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) February 20, 1997
---------------------
ICG COMMUNICATIONS, INC.
---------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Delaware 1-11965 84-1342022
----------------------------------------------------------------------
(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
9605 E. Maroon Circle, P.O. Box 6742, Englewood, Colorado 80155-6742
----------------------------------------------------------------------
(Address of principal executive offices)
ICG HOLDINGS (CANADA), INC.
----------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Canada 1-11052 Not Applicable
----------------------------------------------------------------------
(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
1710-1177 West Hastings Street, Vancouver, British Columbia V6E 2L3
----------------------------------------------------------------------
(Address of principal executive offices)
ICG HOLDINGS, INC.
----------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Colorado 33-96540 84-1158866
----------------------------------------------------------------------
(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
9605 E. Maroon Circle, P.O. Box 6742, Englewood, Colorado 80155-6742
----------------------------------------------------------------------
(Address of principal executive offices)
Registrants' telephone numbers, including area codes (800) 650-5960
-----------------
or (303) 572-5960
------------------
INTELCOM GROUP INC.
-------------------
(Former Name)
James D. Grenfell
ICG Communications, Inc.
9605 East Maroon Circle
P.O. Box 6742
Englewood, Colorado 80155-6742
(303) 572-5960
------------------------------
(Address of United States Agent for Service)
<PAGE>
ITEM 5. OTHER EVENTS.
------ ------------
In a press release dated February 20, 1997, ICG
Communications, Inc., a Delaware corporation (the "Corporation"),
announced its earnings information and results of operations for the
Corporation's transition period from October 1, 1996 through December
31, 1996. A copy of the press release is attached as Exhibit 99.1.
------------
ITEM 7. EXHIBITS.
------ --------
(c) Exhibits
--------
99.1 Press Release, dated February 20, 1997.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrants have duly caused this report to be signed on
their behalf by the undersigned hereunto duly authorized.
Dated: February 21, 1997 ICG COMMUNICATIONS, INC.
By: /s/ James D. Grenfell
------------------------------
James D. Grenfell
Executive Vice President, Chief
Financial Officer and
Treasurer
ICG HOLDINGS (CANADA), INC.
By: /s/ James D. Grenfell
------------------------------
James D. Grenfell
Executive Vice President, Chief
Financial Officer and
Treasurer
ICG HOLDINGS, INC.
By: /s/ James D. Grenfell
------------------------------
James D. Grenfell
Executive Vice President, Chief
Financial Officer and
Treasurer
<PAGE>
EXHIBIT INDEX
-------------
Exhibit Number Description of Exhibit
-------------- ----------------------
99.1 Press Release, dated February 20, 1997.
Exhibit 99.1
ICG NEWS RELEASE
COMMUNICATIONS, INC. MEDIA CONTACT: TOM RAFFERTY (303) 572-2094
INVESTOR CONTACT: STEVE SMITH (303) 575-6595
ICG COMMUNICATIONS, INC. REPORTS RECORD REVENUE, INCREASING 61
PERCENT FOR THE QUARTER ENDED DECEMBER 31, 1996
ENGLEWOOD, CO. (FEBRUARY 20, 1997) - ICG Communications, Inc.
(AMEX: "ICG"), today announced that total revenue increased 61
percent to $57.0 million for the quarter ended December 31, 1996,
compared to $35.4 million posted for the corresponding quarter in
1995.
Telecom Services (excluding enhanced services "Zycom"), ICG's
core telephone business segment, reported that its revenue grew
117 percent for the three months ended December 31, 1996, to
$27.3 million compared to $12.6 million recorded during the
corresponding period in 1995. Telecom Services total revenue
(including Zycom) increased 157 percent for the current quarter,
to $34.8 million.
"We are pleased to report that ICG achieved record revenue growth
during the quarter, paralleling increased network usage," said J.
Shelby Bryan, ICG's president and chief executive officer.
"Commensurate with our sales and marketing initiatives, we are
focused on accelerating our revenue growth as we begin offering
local dial tone and data transmission services."
For the three months ended December 31, 1996, the company's
central office switches generated 607 million switched minutes of
use, an increase of 158 percent over the same period in 1995.
Customer circuits in service ("VGE"s), another measure of network
usage, were 748,500 at December 31, 1996, compared to 488,400 at
the end of 1995, a 53 percent increase.
On December 31, 1996, ICG had 2,385 operational fiber route miles
(with another 735 miles under construction), a 274 percent
increase compared to 637 miles at the end of 1995. The company
also expanded its buildings connected 34 percent, reaching 2,069
buildings at the end of the current quarter, compared to 1,539
buildings at the end of 1995.
(more)
<PAGE>
page two - ICG 2/20/97 press release
ICG had 14 operational voice grade switches, with 3 more in the
process of installation, at the end of 1996. Additionally, the
company had 7 operational frame relay data switches, with 8 more
being installed, on December 31, 1996.
REVENUE COMPONENTS:
Telecom Services switched access revenue increased 222 percent,
recording $16.4 million for the three months ended December 31,
1996, compared to $5.1 million for the corresponding period in
1995. Special access service revenue was $10.9 million for the
quarter ended December 31, 1996, an increase of 45 percent over
the same period last year.
TELECOM SERVICES REVENUE COMPONENTS
($ IN MILLIONS)
----------------------------------------------------------
1996
THREE MONTHS
ENDED, DEC. 31 SEPT. 30 JUNE 30 MARCH 31 1996
----------------------------------------------------------
SPECIAL $ 10.9 10.3 9.7 8.5 39.4
ACCESS
--------------------------------------------------
SWITCHED 16.4 13.2 10.4 8.0 48.0
ACCESS
--------------------------------------------------
ENHANCED 7.5 8.7 4.3 1.1 21.6
(ZYCOM)
----------------------------------------------------------
TOTAL REVENUE $ 34.8 32.2 24.4 17.6 109.0
----------------------------------------------------------
----------------------------------------------------------
1995
THREE MONTHS
ENDED, DEC. 31 SEPT. 30 JUNE 30 MARCH 31 1995
-----------------------------------------------------------
SPECIAL $ 7.5 6.6 6.8 6.2 27.1
ACCESS
---------------------------------------------------
SWITCHED 5.1 2.9 1.9 0.7 10.6
ACCESS
---------------------------------------------------
ENHANCED 0.9 0.8 0.5 0.1 2.3
(ZYCOM)
-----------------------------------------------------------
TOTAL REVENUE $ 13.5 10.3 9.2 7.0 40.0
-----------------------------------------------------------
"Our switched access revenue continues to drive revenue growth
while providing us with valuable operating experience in the
switched services arena," said William J. Maxwell, ICG Telecom
Group, Inc.'s president. "During the current quarter, we launched
local dial tone services in selected California markets and will
be launching this service during the first half of calendar
1997 in other key markets. Our strategy is for local dial tone
revenue to ultimately become a significant component of our revenue
stream."
(more)
<PAGE>
page three - ICG 2/20/97 press release
ICG owns a 70 percent interest in Zycom Corporation ("Zycom")
which operates an 800/900 number service bureau and switch
platform supplying information providers and commercial
accounts with audiotext and customer support services. Because
of its majority ownership ICG consolidates Zycom, which is the
principal component of enhanced service revenue. For the quarter
ended December 31, 1996, Zycom recorded revenue of $7.5 million,
compared to $0.9 million for the three months ended December 31,
1995, an increase of $6.6 million. Approximately $5.5 million of
this increase in Zycom revenue, comparing the quarters ended
December 31, 1995 and 1996, relates to changes in the classification
of certain operating costs as a result of the company entering
into long-term contracts with its major customers.
Network Services posted $16.0 million for the quarter ended
December 31, 1996, from $15.7 million for the same period in
fiscal 1995. As planned, revenue growth from Network Services has
been moderate while the company repositioned its operations to
improve its operating results.
Satellite Services contributed $6.2 million to ICG's total
revenue for the quarter ended December 31, 1996. In March 1996,
Satellite Services sold four of its five teleports, retaining the
Holmdel, New Jersey teleport. Consequently, on a pro forma basis,
adjusting for the sale of these teleports, Satellite Services
revenue increased 68 percent, to $6.2 million for the current
quarter from $3.7 million for the three months ended December 31,
1995.
OPERATING COSTS AND S,G & A EXPENSES
Total operating costs for the quarter ended December 31, 1996,
were $49.9 million, compared to $27.1 million recorded for the
final quarter of calendar 1995. The increase in these costs was
primarily attributable to the increase in switched access
services and the addition of engineering personnel dedicated to
the development of local exchange services.
Selling, general and administrative ("SG&A") expenses for the
fourth quarter of calendar 1996 were $24.3 million, a $5.6
million increase, or 30 percent, compared to the fourth quarter
of calendar 1995. This increase was principally due to the
continued rapid expansion of the
(more)
<PAGE>
page four - ICG 2/20/97 press release
company's Telecom Services networks and related additions to the
company's marketing, sales and customer service, and management
information systems staff dedicated to the expansion, development
and implementation of ICG's switched services strategy and
development of local and long distance telephone services. ICG
anticipates that SG&A expenses will continue to increase over the
near term as a result of hiring new staff to facilitate the
development and marketing of its branded local and long distance
telephone and data transmission services to end users.
The company expanded its sales and marketing staff to 143 employees
by the end of 1996, compared to 81 sales and marketing employees at
September 30, 1996. The increase in sales and marketing staff
coincides with the launch of ICG's dial tone and data services in
most of its key markets in early 1997.
EBITDA AND NET LOSSES
For the three months ended December 31, 1996, ICG's EBITDA
(earnings before interest, taxes, depreciation and amortization)
deficit was $17.2 million, compared to a deficit of $10.3 million
for the same period in 1995. ICG's operations require significant
engineering and marketing investments in preparation for the
launch of local telephone services, such as dial tone. Because
these investments are required before revenue is generated, the
company anticipates that there will continue to be
disproportionate increases in both operating costs and SG&A
expenses relative to revenue generation, resulting in an
increased EBITDA deficit. The company believes that as higher
margin local telephone services are carried on the company's network,
the relationship between revenue and operating costs and SG&A
expenses is expected to improve.
Net loss for the quarter ended December 31, 1996, increased to
$49.8 million compared to a net loss of $34.6 million recorded
for the same three-month period last year. Loss per share for the
three months ended December 31, 1996, was $1.56 compared to $1.38
for the same period in 1995.
(more)
<PAGE>
page five - ICG 2/20/97 press release
CAPITAL EXPENDITURES AND RESOURCES
The company's capital expenditures for the quarter and year ended
December 31, 1996, were $78.2 million and $227.5, respectively.
ICG had $392.5 million in cash, cash equivalents and short-term
investments at December 31, 1996.
1996 CAPITAL EXPENDITURES ($ IN MILLIONS)
-----------------------------------------------------------------
THREE MONTHS ENDED, DEC. 31 SEPT. 30 JUNE 30 MARCH 31 1996
-----------------------------------------------------------------
CAPITAL LEASES $ 19.5 5.5 2.2 47.3 74.5
----------------------------------------------------------
CAPITAL FOR PROPERTY 58.7 37.5 27.7 29.1 153.0
& EQUIPMENT
-----------------------------------------------------------------
TOTAL CAPITAL EX. $ 78.2 43.0 29.9 76.4 227.5
-----------------------------------------------------------------
ICG changed its fiscal year end to December 31 (a calendar year
basis) effective January 1, 1997.
* * *
ICG is a leading national competitive local exchange carrier
("CLEC") publicly traded on the American Stock Exchange under the
symbol "ICG." The operations of ICG Communications, Inc. consist
of Telecom Services provided primarily through ICG Telecom Group,
Inc., Network Services provided primarily through ICG Fiber Optic
Technologies, Inc. ("FOTI"), and Maritime Communications Services
provided primarily through ICG Satellite Services, Inc. ICG
Telecom Group, Inc. is ICG's CLEC and enhanced services business.
ICG Fiber Optic Technologies, Inc. provides network integration
and support services. ICG Satellite Services, Inc. provides
maritime telecommunications network and international end-to-end
voice and data services, and operates VSAT (very small aperture
terminal) private data networks. On December 31, 1996, ICG had
1,424 full time employees.
(more)
<PAGE>
page six - ICG 2/20/97 press release
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 YEAR ENDED SEPTEMBER 30,
1996, AND FOR THE THREE MONTH TRANSITION PERIOD ENDED DECEMBER 31,
1996.
# # #
Attachments:
ICG Communications, Inc. key operating statistics
ICG Communications, Inc. and subsidiaries Consolidated
Statements of Operations
ICG Communications, Inc. and subsidiaries Consolidated
Balance Sheets
<PAGE>
ICG Press Release Attachment: A-1
Press Release Date: February 20, 1997
ICG
COMMUNICATIONS, INC.
KEY OPERATING STATISTICS
----------------------------------------------------------------------
AS OF, DEC. SEPT. JUNE MARCH DEC. SEPT.
TELECOM 31, 30, 30, 31, 31, 30,
SERVICES 1996 1996 1996 1996 1995 1995
----------------------------------------------------------------------
FIBER ROUTE
MILES
Operational 2,385 2,143 886 780 637 627
Under
construction 735 -- -- -- -- --
---------------------------------------------------------------------
FIBER STRAND
MILES
Operational 75,490 70,067 45,098 36,310 28,779 27,150
Under
construction 33,747 -- -- -- -- --
---------------------------------------------------------------------
WIRELESS MILES 506 491 483 582 545 568
---------------------------------------------------------------------
BUILDINGS
CONNECTED
On network 522 478 384 327 304 280
Off network 1,547 1,589 1,493 1,401 1,235 1,095
---------------------------------------------------
Total
buildings
connected 2,069 2,067 1,877 1,728 1,539 1,375
---------------------------------------------------------------------
CUSTOMER 748,528 630,697 551,881 510,755 488,403 430,535
CIRCUITS IN
SERVICE
(VGEs)
---------------------------------------------------------------------
SWITCHES
OPERATIONAL 14 14 13 13 13 13
----------------------------------------------------------------------
SWITCHED 607 563 475 362 235 144
MINUTES OF USE *
(in millions)
----------------------------------------------------------------------
SATELLITE
SERVICES
----------------------------------------------------------------------
VSATS 860 835 659 658 633 626
----------------------------------------------------------------------
C-BAND
INSTALLATIONS 54 48 48 36 33 28
----------------------------------------------------------------------
L-BAND
INSTALLATIONS 204 109 53 3 -- --
----------------------------------------------------------------------
* Based on three-month periods.
<PAGE>
ICG ICG Press Release Attachment: A-2
COMMUNICATIONS, INC. Press Release Date: February 20, 1997
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands except per share data)
THREE MONTHS ENDED,
-------------------------------------------------
Revenue Dec. 31, Sept. 30, June 30, Mar. 31,
'96 '96 '96 '96
------------------------- ------------------------
Telecom services
Special access $ 10,896 10,330 9,693 8,504
Switched access 16,411 13,241 10,387 8,018
Enhanced (Zycom) 7,480 8,591 4,291 1,113
-------- -------- -------- --------
Total Telecom services 34,787 32,162 24,371 17,635
Network services 15,981 15,746 14,679 13,973
Satellite services 6,188 5,197 5,596 4,336
-------- -------- -------- --------
TOTAL REVENUE 56,956 53,105 44,646 35,944
Operating costs
Telecom services (34,462) (29,306) (22,323) (15,194)
Network services (12,287) (12,631) (10,569) (11,058)
Satellite services (3,180) (2,728) (2,415) (1,919)
------- ------- -------- -------
Total costs of services (49,929) (44,665) (35,307) (28,171)
Selling, general and (24,253) (21,397) (20,546) (16,154)
admin. ------- ------- ------- -------
EBITDA (17,226) (12,957) (11,207) (8,381)
Depreciation and amort. (9,825) (8,952) (9,055) (7,442)
------- ------- ------- -------
Operating loss (27,051) (21,909) (20,262) (15,823)
Interest expense (24,454) (23,342) (32,940) (14,217)
Interest income 5,962 6,868 5,957 2,725
Other, net 708 (6,039) (466) (1,554)
Share of losses in JV - (555) (449) (582)
Provisions (GW, AR) - (9,917) - -
-------- ------- -------- --------
Loss before minority
interest and taxes (44,835) (54,894) (48,160) (29,451)
Minority interest &
preferred
dividend on sub pfr'd (4,988) (3,560) (16,561) (1,970)
Income tax benefit - 649 - 4,482
Cumulative effect of - - - -
accounting change -------- -------- -------- --------
Net loss $(49,823) (57,805) (64,721) (26,939)
======== ======== ======= =======
Loss per share $ (1.56) (1.91) (2.43) (1.04)
======== ======== ======= =======
Weighted average number
of shares outstanding 31,840 30,296 26,580 25,803
===========================================================================
SUPPLEMENTAL PRO FORMA
DATA
Telecom services
revenue $ 34,787 32,162 24,371 17,635
Total revenue 56,956 53,105 44,646 35,944
EBITDA (17,226) (12,957) (11,207) (8,381)
Net loss (49,823) (57,805) (64,721) (26,939)
--------------------------------------------------------------------------
During fiscal 1996 the company changed its method of accounting for long-
term telecom services contracts to recognize revenue as services are
provided. The company has reflected the effects of this change as if such
change had been adopted as of 10/1/95, as is presenting the pro forma
effects on prior periods assuming the change had been applied
retroactively.
===========================================================================
YEARS ENDED,
------------------------- Yr. vs. Yr.
Revenue Dec. 31, Dec. 31,
'96 '95 % Change
------------------------- ------------
Telecom services
Special access 39,423 27,164 45.1%
Switched access 48,057 10,608 353.0%
Enhanced (Zycom) 21,475 2,276 843.5%
--------- --------
Total Telecom services 108,955 40,048 172.1%
Network services 60,379 59,203 2.0%
Satellite services 21,317 23,124 -7.8%
---------- --------
TOTAL REVENUE 190,651 122,375 55.8%
Operating costs
Telecom services (101,285) (30,639) 230.6%
Network services (46,545) (45,629) 2.0%
Satellite services (10,242) (12,470) -17.9%
--------- ----------
Total costs of services (158,072) (88,738) 78.1%
Selling, general and
admin. (82,350) (70,833) 16.3%
----------- ---------
EBITDA (49,771) (37,196) 33.8%
Depreciation and amort. (35,274) (18,212) 93.7%
--------- ----------
Operating loss (85,045) (55,408) 53.5%
Interest expense (94,953) (37,012) 156.5%
Interest income 21,512 7,529 185.7%
Other, net (7,351) (1,296) 467.2%
Share of losses in JV (1,586) (843) 88.1%
Provisions (GW, AR) (9,917) (7,000) 41.7%
--------- ----------
Loss before minority
interest and taxes (177,340) (94,030) 88.6%
Minority interest &
preferred
dividend on sub pfr'd (27,079) (4,310) 528.3%
Income tax benefit 5,131 36 14,152.8%
Cumulative effect of
accounting change - (3,453) -100.0%
----------- ---------
Net loss (199,288) (101,757) 95.8%
=========== ===========
Loss per share (6.96) (4.17)
=========== ===========
Weighted average number
of shares outstanding 28,630 24,410
==========================================================================
SUPPLEMENTAL PRO FORMA
DATA
Telecom services
revenue 108,955 39,605 175.1%
Total revenue 190,651 121,932 56.4%
EBITDA (49,771) (37,639) 32.2%
Net loss (199,288) (102,200) 95.0%
--------------------------------------------------------------
During fiscal 1996 the company changed its method of
accounting for long-term telecom services contracts to
recognize revenue as services are provided. The company has
reflected the effects of this change as if such change had
been adopted as of 10/1/95, as is presenting the pro forma
effects on prior periods assuming the change had been applied
retroactively.
==========================================================================
<PAGE>
ICG COMMUNICATIONS, INC. ICG Press Release Attachment: A-3
CONSOLIDATED STATEMENTS OF Press Release Date: February 20, 1997
OPERATIONS (continued)
($ in thousands except per share data)
YEARS ENDED SEPTEMBER 30, THREE MONTHS ENDED
---------------------------- DECEMBER 31,
Revenue 1996 1995 1994 1996 1995 %
--------- -------- -------------------------- change
Telecom
services
Special
access $ 36,102 25,116 14,834 10,896 7,575 43.8%
Switched
access 36,729 5,792 20 16,411 5,084 222.8%
Enhanced 14,850 1,422 - 7,480 854
(Zycom) --------- ------- -------- ------- -------- 775.9%
Total Telecom
services 87,681 32,330 14,854 34,787 13,513 157.4%
Network services 60,116 58,778 36,019 15,981 15,718 1.7%
Satellite
services 21,297 20,502 8,121 6,188 6,168 0.3%
Other - - 118 - -
--------- ------- -------- ------- -------- N/A
TOTAL REVENUE 169,094 111,610 59,112 56,956 35,399 60.9%
Operating costs
Telecom
services (78,705) (21,825) (7,050) (34,462) (11,882) 190.0%
Network
services (46,256) (45,928) (26,334) (12,287) (11,998) 2.4%
Satellite
services (10,292) (11,093) (4,697) (3,180) (3,230) -1.5%
Other - - (84) - -
--------- ------- ------- ------- -------- N/A
Total costs of
services (135,253) (78,846) (38,165) (49,929) (27,110) 84.2%
Selling, general (76,725) (62,954) (28,015) (24,253) (18,628)
and admin. -------- ------- ------- ------- ------- 30.2%
EBITDA (42,884) (30,190) (7,068) (17,226) (10,339) 66.6%
Depreciation and (30,368) (16,624) (8,198) (9,825) (4,919)
amort. -------- ------- ------- ------- ------- 99.7%
Operating loss (73,252) (46,814) (15,266) (27,051) (15,258) 77.3%
Interest expense (85,714) (24,368) (8,481) (24,454) (15,215) 60.7%
Interest income 19,300 4,162 1,788 5,962 3,750 59.0%
Other, net (9,082) (764) (863) 708 (1,023) -169.2%
Share of losses
in JV (1,814) (741) (1,481) - (228) -100.0%
Provisions (GW, (9,917) (7,000) - - -
AR) -------- ------- -------- -------- -------- N/A
Loss before
minority
interest and
taxes (160,479) (75,525) (24,303) (44,835) (27,974) 60.3%
Minority
interest &
preferred
dividend on sub
pfr'd (25,306) (1,123) 435 (4,988) (3,215) 55.1%
Income tax
benefit 5,131 - - - - N/A
Cumulative
effect of
accounting (3,453) - - - (3,453)
change -------- -------- -------- -------- ------- -100.0%
Net loss $(184,107) (76,648) (23,868) (49,823) (34,642)
========= ======= ======= ======= ======= 43.8%
Loss per share $ (6.83) (3.25) (1.56) (1.56) (1.38)
========= ======= ======= ======= =======
Weighted average
number
of shares
outstanding 26,955 23,604 15,342 31,840 25,139
==========================================================================
SUPPLEMENTAL PRO
FORMA DATA
Telecom
services
revenue $ 87,681 31,617 14,395 34,787 13,513 157.4%
Total revenue 169,094 110,897 58,653 56,956 35,399 60.9%
EBITDA (42,884) (30,903) (7,527) (17,226) (10,339) 66.6%
Net loss (184,107) (77,361) (24,327) (49,823) (34,642) 43.8%
------------------------------------------------------------------------
During fiscal 1996 the company changed its method of accounting for
long-term telecom services contracts to recognize revenue as services
are provided. The company has reflected the effects of this change as
if such change had been adopted as of 10/1/95, as is presenting the pro
forma effects on prior periods assuming the change had been applied
retroactively.
==========================================================================
<PAGE>
ICG ICG Press Release Attachment: A-4
COMMUNICATIONS, INC. Press Release Date: February 20, 1997
CONSOLIDATED BALANCE SHEETS
($ in thousands)
SEPTEMBER 30,
DEC. 31, -----------------------
ASSETS: 1996 1996 1995
-------- ------- -------
Cash, cash equivalents and
short-term investments $392,535 457,914 269,416
Receivables, net 48,624 40,835 32,691
Property and equipment, net 403,932 336,137 202,004
Other assets, net 99,042 104,465 79,442
-------- -------- --------
Total assets $944,133 939,351 583,553
======== ======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Accounts payable and
accrued liabilities $ 62,122 51,881 33,058
Debt 691,175 669,784 397,246
Capital leases 95,829 78,325 35,599
Other liabilities - 2,851 6,739
-------- -------- --------
Total liabilities 849,126 802,841 472,642
-------- -------- --------
Minority interests 1,967 2,780 4,040
Redeemable preferred stock
of subsidiary 159,120 153,318 14,986
Convertible series B
preferred stock - - 9,350
Stockholders' equity
(deficit)
Common stock 278,686 275,355 190,753
Additional paid-in
capital 23,874 23,874 26,492
Accumulated deficit (368,640) (318,817) (134,710)
-------- -------- --------
Total stockholders' equity (66,080) (19,588) 82,535
(deficit) -------- -------- --------
-------- -------- --------
Total liabilities and $944,133 939,351 583,553
stockholders' equity ========= ======== ========
