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Exhibit 99
CONTACT: Mark Tubb
Vice President, Investor Relations
813-829-2408
[email protected]
Alan Hill
Director, Public Relations
813-829-4409
[email protected]
INTERMEDIA COMMUNICATIONS ANNOUNCES
THIRD QUARTER RESULTS
TAMPA, FL - OCTOBER 26, 2000 - Intermedia Communications Inc. (Nasdaq: ICIX)
today announced revenue of $258.8 million for the third quarter ending September
30, 2000. Consolidated EBITDA for the quarter was negative $18.3 million,
including EBITDA losses of $17.8 million contributed by Digex.
"We continued our track record of providing leading edge service offerings
during the quarter as we rolled out several new products and enhancements,
including Multilink Frame Relay (MFR) and Inverse Multiplexing for ATM (IMA), as
well as IntermediaOne, our newly expanded integrated voice, Internet access and
data communications platform for businesses," said David C. Ruberg, Intermedia's
chairman, president and chief executive officer. Ruberg added, "In addition to
continuing to innovate and add value to the products and services we offer our
customers, we've also been very focused on activities related to the WorldCom
merger, which is moving forward as expected."
Intermedia's chief financial officer Robert M. Manning said, "We continued to
see solid growth in the third quarter from our data and systems integration
businesses, which contributed to our strong quarter over quarter growth and
results."
SUMMARY OF THIRD QUARTER 2000 RESULTS
Data, Internet and Web Hosting
Data, Internet and Web Hosting services revenue for the third quarter grew by
$9.9 million sequentially to $139.7 million and was up 49.4% percent from $93.5
million in the year ago period.
Intermedia added eight Frame/ATM switches in the third quarter for a total of
207 data switches in operation. Network to Network Data Interconnections (NNIs)
increased by 22 to 1,057.
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Digex continued its solid growth, with third quarter revenue totaling $46.5
million compared with normalized revenue of $37.2 million in the second quarter
and $16.1 million in the third quarter last year.
Local Access and Voice
Local Access and Voice revenues for the third quarter were $78.1 million.
Results for the third quarter reflected lower reciprocal compensation rates
announced in the second quarter.
During the third quarter, Intermedia installed 31,422 access line equivalents,
all on-switch, bringing the total lines in service at the end of the period to
637,192. At the end of the third quarter, 92 percent of lines in service were
on-switch, slightly higher than the second quarter and up from 85 percent
reported in the year ago period.
Intermedia's Advanced Building Networks (ABN) unit increased its portfolio of
revenue ready buildings to 786 buildings and total square footage to
approximately 217.5 million. ABN has deployed DSLAMs that cover 302 of these
buildings in 19 markets.
Systems Integration
Systems Integration revenue for the third quarter was $40.9 million, an increase
of 11 percent from $36.9 million reported in the second quarter and up eight
percent from $37.7 million in the year ago period.
EBITDA consists of earnings before interest and other income, deferred
compensation, income taxes, depreciation, amortization and charges for
in-process R & D and business restructuring, integration and other expenses.
EBITDA does not represent funds available for management's discretionary use and
is not intended to represent cash flow from operations. EBITDA should not be
considered as an alternative to net income (loss) as an indicator of the
Company's operating performance or to cash flows as a measure of liquidity. In
addition, EBITDA is not a term defined by generally accepted accounting
principles, and, as a result, the measure of EBITDA presented herein may not be
comparable to similarly titled measures used by other companies.
Statements contained in this news release regarding expected financial results
and other planned events are forward-looking statements, subject to
uncertainties and risks, including, but not limited to, the demand for
Intermedia's services and the ability of the Company to successfully implement
its strategies, each of which may be impacted, among other things, by economic,
competitive or regulatory conditions. These and other applicable risks are
summarized under the caption "Risk Factors" in the Company's Form 10-K Annual
Report for its fiscal year ended December 31, 1999 and are updated periodically
through the filing of reports and registration statements with the Securities
and Exchange Commission.
Intermedia Communications is dedicated to providing fully integrated next
generation data-centric solutions to the complex communications needs of
business and government customers in major U.S. markets. Intermedia is among the
largest independent Competitive Local Exchange Carriers and is among the top
four frame relay providers, a leading systems integration provider, a tier-one
Internet Service Provider and the nation's largest provider of multi-tenant
services. Intermedia is also a majority owner of Digex, a leading provider of
managed Web and application hosting services for some of the world's leading
companies that rely on the Internet as a critical business tool.
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Intermedia entered into a definitive merger agreement with WorldCom on September
1, 2000. WorldCom is a preeminent global communications company for the digital
generation, operating in more than 65 countries.
INTERNET USERS: Intermedia news releases, investor contacts and other useful
information are available on Intermedia's Web site at www.intermedia.com. To
receive news releases by e-mail or to request that information be mailed to you,
please visit the Investor Relations section of the Web site, and go to the
"Request Information" link.
# # #
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INTERMEDIA COMMUNICATIONS INC.
Financial Highlights
(Unaudited)
(In thousands, except share and other data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------- -----------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues:
Local Access and Voice $ 78,137 $ 103,405 $ 267,401 $ 307,237
Data, Internet and Web Hosting 139,746 93,517 384,075 256,852
Integration services 40,867 37,744 116,391 93,188
------------ ------------ ------------ ------------
Total revenues 258,750 234,666 767,867 657,277
Expenses:
Network operations 100,485 96,113 283,241 284,017
Facilities administration and maintenance 49,020 26,872 130,504 72,678
Cost of goods sold 24,765 23,850 80,180 59,155
Selling, general and administrative 102,760 74,973 347,944 203,292
Depreciation and amortization 121,619 80,951 328,124 226,692
Deferred compensation 2,640 607 7,351 704
Business restructuring, integration and
other charges -- 5,510 9,362 14,349
------------ ------------ ------------ ------------
Total operating expenses 401,289 308,876 1,186,706 860,887
------------ ------------ ------------ ------------
Loss from operations (142,539) (74,210) (418,839) (203,610)
Other income (expense):
Interest expense (63,466) (70,106) (200,745) (201,508)
Gain on sale of Digex stock -- -- 864,321 --
Interest and other income 6,290 8,940 37,115 29,248
------------ ------------ ------------ ------------
Net income (loss) before minority interest,
income taxes, and extraordinary item (199,715) (135,376) 281,852 (375,870)
Benefit (provision) for income taxes 5,638 -- (19,978) --
------------ ------------ ------------ ------------
Net income (loss) before minority interest
and extraordinary item (194,077) (135,376) 261,874 (375,870)
Minority interest in net loss of subsidiary 15,658 2,608 37,039 2,608
------------ ------------ ------------ ------------
Net income (loss) before extraordinary item (178,419) (132,768) 298,913 (373,262)
Extraordinary gain (loss) on early retirement
of debt, net of tax (192) -- 19,669 --
------------ ------------ ------------ ------------
Net income (loss) (178,611) (132,768) 318,582 (373,262)
Preferred stock dividends and accretions (31,189) (23,337) (88,882) (68,786)
------------ ------------ ------------ ------------
Net income (loss) attributable to common
stockholders $ (209,800) $ (156,105) $ 229,700 $ (442,048)
============ ============ ============ ============
Net income (loss) per common share:
Net (loss) attributable to common stockholders
before restructuring, gain on sale of
Digex stock, and extraordinary item $ (3.88) $ (2.97) $ (12.09) $ (8.54)
Gain on sale of Digex stock -- -- 16.20 --
Charge for business restructuring, integration
and other charges -- (0.11) (0.17) (0.29)
------------ ------------ ------------ ------------
Basic net income (loss) per common share
before extraordinary item $ (3.88) $ (3.08) $ 3.94 $ (8.83)
Extraordinary item -- -- 0.37 --
------------ ------------ ------------ ------------
Basic net income (loss) per common share $ (3.88) $ (3.08) $ 4.31 $ (8.83)
Diluted net income (loss) per common share
before extraordinary item $ (3.88) $ (3.08) $ 3.18 $ (8.83)
Extraordinary item -- -- 0.25 --
------------ ------------ ------------ ------------
Diluted net income (loss) per common share $ (3.88) $ (3.08) $ 3.43 $ (8.83)
Shares used in computing basic and diluted
net Income (loss) per share:
Basic 54,107,207 50,739,106 53,354,946 50,038,881
Diluted 54,107,207 50,739,106 79,457,966 50,038,881
EBITDA (1) $ (18,280) $ 12,858 $ (74,002) $ 38,135
</TABLE>
Operating Data:
Data, Internet and Web Hosting Assets (2) September 30, 2000 June 30, 2000
------------------ -------------
Web hosting servers 3,914 3,647
Data switches in operation 207 199
NNI connections 1,057 1,035
Access and Voice Assets (2)
ABN Revenue Ready Buildings (3) 786 684
Voice switches in operation 29 29
Access line equivalents 637,192 605,770
Employees 5,788 5,673
(1) EBITDA before certain charges consists of earnings (net loss before minority
interest) before interest expense, interest and other income, income taxes,
depreciation, amortization, charges for in-process R&D and business
restructuring and integration expenses, and deferred compensation. EBITDA
before certain charges does not represent funds available for management's
discretionary use and is not intended to represent cash flow from
operations. EBITDA before certain charges should not be considered as an
alternative to net income (loss) as an indicator of the Company's operating
performance or to cash flows as a measure of liquidity. In addition, EBITDA
before certain charges is not a term defined by generally accepted
accounting principles, and, as a result, the measure of EBITDA before
certain charges presented herein may not be comparable to similarly titled
measures used by other companies.
(2) Amounts reflected in the table are based upon information contained in the
Company's operating records.
(3) Buildings with license agreements that either have an installed multi-tenant
full service platform, or are located in an Intermedia switch city and
service area.
