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, 1999
-----------------
(February 23, 1999)
-------------------
ICG COMMUNICATIONS, INC.
-----------------------------------------------------------------
(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 West, Englewood, Colorado 80112
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(Address of principal executive offices)
ICG HOLDINGS (CANADA) CO.
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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.)
161 Inverness Drive West, Englewood, Colorado 80112
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(Address of principal executive offices)
ICG HOLDINGS (CANADA), INC.
1710-1177 West Hastings Street, Vancouver, British Columbia V6E 2L3
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(Former name and former address, if changed since last report.)
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)
ICG FUNDING, LLC
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(Exact name of registrant as specified in charter)
Delaware 333-40495 84-1434980
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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 and (303) 414-5000
---------------------------------
<PAGE>
ITEM 5. OTHER EVENTS.
------ ------------
In a press release dated February 23, 1999, ICG
Communications, Inc., a Delaware corporation (the
"Corporation"), announced its earnings information and results of
operations for the Corporation's 1998 fourth quarter and year
end. A copy of the press release is attached.
ITEM 7. EXHIBITS.
------ --------
(c) Exhibits
--------
99.1 Press Release, dated February 23, 1999.
<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 25, 1999 ICG COMMUNICATIONS, INC.
By:/s/ H. Don Teague
------------------------------
H. Don Teague
Executive Vice President,
General Counsel and Secretary
ICG HOLDINGS (CANADA) CO.
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
ICG FUNDING, LLC
By:/s/ H. Don Teague
------------------------------
H. Don Teague
Executive Vice President,
General Counsel and Secretary
<PAGE>
EXHIBIT INDEX
-------------
Exhibit
-------
99.1 Press Release, dated February 23, 1999.
Exhibit 99.1
[ICG LOGO]
FOR IMMEDIATE RELEASE
For more information,
contact:
MEDIA CONTACT: INVESTOR CONTACT:
Mark Stutz Steve Smith
(303) 414-5529 (303) 414-5350
[email protected] [email protected]
ICG COMMUNICATIONS, INC. REPORTS POSITIVE EBITDA FOR FOURTH QUARTER
AND YEAR END 1998 RESULTS:
$4.1 Million Fourth Quarter EBITDA
63,499 Fourth Quarter Lines Added
ENGLEWOOD, CO. (FEB. 23, 1999) - ICG Communications, Inc. (Nasdaq: ICGX) ("ICG")
today announced, that for the three months ended December 31, 1998, total
consolidated EBITDA was $4.1 million, compared to a deficit of $28.1 million
reported in the corresponding period in 1997. ICG's consolidated EBITDA deficit
for the twelve-month period ended December 31, 1998 was $40.8 million compared
to a deficit of $121.2 million for 1997. (EBITDA is defined as earnings before
interest, taxes, depreciation and amortization, and non-recurring charges.)
Total revenue for the three months and twelve months ended December 31, 1998 was
$121.6 million and $397.6 million, respectively, compared to $71.0 million and
$245.0 million reported in 1997. For the current quarter, ICG's revenue
increased 71 percent when compared to the fourth quarter of 1997.
"We are pleased to report that ICG achieved its goal of reaching the positive
EBITDA milestone before year end," said J. Shelby Bryan, ICG's president and
chief executive officer. "Our ability to focus on our core business, to better
utilize our facilities-based infrastructure, and to control expenses enabled ICG
to attain positive EBITDA. We are confident that ICG is positioned to produce
sustainable EBITDA profitability throughout 1999 and beyond as we continue to
build relationships with small and medium-sized businesses and Internet service
providers."
<PAGE>
ICG press release, 2/23/99, page 2
At December 31, 1998, ICG had 354,482 local lines in service, an increase of
63,499 lines compared to September 30, 1998. During the fourth quarter ICG
provisioned 58,146 local lines and added 5,353 local lines with the Texas-based
ChoiceCom partnership rollup.
ICG's business strategy is to provide high-quality local, long distance and
enhanced telephony and data services to small and medium-sized businesses in
California, Colorado, Ohio, Texas, and parts of the southeastern United States.
The company also provides high-speed network services to Internet service
providers (ISPs) using its nationwide data network with 236 points of presence
(POPs).
REVENUE COMPONENTS:
ICG's Telecom services revenue grew 106 percent to $98.0 million for the three
months ended December 31, 1998, compared to $47.7 million recorded during the
corresponding period in 1997. Telecom services revenue increased $15.5 million
sequentially, or 19 percent, compared to the prior quarter's revenue of $82.6
million.
Local services revenue for the three months ended December 31, 1998 was $60.5
million, an increase of $43.5 million, or 257 percent, compared to the same
period in 1997. Local services revenue increased $16.4 million, or 37 percent,
compared to $44.1 million recorded in the prior quarter. Long distance revenue
for the current quarter was $5.2 million and decreased sequentially $1.5
million, primarily due to a revenue reclassification and resale line
terminations. Special access service (dedicated transport) revenue was $20.6
million for the quarter ended December 31, 1998, an increase of 33 percent, or
$5.1 million, over the same period last year. Switched terminating access
(terminating long distance) revenue was $11.8 million for the three months ended
December 31, 1998, compared to $15.3 million for the corresponding period in
1997. This decrease, as expected, was the result of the company's initiatives to
raise prices.
<PAGE>
ICG press release, 2/23/99, page 3
TELECOM SERVICES REVENUE COMPONENTS
($ IN MILLIONS)
- ----------------------- ---------- -------- ---------- --------- -----------
THREE MONTHS ENDED 12/31/98 9/30/98 6/30/98 3/31/98 TOTAL 1998
- ----------------------- ---------- -------- ---------- --------- -----------
LOCAL SERVICES $60.5 44.1 29.5 23.1 157.2
LONG DISTANCE 5.2 6.7 5.8 5.1 22.7
SPECIAL ACCESS 20.6 20.2 17.5 16.1 74.4
SWITCHED TERMINATION 11.8 11.6 11.4 14.2 49.0
- ----------------------- ---------- -------- ---------- --------- -----------
TOTAL TELECOM REV. 98.0 82.6 64.2 58.5 303.3
======================= ========== ======== ========== ========= ===========
TELECOM SERVICES REVENUE COMPONENTS
($ IN MILLIONS)
- ----------------------- -------------
THREE MONTHS ENDED Total 1997
- ----------------------- -------------
LOCAL SERVICES 21.3
LONG DISTANCE --
SPECIAL ACCESS 55.4
SWITCHED TERMINATION 72.7
- ----------------------- -------------
TOTAL TELECOM REV. 149.4
======================= =============
ICG's Network services generated $13.1 million of revenue while the company's
Satellite services business contributed revenue of $10.5 million for the quarter
ended December 31, 1998.
IMPROVING CORE TELECOM OPERATING MARGINS:
Telecom services gross operating margins (revenue less operating costs)
continued to improve throughout 1998. ICG's core telephone business generated
$47.9 million of gross operating margins for the three months ended December 31,
1998. The improvement in gross operating margin was attributable to increases in
higher margin revenue and better network utilization.
TELECOM SERVICES GROSS OPERATING MARGINS:
($ in millions)
- ---------------------- ----------- ----------- ---------- ---------- -----------
THREE MONTHS ENDED 12/31/98 9/30/98 6/30/98 3/31/98 12/31/97
- ---------------------- ----------- ----------- ---------- ---------- -----------
Revenue $98.0 82.6 64.2 58.5 47.7
Operating costs (50.1) (48.1) (43.3) (45.7) (43.2)
----------- ----------- ---------- ---------- -----------
Gross margin 47.9 34.5 20.9 12.8 4.5
% of revenue 49% 42% 33% 22% 9%
- ---------------------- ----------- ----------- ---------- ---------- -----------
TOTAL OPERATING COSTS AND SG&A:
Total operating costs for the quarter ended December 31, 1998 were $66.7
million, compared to $61.0 million recorded for the corresponding quarter last
year. ICG's gross operating margin for the current quarter was $54.9 million, or
45 percent of total revenue compared to 14 percent for the fourth quarter of
1997.
<PAGE>
ICG press release, 2/23/99, page 4
Selling, general and administrative ("SG&A") expenses for the three months ended
December 31, 1998 were $50.8 million, compared to $38.1 million recorded for the
same three-month period in 1997. SG&A as a percentage of total revenue was under
42 percent for the fourth quarter of 1998, compared to 54 percent last year.
NET LOSSES:
Depreciation and amortization for the three and twelve months ended December 31,
1998 was $40.2 million and $101.5 million, respectively. Interest expense for
the three and twelve months ended December 31, 1998 was $48.2 million and $170.1
million, respectively.
Net loss for the three and twelve months ended December 31, 1998, was $118.8
million and $418.0 million, respectively, compared to net losses of $111.1
million and $360.7 million recorded for the corresponding periods in 1997. Net
loss from continuing operations for the three and twelve months ended December
31, 1998, was $99.2 million and $350.3 million, respectively, compared to net
losses of $99.9 million and $321.3 recorded for the same periods in 1997. Loss
per share for the quarter and year ended December 31, 1998 was $2.58 and $9.25,
respectively. Loss per share from continuing operations for the quarter and year
ended December 31, 1998 was $2.16 and $7.75, respectively.
RESOURCES AND CAPITAL EXPENDITURES:
ICG had $262.8 million in cash, cash equivalents and short-term investments at
December 31, 1998. ICG recently announced the sale of its Netcom subsidiary's
U.S. and international operational assets for approximately $245 million and $40
million, respectively. On February 17, 1999, the company closed the U.S. sale
and anticipates closing the international transaction prior to the end of the
first quarter of 1999.
The company's capital expenditures for the quarter ended December 31, 1998 were
$108.9 million. Total capital expenditures for the twelve months ended
December 31, 1998 were $368.9 million.
<PAGE>
ICG press release, 2/23/99, page 5
OPERATIONS:
At December 31, 1998, ICG had 4,255 operational fiber route miles (with another
625 miles under construction), compared to 3,043 miles at December 31, 1997. The
company increased its buildings connected 71 percent, reaching 5,397 buildings
at the end of 1998, compared to 3,153 buildings on December 31, 1997.
ICG continued to add switching capacity to its network and had 44 switches at
the end of the fourth quarter in 1998, of which 28 were voice switches and 16
were data switches. This compares to 34 switches (19 voice and 15 data) at the
end of 1997.
ABOUT ICG COMMUNICATIONS:
ICG Communications, Inc. (NASDAQ: ICGX), headquartered in Englewood, Colorado,
is a leading integrated communications provider (ICP) offering high-quality
telecommunications services (local, long distance and enhanced telephony and
data services) to small and medium-sized businesses in California, Colorado,
Ohio, Texas, and parts of the southeastern United States. ICG also provides
high-speed network services to Internet Service Providers (ISPs) using its
nationwide data network. At December 31, 1998, ICG had 3,415 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, 1998, JUNE 30, 1998 AND
SEPTEMBER 30, 1998; AND FORM 10-K TO BE FILED FOR THE FISCAL YEAR ENDED
DECEMBER 31, 1998.
Attachments: Key Operating Statistics
Consolidated Statements of Operations
Consolidated Balance Sheet
<PAGE>
ICG press release, 2/23/99, page 6
[ICG LOGO]
KEY OPERATING STATISTICS
- ------------------------ ---------- ----------- ---------- ---------- ---------
AS OF, DEC. 31, SEPT 30, JUNE 30, MARCH 31, DEC. 31,
TELECOM SERVICES 1998 1998 1998 1998 1997
- ------------------------ ---------- ----------- ---------- ---------- ---------
DIAL TONE LINES
IN SERVICE 354,482 290,983 237,458 186,156 141,035
- ------------------------ ---------- ----------- ---------- ----------- ---------
FIBER ROUTE MILES
Operational 4,255 3,995 3,812 3,194 3,043
Under construction 625 -- -- -- --
- ------------------------ ---------- ----------- ---------- ----------- ---------
FIBER STRAND MILES
Operational 134,152 127,756 124,642 118,074 111,435
Under construction 15,284 -- -- -- --
- ------------------------ ---------- ----------- ---------- ----------- ---------
BUILDINGS CONNECTED
On network 777 684 665 637 626
Hybrid 4,620 4,217 3,733 3,294 2,527
---------- ----------- ---------- ----------- ---------
Total buildings
connected 5,397 4,901 4,398 3,931 3,153
- ------------------------ ---------- ----------- ---------- ----------- ---------
SWITCHES
Voice 28 21 20 20 19
Data 16 15 15 15 15
---------- ----------- ---------- ----------- ---------
Total switches 44 36 35 35 34
- ------------------------ ---------- ----------- ---------- ----------- ---------
CO-LOCATIONS WITH ILECS 59 47 45 35 32
- ------------------------ ---------- ----------- ---------- ----------- ---------
SATELLITE SERVICES
- ------------------------ ---------- ----------- ---------- ----------- ---------
C-BAND INSTALLATIONS 76 69 66 59 57
- ------------------------ ---------- ----------- ---------- ----------- ---------
* Based on three-month periods.
<PAGE>
ICG Press Release, 2/23/99, Page 7
(ICG LOGO)
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
($ in thousands except per share data)
THREE MONTHS ENDED, TWELVE MONTHS ENDED,
----------------------- --------------------
Revenue 31-Dec-98 31-Dec-97 % Change 31-Dec-98 31-Dec-97
---------- --------- --------- --------- ----------
Telecom services
Local services $ 60,457 16,957 256.5% $ 157,094 21,252
Long distance 5,160 - NA 22,694 -
Special access 20,606 15,500 32.9% 74,489 55,435
Switched
terminating access 11,825 15,264 (22.5%) 49,040 72,671
---------- --------- ---------- ---------
Total Telecom services 98,048 47,721 105.5% 303,317 149,358
Network services (FOTI) 13,111 15,619 (16.1%) 53,851 65,678
Satellite services 10,469 7,680 36.3% 40,451 29,986
---------- --------- ---------- ---------
TOTAL REVENUE 121,628 71,020 71.3% 397,619 245,022
Operating costs
Telecom services (50,147) (43,203) 16.1% (187,260) (147,338)
Network services (FOTI) (11,689) (13,342) (12.4%) (47,321) (53,911)
Satellite services (4,889) (4,489) 8.9% (20,108) (16,678)
---------- --------- ---------- ----------
Total operating costs (66,725) (61,034) 9.3% (254,689) (217,927)
Selling, general and
administrative (50,766) (38,071) 33.3% (183,683) (148,254)
---------- --------- ---------- ----------
EBITDA (before
nonrecurring
charges) 4,137 (28,085) (114.7%) (40,753) (121,159)
Depreciation and
amortization (40,224) (19,303) 108.4% (101,545) (56,501)
Net gain (loss)
on disposal of
long-lived assets (4,371) 792 (651.9%) (4,055) (243)
Restructuring costs (1,786) - NA (2,339) -
Provision for
impairment of
long-lived assets - (9,261) (100.0%) - (9,261)
---------- --------- ---------- ----------
Operating loss (42,244) (55,857) (24.4%) (148,692) (187,164)
Interest expense (48,153) (35,230) 36.7% (170,127) (117,520)
Interest income 6,226 4,623 34.7% 28,414 21,907
Other, net (624) (322) 93.8% (4,652) (358)
---------- --------- ---------- ----------
Loss before income
taxes, minority
interest and
share of losses (84,795) (86,786) (2.3%) (295,057) (283,135)
Income tax expense (45) - NA (90) -
Minority interest &
preferred dividends
on preferred securities
of subsidiaries (14,409) (13,136) 9.7% (55,183) (38,117)
---------- --------- ---------- ----------
Loss from continuing
operations (99,249) (99,922) (0.7%) (350,330) (321,252)
Discontinued operations
Loss from discontinued
operations (18,965) (11,198) 69.4% (65,938) (39,483)
Loss on disposal of
discontinued
operations (576) - NA (1,777) -
---------- --------- ---------- ---------
Net loss (118,790) (111,120) 6.9% (418,045) (360,735)
========== ========= ========== =========
Net loss per share from
continuing operations
- basic and diluted (2.16) (2.29) -5.7% (7.75) (7.56)
Net loss per share from
discontinued operations
- basic and diluted (0.42) (0.26) 61.5% (1.50) (0.93)
---------- --------- ---------- ---------
Net loss per share - basic
and diluted (2.58) (2.55) 1.2% (9.25) (8.49)
========== ========= ========== =========
Weighted average number 46,010 43,553 45,194 42,508
of shares outstanding
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
($ in thousands except per share data)
Revenue % Change
--------
Telecom services
Local services 639.2%
Long distance NA
Special access 34.4%
Switched
terminating access (32.5%)
Total Telecom services 103.1%
Network services (FOTI) (18.0%)
Satellite services 34.9%
TOTAL REVENUE 62.3%
Operating costs
Telecom services 27.1%
Network services (FOTI) (12.2%)
Satellite services 20.6%
Total operating costs 16.9%
Selling, general and
administrative 23.9%
EBITDA (before
nonrecurring
charges) (66.4%)
Depreciation and
amortization 79.7%
Net gain (loss)
on disposal of
long-lived assets 1568.7%
Restructuring costs NA
Provision for
impairment of
long-lived assets (100.0%)
Operating loss (20.6%)
Interest expense 44.8%
Interest income 29.7%
Other, net 1199.4%
Loss before income
taxes, minority
interest and
share of losses 4.2%
Income tax expense NA
Minority interest &
preferred dividends
on preferred securities
of subsidiaries 44.8%
Loss from continuing
operations 9.1%
Discontinued operations
Loss from discontinued
operations 67.0%
Loss on disposal of
discontinued
operations NA
Net loss 15.9%
Net loss per share from
continuing operations
- basic and diluted 2.5%
Net loss per share from
discontinued operations
- basic and diluted 61.3%
Net loss per share - basic
and diluted 9.0%
Weighted average number
of shares outstanding
<PAGE>
ICG Press Release, 2/23/99, Page 8
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
($ in thousands except per share data)
THREE MONTHS ENDED,
------------------------------------------------
31-Dec-98 30-Sep-98 30-Jun-98 31-Mar-98
----------- ------------ ----------- ------------
Revenue
Telecom services
Local services $ 60,457 44,068 29,507 23,062
Long distance 5,160 6,675 5,761 5,098
Special access 20,606 20,213 17,543 16,127
Switched
terminating access 11,825 11,611 11,404 14,200
----------- ------------ ----------- ------------
Total Telecom services 98,048 82,567 64,215 58,487
Network services (FOTI) 13,111 14,550 14,759 11,431
Satellite services 10,469 9,350 11,683 8,949
----------- ------------ ----------- ------------
TOTAL REVENUE 121,628 106,467 90,657 78,867
Operating costs
Telecom services (50,147) (48,145) (43,310) (45,658)
Network services (FOTI) (11,689) (12,177) (12,590) (10,865)
Satellite services (4,889) (4,358) (5,869) (4,992)
----------- ------------ ----------- ------------
Total operating costs (66,725) (64,680) (61,769) (61,515)
Selling, general and
administrative (50,766) (45,435) (45,156) (42,326)
----------- ------------ ----------- ------------
EBITDA 4,137 (3,648) (16,268) (24,974)
Depreciation and
amortization (40,224) (24,883) (22,835) (13,603)
Net gain (loss) on disposal
of long-lived assets (4,371) 814 7 (505)
Restructuring costs (1,786) - (553) -
----------- ------------ ----------- ------------
Operating loss (42,244) (27,717) (39,649) (39,082)
Interest expense (48,153) (45,982) (41,521) (34,471)
Interest income 6,226 8,196 8,490 5,502
Other, net (624) (547) (3,160) (321)
----------- ------------ ----------- ------------
Loss before income taxes,
minority interest and
share of losses (84,795) (66,050) (75,840) (68,372)
Income tax expense (45) (45) - -
Minority interest &
preferred dividends
on preferred securities
of subsidiaries (14,409) (13,987) (13,595) (13,192)
----------- ------------ ----------- ------------
Loss from continuing
operations (99,249) (80,082) (89,435) (81,564)
Loss from discontinued
operations (18,965) (15,381) (11,401) (20,191)
Loss on disposal of
discontinued
operations (576) (1,201) - -
=========== ============ =========== ============
Net loss (118,790) (96,664) (100,836) (101,755)
=========== ============ =========== ============
Net loss per share
from continuing
operations - basic
and diluted (2.16) (1.76) (1.99) (1.84)
Net loss per share
from discontinued
operations - basic
and diluted (0.42) (0.36) (0.26) (0.46)
=========== ============ =========== ============
Net loss per share -
basic and diluted (2.58) (2.12) (2.25) (2.30)
=========== ============ =========== ============
Weighted average number
of shares outstanding 46,010 45,588 44,865 44,311
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
($ in thousands except per share data)
YTD 1998
-------------
Revenue
Telecom services
Local services $157,094
Long distance 22,694
Special access 74,489
Switched
terminating access 49,040
----------
Total Telecom services 303,317
Network services (FOTI) 53,851
Satellite services 40,451
----------
TOTAL REVENUE 397,619
Operating costs
Telecom services (187,260)
Network services (FOTI) (47,321)
Satellite services (20,108)
----------
Total operating costs (254,689)
Selling, general and
administrative (183,683)
----------
EBITDA (40,753)
Depreciation and
amortization (101,545)
Net gain (loss) on disposal
of long-lived assets (4,055)
Restructuring costs (2,339)
----------
Operating loss (148,692)
Interest expense (170,127)
Interest income 28,414
Other, net (4,652)
----------
Loss before income taxes,
minority interest and
share of losses (295,057)
Income tax expense (90)
Minority interest &
preferred dividends
on preferred securities
of subsidiaries (55,183)
----------
Loss from continuing
operations (350,330)
Loss from discontinued
operations (65,938)
Loss on disposal of
discontinued
operations (1,777)
==========
Net loss (418,045)
==========
Net loss per share
from continuing
operations - basic
and diluted (7.75)
Net loss per share
from discontinued
operations - basic
and diluted (1.50)
==========
Net loss per share -
basic and diluted (9.25)
==========
Weighted average number
of shares outstanding 45,194
<PAGE>
ICG Press Release, 2/23/99, Page 9
(ICG LOGO)
CONSOLIDATED BALANCE SHEETS (unaudited)
($ in thousands)
DECEMBER 31, DECEMBER 31,
ASSETS: 1998 1997
- ------------- ------------ --------------
Cash, cash equivalents and
short-term investments $ 262,831 230,850
Receivables, net 145,138 76,842
Property and equipment, net 930,901 631,454
Other assets, net 286,555 278,294
------------ ------------
Total assets $1,625,425 $1,217,440
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT:
- ---------------------------------------
Accounts payable and accrued
liabilities $ 99,490 89,324
Debt 1,599,043 892,352
Capital leases 68,445 72,576
Net current liabilities of
discontinued operations 23,272 -
------------ ------------
Total liabilities 1,790,250 1,054,252
------------ ------------
Redeemable preferred securities
of subsidiaries 466,352 420,171
Stockholders' deficit:
Common stock 584 749
Additional paid-in capital 577,820 533,541
Accumulated deficit (1,209,462) (791,417)
Accumulated other
comprehensive (loss) income (119) 144
------------ ------------
Total stockholders' deficit (631,177) (256,983)
------------ ------------
Total liabilities and
stockholders' defici $1,625,425 $1,217,440
============ ============
Diluted shares
(treasury stock method, in thousands) 56,183 43,119
