Broadwing Corporation publie ses résultats financiers pour le quatrième trimestre et l'exercice 2004.
Presse économique
COLUMBIA, Md.--(BUSINESS WIRE)—16 février 2005--La société annonce un essor des ventes et des marges; Le chiffre d'affaires consolidé s'élève à 672,3 millions USD pour 2004; Le chiffre d'affaires consolidé s'élève à 219,9 millions USD pour le quatrième trimestre.
(BW)(MD-BROADWING)(BWNG) Broadwing Corporation Reports Financial Results for the Fourth Quarter and Year End 2004
Business Editors
COLUMBIA, Md.--(BUSINESS WIRE)--Feb.16, 2005--Company Reports Sales and Margin Momentum; Consolidated Revenue Reaches $672.3 Million for 2004; Consolidated Revenue Totals $219.9 Million for the Fourth Quarter
Broadwing Corporation (NASDAQ:BWNG), a leading provider of optical network communications services and solutions, today announced its fourth quarter and full year 2004 financial and operational results
Revenue for the fourth quarter ended December 31, 2004, was $219.9 million, an increase of 54% versus the same period prior year, and annual revenue of $672.3 million, an increase of 114% from the prior year. Revenue was generated primarily from sales of communications services, as well as from communications equipment sales to the U.S government. Comparisons with prior periods reflect the respective revenue contributions of the acquisitions of Broadwing Communications in July 2003 and Focal Communications in September 2004
The consolidated net loss for the fourth quarter was $43.4 million, or a loss of $0.68 per share, as compared to a reported net loss of $55.4 million, or a loss of $1.20 per share for the fourth quarter 2003. Reported net loss for fiscal 2004 was $152.2 million, or a loss of $2.86 per share, as compared with a reported net loss of $260.5 million, or a loss of $6.00 per share for fiscal year 2003. The company's reported net loss per share results are reflective of the company's 1:20 reverse stock split and subsequent 1:1 stock dividend, essentially a 1:10 reverse stock split, that was effected October 8, 2004
"This was a milestone year for Broadwing," said Dr. David Huber, Broadwing Corporation's chairman and chief executive officer. "In 2004, we completed the reorganization of our business, changed our name and stock ticker symbol, acquired Focal Communications, and expanded our market footprint. We signed new customers, increased sales with existing customers, introduced new services, and made marked improvements in both revenue and margins."
"Broadwing's financial results showed that our momentum is building and we are beginning to see a positive impact from our Focal acquisition, as well as from our continued focus on sales productivity and operating cost reductions," Dr. Huber said
Quarterly Results
In the fourth quarter of 2004, the communications services division contributed $212.2 million in revenue, a 30% increase from the prior quarter and an increase of approximately 50% over the same period in the prior year. Fourth quarter results included three months of revenue from the Focal Communications acquisition
Long-distance and local voice services revenue was $105.2 million, an increase of 67% sequentially and a 114% increase from the third quarter 2004. The increase in voice revenue was due primarily to the inclusion of a full quarter of Focal revenue, as well as to an increase in revenue from sales of voice services to carrier/wholesale customers. Revenue from data and broadband services was $107.0 million in the fourth quarter, an increase of 7% from prior quarter and 17% from the fourth quarter 2003. As a result of the incorporation of a full quarter of Focal revenue, the product groups of data/broadband and voice contributed equally to total services revenue in the fourth quarter
"Our fourth quarter results demonstrated that we continue to execute on our strategic plan," said Lynn Anderson, chief financial officer of Broadwing Corporation. We grew communications services revenue in a challenging market across product lines and customer types, both organically and via the acquisition of Focal Communications."
The Company's equipment division reported $7.7 million of revenue for the quarter from sales of communications equipment and equipment services to the U.S. government. Equipment sales from a relatively small customer base result in fluctuations in revenue and gross profit from the Company's equipment division. The fourth quarter equipment division revenue performance was particularly strong and should not be considered typical
Fourth quarter 2004 results include $0.9 million of restructuring and other charges principally related to consolidation efforts associated with the acquisition of Focal Communications
Financial Position
Cash, cash equivalents and investments were $274.4 million at December 31, 2004, a $47.3 million decrease from the prior quarter
The change in cash from last quarter included approximately $31.9 million of capital expenditures associated with network investments to support the Focal integration, growth in our voice services, and new market initiatives, such as the recently announced Converged Network, Voice over Internet Protocol (VoIP), and Media Services
Fiscal 2004 Annual Results
For fiscal year 2004, revenue was $672.3 million as compared to $314.3 million for the prior year. Fiscal year 2004 results included a full 12 months of revenue from the Broadwing Communications acquisition and four months of revenue from the Focal Communications acquisition. The communications services division contributed $658.4 million to consolidated revenue. The equipment services division generated $13.9 million in revenue from equipment sales principally to the U.S. government
Annual 2004 results included $3.9 million of restructuring and other charges principally related to consolidation efforts associated with the Broadwing Communications and Focal acquisitions
Recent Announcements
Broadwing Communications this week announced that it is finalizing the construction of its unique Converged Services Network infrastructure based on Multiprotocol Label Switching (MPLS), to enable both Layer 2 and Layer 3 Virtual Private Network (VPN) services for enterprises and carriers. On track for general availability in the second quarter of 2005, the Converged Services Network will dramatically exceed the capabilities of traditional MPLS networks. The Broadwing Converged Services Network will offer both Layer 2 and Layer 3 VPN solutions at equivalent prices, enabling customers to choose the most appropriate technology for their specific applications. Highly secure, it will also enable enterprises to connect their sites in point-to-point or any-to-any configurations, using their choice of cost-effective access protocols (Ethernet, Frame/ATM, Private Line, DSL, etc.) for all locations, thus minimizing the total cost of ownership
The Company also announced that it will enhance its Broadwing PRIorityConnect product to support Session Initiation Protocol (SIP)
Broadwing PRIorityConnect is an intra/interLATA service that allows enterprise and carrier customers to originate and terminate VoIP calls to the public switched telephone network (PSTN) via Broadwing's local and long haul voice services platform. Customers can consolidate traffic from around the country to a single location for connection to the PSTN. The addition of a SIP interface to Broadwing's service will allow customers to hand traffic to Broadwing as Internet Protocol (IP), thus eliminating the need for customers to purchase and maintain expensive voice gateways
Last month, Broadwing Communications announced it was awarded a major contract to provide MultiConnect private line services to W.W Grainger, Inc. (NYSE: GWW), a leading broad line supplier of facilities maintenance products throughout North America. Under the multi-year contract, Grainger is utilizing Broadwing's high performance, protocol agnostic MultiConnect private line service to connect several hundred Grainger locations in North America via the Broadwing network. Broadwing is providing Grainger with a secure, private and reliable Wide Area Network (WAN) solution that delivers data and voice services to Grainger's 400 U.S.
based branches
Webcast Information
In conjunction with this announcement, Broadwing will host a conference call to review its fourth quarter and year end 2004 financial results and other operational developments, today, February 16th at 5:30 PM ET. The live broadcast of the conference will be available via Broadwing's website, www.broadwing.com.
An archived audio of the conference call will be available for future reference through the Broadwing website at www.broadwing.com
About Broadwing Corporation
Broadwing Corporation, through its consolidated subsidiary Broadwing Communications, LLC, delivers innovative data, voice, and media solutions to enterprises, service providers, and government entities. Enabled by its one-of-a-kind, all-optical network and award-winning products and services, Broadwing Communications provides communications solutions with unparalleled customer focus and speed
Broadwing Corporation, via its Corvis Equipment Corporation subsidiary, also provides government agencies and service providers with advanced, scalable optical networking equipment designed to reduce the overall cost associated with building and operating optical networks. For more information, visit www.broadwing.com
Broadwing and its logo and Broadwing PRIorityConnect, are trademarks and/or service marks of Broadwing Communications, LLC, and/or Broadwing Corporation. All trademarks and service marks not belonging to Broadwing are the property of their respective owners
Investor Note Regarding Forward-Looking Statements
Statements in this press release regarding Broadwing Corporation and/or Broadwing Communications, LLC (collectively "Broadwing"), that are not statements of historical fact may include forward-looking statements, and statements regarding Broadwing's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Broadwing's actual results could differ materially from these statements
BROADWING CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
| December 31 | December 31 | December 31 | December 31 | |
| 2004 | 2003 | 2004 | 2003 | |
| (unaudited) | (unaudited) | |||
| Revenue: | ||||
| Communications services | $ 212,226 | $ 140,354 | $ 658,376 | $ 310,175 |
| Communications equipment | 7,69 | 2,187 | 13,904 | 4,139 |
| Total revenue | 219,916 | 142,541 | 672,28 | 314,314 |
| Operating expenses: | ||||
| Cost of revenue: | ||||
| Communications services | 146,624 | 104,33 | 452,822 | 231,983 |
| Communications equipment | 1,023 | 603 | 2,413 | 1,872 |
| Restructuring | -1,826 | 193 | 31,164 | |
| Total cost of revenue | 147,647 | 103,107 | 455,428 | 265,019 |
| Research and development | 2,441 | 6,96 | 14,995 | 46,802 |
| Selling, general and administrative | 73,218 | 58,974 | 255,782 | 151,735 |
| Depreciation | 31,859 | 9,988 | 56,928 | 34,529 |
| Amortization | 1,394 | 1,04 | 4,632 | 6,913 |
| Equity-based expense | 960 | 4,684 | 8,634 | 20,597 |
| Restructuring and other charges | 919 | 17,312 | 3,946 | 59,381 |
| Total operating expenses | 258,438 | 202,065 | 800,345 | 584,976 |
| Operating loss | -38,522 | -59,524 | -128,065 | -270,662 |
| Interest expense, net of capitalized | ||||
| amounts | -7,532 | -237 | -31,033 | -504 |
| Other income and expense, net | 2,912 | 4,286 | 7,161 | 10,308 |
| Net loss before minority interest | -43,142 | -55,475 | -151,937 | -260,858 |
| Minority interest | - | 92 | - | 387 |
| Net loss | $-43,142 | $ -55,384 | $ -151,937 | $ -260,471 |
| Net loss per share | $ (0.6 7) | $ (0.12) | $ (2.86) | $ (0.60) |
| Weighted average shares outstanding | 63,959 | 477,183 | 53,217 | 430,596 |
BROADWING CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
| (Unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 149,915 | $ 256,49 |
| Short-term investments | 74,764 | 27,135 |
| Trade accounts receivable, net | 94,731 | 57,385 |
| Inventories, net | 1,27 | 772 |
| Other current assets | 22,757 | 17,818 |
| Total current assets | 343,437 | 359,6 |
| Restricted cash, non-current | 13,911 | 7,032 |
| Long-term investments | 49,676 | 13,197 |
| Property and equipment, net | 286,038 | 116,588 |
| Intangible assets, net | 30,152 | 24,883 |
| Goodwill | 52,36 | - |
| Other non-current assets, net | 9,08 | 7,315 |
| Total assets | $ 784,654 | $ 528,615 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Notes payable, net of discounts, and capital | ||
| lease obligations, current portion | $ 117,324 | $ 610 |
| Accounts payable | 12,453 | 21,791 |
| Accrued expenses and other liabilities | 95,027 | 62,025 |
| Deferred revenue, current portion | 11,752 | 13,087 |
| Accrued restructuring and other charges | 8,62 | 8,485 |
| Total current liabilities | 245,176 | 105,998 |
| Notes payable, net of discounts, and capital | ||
| lease obligations, net of current portion | 52,218 | 2,5 |
| Deferred revenue, net of current portion | 13,607 | 17,684 |
| Other long-term liabilities | 18,371 | 4,763 |
| Total liabilities | 329,372 | 130,945 |
| Stockholders’ equity: | ||
| Common stock* | 679 | 493 |
| Additional paid-in capital | 3,137,928 | 2,927,838 |
| Treasury stock, 1,228,180 shares at an average | ||
| cost of $7.70 per share | -9,512 | -9,512 |
| Accumulated other comprehensive income (loss): | ||
| Unrealized investment gains (losses) | -717 | 9 |
| Accumulated deficit | (2,673,096) | (2,521,158) |
| Total stockholders’ equity | 455,282 | 397,67 |
| Total liabilities and stockholders’ equity | $ 784,654 | $ 528,615 |
(a) $0.01 per share par value; 190,000,000 authorized shares; 68,424,060 shares issued and 67,195,880 shares outstanding as of 12/31/04; 49,327,623 shares issued and 48,999,443 shares outstanding as of 12/31/03
| December 31 | December 31 | |
| 2004 | 2003 | |
| Capital expenditures | $ 84.0 | $ 12.2 |
CONTACT: Broadwing Corporation, Columbia
Dawn Benchelt, 312-895-8507
Fax: 312-895-6680
Investorinformation@broadwing.com
KEYWORD: MARYLAND
INDUSTRY KEYWORD: HARDWARE SOFTWARE NETWORKING INTERNET E-COMMERCE EARNINGS CONFERENCE CALLS
SOURCE: Broadwing Corporation
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