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
American Communications Services, Inc.
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(Exact name of registrant as specified in its charter)
State of Delaware 0-25314 52-1947746
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File No.) Identification No.)
131 National Business Parkway
Annapolis Junction, Maryland 20701
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(Address of Principal Executive (Zip Code)
Offices)
(301) 617-4200
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(Registrant's telephone number,
including area code)
<PAGE>
Item 5. Other Events.
On November 5, 1997, the registrant distributed the press release filed
herewith as Exhibit 99.1 announcing financial results for the quarter ended
September 30, 1997.
Item 7. Financial Statements and Exhibits.
(c)
Exhibit Number Reference
(99) Additional Exhibits
Press Release dated November 5, 1997 . . . . . . ..Exhibit 99.1
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
AMERICAN COMMUNICATIONS SERVICES, INC.
By
Date: November 7, 1997 /s/ Riley M. Murphy
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Riley M. Murphy, Executive Vice President
Legal and Regulatory Affairs and Secretary
<PAGE>
EXHIBIT INDEX
EXHIBIT NO.
99.1 Press Release dated November 5, 1997
<PAGE>
EXHIBIT 99.1
ACSI REPORTS STRONG IMPROVEMENT IN ACCESS LINES,
REVENUE AND EBITDA
ANNAPOLIS JUNCTION, MD, November 5, 1997 - American Communications Services,
Inc. ( Nasdaq/NM: ACNS) today announced record revenue and access line growth
for the quarter ended September 30, 1997.
Net revenue for the quarter totaled $16.1 million, an increase of 39% over the
previous quarter, and a 471% improvement compared with $2.8 million for the
quarter ended September 30, 1996. Net loss to common stockholders for the
quarter was $32.5 million ($0.90 per share), compared with $14.6 million ($2.18
per share) for the same period a year ago. Earnings before interest, taxes,
depreciation and amortization, and non-cash compensation (EBITDA) for the third
quarter was ($12.7) million, a 7% improvement over the prior quarter.
Revenue results for the third quarter were driven by increased distribution
success, new product introductions and a continuing focus on customer care
initiatives. Access line sales for the third quarter were 19,217, a 118%
increase over the previous quarter, driving cumulative access line sales to a
record total of 28,394 as of September 30, 1997. ACSI's Data/Internet revenue
contribution also produced strong third quarter results, as it represented $5.3
million of total revenue for the period.
Jack Reich, President and Chief Executive Officer, said, "I am extremely pleased
with our overall financial and operational performance. ACSI's success in
offering local services in our target markets clearly demonstrates strong
customer demand for choice and innovative product offerings. On the data front,
the launch of e*spire, an integrated data service offering, leverages ACSI's
significant infrastructure and access capabilities, and further defines our
marketing focus on integrated customer solutions."
ACSI's EBITDA performance improved for the third consecutive quarter. Commenting
on this, Reich added, "As targeted, we were able to deliver sequential quarterly
EBITDA improvement as we continue to implement strict cost control programs,
along with the ongoing migration of our customer base to higher margin
platforms."
Revenue for the nine months ended September 30, 1997, totaled $35.8 million, up
from $5.2 million for the nine months ended September 30, 1996. Net loss to
common stockholders for the nine months was $83.2 million ($3.45 per share),
compared with $34.5 million ($5.22 per share) for the nine months ended
September 30, 1996. EBITDA for the first nine months of 1997 was ($40.8) million
compared with ($16.5) million for the nine months ended September 30, 1996.
On October 16, 1997, the Company completed a private placement of $150 million
of 12 3/4% Junior Redeemable Preferred Stock which yielded net proceeds
of approximately $146.3 million. Dave Piazza, Chief Financial Officer,
stated, "These proceeds, in addition to the $247 million of net proceeds
previously raised this year, provide ACSI with greater financial
flexibility, thereby allowing us to continue to drive performance
and increase shareholder value."
Operationally, buildings connected totaled 1,239, a 133% increase over the same
period last year, and a 14% increase over the prior quarter. Voice grade
equivalent (VGE) circuits grew to 989,285 as of September 30, 1997, representing
a 269% increase over September 30, 1996, and a 12% sequential quarterly
improvement.
ADDITIONAL HIGHLIGHTS
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- Launched e*spire, an integrated data solution
- Expanded customer base through referral arrangements with two
Florida-based Internet service providers, TheNet Digital Services, Inc. and
NetRunner, Inc.
- Grew direct sales force to 178 and increased our agent program to 85,
which further enhanced ACSI's distribution excellence
American Communications Services, Inc. provides an alternative to the incumbent
local telephone companies, offering dedicated access, local dial tone and
advanced data and networking solutions to business customers in markets
primarily throughout the southern half of the United States. The Company manages
and operates its own local fiber optic networks.
Certain statements regarding the development of the Company businesses, the
markets for the Company's services and products, the Company's anticipated
capital expenditures, anticipated EBITDA and other statements contained herein
regarding matters that are not historical facts, are forward-looking statements
(as such term is defined in the Private Securities Litigation Reform Act of
1995). Because such statements include risks and uncertainties associated with
rapid expansion of operations, the impact of restriction under the Company's
financial instruments, effects of competition and regulation, and other factors
commonly affecting the telecommunications industry, actual results may differ
materially from those expressed or implied by such forward-looking statements.
For more information, contact http://www.acsi.net.
AMERICAN COMMUNICATIONS SERVICES, INC.
Financial Highlights (Unaudited)
(in thousands, except per share data and statistical data)
Three Months Ended Nine Months Ended
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Statement of Operations 9/30/97 9/30/96 9/30/97 9/30/96
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Revenues $16,055 $2,812 $35,847 $5,239
Cost of Service 10,642 3,709 28,668 6,052
Selling, General
& Administrative 18,156 5,674 47,975 16,060
Non-Cash Compensation 500 174 1,324 1,706
Depreciation and Amortization 6,621 2,401 16,077 4,717
Loss From Operations (19,864) (9,146) (58,197) (23,296)
Interest Income/(Expense), net (10,100) (4,551) (21,443) (8,560)
Net Loss Before
Minority Interest (29,964) (13,697) (79,640) (31,856)
Minority Interest 0 96 0 353
Net Loss (29,964) (13,601) (79,640) (31,503)
Preferred Stock
Dividends/Accretion 2,489 1,007 3,584 3,024
Net Loss to Common Stockholders (32,453) (14,608) (83,224) (34,527)
Net Loss per Common Share (0.90) (2.18) (3.45) (5.22)
Average Number of
Common Shares Outstanding 36,229 6,704 24,140 6,614
EBITDA (12,743) (6,475) (40,796) (16,520)
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Selected Statistical Data
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Networks in Operation 32 19
Resale Markets 32 -
Access Lines 28,394 -
Total Buildings Connected 1,239 532
Route Miles 977 543
Fiber Miles 85,976 32,774
VGE's 989,285 267,894
Voice Switches Installed 9 -
Data Switches Installed 44 -
Full-Time Employees 669 272
AMERICAN COMMUNICATIONS SERVICES, INC.
Financial Highlights (Unaudited)
($ in thousands)
Condensed Balance Sheets 9/30/97 9/30/96
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Current Assets 239,264 109,278
Net Property, Plant & Equipment 227,006 96,477
Other 34,335 8,785
Total Assets 500,605 214,540
Current Liabilities 24,622 13,280
Long-Term Liabilities 449,773 204,721
Total Liabilities 474,395 218,001
Redeemable Preferred Stock and Options 53,793 2,155
Minority Interest 0 64
Stockholders Equity (Deficit) (27,583) (5,680)
Total Liabilities
& Stockholder's Equity (Deficit) 500,605 214,540
