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EXHIBIT 99.1
ALLIED RISER COMMUNICATIONS ("ARC") ANNOUNCES THIRD
QUARTER RESULTS EXCEEDED EXPECTATIONS; ANNOUNCES
GERALD DINSMORE AS NEW CEO
DALLAS, Oct. 13 /PRNewswire/ -- Allied Riser Communications Corporation (Nasdaq:
ARCC - news), one of the nation's leading providers of high-speed, IP-based
broadband data applications and services, today announced substantial sequential
revenue growth during the third quarter ended September 30, 2000, confirming
that the company exceeded third quarter expectations. In addition, ARC announced
the hiring of Gerald Dinsmore as president and chief executive officer.
Revenue for the quarter ended September 30, 2000, was $4,403,000, compared to
revenue of $1,972,000 in the second quarter of 2000, a 123-percent sequential
increase, and a nearly 900-percent increase compared to the same period last
year. Revenue for the third quarter of 1999, was $442,000.
The net income (loss) applicable to common stock for the third quarter of 2000,
was $(47,217,000) compared with $(44,068,000) for the quarter ended June 30,
2000, and $(18,270,000) in the quarter ended September 30, 1999. Earnings before
net interest, taxes, depreciation and amortization (EBITDA) for the quarter
ended September 30, 2000, were negative $35,320,000 compared with negative
$35,420,000 for the quarter ended June 30, 2000, and a negative $10,975,000 for
the quarter ended June 30, 1999.
The company also announced today that ARC co-founder and Chief Executive Officer
David Crawford will step down and will be succeeded by Gerald Dinsmore, who will
assume the role of President and Chief Executive Officer, and will join the
Board of Directors.
"We are tremendously excited that Jerry has joined our team. His vision and
experience will secure our position as the leader in providing 'first mile'
data, Internet, and Web solutions to business customers across North America,"
said Stephen Schovee, ARC's chairman of the board. "David Crawford and I will be
working closely with Jerry over the next several weeks to insure a seamless
transition as we look to take the company to new levels of execution and
performance."
Dinsmore most recently served as President, Chief Executive Officer, and
Director of Jato Communications, an Englewood, Co.-based provider of high speed
internet and Web-enabled services to small and mid-sized business customers.
Prior to joining Jato, Dinsmore spent more than 20 years at GTE where he served
in a variety of executive and management positions including President -
Business Development & Integration.
"I am delighted to join the ARC team," said Dinsmore. "I am extremely impressed
with the quality of the organization that David Crawford, and the rest of the
management team have built here. I look forward to the opportunity to lead this
company to even greater success in the future."
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"It has been my great privilege to have played a role in bringing together this
incredible group of people," said Crawford. "It is extremely gratifying to pass
the torch to someone with the vision, experience, and the character of Jerry
Dinsmore. As a co-founder of the company, and, more importantly, as a
shareholder, I welcome Jerry to ARC."
"David has done an excellent job developing the vision for ARC, and building and
leading a world-class organization during our very rapid market entry phase. On
behalf of the Board and his many friends and colleagues at the company, I
personally want to thank David for his tireless efforts," Schovee concluded.
In addition to Crawford's departure, Margaret Wilderotter and Jeffrey Weitzen
have resigned from the Board.
About Allied Riser Communications
ARC is one of the nation's leading providers of broadband data and Internet
services, as well as video and voice applications. ARC delivers its services
primarily over fiber-optic networks that it designs, constructs, owns and
operates inside high-quality, investment-grade commercial office buildings. The
company also delivers its branded applications and services using an array of
broadband technologies including fiber, wireless optics, and digital subscriber
lines to some of the nation's largest law offices, the Chicago Board of Trade,
Chicago Mercantile, numerous high-tech companies, as well as some of the largest
accounting and consulting firms.
For more information about ARC visit the company's Web site at
www.arcbroadband.com. Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995:
The statements contained in this release that are not historical facts may be
deemed to contain forward-looking statements, including but not limited to
statements regarding overall market demand for market acceptance of the
Company's services, the intention to deploy fiber-optic networks in additional
buildings or markets and the timing and breadth of penetration in each building
or market. Actual results may differ materially from those anticipated in any
forward-looking statements as a result of certain risks and uncertainties,
including, without limitation, the intense competition for the Company's service
offerings, dependence on growth in demand for the Company's services, ability to
manage growth of our operations, the ability to raise additional capital and
other risks and uncertainties detailed in the Company's Securities and Exchange
Commission filings. Prospective investors are cautioned not to place undue
reliance on such forward-looking statements. The Company disclaims any
obligation to update any of the forward-looking statements contained herein to
reflect future events or developments.
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ALLIED RISER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
(In thousands except per share data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 2000 1999 2000
<S> <C> <C> <C> <C>
Statement of
Operations Data:
Network services
revenue $ 396 $ 3,351 $ 846 $ 6,161
Value added
services revenue 46 1,052 143 1,572
Total Revenue 442 4,403 989 7,733
Operating Expenses:
Network operations 1,967 14,165 4,776 29,658
Cost of value
added services 5 716 15 1,101
Selling expense 2,556 10,401 4,962 34,425
General and
administrative
expenses 6,889 14,441 16,096 44,728
Amortization of deferred
compensation and other
stock based
expenditures 4,357 4,246 9,913 12,651
Depreciation and
amortization 830 9,781 1,720 22,645
Total operating
expenses 16,604 53,750 37,482 145,208
Operating Income
(Loss) (16,162) (49,347) (36,493) (137,475)
Other Income (Expense):
Interest expense (399) (3,323) (861) (4,632)
Interest income 531 5,453 1,362 13,797
Total other income
(expense) 132 2,130 501 9,165
Net Income (Loss)
Before Income Taxes (16,030) (47,217) (35,992) (128,310)
Provision For
Income Taxes -- -- -- --
Net Income (Loss) (16,030) (47,217) (35,992) (128,310)
Accrued Dividends On
Preferred Stock (2,240) -- (5,540) --
Net Income (Loss)
Applicable To
Common Stock $ (18,270) $ (47,217) $ (41,532) $ (128,310)
Net Income (Loss)
Per Common Share $ (.68) $ (.87) $ (1.73) $ (2.38)
Weighted Average Number
Of Shares
Outstanding 26,809 54,565 24,076 53,911
Other Data:
EBITDA (1) $ (10,975) $ (35,320) $ (24,860) $ (102,178)
Capital expenditures $ 5,709 $ 36,354 $ 14,359 $ 124,548
</TABLE>
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<TABLE>
<CAPTION>
Dec. 31, Sept. 30,
1999 2000
<S> <C> <C>
Selected Balance Sheet Data:
Cash, cash equivalents
and short term
investments $ 314,577 $ 300,176
Property and equipment, net 46,577 167,194
Total assets 475,054 635,625
Total capital lease obligations
and other long term debt 7,728 53,752
Convertible debentures
(7.5% interest; payable in stock or cash) -- 150,000
Total stockholders' equity 452,414 372,158
</TABLE>
(1) As used in the table above, EBITDA consists of net loss excluding net
interest, income taxes, depreciation and amortization. EBITDA does not
reflect our non-cash expenses, which we expect will increase considerably
as we deploy our infrastructure. We believe that because EBITDA is a
measure of financial performance that it is useful as an indicator of a
company's ability to fund its operations and to service or incur debt.
EBITDA is not a measure calculated under generally accepted accounting
principles. Other companies may calculate EBITDA differently from us. It is
not an alternative to operating income as an indicator of our operating
performance or an alternative to cash flows from operating activities as a
measure of liquidity and these other measures should be considered as well.
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