Allied Riser Communications ('ARC') Reports 20% Revenue Growth in First Quarter

Apr 17, 2001, 01:00 ET from Allied Riser Communications Corporation

    DALLAS, April 17 /PRNewswire/ --
 Allied Riser Communications Corp. (Nasdaq: ARCC), the pioneer and market
 leader in providing innovative, in-building, high-speed broadband data
 services and applications to small- and medium-sized businesses (SMBs), today
 announced substantial sequential revenue growth during the first quarter ended
 March 31, 2001.
     Revenue for the quarter ended March 31, 2001, was $7,929,000, compared to
 revenue of $6,599,000 in the fourth quarter of 2000, a 20-percent sequential
 increase, and an over 480-percent increase compared to the same period last
 year.  Revenue for the first quarter of 2000 was $1,358,000.
     "I am pleased with our first quarter results in light of the continuing
 economic difficulties experienced by companies in every sector of the
 economy," said Jerry Dinsmore, ARC's president and chief executive officer.
 "I am encouraged that we were able to meet the low end of our previous
 sequential revenue growth guidance of 20-percent for the quarter, while at the
 same time being able to reduce both our selling and general and administrative
 expenses by 30-percent, with only a partial impact of the February (reduction
 in force) on the quarter's results."
     The net income (loss) for the first quarter of 2001 was $(43,310,000),
 compared with $(45,098,000) for the quarter ended December 31, 2000, and
 $(37,025,000) in the quarter ended March 31, 2000.  Earnings before net
 interest, taxes, depreciation and amortization (EBITDA) for the quarter ended
 March 31, 2001, were negative $30,427,000 compared with negative $34,532,000
 for the quarter ended December 31, 2000, and a negative $31,438,000 for the
 quarter ended March 31, 2000.
     ARC has scheduled a conference call for Thursday, April 26, 11:00 a.m. EDT
 to discuss the first quarter results in greater detail.  On the call, ARC's
 senior management team will also discuss the outlook for the remainder of the
 year and some of the initiatives currently underway and planned for the future
 of the Company.
     In addition, a live Web cast of next Thursday's conference call will be
 available via ARC's Website.  To gain access, visit the company's website at
 www.arcbroadband.com.
 
     About Allied Riser Communications
     ARC is the pioneer in delivering reliable and innovative, 'first-mile'
 broadband services and applications that enable small- and medium-sized
 business owners to concentrate on running their companies, while leveraging
 ARC's expertise to meet their communications needs.  ARC designs, constructs,
 deploys, and manages high-speed, broadband networks inside commercial office
 buildings located in major North American markets.  Dallas-based ARC combines
 a balance of real estate and technology expertise with an understanding of
 customers' specific business communication needs to provide bundled data
 communications solutions.  For more information, please visit
 http://www.arcbroadband.com.
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995:
     Some of the statements contained in this release that are not historical
 facts and may be deemed to contain forward-looking statements, including but
 not limited to statements regarding overall market demand for market
 acceptance of the Company's services, the intention to deploy data networks or
 services in additional buildings or markets and the timing and breadth of
 penetration in each building or market.  Actual results may differ materially
 from those anticipated in any forward-looking statements as a result of
 certain risks and uncertainties, including, without limitation, the intense
 competition for the Company's service offerings, dependence on growth in
 demand for the Company's services, ability to manage growth of our operations,
 the ability to raise additional capital and other risks and uncertainties
 detailed in the Company's Securities and Exchange Commission filings.
 Prospective investors are cautioned not to place undue reliance on such
 forward-looking statements.  The Company disclaims any obligation to update
 any of the forward-looking statements contained herein to reflect future
 events or developments.
 
 
            ALLIED RISER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
                      (In thousands except per share data)
 
                                                    Three Months Ended
                                                Mar. 31,         Mar. 31,
                                                  2000             2001
     Statement of Operations Data:
     Network Services Revenue                      $953           $5,738
     Valued Added Services Revenue                  405            2,191
     Total Revenue                                1,358            7,929
     Operating Expenses:
       Network operations                         5,378           18,543
       Cost of Valued Added Services                302            1,411
       Selling expense                           12,722            7,055
       General and administrative expenses       14,394           11,347
       Depreciation and amortization              5,044           11,583
     Amortization of deferred compensation        4,712              679
         Total operating expenses                42,552           50,618
     Operating Income (Loss)                    (41,194)         (42,689)
     Other Income (Expense):
       Interest expense                            (462)          (3,700)
       Interest income                            4,631            3,743
       Other income, net                            ---             (664)
         Total other income (expense)             4,169             (621)
     Net Income (Loss) Before Income Taxes      (37,025)         (43,310)
     Provision For Income Taxes                     ---              ---
     Net Income (Loss)                         $(37,025)        $(43,310)
     Net Income (Loss) Per Common Share           $(.69)           $(.75)
     Weighted Average Number Of Shares
     Outstanding                                 53,318           58,121
     Other Data:
       EBITDA (A)                              $(31,438)        $(30,427)
       Capital expenditures                     $27,178           $6,381
 
 
                                             Dec. 31, 2000    Mar. 31, 2001
     Selected Balance Sheet Data:
       Cash, cash equivalents and
        short term investments                 $241,561         $195,275
       Property and equipment, net              182,442          182,180
       Total assets                             589,703          537,834
       Total capital lease obligations
        and other debt                           74,232           70,093
       Convertible debentures (7.5%
        interest; payable in stock or cash)     150,000          150,000
     Total stockholders' equity                 326,530          284,732
 
     (A)  As used in the table above, EBITDA consists of net loss excluding
          net interest, income taxes, depreciation and amortization.  EBITDA
          does not reflect our non-cash expenses, which we expect will
          increase considerably as we deploy our infrastructure.  We believe
          that because EBITDA is a measure of financial performance that it is
          useful as an indicator of a company's ability to fund its operations
          and to service or incur debt.  EBITDA is not a measure calculated
          under generally accepted accounting principles.  Other companies may
          calculate EBITDA differently from us.  It is not an alternative to
          operating income as an indicator of our operating performance or an
          alternative to cash flows from operating activities as a measure of
          liquidity and these other measures should be considered as well.
 
 

SOURCE Allied Riser Communications Corporation
    DALLAS, April 17 /PRNewswire/ --
 Allied Riser Communications Corp. (Nasdaq: ARCC), the pioneer and market
 leader in providing innovative, in-building, high-speed broadband data
 services and applications to small- and medium-sized businesses (SMBs), today
 announced substantial sequential revenue growth during the first quarter ended
 March 31, 2001.
     Revenue for the quarter ended March 31, 2001, was $7,929,000, compared to
 revenue of $6,599,000 in the fourth quarter of 2000, a 20-percent sequential
 increase, and an over 480-percent increase compared to the same period last
 year.  Revenue for the first quarter of 2000 was $1,358,000.
     "I am pleased with our first quarter results in light of the continuing
 economic difficulties experienced by companies in every sector of the
 economy," said Jerry Dinsmore, ARC's president and chief executive officer.
 "I am encouraged that we were able to meet the low end of our previous
 sequential revenue growth guidance of 20-percent for the quarter, while at the
 same time being able to reduce both our selling and general and administrative
 expenses by 30-percent, with only a partial impact of the February (reduction
 in force) on the quarter's results."
     The net income (loss) for the first quarter of 2001 was $(43,310,000),
 compared with $(45,098,000) for the quarter ended December 31, 2000, and
 $(37,025,000) in the quarter ended March 31, 2000.  Earnings before net
 interest, taxes, depreciation and amortization (EBITDA) for the quarter ended
 March 31, 2001, were negative $30,427,000 compared with negative $34,532,000
 for the quarter ended December 31, 2000, and a negative $31,438,000 for the
 quarter ended March 31, 2000.
     ARC has scheduled a conference call for Thursday, April 26, 11:00 a.m. EDT
 to discuss the first quarter results in greater detail.  On the call, ARC's
 senior management team will also discuss the outlook for the remainder of the
 year and some of the initiatives currently underway and planned for the future
 of the Company.
     In addition, a live Web cast of next Thursday's conference call will be
 available via ARC's Website.  To gain access, visit the company's website at
 www.arcbroadband.com.
 
     About Allied Riser Communications
     ARC is the pioneer in delivering reliable and innovative, 'first-mile'
 broadband services and applications that enable small- and medium-sized
 business owners to concentrate on running their companies, while leveraging
 ARC's expertise to meet their communications needs.  ARC designs, constructs,
 deploys, and manages high-speed, broadband networks inside commercial office
 buildings located in major North American markets.  Dallas-based ARC combines
 a balance of real estate and technology expertise with an understanding of
 customers' specific business communication needs to provide bundled data
 communications solutions.  For more information, please visit
 http://www.arcbroadband.com.
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995:
     Some of the statements contained in this release that are not historical
 facts and may be deemed to contain forward-looking statements, including but
 not limited to statements regarding overall market demand for market
 acceptance of the Company's services, the intention to deploy data networks or
 services in additional buildings or markets and the timing and breadth of
 penetration in each building or market.  Actual results may differ materially
 from those anticipated in any forward-looking statements as a result of
 certain risks and uncertainties, including, without limitation, the intense
 competition for the Company's service offerings, dependence on growth in
 demand for the Company's services, ability to manage growth of our operations,
 the ability to raise additional capital and other risks and uncertainties
 detailed in the Company's Securities and Exchange Commission filings.
 Prospective investors are cautioned not to place undue reliance on such
 forward-looking statements.  The Company disclaims any obligation to update
 any of the forward-looking statements contained herein to reflect future
 events or developments.
 
 
            ALLIED RISER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
                      (In thousands except per share data)
 
                                                    Three Months Ended
                                                Mar. 31,         Mar. 31,
                                                  2000             2001
     Statement of Operations Data:
     Network Services Revenue                      $953           $5,738
     Valued Added Services Revenue                  405            2,191
     Total Revenue                                1,358            7,929
     Operating Expenses:
       Network operations                         5,378           18,543
       Cost of Valued Added Services                302            1,411
       Selling expense                           12,722            7,055
       General and administrative expenses       14,394           11,347
       Depreciation and amortization              5,044           11,583
     Amortization of deferred compensation        4,712              679
         Total operating expenses                42,552           50,618
     Operating Income (Loss)                    (41,194)         (42,689)
     Other Income (Expense):
       Interest expense                            (462)          (3,700)
       Interest income                            4,631            3,743
       Other income, net                            ---             (664)
         Total other income (expense)             4,169             (621)
     Net Income (Loss) Before Income Taxes      (37,025)         (43,310)
     Provision For Income Taxes                     ---              ---
     Net Income (Loss)                         $(37,025)        $(43,310)
     Net Income (Loss) Per Common Share           $(.69)           $(.75)
     Weighted Average Number Of Shares
     Outstanding                                 53,318           58,121
     Other Data:
       EBITDA (A)                              $(31,438)        $(30,427)
       Capital expenditures                     $27,178           $6,381
 
 
                                             Dec. 31, 2000    Mar. 31, 2001
     Selected Balance Sheet Data:
       Cash, cash equivalents and
        short term investments                 $241,561         $195,275
       Property and equipment, net              182,442          182,180
       Total assets                             589,703          537,834
       Total capital lease obligations
        and other debt                           74,232           70,093
       Convertible debentures (7.5%
        interest; payable in stock or cash)     150,000          150,000
     Total stockholders' equity                 326,530          284,732
 
     (A)  As used in the table above, EBITDA consists of net loss excluding
          net interest, income taxes, depreciation and amortization.  EBITDA
          does not reflect our non-cash expenses, which we expect will
          increase considerably as we deploy our infrastructure.  We believe
          that because EBITDA is a measure of financial performance that it is
          useful as an indicator of a company's ability to fund its operations
          and to service or incur debt.  EBITDA is not a measure calculated
          under generally accepted accounting principles.  Other companies may
          calculate EBITDA differently from us.  It is not an alternative to
          operating income as an indicator of our operating performance or an
          alternative to cash flows from operating activities as a measure of
          liquidity and these other measures should be considered as well.
 
 SOURCE  Allied Riser Communications Corporation