FOR IMMEDIATE RELEASE
For more information contact:
Jose Segrera Richard Cooper/Rob Schatz
FirstCom Corporation Investor Relations
(305) 448-4422 (516) 829-7111
[email protected] [email protected]
FIRSTCOM ANNOUNCES RECORD FIRST QUARTER 2000 REVENUE
May 10, 2000 08:48 AM Eastern Time
CORAL GABLES, Fla.--(BUSINESS WIRE)--May 10, 2000--FirstCom Corporation FCLX
("FirstCom" or "the Company") an emerging facilities-based communications
provider with fiber optic networks in Chile, Peru and Colombia, reported record
revenues of $11.8 million for the first quarter of 2000 which represented a 42%
increase over the first quarter of 1999. This increase was fueled by increases
in Internet/data services and long distance services in all of the Company's
markets.
FirstCom's revenues from Internet/data services during the first quarter of
2000, totaled approximately $5.1 million, an increase of approximately 133% over
the first quarter of 1999. Revenues from long distance services during the first
quarter of 2000 totaled approximately $6.7 million, an increase of approximately
9% over the first quarter of 1999.
The increase in Internet/data services was due to a 96% increase in ports sold
to new customers attributable to strong demand for the Company's services. The
increase in long distance services was due to a 39% increase in minutes sold.
The improvement in long distance was primarily due to the ramp up of the
Company's Peruvian operations.
The Company's EBITDA (earnings before interest, taxes, depreciation and
amortization) losses for the three months ended March 31, 2000 were $9.8 million
compared to $2.2 million for the three months ended March 31, 1999. This
increase was primarily due to $6.1 million of merger related expenses that
included severance, accounting and legal costs. Approximately $5.2 million of
such expenses relate to noncash severance costs attributable to the acceleration
of unvested stock options for certain ex-employees.
FirstCom also announced it would shortly file with the Securities and Exchange
Commission a customary amendment to its previously filed preliminary merger
proxy statement. FirstCom noted that it would disclose in the amendment "pro
forma" results that will reflect AT&T Latin America's Brazilian operations as of
and for the three months ended March 31, 2000. FirstCom also announced that the
merger agreement has been amended to reflect the parties expectation that the
closing to the merger will occur prior to the end of June 2000.
Mr. Patricio E. Northland, Chairman, President and CEO of FirstCom commented on
the Company's first quarter 2000 operating results and its pending merger, "I am
very pleased with the market's response to FirstCom's new services that is well
represented by the addition of 592 new Internet/data customers and 14,742 long
distance customers during the recent quarter. With respect to the pending merger
with AT&T Latin America, we are making good progress and plan to close the
transaction by mid to late June. We continue to forge excellent working
relationship with representatives from AT&T and look forward to initiating the
formal execution of our combined business plan for the region."
Mr. John Haigh, President of the International Ventures organization for AT&T
said, "We are delighted with the progress on our merger and we look forward to
working with FirstCom and its management team to invest in building the future
of AT&T Latin America and make it a leading provider of communication services
to business customers in Latin America."
Mr. Jose Segrera, interim Chief Financial Officer added the following, "Our
network footprint continues to expand during the recent quarter. Total buildings
wired increased to 1,456 at March 31, 2000 as compared to 1,091 buildings as of
December 31, 1999 and our investment in telecommunications networks increased to
$113.3 million. In addition, FirstCom's total cash and cash equivalents at March
31, 2000 were $26.9 million that reflects the impact from the exercise of
approximately 4.0 million stock options during the quarter. As of April 30, 2000
FirstCom has total outstanding shares of 31,579,225 and vested and unvested
stock options/warrants totaling 9,329,602."
FirstCom Corporation is rapidly emerging as a premium provider of broadband
integrated Internet/data, voice and video telecommunications services to
business customers in Chile, Peru and Colombia. FirstCom operates
state-of-the-art fiber optic ATM/IP networks in these countries that provide
high-speed Internet/data connectivity that facilitates the delivery of content
to the business community. FirstCom also operates as a competitive long-distance
carrier in Chile and Peru.
<PAGE>
FIRSTCOM CORP
Consolidated Balance Sheets
(Thousands of US Dollars, except share data)
03/31/00 12/31/99
----------- --------
ASSETS (UNAUDITED)
Current assets:
Cash and cash equivalents..................... $ 26,891 $ 12,986
Restricted cash............................... 105 645
Restricted investments........................ 20,713 20,440
Accounts receivable, net ..................... 12,030 11,041
Prepaid expenses and other current assets..... 3,196 2,775
-------- --------
Total current assets........................... 62,935 47,887
Property, plant, and equipment, net 99,143 92,469
Intangible assets, net........................ 17,286 17,704
Deferred financing costs and other assets..... 14,131 14,050
-------- --------
Total assets $193,495 $172,110
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Short-term bank debt.......................... $4,488 $105
Vendor financing, current..................... 1,340 814
Lease obligations, current.................... 51 70
Accounts payable.............................. 13,520 12,653
Accrued interest.............................. 8,954 3,716
Other accrued expenses........................ 1,600 5,334
Deferred income taxes......................... 302 302
Other current liabilities..................... 2,600 1,220
-------- --------
Total current liabilities...................... 32,855 24,214
Senior notes, net............................. 133,438 133,197
Long-term bank debt........................... 509 2,008
Vendor financing.............................. 5,451 4,050
Lease obligations, less current portion....... 146 142
Deferred income taxes......................... 2,134 2,228
Other Liabilities............................. 840 239
-------- --------
Total liabilities.............................. 175,373 166,078
Minority interest.............................. 3,033 3,012
Redeemable Preferred Stock, $.001 par value,
authorized 10,000,000 shares, issued
and outstanding 1,396,654 and 1,345,507
shares as of March 31, 2000
and December 31, 1999, respectively........... 12,123 11,720
Stockholders' equity (deficit)
Common stock, $.001 par value,
authorized 50,000,000 shares,
issued and outstanding 30,890,528 and
26,858,526 shares as of March 31, 2000 and
December 31, 1999, respectively.............. 30 27
Additional paid in capital.................... 89,852 68,476
Warrants...................................... 26,737 26,737
Accumulated deficit........................... (113,415) (95,057)
Cumulative translation adjustments............ (238) (238)
-------- --------
2,966 (55)
Shareholder loans............................. 0 (8,645)
-------- --------
Total stockholders' equity (deficit)........... 2,966 (8,700)
-------- --------
Total liabilities and
stockholders' equity (deficit)................ $193,495 $172,110
======== ========
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FIRSTCOM CORP
Consolidated Statements of Operations
(Thousands of US Dollars, except share data)
THREE MONTHS ENDED MARCH 31,
----------------------------
2000 1999
----------- -----------
(UNAUDITED) (UNAUDITED)
Revenues:
Long Distance........................... $6,650 $6,024
Internet and data....................... 5,100 2,257
-------- --------
11,750 8,281
Operating expenses:
Cost of revenues: 5,309 6,028
Selling, general and administrative..... 10,056 4,345
Non-cash compensation and
Consulting expenses.................... 57 82
Depreciation and amortization........... 2,936 893
Merger expense.......................... 6,137 -
-------- --------
24,495 11,348
Loss from operations...................... (12,745) (3,067)
Interest expense.......................... (5,854) (4,504)
Interest income........................... 392 800
Other income/(expense), net............... 270 (378)
-------- --------
Net loss before income taxes and
minority interest expense ($17,938) ($7,149)
Income taxes.............................. 17 -
-------- --------
Net Loss.................................. ($17,955) ($7,149)
========== ==========
Net basic and diluted loss per share...... ($0.61) ($0.37)
========== ==========
Weighted average common shares outstanding 29,660,707 19,115,555
========== ==========
EBITDA $ (9,809) $ (2,174)
========== ==========
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<PAGE>
FIRSTCOM CORP
Consolidated Statements of Cash Flow
(Thousands of US Dollars, except share data)
THREE MONTHS ENDED MARCH 31,
----------------------------
2000 1999
----------- -----------
(UNAUDITED) (UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss..................................... ($17,955) ($7,149)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization expense....... 2,936 893
Amortization of deferred financing costs and 432 357
original issue discounts....................
Accrued income on restricted investments.... (271) (542)
Capitalized interest related to network 0 (1,532)
construction................................
Non-cash compensation and consulting expense 5,212 82
Changes in operating assets and liabilities:
Accounts receivable......................... (989) (152)
Prepaid expenses and other current assets... (418) (518)
Other assets................................ (118) 159
Accounts payable and accrued expenses....... 2,371 4,420
Other current liabilities................... 1,873 540
-------- --------
Net cash used in operating activities........ (6,927) (3,442)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of telecommunications network...... (9,346) (12,072)
Reduction of restricted cash................ 539 14,572
Acquisition of FirstCom Colombia, net....... -- (4,936)
-------- --------
Net cash used in investing activities........ (8,807) (2,436)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of Shareholder Loans.............. 8,674 --
Net proceeds from vendor financing.......... 2,764 178
Exercise of stock options................... 16,169 19
Payments under leasing obligations. (15) (37)
Net change in bank debt and
promissory notes........................... 2,047 --
-------- --------
Net cash provided by financing activities.... 29,639 160
-------- --------
Net increase (decrease) in cash and cash
equivalents.................................. 13,905 (5,718)
-------- --------
Cash and cash equivalents at
beginning of year........................... 12,986 8,892
-------- --------
Cash and cash equivalents at end of period... $26,891 $3,174
======== ========
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<PAGE>
FirstCom Corporation
A summary of key metrics as of 03/31/00 follows (unaudited):
Chile Peru Colombia Corporate Total
-------- -------- -------- ---------- -------
Network Installation
Route Kilometers 306 1,263 848 2,417
Fiber Kilometers 4,743 32,907 17,283 54,933
ATM Nodes Installed 5 23 5 33
Buildings Wired 225 441 790 1,456
Long Distance
Switches 2 1 - 3
Teleports 1 2 - 3
Operating Indicators
Employees 276 284 164 17 741
Ports Sold:
Dedicated
Internet 482 525 57 1,064
Data 977 387 1,954 3,318
Customers:
Dedicated Internet
Access Customers 482 525 57 1,064
Data Transmission
Customers 540 66 183 789
Dial-Up Internet
Access Customers 4,535 - 4,535
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: The foregoing statements involve known and unknown risks and uncertainties
that may cause the Company's actual results or outcomes to be materially
different from those anticipated and discussed herein. The matters discussed in
this press release contain forward-looking statements that involve risks and
uncertainties, including but not limited to economic, competitive, governmental
and technological factors detailed in the Company's filings with the Securities
and Exchange Commission which readers are urged to read carefully in assessing
the forward looking statements contained herein.
Investors and security holders are advised to read the preliminary proxy
statement regarding the pending merger between FirstCom Corporation and AT&T
Latin America, because it contains important information. Such proxy statement
has been filed with the Securities and Exchange Commission by FirstCom
Corporation, and security holders may obtain a free copy of the proxy statement
and other documents filed by FirstCom Corporation at the Securities and Exchange
Commission's web site at www.sec.gov. The proxy statement and such other
documents may also be obtained by directing such request to FirstCom
Corporation, 220 Alhambra Circle, Coral Gables, Florida 33134, attention:
General Counsel, (305) 448-4422. Members of the Board of Directors of FirstCom
Corporation are Patricio E. Northland, George Cargill, Andrew Hulsh and David
Kleinman. As of the date hereof, there are no other "participants in the
solicitation," within the meaning of Rule 14a-12 under the Securities Exchange
Act of 1934, as amended.
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