iXL Announces First Quarter 2001 Results

Apr 25, 2001, 01:00 ET from iXL Enterprises, Inc.

    ATLANTA, April 25 /PRNewswire/ -- iXL (Nasdaq: IIXL) today reported first
 quarter 2001 financial results. For the first three months ended March 31,
 2001, iXL's revenue was $40.7 million.  Revenue was $101.3 million for the
 same period for 2000.  Pro forma net loss was $25.3 million for the first
 three months ended March 31, 2001, compared to a pro forma net income of
 $2.1 million for the same period in 2000.
     "Our losses narrowed significantly from the fourth quarter as we continue
 to wring costs out of our operations.  We significantly reduced overhead and
 flattened layers of management," said iXL President and Chief Executive
 Officer Christopher M. Formant.  "After our top line bottomed out early in the
 first quarter, we experienced positive revenue trends for the balance of the
 quarter, which we believe is in stark contrast to many of our competitors.  We
 believe that iXL can be cash flow positive by the end of the second quarter.
     "Our current industry focus and the development of unique, industry-based
 solutions are taking hold, even in this difficult market," Mr. Formant added.
 "We have added world-class, senior people to lead our key industry groups and
 service lines, and we are enhancing our delivery capabilities to offer clients
 more sophisticated solutions.  This is the kind of environment where market
 share moves.  We are taking advantage of the current environment by
 aggressively marketing our solutions to top tier clients and are repositioning
 iXL as a market leader."
 
     About iXL
     iXL is an industry-focused global consulting and services company.  iXL
 solves fundamental business issues by digitizing and integrating our clients'
 sales, customer service, training, production and distribution processes to
 facilitate interactions with all customers, employees and suppliers across all
 channels.  iXL has done this successfully for some of the world's leading
 companies, including AIG, BellSouth, British Airways, Budget Rent a Car,
 Chase, Citicorp, The Coca-Cola Company, Delta Air Lines, DuPont, Eastman
 Chemical FedEx, First Union, Fleet, GE and LloydsTSB via its Enterprise,
 Travel/Transportation, Financial Services, Retail/Consumer Packaged Goods and
 Manufacturing groups.  For more information, visit www.ixl.com .
 
     Forward Looking Statements
     This release contains certain forward-looking statements regarding iXL,
 including statements about its operations, prospects and expectations about
 future financial results.  These forward-looking statements involve risks and
 uncertainties, which could cause actual results to differ materially.  These
 risks and uncertainties include the demand for iXL's services, iXL's ability
 to obtain additional projects with existing or new clients, iXL's ability to
 provide services to existing and new clients, the sufficiency of iXL's sales
 and marketing teams, future growth, absence of long-term contracts with
 clients, key management and employee retention, competition, technological
 advances, and other factors identified in iXL's filings with the Securities
 and Exchange Commission, including but not limited to the 10-K and subsequent
 10-Qs.  Copies of those filings are available from the Company and the SEC.
 
     iXL Enterprises, Inc. will release its first quarter 2001 financial
 results on Wednesday, April 25th, 2001, before the market opens.  The release
 will be followed by a conference call hosted by iXL senior management at
 8:30 am EST (5:30 am PST).
     For access via telephone, please call 1-888-243-1119 (Domestic) or
 1-212-993-0206 (International), password "April 25 Chris".  To access the call
 over the Internet, please go to http://www.ixl.com .
     A rebroadcast of the call can be accessed by dialing 1-800-633-8284 or
 1-858-812-6440 (enter 18431990), or by accessing our Website at
 http://www.ixl.com one hour after the initial conference call is complete.
 The rebroadcast will be continually available for 48 hours.
 
 
                             IXL ENTERPRISES, INC.
                            STATEMENTS OF OPERATIONS
                                 (in thousands)
                                  (Unaudited)
 
                                                         Three Months Ended
                                                             March 31,
                                                         2001           2000
 
     Professional services revenue                   $ 40,694      $ 101,295
 
     Professional services expense                     35,197         47,896
     Sales and marketing expenses                       5,453          9,734
     General and administrative expenses               19,786         37,018
 
     Operating loss before non-cash expenses          (19,742)         6,647
 
     Stock-based compensation and other                   201          3,110
     Depreciation                                       5,013          4,185
     Amortization                                       4,253         10,831
         Total operating expenses                      69,903        112,774
 
         Loss from operations                         (29,209)       (11,479)
 
     Other expense, net                                  (176)          (182)
     Interest income                                      587          1,677
     Interest expense                                  (1,003)          (471)
     Loss on equity investment                             --        (10,171)
 
         Loss before income taxes                     (29,801)       (20,626)
 
     Income tax expense                                    --             --
 
     Net loss                                        $(29,801)      $(20,626)
 
 
     Net loss available to common stockholders       $(29,801)      $(20,626)
 
     Weighted average common shares outstanding        78,724         71,877
 
     Net loss per common shareholder                 $  (0.38)      $  (0.29)
 
     Pro forma net (loss) income (1)                 $(25,347)      $  2,126
 
     Pro forma net (loss) income per share           $  (0.32)      $   0.03
 
 
     (1) Pro forma net (loss) income is defined as loss before income taxes
         excluding amortization, stock-based compensation and other non-cash
         expenses and loss on equity investments.  Pro forma net income for the
         three months ended March 31, 2000, is presented net of a 39 percent
         tax rate.
 
 
                             IXL ENTERPRISES, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
 
                                                     March 31,   December 31,
                                                         2001           2000
                                                   (unaudited)
 
                           ASSETS
 
     Current Assets:
       Cash and cash equivalents                     $ 45,281       $ 48,595
       Marketable securities                              239          3,967
       Accounts receivable, net of allowance for
        doubtful accounts of $6,791 and $21,339 at
        March 31, 2001 and December 31, 2000,
        respectively                                   31,547         47,330
       Unbilled revenues                                9,662         13,858
       Prepaid expenses and other current assets        2,064          3,035
         Total current assets                          88,793        116,785
 
     Property and equipment, net                       64,897         69,896
     Intangible assets, net                            37,258         41,589
     Other non-current assets                           5,699          6,165
         Total assets                                $196,647       $234,435
 
             LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current Liabilities:
       Accounts payable                              $ 10,479       $ 22,919
       Deferred revenues                                6,312          7,537
       Accrued liabilities                              9,353         15,180
       Restructuring reserve                           23,792         30,328
       Current portion of long-term debt                  313            323
         Total current liabilities                     50,249         76,287
 
     Long-term debt                                    20,840         20,395
     Long-term restructuring reserve                    9,777         11,297
     Other long-term liabilities                        2,643             48
         Total liabilities                             83,509        108,027
 
     Stockholders' equity                             113,138        126,408
         Total liabilities and
          stockholders' equity                       $196,647       $234,435
 
                      MAKE YOUR OPINION COUNT - Click Here
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SOURCE iXL Enterprises, Inc.
    ATLANTA, April 25 /PRNewswire/ -- iXL (Nasdaq: IIXL) today reported first
 quarter 2001 financial results. For the first three months ended March 31,
 2001, iXL's revenue was $40.7 million.  Revenue was $101.3 million for the
 same period for 2000.  Pro forma net loss was $25.3 million for the first
 three months ended March 31, 2001, compared to a pro forma net income of
 $2.1 million for the same period in 2000.
     "Our losses narrowed significantly from the fourth quarter as we continue
 to wring costs out of our operations.  We significantly reduced overhead and
 flattened layers of management," said iXL President and Chief Executive
 Officer Christopher M. Formant.  "After our top line bottomed out early in the
 first quarter, we experienced positive revenue trends for the balance of the
 quarter, which we believe is in stark contrast to many of our competitors.  We
 believe that iXL can be cash flow positive by the end of the second quarter.
     "Our current industry focus and the development of unique, industry-based
 solutions are taking hold, even in this difficult market," Mr. Formant added.
 "We have added world-class, senior people to lead our key industry groups and
 service lines, and we are enhancing our delivery capabilities to offer clients
 more sophisticated solutions.  This is the kind of environment where market
 share moves.  We are taking advantage of the current environment by
 aggressively marketing our solutions to top tier clients and are repositioning
 iXL as a market leader."
 
     About iXL
     iXL is an industry-focused global consulting and services company.  iXL
 solves fundamental business issues by digitizing and integrating our clients'
 sales, customer service, training, production and distribution processes to
 facilitate interactions with all customers, employees and suppliers across all
 channels.  iXL has done this successfully for some of the world's leading
 companies, including AIG, BellSouth, British Airways, Budget Rent a Car,
 Chase, Citicorp, The Coca-Cola Company, Delta Air Lines, DuPont, Eastman
 Chemical FedEx, First Union, Fleet, GE and LloydsTSB via its Enterprise,
 Travel/Transportation, Financial Services, Retail/Consumer Packaged Goods and
 Manufacturing groups.  For more information, visit www.ixl.com .
 
     Forward Looking Statements
     This release contains certain forward-looking statements regarding iXL,
 including statements about its operations, prospects and expectations about
 future financial results.  These forward-looking statements involve risks and
 uncertainties, which could cause actual results to differ materially.  These
 risks and uncertainties include the demand for iXL's services, iXL's ability
 to obtain additional projects with existing or new clients, iXL's ability to
 provide services to existing and new clients, the sufficiency of iXL's sales
 and marketing teams, future growth, absence of long-term contracts with
 clients, key management and employee retention, competition, technological
 advances, and other factors identified in iXL's filings with the Securities
 and Exchange Commission, including but not limited to the 10-K and subsequent
 10-Qs.  Copies of those filings are available from the Company and the SEC.
 
     iXL Enterprises, Inc. will release its first quarter 2001 financial
 results on Wednesday, April 25th, 2001, before the market opens.  The release
 will be followed by a conference call hosted by iXL senior management at
 8:30 am EST (5:30 am PST).
     For access via telephone, please call 1-888-243-1119 (Domestic) or
 1-212-993-0206 (International), password "April 25 Chris".  To access the call
 over the Internet, please go to http://www.ixl.com .
     A rebroadcast of the call can be accessed by dialing 1-800-633-8284 or
 1-858-812-6440 (enter 18431990), or by accessing our Website at
 http://www.ixl.com one hour after the initial conference call is complete.
 The rebroadcast will be continually available for 48 hours.
 
 
                             IXL ENTERPRISES, INC.
                            STATEMENTS OF OPERATIONS
                                 (in thousands)
                                  (Unaudited)
 
                                                         Three Months Ended
                                                             March 31,
                                                         2001           2000
 
     Professional services revenue                   $ 40,694      $ 101,295
 
     Professional services expense                     35,197         47,896
     Sales and marketing expenses                       5,453          9,734
     General and administrative expenses               19,786         37,018
 
     Operating loss before non-cash expenses          (19,742)         6,647
 
     Stock-based compensation and other                   201          3,110
     Depreciation                                       5,013          4,185
     Amortization                                       4,253         10,831
         Total operating expenses                      69,903        112,774
 
         Loss from operations                         (29,209)       (11,479)
 
     Other expense, net                                  (176)          (182)
     Interest income                                      587          1,677
     Interest expense                                  (1,003)          (471)
     Loss on equity investment                             --        (10,171)
 
         Loss before income taxes                     (29,801)       (20,626)
 
     Income tax expense                                    --             --
 
     Net loss                                        $(29,801)      $(20,626)
 
 
     Net loss available to common stockholders       $(29,801)      $(20,626)
 
     Weighted average common shares outstanding        78,724         71,877
 
     Net loss per common shareholder                 $  (0.38)      $  (0.29)
 
     Pro forma net (loss) income (1)                 $(25,347)      $  2,126
 
     Pro forma net (loss) income per share           $  (0.32)      $   0.03
 
 
     (1) Pro forma net (loss) income is defined as loss before income taxes
         excluding amortization, stock-based compensation and other non-cash
         expenses and loss on equity investments.  Pro forma net income for the
         three months ended March 31, 2000, is presented net of a 39 percent
         tax rate.
 
 
                             IXL ENTERPRISES, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
 
                                                     March 31,   December 31,
                                                         2001           2000
                                                   (unaudited)
 
                           ASSETS
 
     Current Assets:
       Cash and cash equivalents                     $ 45,281       $ 48,595
       Marketable securities                              239          3,967
       Accounts receivable, net of allowance for
        doubtful accounts of $6,791 and $21,339 at
        March 31, 2001 and December 31, 2000,
        respectively                                   31,547         47,330
       Unbilled revenues                                9,662         13,858
       Prepaid expenses and other current assets        2,064          3,035
         Total current assets                          88,793        116,785
 
     Property and equipment, net                       64,897         69,896
     Intangible assets, net                            37,258         41,589
     Other non-current assets                           5,699          6,165
         Total assets                                $196,647       $234,435
 
             LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current Liabilities:
       Accounts payable                              $ 10,479       $ 22,919
       Deferred revenues                                6,312          7,537
       Accrued liabilities                              9,353         15,180
       Restructuring reserve                           23,792         30,328
       Current portion of long-term debt                  313            323
         Total current liabilities                     50,249         76,287
 
     Long-term debt                                    20,840         20,395
     Long-term restructuring reserve                    9,777         11,297
     Other long-term liabilities                        2,643             48
         Total liabilities                             83,509        108,027
 
     Stockholders' equity                             113,138        126,408
         Total liabilities and
          stockholders' equity                       $196,647       $234,435
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X62734843
 
 SOURCE  iXL Enterprises, Inc.