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 26, 1998
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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 Incorporation) (Commission (IRS Employer
File Number) Identification No.)
161 Inverness Drive W., Englewood, Colorado 80112
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(Address of principal executive offices)
9605 E. Maroon Circle, P.O. Box 6742, Englewood, Colorado 80155-6742
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(Former name or former address, if changed since last report.)
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 W., Englewood, Colorado 80112
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(Address of principal executive offices)
9605 E. Maroon Circle, P.O. Box 6742, Englewood, Colorado 80155-6742
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(Former name or former address, if changed since last report.)
Registrants' telephone numbers, including area codes (800) 650-5960 or
(303) 414-5000
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(303) 572-5960
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(Former telephone number of Registrants, if changed since last report.)
<PAGE>
ITEM 5. OTHER EVENTS.
------ ------------
In a press release dated February 26, 1998, ICG
Communications, Inc., a Delaware corporation (the "Corporation"),
announced its earnings information and results of operations for
the Corporation's 1997 fourth quarter and year end. A copy of
the press release is attached as Exhibit 99.1.
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ITEM 7. EXHIBITS.
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(c) Exhibits
--------
99.1 Press Release, dated February 26, 1998.
<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 26, 1998 ICG COMMUNICATIONS, INC.
By: /s/ James D. Grenfell
---------------------------
James D. Grenfell
Executive Vice President
and Chief Financial Officer
ICG HOLDINGS (CANADA), INC.
By: /s/ James D. Grenfell
---------------------------
James D. Grenfell
Executive Vice President
and Chief Financial Officer
ICG HOLDINGS, INC.
By: /s/ James D. Grenfell
---------------------------
James D. Grenfell
Executive Vice President
and Chief Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit Description
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99.1 Press Release, dated February 26, 1998.
ICG NEWS RELEASE
COMMUNICATIONS, INC. Media contact: Scott Chase (303) 626-3417
Investor contact: Steve Smith (303) 575-6596
ICG COMMUNICATIONS, INC. REPORTS FOURTH QUARTER
AND YEAR END 1997 RESULTS:
43 percent annual revenue growth 141,035 Local
Dial Tone Lines In Service
ENGLEWOOD, CO. (FEBRUARY 26, 1998) - ICG Communications, Inc. (Nasdaq:
ICGX) ("ICG") today announced that for the three-month and
twelve-month periods ended December 31, 1997 total revenue increased
37 percent and 43 percent, respectively, compared to the same periods
in 1996. Total revenue for the three months and twelve months ended
December 31, 1997 was $77.8 million and $273.4 million, respectively,
compared to $57.0 million and $190.7 million reported in 1996.
For the three months ended December 31, 1997, ICG's earnings before
interest, taxes, depreciation and amortization ("EBITDA") deficit
improved $3.3 million when compared sequentially to the third quarter
of 1997. The fourth quarter marks ICG's second consecutive quarter of
EBITDA improvement since the peak EBITDA deficit recorded for the
second quarter of 1997. The company's EBITDA deficit for the fourth
quarter of 1997 was $28.4 million, compared to deficits of $31.7
million and $33.8 million for the third and second quarters of 1997,
respectively.
"We are pleased to report that ICG achieved record revenue and
continued its trend toward positive EBITDA," said J. Shelby Bryan,
ICG's president and chief executive officer. "Our ability to move
favorably toward positive EBITDA was directly correlated with the
accelerating growth and business demand for our higher-margin
services. ICG made great strides in 1997 to become a full service
integrated communications provider. As we begin 1998, we are
steadfastly committed to providing better choices for innovative and
competitive communication services."
(more)
<PAGE>
Page 2 - ICG
At December 31, 1997, ICG had 141,035 local dial tone lines in
service, an increase of 90,484 lines compared to September 30, 1997.
During the fourth quarter ICG added 42,228 dial tone lines through
internal growth and counted 48,256 additional dial tone lines which
were associated with the purchase of Communications Buying Group, Inc.
("CBG"), which was closed on October 17, 1997. CBG provides local
exchange and Centrex reseller services to customers in the Cleveland,
Columbus and Akron, Ohio markets.
ICG also reported that during the twelve months ended December 31,
1997, the company sold 178,470 dial tone access lines. ICG is
marketing and selling competitive local dial tone services in its
primary markets: California, Ohio, Colorado, its southeastern markets
(Louisville, KY; Nashville, TN; Birmingham, AL; and Charlotte, NC) and
in Texas through its strategic alliance with CSW/ChoiceCom L. P.
REVENUE COMPONENTS:
ICG's core telephone business revenue grew 75 percent to $47.7 million
for the three months ended December 31, 1997, compared to $27.3
million recorded during the corresponding period in 1996. ICG's core
telephone business is represented by its Telecom Services segment
excluding revenue derived from the company's majority owned subsidiary
Zycom Corporation ("Zycom"). Total Telecom Services revenue (including
Zycom) increased $19.7 million, or 57 percent, to $54.5 million for
the current quarter, compared to $34.8 million for the same quarter
last year. Total Telecom Services' fourth quarter revenue included
$9.2 million resulting from the acquisition of CBG. Excluding CBG's
revenue, Telecom Services' total revenue on a comparable basis for the
three months ended December 31, 1997 was $45.3 million, an increase of
30 percent over the corresponding period in 1996.
Local switched services revenue for the three months ended December
31, 1997 was $16.9 million, an increase of $13.8 million compared to
(more)
<PAGE>
Page 3 - ICG
$3.1 million recorded in the prior quarter. CBG contributed $9.2
million to this fourth quarter increase; therefore on a stand-alone
basis, excluding CBG, the company's local switched services revenue
for the current quarter was $7.7 million, an increased $4.6 million or
148 percent compared to the third quarter of 1997. Local switched
services were launched during 1997 and as a result there are no
comparables to 1996.
Switched terminating access (terminating long distance) revenue
decreased seven percent, recording $15.3 million for the three months
ended December 31, 1997, compared to $16.4 million for the
corresponding period in 1996. When compared sequentially to the third
quarter of 1997, switched terminating access revenue decreased 20
percent, or $3.8 million compared to $19.1 million reported for the
three months ended September 31, 1997. This decrease, as expected, was
the result of the Company's recent initiatives to raise prices and
free up switch port capacity for higher margin dial tone product.
Special access service (dedicated transport) revenue was $15.5 million
for the quarter ended December 31, 1997, an increase of 42 percent
over the same period last year, and an eight percent increase compared
to the three months ended September 30, 1997.
TELECOM SERVICES REVENUE COMPONENTS
($ IN MILLIONS)
- --------------------------------------------------------------------
THREE MONTHS ENDED 12/31/97 12/31/96 PERCENT[DELTA]
- --------------------------------------------------------------------
SWITCHED LOCAL $16.9 -- n/a
- --------------------------------------------------------------------
SWITCHED TERMINATION 15.3 16.4 (7%)
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SPECIAL ACCESS 15.5 10.9 42%
- --------------------------------------------------------------------
CORE TELECOM 47.7 27.3 75%
- --------------------------------------------------------------------
ENHANCED (ZYCOM) 6.8 7.5 (9%)
- --------------------------------------------------------------------
TOTAL REVENUE 54.5 34.8 57 %
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(more)
<PAGE>
Page 4 - ICG
ICG's Network Services generated $15.6 million of revenue while the
company's Satellite Services business contributed revenue of $7.7
million for the quarter ended December 31, 1997.
IMPROVING CORE TELECOM OPERATING MARGINS:
Telecom Services, excluding Zycom, continued to see improvements in
its gross operating margins (revenue less operating costs) for the
fourth quarter of 1997. The company's core telephone business
generated $4.5 million of gross operating margins for the three months
ended December 31, 1997, compared to $1.3 million last quarter.
Throughout 1997, Telecom Services, excluding Zycom, continually
improved its gross operating margins consistent with the growth of
higher margin switched local services.
CORE TELEPHONE GROSS OPERATING MARGINS:
($ in millions)
- ------------------------------------------------------------------------------
THREE MONTHS ENDED 12/31/97 9/30/97 6/30/97 3/31/97 1997
- ------------------------------------------------------------------------------
Revenue $ 47.7 36.5 34.4 30.7 149.3
Operating costs (43.2) (35.2) (35.0) (33.9) (147.3)
- ------------------------------------------------------------------------------
Gross margin 4.5 1.3 (0.6) (3.2) 2.0
% of revenue 9.4% 3.6% (1.7%) (10.4%) 1.3%
- ------------------------------------------------------------------------------
TOTAL OPERATING COSTS AND SG&A:
Total operating costs for the quarter ended December 31, 1997 were
$67.4 million, compared to $49.9 million recorded for the
corresponding quarter last year. The increase in these costs was
primarily attributable to the increase in local switched services and
the addition of network operating costs which include engineering and
operations personnel dedicated to the development and launch of local
exchange services. Telecom Services' network operating costs for the
three months ended December 31, 1997, were $11.0 million. The
percentage of Telecom Services' network operating costs to its core
revenue declined throughout 1997, from 29 percent in the first quarter
to 23 percent for the fourth quarter.
(more)
<PAGE>
Page 5 - ICG
Selling, general and administrative ("SG&A") expenses for the three
months ended December 31, 1997 were $38.8 million, compared to $24.3
million recorded for the same three-month period in 1996. This
increase was principally due to the continued rapid expansion of the
company's Telecom Services networks and related additions to the
company's marketing, sales, customer service and management
information systems staff dedicated to the expansion of the Company's
networks, and implementation of ICG's expanded services strategy,
primarily the development of local and long distance telephone and
data services.
NET LOSSES:
Depreciation and amortization for the three and twelve months ended
December 31, 1997 was $19.5 million and $57.1 million, respectively,
increases of $9.6 million and $21.8 million compared to the same
periods in 1996. Interest expense for the three and twelve months
ended December 31, 1997 was $35.2 million and $117.5 million,
respectively, compared to $24.5 million and $95.0 million recorded
during these periods last year.
During the fourth quarter of 1997, ICG elected to write off assets of
approximately $12.0 million which were not related to its core Telecom
Services business.
Net loss for the three and twelve months ended December 31, 1997,
increased to $103.2 million and $327.6 million, respectively, compared
to net losses of $49.8 million and $199.3 recorded for the
corresponding periods in 1996. Loss per share for the quarter and year
ended December 31, 1997 was $3.09 and $10.11, respectively.
RESOURCES AND CAPITAL EXPENDITURES:
ICG had $217.0 million in cash, cash equivalents and short-term
investments at December 31, 1997. On February 12, 1998, a subsidiary
of ICG issued approximately $300.6 million of 10% Senior Discount
Notes that mature in 2008 and pay no interest in cash for the first
(more)
<PAGE>
Page 6 - ICG
five years. The Company's capital expenditures for the quarter ended
December 31, 1997 were $82.1 million. Total capital expenditures for
the twelve months ended December 31, 1997 were $269.6 million.
OPERATIONS:
For the three months ended December 31, 1997, the company's central
office switches generated 660 million switched minutes of use
("MOUs"), an increase of nine percent over the same period in 1996.
Customer circuits in service ("VGEs"), another measure of network
usage, were 1,111,697 at December 31, 1997, compared to 748,528 at
December 31, 1996, a 49 percent increase.
At December 31, 1997, ICG had 3,043 operational fiber route miles
(with another 1,064 miles under construction), a 28 percent increase,
compared to 2,385 miles at December 31, 1996. The company also
increased its buildings connected reaching 2,321 buildings at the end
of 1997, compared to 2,069 buildings on December 31, 1996.
ICG continued to add switching capacity to its network during the
current quarter. The company had 34 switches at the end of the fourth
quarter in 1997, of which 19 were voice switches and 15 were data
switches. This compares to 33 switches (18 voice and 15 data) at the
end of the third quarter and 14 voice switches and one data switch at
the end of 1996.
NETCOM PERFORMANCE:
On January 21, 1998, ICG completed its merger with NETCOM On-Line
Communication Services, Inc. ("NETCOM"), a leading provider of
Internet services. This combination will be accounted for as a
pooling-of-interests beginning in the first quarter of 1998.
(more)
<PAGE>
Page 7 - ICG
NETCOM's total revenue for the three and twelve months ended December
31, 1997 was $40.5 million and $160.7 million, respectively. NETCOM
reported EBITDA of $0.7 million for the fourth quarter of 1997,
compared to an EBITDA deficit of $3.2 million for the same period in
1996, a 122 percent improvement. The EBITDA deficit for the twelve
months ended December 31, 1997 and 1996, respectively, was $1.7
million and $20.3 million, a 92% improvement.
ICG Communications, Inc. (NASDAQ: ICGX), headquartered in Englewood,
Colorado, is a leading national competitive local exchange carrier
(CLEC) and premier provider of high-quality communications services.
ICG has extensive switched fiber optic networks and offers local, long
distance and enhanced telephony and data services in California,
Colorado, Ohio and parts of the southeastern United States. The
Company provides Internet communication solutions, connectivity and
Web site hosting to individuals and small and medium-sized businesses
through its subsidiary, NETCOM On-Line Communication Services, Inc. (a
subsidiary of ICG Services, Inc.). Further information is available on
ICG's Web site located at http://www.icgcomm.com. At December 31,
1997, ICG had 2,219 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: FORMS 10-K FILED
BY ICG FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1996, AND FOR THE
THREE-MONTH TRANSITION PERIOD ENDED DECEMBER 31, 1996; FORMS 10-Q
FILED FOR THE QUARTERS ENDED MARCH 31, 1997, JUNE 30, 1997 AND
SEPTEMBER 30, 1997; AND FORM 10-K TO BE FILED FOR THE FISCAL YEAR
ENDED DECEMBER 31, 1997.
Attachments: Key Operating Statistics
Consolidated Statements of Operations
Consolidated Balance Sheet
<PAGE>
ICG Press Release Attachment: A-1
Press Release Date: February 26, 1998
ICG
COMMUNICATIONS, INC.
Key Operating Statistics
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
AS OF, DEC. 31, SEPT 30, JUNE 30, MARCH 31, DEC. 31, SEPT. 30,
1997 1997 1997 1997 1996 1996
TELECOM SERVICES
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
DIAL TONE LINES IN SERVICE 141,035 50,551 20,108 5,371 -- --
- -----------------------------------------------------------------------------------------------------
FIBER ROUTE MILES
Operational 3,043 3,021 2,898 2,483 2,385 2,143
Under construction 1,064 -- -- -- -- --
- -----------------------------------------------------------------------------------------------------
FIBER STRAND MILES
Operational 111,435 109,510 101,788 83,334 75,490 70,067
Under construction 16,366 -- -- -- -- --
- -----------------------------------------------------------------------------------------------------
WIRELESS MILES 511 511 511 511 506 491
- -----------------------------------------------------------------------------------------------------
BUILDINGS CONNECTED
On network 596 590 560 545 522 478
Hybrid 1,725 1,726 1,704 1,550 1,547 1,589
------------------------------------------------------------------------
Total buildings
connected 2,321 2,316 2,264 2,095 2,069 2,067
- -----------------------------------------------------------------------------------------------------
CUSTOMER CIRCUITS IN
SERVICE (VGES) 1,111,697 1,006,916 917,656 816,238 748,528 630,697
- -----------------------------------------------------------------------------------------------------
SWITCHES
Voice 19 18 17 16 14 14
Data 15 15 15 10 1 --
-----------------------------------------------------------------------
Total switches 34 33 32 26 15 14
- -----------------------------------------------------------------------------------------------------
SWITCHED MINUTES OF USE 660 788 742 682 607 563
(MOU) (in millions)*
- -----------------------------------------------------------------------------------------------------
SATELLITE SERVICES
- -----------------------------------------------------------------------------------------------------
VSATS 957 934 895 875 860 835
- -----------------------------------------------------------------------------------------------------
C-BAND INSTALLATIONS 57 54 57 57 54 48
- -----------------------------------------------------------------------------------------------------
L-BAND INSTALLATIONS 1,239 768 671 355 204 109
- -----------------------------------------------------------------------------------------------------
* Based on three-month periods.
</TABLE>
<PAGE>
ICG Press Release Attachment: A-2
Press Release Date: February 26, 1998
ICG
COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
($ in thousands except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED,
---------------------------------
<S> <C> <C> <C>
Revenue 31-Dec-97 31-Dec-96 % Change
--------------- ------------- -------------
Telecom services
Special access $ 15,500 10,896 42.3%
Switched termination access 15,264 16,411 (7.0%)
Switched local services 16,957 -- NA
--------- ---------
Core Telecom revenue 47,721 27,307 74.8%
Enhanced (Zycom) 6,782 7,480 (9.3%)
--------- ---------
Total Telecom services 54,503 34,787 56.7%
Network services 15,619 15,981 (2.3%)
Satellite services 7,680 6,188 24.1%
--------- ---------
TOTAL REVENUE 77,802 56,956 36.6%
Operating costs
Telecom services (49,587) (34,462) 43.9%
Network services (13,342) (12,287) 8.6%
Satellite services (4,489) (3,180) 41.2%
--------- ---------
Total operating costs (67,418) (49,929) 35.0%
Selling, general and administrative (38,824) (24,253) 60.1%
--------- ---------
EBITDA (28,440) (17,226) 65.1%
Depreciation and amortization (19,457) (9,825) 98.0%
Net gain (loss) on disposal of
long-lived assets 364 -- NA
Provision for impairment of
long-lived assets (11,950) -- NA
--------- ---------
Operating loss (59,483) (27,051) 119.9%
Interest expense (35,230) (24,454) 44.1%
Interest income 4,623 5,962 (22.5%)
Other, net (324) 708 (145.8%)
--------- ---------
Loss before income taxes, minority
interest and share of losses (90,414) (44,835) 101.7%
Income tax benefit -- -- 0.0%
Minority interest & preferred
dividends on preferred securities
of subsidiaries (12,831) (4,988) 157.2%
--------- ---------
Net loss (103,245) (49,823) 107.2%
========= =========
Loss per share (3.09) (1.56) 98.1%
========= =========
Weighted average number
of shares outstanding 33,396 31,840
</TABLE>
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED,
-------------------------------
<S> <C> <C> <C>
Revenue 31-Dec-97 31-Dec-96 % Change
--------------- ------------- -------------
Telecom services
Special access $ 55,435 39,423 40.6%
Switched termination access 72,671 48,057 51.2%
Switched local services 21,252 -- NA
--------- ---------
Core Telecom revenue 149,358 87,480 70.7%
Enhanced (Zycom) 28,332 21,475 31.9%
--------- ---------
Total Telecom services 177,690 108,955 63.1%
Network services 65,678 60,379 8.8%
Satellite services 29,986 21,317 40.7%
--------- ---------
TOTAL REVENUE 273,354 190,651 43.4%
Operating costs
Telecom services (175,829) (101,285) 73.6%
Network services (53,911) (46,545) 15.8%
Satellite services (16,678) (10,242) 62.8%
--------- ---------
Total operating costs (246,418) (158,072) 55.9%
Selling, general and administrative (150,767) (82,350) 83.1%
--------- ---------
EBITDA (123,831) (49,771) 148.8%
Depreciation and amortization (57,081) (35,274) 61.8%
Net gain (loss) on disposal of
long-lived assets (671) -- NA
Provision for impairment of
long-lived assets (11,950) (11,503) 3.9%
--------- ---------
Operating loss (193,533) (96,548) 100.5%
Interest expense (117,545) (94,953) 23.8%
Interest income 21,907 21,512 1.8%
Other, net (660) (7,351) (91.0%)
--------- ---------
Loss before income taxes, minority
interest and share of losses (289,831) (177,340) 63.4%
Income tax benefit -- 5,131 (100.0%)
Minority interest & preferred
dividends on preferred securities
of subsidiaries (37,812) (27,079) 39.6%
--------- ---------
Net loss (327,643) (199,288) 64.4%
========= =========
Loss per share (10.11) (6.96) 45.3%
========= =========
Weighted average number
of shares outstanding 32,399 28,630
</TABLE>
<PAGE>
ICG Press Release Attachment: A-3
Press Release Date: February 26, 1998
ICG
COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
($ in thousands except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED,
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenue 31-Dec-97 30-Sep-97 30-Jun-97 31-Mar-97 YTD 1997
--------------- ------------- ------------- ------------- ---------------
Telecom services
Special access $ 15,500 14,355 13,501 12,079 $ 55,435
Switched termination access 15,264 19,063 19,743 18,601 72,671
Switched local services 16,957 3,125 1,170 -- 21,252
-------- -------- -------- -------- --------
Core Telecom revenue 47,721 36,543 34,414 30,680 149,358
Enhanced (Zycom) 6,782 7,121 6,829 7,600 28,332
-------- -------- -------- -------- --------
Total Telecom services 54,503 43,664 41,243 38,280 177,690
Network services 15,619 16,432 15,640 17,987 65,678
Satellite services 7,680 7,640 7,883 6,783 29,986
-------- -------- -------- -------- --------
TOTAL REVENUE 77,802 67,736 64,766 63,050 273,354
Operating costs
Telecom services (49,587) (42,348) (42,444) (41,450) (175,829)
Network services (13,342) (13,151) (12,883) (14,535) (53,911)
Satellite services (4,489) (4,236) (4,366) (3,587) (16,678)
-------- -------- -------- -------- --------
Total operating costs (67,418) (59,735) (59,693) (59,572) (246,418)
Selling, general and administrative (38,824) (39,700) (38,864) (33,379) (150,767)
-------- -------- -------- -------- --------
EBITDA (28,440) (31,699) (33,791) (29,901) (123,831)
Depreciation and amortization (19,457) (13,667) (13,075) (10,882) (57,081)
Net gain (loss) on disposal of
long-lived assets 364 (1,177) 274 (132) (671)
Provision for impairment of
long-lived assets (11,950) -- -- -- (11,950)
-------- -------- -------- -------- --------
Operating loss (59,483) (46,543) (46,592) (40,915) (193,533)
Interest expense (35,230) (28,834) (28,341) (25,140) (117,545)
Interest income 4,623 5,382 6,768 5,134 21,907
Other, net (324) 60 (289) (107) (660)
-------- -------- -------- -------- --------
Loss before income taxes, minority
interest and share of losses (90,414) (69,935) (68,454) (61,028) (289,831)
Income tax benefit -- -- -- -- --
Minority interest & preferred
dividends on preferred securities
of subsidiaries (12,831) (10,112) (9,116) (5,753) (37,812)
-------- -------- -------- -------- --------
Net loss (103,245) (80,047) (77,570) (66,781) (327,643)
======== ======== ======== ======== =========
Loss per share (3.09) (2.48) (2.42) (2.09) (10.11)
======== ======== ======== ======== =========
Weighted average number
of shares outstanding 33,396 32,248 32,042 31,938 32,399
</TABLE>
<PAGE>
ICG Press Release Attachment: A-4
Press Release Date: February 26, 1998
ICG
COMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
($ in thousands)
<TABLE>
<CAPTION>
DECEMBER 31, DECEMBER 31,
ASSETS: 1997 1996
- ------------------ ------------ ------------
<S> <C> <C>
Cash, cash equivalents and short-term investments $ 217,015 392,535
Receivables, net 69,337 48,624
Property and equipment, net 632,167 403,676
Other assets, net 189,145 99,298
---------- ----------
Total assets $1,107,664 944,133
========== ==========
LIABILITIES AND STOCKHOLDERS' DEFICIT:
- -----------------------------------------
Accounts payable and accrued liabilities $ 91,883 62,122
Debt 892,352 691,175
Capital leases 72,576 95,829
---------- ----------
Total liabilities 1,056,811 849,126
---------- ----------
Minority interests -- 1,967
Redeemable preferred securities of subsidiaries 420,171 159,120
Stockholders' deficit:
Common stock 647 8,088
Additional paid-in capital 326,318 294,472
Accumulated deficit (696,283) (368,640)
---------- ----------
Total stockholders' deficit (369,318) (66,080)
---------- ----------
Total liabilities and stockholders' deficit $1,107,664 944,133
========== ==========
Fully diluted shares (treasury stock method) 43,119 34,096
</TABLE>
