Focal Communications Corporation Reports Strong First Quarter Results

Telecom Segment Continues to Gain Momentum



Apr 26, 2001, 01:00 ET from Focal Communications Corporation

    CHICAGO, April 26 /PRNewswire/ -- Focal Communications Corporation
 (Nasdaq:   FCOM), a leading national broadband communications provider, today
 reported record results for its first quarter, ended March 31, 2001.  Revenue
 was $81.9 million during the first quarter of 2001, compared to revenue of
 $45.3 million during the first quarter of 2000.  Revenue for the first quarter
 of 2001 included approximately $6.0 million in non-recurring revenue.
 Excluding the non-recurring portion, revenue for the first quarter of 2001 was
 $75.9 million.  Telecom services revenue was $28.4 million and data services
 revenue was $47.5 million on a normalized basis for the first quarter of 2001.
 This compares to telecom services and data services revenue of $13.1 million
 and $32.2 million, respectively during the first quarter of 2000.
     The Company's total access lines in service were 501,029 as of March 31,
 2001, an increase of 15% over the fourth quarter of 2000.  Line installations
 in the telecom services segment represented 82% of new line installations
 during the quarter.  With this strong performance, the telecom segment now
 accounts for 44% of the total line base as of March 31, 2001, compared to 39%
 as of December 31, 2000.
     "We are pleased to announce that we had another great quarter, making this
 the 13th consecutive quarter that we have met or exceeded revenue and EBITDA
 expectations," commented Robert Taylor, president and chief executive officer
 of Focal.  "Our results this quarter demonstrate that our business is healthy
 and growing.  Momentum continues to build in our telecom services segment,
 yielding a dramatic increase in both revenue and lines."
 
     Operational Highlights
     During the quarter, the Company launched service in Baltimore, its 21st
 market.  Focal continues to roll out its Focal Internet eXchange platform
 across its markets.  During the first quarter, the Company launched Focal
 Internet eXchange service in three new markets: Seattle, Los Angeles
 and Orange County.  The Company now offers managed Internet access, colocation
 and private peering services in twelve tier-one markets.
 
     Recent Developments
     The Company announced on March 29th and April 18th that it had entered
 into regionwide interconnection agreements with BellSouth Corporation and
 Verizon Communications, Inc., respectively.  These agreements establish, among
 other provisions, inter-carrier compensation rates for traffic exchanged
 between the companies' networks in 17 states.  Focal's existing and planned
 markets that are covered under these agreements are: Boston, New York,
 Northern New Jersey, Philadelphia, Washington D.C., Northern Virginia,
 Baltimore, Atlanta and Miami.
     "We are pleased with the progress we have made dealing directly with the
 incumbents on the interconnection issues covered under these agreements,"
 commented Robert Taylor.  "These agreements provide us with a level of
 certainty for reciprocal compensation in some of our largest markets and
 highlight the fact that market-based solutions can be reached."
     Focal also recently entered into a nationwide network interconnection
 agreement with Sprint Corporation's local telephone companies.  Additionally,
 the Federal Communications Commission (FCC) recently announced a new
 nationwide reciprocal compensation transition plan for all local traffic.
 Reciprocal compensation refers to the compensation exchanged between carriers
 for handling local traffic received from one another's networks.  This plan,
 along with Focal's recent interconnection agreements with Incumbent Local
 Exchange Carriers (ILECs), has dramatically clarified the regulatory
 environment for the Company.
 
     Financial Highlights
     Revenue was $81.9 million during the first quarter of 2001, an 81%
 increase over revenue of $45.3 million during the first quarter of 2000 and a
 22% increase over revenue of $67.4 million during the fourth quarter of 2000.
 Revenue during the first quarter of 2001 included approximately $6.0 million
 in non-recurring revenue.  Excluding the non-recurring portion, revenue for
 the first quarter of 2001 was $75.9 million, an increase of 68% and 13% over
 the first quarter of 2000 and the fourth quarter of 2000, respectively.  On a
 normalized basis, telecom services revenue rose 19% to $28.4 million and data
 services revenue increased 9% to $47.5 million over the fourth quarter of
 2000.
     Earnings before interest, income taxes, depreciation and amortization
 (EBITDA) during the first quarter of 2001 was $3.8 million.  Normalized EBITDA
 for the first quarter was $(2.1) million.  Focal reported a net loss for the
 first quarter of 2001 of $33.5 million, or a net loss of $0.55 per share,
 compared to a net loss of $20.8 million, or a net loss of $0.35 per share,
 during the first quarter of 2000.
     For the second quarter of 2001, Focal expects to report revenue of
 $83-$85 million and an EBITDA loss of ($1.5) to ($2.0) million.  The Company
 is reconfirming its full year 2001 targets of revenue between
 $375-$400 million and an EBITDA margin between 0% to 5%.
 
     Selected Operational Results and Statistics
     Focal provides market specific information to provide insight into the
 life-cycle performance of its markets.  The following table presents the
 operating results for a group of Focal's mature markets for the three months
 ended March 31, 2001.  The Company's mature markets are Chicago, New York, San
 Francisco, San Jose, Oakland and Philadelphia.  The Company's EBITDA margin in
 its mature markets was 52% during the first quarter of 2001.
 
      Focal Communications Corporation Summary Results for Mature Markets
                   For the three months ended March 31, 2001
                    ($ in thousands, except lines installed)
 
                            Revenue      EBITDA(a)      EBITDA
                                                        Margin
 Lines Installed
                                                               (as of Mar. 31,
                                                                      2001)
 
     Mature Markets         $57,408      $ 29,934        52.0%       319,053
     New Markets            $24,443     $ (2,366)        (9.7)%      181,976
 
     (a)  Excludes corporate overhead expenses.
 
     Selected Statistical Information:
     The following table presents selected quarterly statistical information
 for Focal Communications Corporation.
 
                          3/31/01    12/31/00    9/30/00   6/30/00     3/31/00
 
     Lines Sold to Date   567,834     526,356   427,641    356,918    291,443
     Lines Installed
      to Date             501,029     435,272   365,016    298,983    238,697
     Estimated Telecom
      Lines as % of
      Installed Lines         44%         39%       35%        32%        29%
     ILEC Switches
      Interconnected        2,062       1,975     1,823      1,677      1,447
     Quarterly Minutes
      of Use in Billions      7.5         7.4       7.1        6.6        6.4
     Markets in Operation      21          20        20         19         18
     MSAs Served               50          49        49         48         47
     Circuit Switches
      Operational              21          20        19         16         14
     Circuit Switches Under
      Development              12           5         6          8          7
     ATM Switches Deployed     28          28        22         16          6
     Fiber Miles
      Operational          10,544       9,730     7,914      4,488        864
     Focal Customer
      Colocation Space
      in Service
      (Sqr. Ft.)          120,299     107,201   107,201     80,096     73,840
     Capital Expenditures
      ($mil)                  $22         $82       $99        $77        $52
     Employees              1,228       1,130     1,089        935        747
     Sales Force (a)          210         184       180        166        124
 
     (a)  Quota bearing sales professionals.  Does not include sales engineers
          or customer support personnel.
 
     Focal will conduct a conference call to discuss the first quarter 2001
 results at 10:00 a.m. Central Standard Time on Friday, April 27.  Investors
 can access the call by dialing 800-446-2782 or 847-413-3235 (international)
 and giving the password "Focal Communications."  An audio simulcast will be
 offered on Focal's website (www.focal.com).  To access the live streaming
 media event, go to the Investor Relations section of Focal's website and click
 on the webcast event icon.
 
     About Focal
     Focal Communications Corporation ( www.focal.com ) is a rapidly growing
 national broadband communications provider.  Headquartered in Chicago, Focal
 offers innovative voice, data and Internet infrastructure services to large
 corporations, Internet service providers, content and application service
 providers, and value-added resellers across the United States.  Focal
 currently services 21 major metropolitan markets and has announced plans to
 deploy services in a total of 24 markets, encompassing 56 metropolitan
 statistical areas nationwide.  Focal's common stock is traded on the Nasdaq
 National Market under the symbol FCOM.
 
     Statements in this press release that are not strictly historical,
 including statements as to plans, intentions, future performance, and model
 assumptions are forward-looking statements. These forward-looking statements
 are subject to numerous risks and uncertainties that could cause actual
 results to differ materially from the future results indicated, expressed or
 implied, in such forward-looking statements. Risks and uncertainties that
 could impact future events or results include the successful expansion of
 Focal's operations into new geographic markets on a timely and cost-effective
 basis; the successful introduction and expansion of new data and voice service
 offerings on a timely and cost-effective basis; Focal's ability to design,
 install, implement, and market its Internet services infrastructure; the pace
 at which new competitors enter Focal's existing and planned markets;
 competitive responses of other carriers; the execution and renewal of
 interconnection agreements with incumbent local exchange carriers on terms
 satisfactory to Focal; Focal's ability to enter into and maintain agreements
 for transport facilities and services, including Internet transit services;
 acceptance of Focal's services by new and existing customers; Focal's ability
 to attract and retain talented employees; the outcome of legal and regulatory
 proceedings regarding reciprocal compensation for Internet-related calls and
 the impact of changes in laws and regulations that govern reciprocal
 compensation; Focal's ability to raise sufficient capital on acceptable terms
 and on a timely basis; Focal's ability to obtain and maintain any required
 governmental authorizations, franchises or permits, all in a timely manner, at
 reasonable costs and on satisfactory terms and conditions; regulatory,
 legislative and judicial developments (including developments relating to
 reciprocal compensation) affecting the communications industry and our
 business; effective management of administrative, technical and operational
 issues presented by Focal's expansion plans and the ability to successfully
 provision services. Investors are directed to examine Focal's SEC filings,
 which more fully describe the risks and uncertainties associated with Focal's
 business. The Company undertakes no obligation to publicly update or revise
 any forward-looking statements whether as a result of new information, future
 events or circumstances, or otherwise.
 
     Focal Communications Corporation
 
     CONSOLIDATED STATEMENTS OF OPERATIONS
     FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2001 AND 2000
     (Dollars in thousands, except for per share data)
 
 
                                                           Three Months
                                                          Ended March 31
                                                      2001              2000
                                                           (Unaudited)
     REVENUES:
         Data Services                              $47,535           $32,190
         Telecom Services                            28,375            13,139
         Non-recurring revenue                        5,941               -
              Total Revenues                         81,851            45,329
 
     EXPENSES:
         Network Expenses                            33,323            16,334
         Selling, general and administrative         44,694            31,502
         Depreciation and amortization               22,650            10,376
         Non-cash compensation expense                1,724             1,448
     Total Operating Expenses                       102,391            59,660
 
 
     OPERATING LOSS                                 (20,540)          (14,331)
 
     OTHER INCOME (EXPENSE):
         Interest income                              1,802             5,808
         Interest expense                           (14,784)          (12,875)
         Other income                                     -               242
         Total Other Expense                        (12,982)           (6,825)
 
     LOSS BEFORE INCOME TAXES                       (33,522)          (21,156)
 
     INCOME TAX (EXPENSE) BENEFIT                       -                 331
 
     NET LOSS                                      $(33,522)         $(20,825)
 
     EBITDA                                          $3,834           $(2,507)
 
         Basic and diluted net loss per
          share of common stock                      ($0.55)           ($0.35)
 
         Basic weighted average number of
          shares of common stock outstanding     60,989,294        60,150,761
 
 
     Notes:  EBITDA excludes non-cash compensation expense.
 
 
     Focal Communications Corporation
     CONSOLIDATED BALANCE SHEET
         (Dollars in thousands)
                                                   March 31,       December 31,
                                                    2001               2000
                                                 (Unaudited)
 
     ASSETS
     CURRENT ASSETS:
         Cash, cash equivalents, and
          short-term investments                   $107,238          $181,737
         Accounts receivable, net                    60,087            46,823
         Other current assets                        25,483            21,069
                   Total Current Assets             192,808           249,629
 
 
     PROPERTY, PLANT and EQUIPMENT, at
      cost:                                         558,165           536,355
     Less: Accumulated depreciation and
      amortization                                 (106,825)          (85,083)
        Property, Plant and Equipment, net          451,340           451,272
 
     OTHER NONCURRENT ASSETS                         22,591            22,784
 
     TOTAL ASSETS                                  $666,739          $723,685
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
         Accounts payable                           $24,313           $99,909
         Accrued liabilities                         27,385            28,730
         Current maturities of long-term
          debt                                       10,017             9,909
            Total current liabilities                61,715           138,548
 
     LONG-TERM DEBT, net of current
      maturities                                    578,916           534,841
 
     OTHER NONCURRENT LIABILITIES                    12,842             5,507
 
     STOCKHOLDERS' EQUITY
         Common stock                                   618               615
         Additional paid-in capital                 186,840           184,953
         Deferred compensation                       (1,077)           (1,186)
         Accumulated deficit                       (173,115)         (139,593)
           Total stockholders' equity                13,266            44,789
 
     TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY                                       $666,739          $723,685
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X39838934
 
 

SOURCE Focal Communications Corporation
    CHICAGO, April 26 /PRNewswire/ -- Focal Communications Corporation
 (Nasdaq:   FCOM), a leading national broadband communications provider, today
 reported record results for its first quarter, ended March 31, 2001.  Revenue
 was $81.9 million during the first quarter of 2001, compared to revenue of
 $45.3 million during the first quarter of 2000.  Revenue for the first quarter
 of 2001 included approximately $6.0 million in non-recurring revenue.
 Excluding the non-recurring portion, revenue for the first quarter of 2001 was
 $75.9 million.  Telecom services revenue was $28.4 million and data services
 revenue was $47.5 million on a normalized basis for the first quarter of 2001.
 This compares to telecom services and data services revenue of $13.1 million
 and $32.2 million, respectively during the first quarter of 2000.
     The Company's total access lines in service were 501,029 as of March 31,
 2001, an increase of 15% over the fourth quarter of 2000.  Line installations
 in the telecom services segment represented 82% of new line installations
 during the quarter.  With this strong performance, the telecom segment now
 accounts for 44% of the total line base as of March 31, 2001, compared to 39%
 as of December 31, 2000.
     "We are pleased to announce that we had another great quarter, making this
 the 13th consecutive quarter that we have met or exceeded revenue and EBITDA
 expectations," commented Robert Taylor, president and chief executive officer
 of Focal.  "Our results this quarter demonstrate that our business is healthy
 and growing.  Momentum continues to build in our telecom services segment,
 yielding a dramatic increase in both revenue and lines."
 
     Operational Highlights
     During the quarter, the Company launched service in Baltimore, its 21st
 market.  Focal continues to roll out its Focal Internet eXchange platform
 across its markets.  During the first quarter, the Company launched Focal
 Internet eXchange service in three new markets: Seattle, Los Angeles
 and Orange County.  The Company now offers managed Internet access, colocation
 and private peering services in twelve tier-one markets.
 
     Recent Developments
     The Company announced on March 29th and April 18th that it had entered
 into regionwide interconnection agreements with BellSouth Corporation and
 Verizon Communications, Inc., respectively.  These agreements establish, among
 other provisions, inter-carrier compensation rates for traffic exchanged
 between the companies' networks in 17 states.  Focal's existing and planned
 markets that are covered under these agreements are: Boston, New York,
 Northern New Jersey, Philadelphia, Washington D.C., Northern Virginia,
 Baltimore, Atlanta and Miami.
     "We are pleased with the progress we have made dealing directly with the
 incumbents on the interconnection issues covered under these agreements,"
 commented Robert Taylor.  "These agreements provide us with a level of
 certainty for reciprocal compensation in some of our largest markets and
 highlight the fact that market-based solutions can be reached."
     Focal also recently entered into a nationwide network interconnection
 agreement with Sprint Corporation's local telephone companies.  Additionally,
 the Federal Communications Commission (FCC) recently announced a new
 nationwide reciprocal compensation transition plan for all local traffic.
 Reciprocal compensation refers to the compensation exchanged between carriers
 for handling local traffic received from one another's networks.  This plan,
 along with Focal's recent interconnection agreements with Incumbent Local
 Exchange Carriers (ILECs), has dramatically clarified the regulatory
 environment for the Company.
 
     Financial Highlights
     Revenue was $81.9 million during the first quarter of 2001, an 81%
 increase over revenue of $45.3 million during the first quarter of 2000 and a
 22% increase over revenue of $67.4 million during the fourth quarter of 2000.
 Revenue during the first quarter of 2001 included approximately $6.0 million
 in non-recurring revenue.  Excluding the non-recurring portion, revenue for
 the first quarter of 2001 was $75.9 million, an increase of 68% and 13% over
 the first quarter of 2000 and the fourth quarter of 2000, respectively.  On a
 normalized basis, telecom services revenue rose 19% to $28.4 million and data
 services revenue increased 9% to $47.5 million over the fourth quarter of
 2000.
     Earnings before interest, income taxes, depreciation and amortization
 (EBITDA) during the first quarter of 2001 was $3.8 million.  Normalized EBITDA
 for the first quarter was $(2.1) million.  Focal reported a net loss for the
 first quarter of 2001 of $33.5 million, or a net loss of $0.55 per share,
 compared to a net loss of $20.8 million, or a net loss of $0.35 per share,
 during the first quarter of 2000.
     For the second quarter of 2001, Focal expects to report revenue of
 $83-$85 million and an EBITDA loss of ($1.5) to ($2.0) million.  The Company
 is reconfirming its full year 2001 targets of revenue between
 $375-$400 million and an EBITDA margin between 0% to 5%.
 
     Selected Operational Results and Statistics
     Focal provides market specific information to provide insight into the
 life-cycle performance of its markets.  The following table presents the
 operating results for a group of Focal's mature markets for the three months
 ended March 31, 2001.  The Company's mature markets are Chicago, New York, San
 Francisco, San Jose, Oakland and Philadelphia.  The Company's EBITDA margin in
 its mature markets was 52% during the first quarter of 2001.
 
      Focal Communications Corporation Summary Results for Mature Markets
                   For the three months ended March 31, 2001
                    ($ in thousands, except lines installed)
 
                            Revenue      EBITDA(a)      EBITDA
                                                        Margin
 Lines Installed
                                                               (as of Mar. 31,
                                                                      2001)
 
     Mature Markets         $57,408      $ 29,934        52.0%       319,053
     New Markets            $24,443     $ (2,366)        (9.7)%      181,976
 
     (a)  Excludes corporate overhead expenses.
 
     Selected Statistical Information:
     The following table presents selected quarterly statistical information
 for Focal Communications Corporation.
 
                          3/31/01    12/31/00    9/30/00   6/30/00     3/31/00
 
     Lines Sold to Date   567,834     526,356   427,641    356,918    291,443
     Lines Installed
      to Date             501,029     435,272   365,016    298,983    238,697
     Estimated Telecom
      Lines as % of
      Installed Lines         44%         39%       35%        32%        29%
     ILEC Switches
      Interconnected        2,062       1,975     1,823      1,677      1,447
     Quarterly Minutes
      of Use in Billions      7.5         7.4       7.1        6.6        6.4
     Markets in Operation      21          20        20         19         18
     MSAs Served               50          49        49         48         47
     Circuit Switches
      Operational              21          20        19         16         14
     Circuit Switches Under
      Development              12           5         6          8          7
     ATM Switches Deployed     28          28        22         16          6
     Fiber Miles
      Operational          10,544       9,730     7,914      4,488        864
     Focal Customer
      Colocation Space
      in Service
      (Sqr. Ft.)          120,299     107,201   107,201     80,096     73,840
     Capital Expenditures
      ($mil)                  $22         $82       $99        $77        $52
     Employees              1,228       1,130     1,089        935        747
     Sales Force (a)          210         184       180        166        124
 
     (a)  Quota bearing sales professionals.  Does not include sales engineers
          or customer support personnel.
 
     Focal will conduct a conference call to discuss the first quarter 2001
 results at 10:00 a.m. Central Standard Time on Friday, April 27.  Investors
 can access the call by dialing 800-446-2782 or 847-413-3235 (international)
 and giving the password "Focal Communications."  An audio simulcast will be
 offered on Focal's website (www.focal.com).  To access the live streaming
 media event, go to the Investor Relations section of Focal's website and click
 on the webcast event icon.
 
     About Focal
     Focal Communications Corporation ( www.focal.com ) is a rapidly growing
 national broadband communications provider.  Headquartered in Chicago, Focal
 offers innovative voice, data and Internet infrastructure services to large
 corporations, Internet service providers, content and application service
 providers, and value-added resellers across the United States.  Focal
 currently services 21 major metropolitan markets and has announced plans to
 deploy services in a total of 24 markets, encompassing 56 metropolitan
 statistical areas nationwide.  Focal's common stock is traded on the Nasdaq
 National Market under the symbol FCOM.
 
     Statements in this press release that are not strictly historical,
 including statements as to plans, intentions, future performance, and model
 assumptions are forward-looking statements. These forward-looking statements
 are subject to numerous risks and uncertainties that could cause actual
 results to differ materially from the future results indicated, expressed or
 implied, in such forward-looking statements. Risks and uncertainties that
 could impact future events or results include the successful expansion of
 Focal's operations into new geographic markets on a timely and cost-effective
 basis; the successful introduction and expansion of new data and voice service
 offerings on a timely and cost-effective basis; Focal's ability to design,
 install, implement, and market its Internet services infrastructure; the pace
 at which new competitors enter Focal's existing and planned markets;
 competitive responses of other carriers; the execution and renewal of
 interconnection agreements with incumbent local exchange carriers on terms
 satisfactory to Focal; Focal's ability to enter into and maintain agreements
 for transport facilities and services, including Internet transit services;
 acceptance of Focal's services by new and existing customers; Focal's ability
 to attract and retain talented employees; the outcome of legal and regulatory
 proceedings regarding reciprocal compensation for Internet-related calls and
 the impact of changes in laws and regulations that govern reciprocal
 compensation; Focal's ability to raise sufficient capital on acceptable terms
 and on a timely basis; Focal's ability to obtain and maintain any required
 governmental authorizations, franchises or permits, all in a timely manner, at
 reasonable costs and on satisfactory terms and conditions; regulatory,
 legislative and judicial developments (including developments relating to
 reciprocal compensation) affecting the communications industry and our
 business; effective management of administrative, technical and operational
 issues presented by Focal's expansion plans and the ability to successfully
 provision services. Investors are directed to examine Focal's SEC filings,
 which more fully describe the risks and uncertainties associated with Focal's
 business. The Company undertakes no obligation to publicly update or revise
 any forward-looking statements whether as a result of new information, future
 events or circumstances, or otherwise.
 
     Focal Communications Corporation
 
     CONSOLIDATED STATEMENTS OF OPERATIONS
     FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2001 AND 2000
     (Dollars in thousands, except for per share data)
 
 
                                                           Three Months
                                                          Ended March 31
                                                      2001              2000
                                                           (Unaudited)
     REVENUES:
         Data Services                              $47,535           $32,190
         Telecom Services                            28,375            13,139
         Non-recurring revenue                        5,941               -
              Total Revenues                         81,851            45,329
 
     EXPENSES:
         Network Expenses                            33,323            16,334
         Selling, general and administrative         44,694            31,502
         Depreciation and amortization               22,650            10,376
         Non-cash compensation expense                1,724             1,448
     Total Operating Expenses                       102,391            59,660
 
 
     OPERATING LOSS                                 (20,540)          (14,331)
 
     OTHER INCOME (EXPENSE):
         Interest income                              1,802             5,808
         Interest expense                           (14,784)          (12,875)
         Other income                                     -               242
         Total Other Expense                        (12,982)           (6,825)
 
     LOSS BEFORE INCOME TAXES                       (33,522)          (21,156)
 
     INCOME TAX (EXPENSE) BENEFIT                       -                 331
 
     NET LOSS                                      $(33,522)         $(20,825)
 
     EBITDA                                          $3,834           $(2,507)
 
         Basic and diluted net loss per
          share of common stock                      ($0.55)           ($0.35)
 
         Basic weighted average number of
          shares of common stock outstanding     60,989,294        60,150,761
 
 
     Notes:  EBITDA excludes non-cash compensation expense.
 
 
     Focal Communications Corporation
     CONSOLIDATED BALANCE SHEET
         (Dollars in thousands)
                                                   March 31,       December 31,
                                                    2001               2000
                                                 (Unaudited)
 
     ASSETS
     CURRENT ASSETS:
         Cash, cash equivalents, and
          short-term investments                   $107,238          $181,737
         Accounts receivable, net                    60,087            46,823
         Other current assets                        25,483            21,069
                   Total Current Assets             192,808           249,629
 
 
     PROPERTY, PLANT and EQUIPMENT, at
      cost:                                         558,165           536,355
     Less: Accumulated depreciation and
      amortization                                 (106,825)          (85,083)
        Property, Plant and Equipment, net          451,340           451,272
 
     OTHER NONCURRENT ASSETS                         22,591            22,784
 
     TOTAL ASSETS                                  $666,739          $723,685
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
         Accounts payable                           $24,313           $99,909
         Accrued liabilities                         27,385            28,730
         Current maturities of long-term
          debt                                       10,017             9,909
            Total current liabilities                61,715           138,548
 
     LONG-TERM DEBT, net of current
      maturities                                    578,916           534,841
 
     OTHER NONCURRENT LIABILITIES                    12,842             5,507
 
     STOCKHOLDERS' EQUITY
         Common stock                                   618               615
         Additional paid-in capital                 186,840           184,953
         Deferred compensation                       (1,077)           (1,186)
         Accumulated deficit                       (173,115)         (139,593)
           Total stockholders' equity                13,266            44,789
 
     TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY                                       $666,739          $723,685
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X39838934
 
 SOURCE  Focal Communications Corporation