
September 30, 1998. The company also had $18.9 million of restricted cash at
September 30, 1998. The company's capital expenditures of continuing operations
for the three months and nine months ended September 30, 1998 were $107.1
million and $260.0 million, respectively. Total capital expenditures (including
discontinued operations) for the three months and nine months ended September
30, 1998, were $112.1 million and $280.3 million, respectively.
Operations:
At September 30, 1998, the company was co-located in 47 central ILEC offices,
compared to 32 central offices at the end of 1997. At September 30, 1998, ICG
had 3,995 operational fiber route miles (with another 406 miles under
construction), compared to 3,043 miles at December 31, 1997. ICG had 36
operational switches at the end of the third quarter of 1998, of which 21 were
voice switches and 15 were data switches. The company also increased its
buildings connected, reaching 4,901 buildings at the end of the current quarter,
compared to 2,321 buildings at December 31, 1997.
About ICG Netcom:
ICG Netcom is the brand name for products and services from ICG Communications,
Inc. (NASDAQ: ICGX) and ICG's subsidiary, NETCOM On-Line Communication Services,
Inc. The combined entity is a leading integrated communications provider (ICP)
offering high-quality
- more -
<PAGE>
ICG NETCOM 3rd Quarter 1998 Results
Page - 7 -
telecommunications services. Headquartered in Englewood, CO., ICG has extensive
switched fiber-optic networks and offers local, long distance and enhanced
telephony and data services in its primary markets: California, Ohio, Colorado,
its southeastern markets (Louisville, KY; Nashville, TN; Birmingham, AL;
Charlotte, NC; and Atlanta, GA); and, in Texas through its strategic alliance
with CSW/ICG ChoiceCom L. P. which the company recently announced an agreement
to purchase 100 percent of the partnership's interest in San Antonio, Dallas,
Austin, Houston and Corpus Christi. At September 30, 1998, ICG had 3,251 full
time employees.
###
Information and statements contained in this press release contain, expressed or
implied, forward-looking disclosures that are based on the beliefs of management
as well as assumptions made based on information currently available to
management. These forward-looking statements and information involve risks and
uncertainty, including, but not limited to, future demand for the company's
services, general economic conditions, government regulations, competition and
customer strategies, capital deployment, the impact of pricing and other risks
and uncertainties. Should one or more of these risks materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described herein as anticipated, believed, estimated or expected. These
risks are detailed from time to time in various reports filed by ICG with the
SEC, including Form 10-K filed by ICG for the fiscal year ended December 31,
1997, Forms 10-Q filed for the quarters ended March 31 and June 30, 1998, and
Form 10-Q to be filed for the current quarter ended September 30, 1998.
Attachments: Key Operating Statistics
Consolidated Statements of Operations
Consolidated Balance Sheet
<PAGE>
ICG NETCOM 3rd Quarter 1998 Results
Page - 8 -
Key Operating Statistics
<TABLE>
<CAPTION>
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
As of, Sept 30, June 30, March 31, Dec. 31, Sept 30, June 30,
Telecom Services 1998 1998 1998 1997 1997 1997
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Dial tone lines in service 290,983 237,458 186,156 141,035 50,551 20,108
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
Fiber route miles
Operational 3,995 3,812 3,194 3,043 3,021 2,898
Under construction 406 -- -- -- -- --
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
Fiber strand miles
Operational 127,756 124,642 118,074 111,435 109,510 101,788
Under construction 13,930 -- -- -- -- --
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
Wireless miles 415 511 511 511 511 511
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
Buildings connected *
On network 684 665 637 596 590 560
Hybrid 4,217 3,733 3,294 1,725 1,726 1,704
--------------- -------------- --------------- ------------- ------------- -------------
Total buildings connected 4,901 4,398 3,931 2,321 2,316 2,264
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
Customer circuits in service(VGEs) 1,331,510 1,250,479 1,171,801 1,111,697 1,006,916 917,656
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
Switches
Voice 21 20 20 19 18 17
Data 15 15 15 15 15 15
--------------- -------------- --------------- ------------- ------------- -------------
Total switches 36 35 35 34 33 32
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
Switched minutes of use 513 516 639 660 788 742
(MOU) (in millions)**
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
Internet Services
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
Web hosting/dedicated subs 23,089 18,638 14,976 12,275 10,630 9,070
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
Ave. mo. revenue per sub $26.52 25.87 25.12 25.01 24.24 23.95
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
Satellite Services
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
VSATs 966 928 921 957 934 895
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
C-Band installations 69 66 59 57 54 57
- ---------------------------------- --------------- -------------- --------------- ------------- ------------- -------------
</TABLE>
* Beginning in the first quarter of 1998, buildings connected represents both
dial tone and special access connectivity.
** Based on three-month periods.
<PAGE>
ICG Netcom 3rd Quarter 1998 Results
Page -9-
11/14/98 Press release attachment
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
($ in thousands except per share data)
Year-over-year comparison
---------------------------------
THREE MONTHS ENDED,
--------------------
Revenue 30-Sep-98 30-Sep-97 % Change
-------- --------- ----------
Telecom services
Local services $ 44,068 3,125 1310%
Long distance 6,675 - NA
Special access 20,213 14,355 41%
Switched terminating
access 11,611 19,063 (39%)
------- -------
Total Telecom services 82,567 36,543 126%
Network services (FOTI) 14,550 16,432 (11%)
Satellite services 9,350 7,640 22%
------- -------
Total revenue 106,467 60,615 76%
Operating costs
Telecom services (48,145) (35,215) 37%
Network services (FOTI) (12,177) (13,151) (7%)
Satellite services (4,358) (4,236) 3%
------- -------
Total operating costs (64,680) (52,602) 23%
Selling, general and
administrative (45,435) (39,187) 16%
------- -------
EBITDA (before
nonrecurring charges) (3,648) (31,174) (88%)
Depreciation and amortization (24,883) (13,517) 84%
Net gain (loss) on disposal
of long-lived assets 814 (1,354) (160%)
Restructuring costs - - NA
------- -------
Operating loss (27,717) (46,045) (40%)
Interest expense (45,982) (28,834) 59%
Interest income 8,196 5,382 52%
Other, net (547) 237 (331%)
------- -------
Loss from continuing
operations before income
taxes and minority interest (66,050) (69,260) (5%)
Income tax expense (45) - NA
Minority interest &
preferred dividends on
preferred securities of
subsidiaries (13,987) (10,112) 38%
------- -------
Loss from continuing
operations (80,082) (79,372) 1%
Loss from discontinued
operations (16,582) (7,502) 121%
------- -------
Net loss (96,664) (86,874) 11%
======= =======
Net loss per share from
continuing operations
- basic and diluted (1.76) (1.87) (6%)
======= ========
Net loss per share
- basic and diluted (2.12) (2.05) 3%
======= ========
Weighted average number of
shares outstanding - basic
and diluted 45,588 42,359
<PAGE>
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
($ in thousands except per share data)
Sequential quarter comparison
---------------------------------
THREE MONTHS ENDED,
--------------------
Revenue 30-Sep-98 30-Jun-98 % Change
-------- --------- ----------
Telecom services
Local services $ 44,068 29,507 49%
Long Distance 6,675 5,761 16%
Special access 20,213 17,543 15%
Switched terminating
access 11,611 11,404 2%
------- -------
Total Telecom services 82,567 64,215 29%
Network services (FOTI) 14,550 14,759 (1%)
Satellite services 9,350 11,683 (20%)
------- -------
Total revenue 106,467 90,657 17%
Operating costs
Telecom services (48,145) (43,310) 11%
Network services (FOTI) (12,177) (12,590) (3%)
Satellite services (4,358) (5,869) (26%)
------- -------
Total operating costs (64,680) (61,769) 5%
Selling, general and
administrative (45,435) (45,156) 1%
------- -------
EBITDA (before
nonrecurring charges) (3,648) (16,268) (78%)
Depreciation and amortization (24,883) (22,835) 9%
Net gain (loss) on disposal
of long-lived assets 814 7 11529%
Restructuring costs - (553) (100%)
------- -------
Operating loss (27,717) (39,649) (30%)
Interest expense (45,982) (41,521) 11%
Interest income 8,196 8,490 (3%)
Other, net (547) (3,160) (83%)
------- -------
Loss from continuing
operations before income
taxes and minority interest (66,050) (75,840) (13%)
Income tax expense (45) - NA
Minority interest &
preferred dividends on
preferred securities of
subsidiaries (13,987) (13,595) 3%
------- -------
Loss from continuing
operations (80,082) (89,435) (10%)
Loss from discontinued
operations (16,582) (11,401) 45%
------- -------
Net loss (96,664) (100,836) (4%)
======= =======
Net loss per share from
continuing operations
- basic and diluted (1.76) (1.99) (12%)
======= ========
Net loss per share
- basic and diluted (2.12) (2.25) (6%)
======= ========
Weighted average number of
shares outstanding - basic
and diluted 45,588 44,865
<PAGE>
ICG Netcom 3rd Quarter 1998 Results
Page -10-
11/4/98 Press release attachment
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
($ in thousands except per share data)
NINE MONTHS ENDED,
--------------------
Revenue 30-Sep-98 30-Sep-97 % Change
-------- --------- ----------
Telecom services
Local services $ 96,637 4,295 2150%
Long Distance 17,534 - NA
Special access 53,883 39,935 35%
Switched terminating
access 37,215 57,407 (35%)
------- -------
Total Telecom services 205,269 101,637 102%
Network services (FOTI) 40,740 50,059 (19%)
Satellite services 29,982 22,306 34%
------- -------
Total revenue 275,991 174,002 59%
Operating costs
Telecom services (137,113) (104,135) 32%
Network services (FOTI) (35,632) (40,569) (12%)
Satellite services (15,219) (12,189) 25%
------- -------
Total operating costs (187,964) (156,893) 20%
Selling, general and
administrative (132,917) (110,183) 21%
------- -------
EBITDA (before
nonrecurring charges) (44,890) (93,074) (52%)
Depreciation and amortization (61,321) (37,198) 65%
Net gain (loss) on disposal
of long-lived assets 316 (1,035) (131%)
Restructuring costs (553) - NA
------- -------
Operating loss (106,448) (131,307) (19%)
Interest expense (121,974) (82,290) 48%
Interest income 22,188 17,284 28%
Other, net (4,028) (36) 11089%
------- -------
Loss from continuing
operations before income
taxes and minority interest (210,262) (196,349) 7%
Income tax expense (45) - NA
Minority interest &
preferred dividends on
preferred securities of
subsidiaries (40,774) (24,981) 63%
------- -------
Loss from continuing
operations (251,081) (221,330) 13%
Loss from discontinued
operations (48,174) (28,285) 70%
------- -------
Net loss (299,255) (249,615) 20%
======= =======
Net loss per share from
continuing operations
- basic and diluted (5.59) (5.25) 6%
======= ========
Net loss per share
- basic and diluted (6.66) (5.92) 13%
======= ========
Weighted average number of
shares outstanding - basic
and diluted 44,922 42,159
<PAGE>
ICG Netcom 3rd Quarter 1998 Results
Page -11-
11/4/98 Press release attachment
CONSOLIDATED BALANCE SHEETS (unaudited)
($ in thousands)
SEPTEMBER 30, DECEMBER 31,
ASSETS 1998 1997
------------ ---------- ------------
Cash, cash equivalents and $ 470,418 294,483
short-term investments
Receivables, net 125,017 81,118
Property and equipment 963,649 736,700
Accumulated depreciation (158,993) (105,584)
---------- ----------
Net property and equipment 804,656 631,116
Goodwill, net 109,960 77,562
Deferred financing costs, net 37,374 23,196
Restricted cash 18,889 24,649
Deposits and other assets, net 59,589 40,254
Net assets of discontinued
operations held for sale 78,254 76,092
---------- ----------
Total assets 1,704,157 1,248,470
========== ==========
LIABILITIES AND STOCKHOLDERS'
DEFICIT:
-------------------------------
Accounts payable and accrued
liabilities $ 152,011 120,354
Capital leases 64,903 72,576
Debt 1,553,144 892,352
---------- ----------
Total liabilities 1,770,058 1,085,282
---------- ----------
Redeemable preferred
securities of subsidiaries 454,192 420,171
Stockholders' deficit:
Common stock 596 749
Additional paid-in capital 570,033 533,541
Accumulated deficit (1,090,672) (791,417)
Accumulated other
comprehensive income (loss) (50) 144
---------- ----------
Total stockholders' deficit (520,093) (256,983)
---------- ----------
Total liabilities and
stockholders' deficit $ 1,704,157 1,248,470
========== ==========
