Updated - Pinnacle Holdings Inc. Announces Fourth Quarter Financial Results and Further Amendments to Previous Disclosure Statements

Apr 19, 2001, 01:00 ET from Pinnacle Holdings Inc.

    SARASOTA, Fla., April 19 /PRNewswire/ -- Note:  This is an updated press
 release.  At approximately 2:30 p.m. Wednesday, Pinnacle Holdings Inc.
 released a slightly different version of this press release.  This version
 reflects updated amounts for the financial results for the periods covered by
 this press release.  The prior version of this press release should be
 disregarded.
 
     Pinnacle Holdings Inc. (Nasdaq: BIGT) today reported increases in revenue,
 tower cash flow and EBITDA (earnings before interest, taxes, depreciation and
 amortization) for the full year ended December 31, 2000 compared to the same
 period last year.
     Pinnacle also announced that it has not completed amending its financial
 statements and related disclosures for 1999 and the first three quarters of
 2000, and that it has not filed its annual report on Form 10-K for the fiscal
 year ended December 31, 2000 on a timely basis.  On March 17, 2001, Pinnacle
 previously reported that it expected it would be able to do so.  Pinnacle also
 announced that, as a result of the ongoing audit by Pinnacle's new independent
 auditor, Ernst & Young LLP, of Pinnacle's financial statements for the 1999
 and 2000 fiscal years, Pinnacle anticipates that its financial statements for
 the fiscal year ended 1999 and the first three quarters of 2000 will include
 further revisions in addition to the ones described in Pinnacle's March 17
 press release.  The unanticipated delays resulted from a determination that
 additional time was needed to complete the audit work and report.  Pinnacle
 will continue to work expeditiously with Ernst & Young LLP to complete the
 audit as soon as practicable.  It does not anticipate any disagreements with
 Ernst & Young LLP.
     The further revisions to Pinnacle's prior financial statements principally
 relate to Pinnacle's previous decision to capitalize approximately $26 million
 of costs incurred by the Company in connection with its acquisition of the
 North American Antenna Site Division from Motorola, Inc.  Pinnacle has now
 determined that it will expense approximately $8.3 million of those costs as
 they were incurred.  Such costs consist primarily of fees paid to Pinnacle's
 prior auditors.  Pinnacle understands that the prior auditors may not agree
 with that position.  Pinnacle plans to include these revisions in amendments
 to its previously issued financial statements that it will file together with
 its 2000 annual report on Form 10-K.  It is anticipated that Ernst & Young LLP
 will issue a report on Pinnacle's financial statements included in that Annual
 Report, as well the financial statements to be included in Form 10-K/A
 expected to be filed with respect to the year ended December 31, 1999.
 
     Pinnacle expects the primary effect of the further revisions to its
 financial statements for 1999 and the first three quarters of 2000 to be as
 follows:
 
      * increase operating expenses in each period in which the previously
        capitalized costs were incurred by an amount equal to the amount of
        such fees incurred in such period;
 
      * lower the amount attributed to tower assets recorded in connection with
        the Motorola Acquisition by an amount equal to the costs previously
        capitalized; and
 
      * decrease the amount of depreciation and amortization expense recorded
        during each of the periods covered by the above-referenced filings as a
        result of the decrease in the tower assets balance.
 
     The above changes are in addition to the changes announced by Pinnacle on
 March 17, 2001.  Pinnacle currently anticipates that the restated loss and the
 restated EBITDA for the periods at issue will be as follows:
 
     (millions)
 
                         Previously      Restated   Previously      Restated
                           Reported      Net Loss     Reported        EBITDA
                           Net Loss                     EBITDA
 
     1999:
     First Quarter           $(14.2)       $(14.2)       $ 7.2         $ 7.2
     Second Quarter           (12.2)        (12.1)         8.8           8.8
     Third Quarter            (15.6)        (15.9)        12.5          11.6
     Fourth Quarter           (21.8)        (21.8)        17.3          15.8
     Year                    $(63.8)       $(64.0)       $45.8         $43.4
 
 
     2000:
     First Quarter           $(22.2)       $(23.4)       $19.8         $16.9
     Second Quarter           (20.2)        (21.4)        23.0          20.3
     Third Quarter            (39.0)        (38.3)        10.7          10.1
     Fourth Quarter           (41.2)        (41.2)         9.5           9.5
     Year                   $(122.6)      $(124.3)       $63.0         $56.8
 
 
     Pinnacle will not finalize any revisions to its prior filings until after
 Ernst & Young LLP completes its audit work and issues its reports on fiscal
 years 1999 and 2000.  Until such work is completed, Pinnacle cannot be certain
 that no additional revisions will be necessary.  Pinnacle does not anticipate
 further commenting on these matters until it completes and files all of the
 various reports referenced above.
 
     4th Quarter 2000 Results
     For the three months ended December 31, 2000, revenues increased by 25.7%
 to $46.0 million from $36.6 million in the same period in 1999.  Tower cash
 flow increased to $28.5 million from $23.2 million last year as restated.
 EBITDA was $9.5 million for the quarter (including nonrecurring charges
 totaling $11.0 million) compared to $15.8 million as restated for the same
 quarter last year.  The net loss attributable to common shareholders for the
 quarter was $41.2 million (including nonrecurring charges totaling
 $11.0 million), or $0.85 per share, compared to $21.8 million as restated, or
 $0.53 per share for the same period in 1999.  Non-recurring charges during the
 quarter were primarily comprised of the impairment of capitalized costs
 relating to acquiring and constructing tower assets the company has chosen not
 to pursue at this time and SEC investigation costs.
 
     Full Year 2000 Results
     For the year ended December 31, 2000, revenues increased by 106.3% to
 $175.6 million from $85.1 million in the same period in 1999 as restated.
 Tower cash flow increased to $111.8 million from $59.9 million last year as
 restated.  EBITDA was $56.8 million for the year (including nonrecurring
 charges totaling $19.5 million) compared to $43.4 million as restated for the
 same period last year.  The net loss attributable to common shareholders for
 the year was $124.3 million (including nonrecurring charges totaling
 $19.5 million), or $2.59 per share, compared to $64.0 million as restated, or
 $1.96 per share for the same period in 1999.
 
     Conference Call
     The company will schedule and host a conference call to discuss the 2000
 results as soon as practicable following filing of the above-mentioned
 documents.  The company does not anticipate further commenting on these
 matters until it completes and files all of the various reports mentioned
 above.
 
     About Pinnacle
     Pinnacle is a leading provider of communication site rental space in the
 United States. To date, Pinnacle has completed over 540 acquisitions and owns
 or manages in excess of 5,000 sites.  Pinnacle is headquartered in Sarasota,
 Florida. For more information on Pinnacle visit its Web site at
 http://www.pinnacletowers.com .  Information provided on our web-site is not
 incorporated into Pinnacle's SEC filings.
 
     Forward-looking Statements
     This press release contains statements that are, or may be deemed to be,
 forward-looking statements within the meaning of section 27A of the Securities
 Act of 1933 and section 21E of the Securities Exchange Act of 1934.  These
 forward-looking statements, including, but not limited to, the statements
 regarding the estimated amounts and anticipated effects of the above-described
 restatements and amendments, and the expected filing date of the
 above-described amendments, are not based on historical fact, but rather
 reflect Pinnacle's current expectations concerning future results and events.
 These estimated amounts are subject to completion and audit of the restated
 financial statements, as well as to additional review by the SEC.  These
 forward-looking statements involve known and unknown risks, uncertainties and
 other factors which may cause the actual results, performance or achievements
 of Pinnacle to be different from any future results, performance and
 achievements expressed or implied by these statements.  The following
 important factors, among others, could affect the restatements and amendments
 or future results, causing those restatements and amendments or results to
 differ materially from those expressed in our forward-looking statements: (1)
 further review of the above-described amendments by Pinnacle's auditor and the
 SEC; (2) substantial capital requirements and leverage principally as a
 consequence of its acquisition and construction activities; (3) dependence on
 demand for wireless communications; (4) the success of Pinnacle's acquisition
 and construction programs; (5) Pinnacle's outstanding debt and its ability to
 repay such debt; (6) future liquidity and capital needs; (7) risks associated
 with acquisitions; (8) risks associated with retaining Pinnacle's significant
 customers; (9) risks associated with the disposition  of Pinnacle's
 collocation facility ownership business; and (10) a determination that the
 financial results set forth above result in one or more violations of
 financial covenants contained in the agreements governing indebtedness of
 Pinnacle that are not waived by Pinnacle's lenders.  For a further list and
 description of risks and uncertainties, see Pinnacle's Amendment to its
 Registration Statement on Form S-3, filed with the SEC on September 19, 2000.
 The forward-looking statements included in this press release are made only as
 of the date of this press release and under section 27A of the Securities Act
 and section 21E of the Exchange Act, Pinnacle does not undertake any
 obligation to publicly update any forward-looking statements to reflect
 subsequent events or circumstances.
 
     CONTACT:  Steven Day, COO and CFO, or Joe Furmanek, Investor Relations,
 941-364-8886, ext. 1203.
 
 

SOURCE Pinnacle Holdings Inc.
    SARASOTA, Fla., April 19 /PRNewswire/ -- Note:  This is an updated press
 release.  At approximately 2:30 p.m. Wednesday, Pinnacle Holdings Inc.
 released a slightly different version of this press release.  This version
 reflects updated amounts for the financial results for the periods covered by
 this press release.  The prior version of this press release should be
 disregarded.
 
     Pinnacle Holdings Inc. (Nasdaq: BIGT) today reported increases in revenue,
 tower cash flow and EBITDA (earnings before interest, taxes, depreciation and
 amortization) for the full year ended December 31, 2000 compared to the same
 period last year.
     Pinnacle also announced that it has not completed amending its financial
 statements and related disclosures for 1999 and the first three quarters of
 2000, and that it has not filed its annual report on Form 10-K for the fiscal
 year ended December 31, 2000 on a timely basis.  On March 17, 2001, Pinnacle
 previously reported that it expected it would be able to do so.  Pinnacle also
 announced that, as a result of the ongoing audit by Pinnacle's new independent
 auditor, Ernst & Young LLP, of Pinnacle's financial statements for the 1999
 and 2000 fiscal years, Pinnacle anticipates that its financial statements for
 the fiscal year ended 1999 and the first three quarters of 2000 will include
 further revisions in addition to the ones described in Pinnacle's March 17
 press release.  The unanticipated delays resulted from a determination that
 additional time was needed to complete the audit work and report.  Pinnacle
 will continue to work expeditiously with Ernst & Young LLP to complete the
 audit as soon as practicable.  It does not anticipate any disagreements with
 Ernst & Young LLP.
     The further revisions to Pinnacle's prior financial statements principally
 relate to Pinnacle's previous decision to capitalize approximately $26 million
 of costs incurred by the Company in connection with its acquisition of the
 North American Antenna Site Division from Motorola, Inc.  Pinnacle has now
 determined that it will expense approximately $8.3 million of those costs as
 they were incurred.  Such costs consist primarily of fees paid to Pinnacle's
 prior auditors.  Pinnacle understands that the prior auditors may not agree
 with that position.  Pinnacle plans to include these revisions in amendments
 to its previously issued financial statements that it will file together with
 its 2000 annual report on Form 10-K.  It is anticipated that Ernst & Young LLP
 will issue a report on Pinnacle's financial statements included in that Annual
 Report, as well the financial statements to be included in Form 10-K/A
 expected to be filed with respect to the year ended December 31, 1999.
 
     Pinnacle expects the primary effect of the further revisions to its
 financial statements for 1999 and the first three quarters of 2000 to be as
 follows:
 
      * increase operating expenses in each period in which the previously
        capitalized costs were incurred by an amount equal to the amount of
        such fees incurred in such period;
 
      * lower the amount attributed to tower assets recorded in connection with
        the Motorola Acquisition by an amount equal to the costs previously
        capitalized; and
 
      * decrease the amount of depreciation and amortization expense recorded
        during each of the periods covered by the above-referenced filings as a
        result of the decrease in the tower assets balance.
 
     The above changes are in addition to the changes announced by Pinnacle on
 March 17, 2001.  Pinnacle currently anticipates that the restated loss and the
 restated EBITDA for the periods at issue will be as follows:
 
     (millions)
 
                         Previously      Restated   Previously      Restated
                           Reported      Net Loss     Reported        EBITDA
                           Net Loss                     EBITDA
 
     1999:
     First Quarter           $(14.2)       $(14.2)       $ 7.2         $ 7.2
     Second Quarter           (12.2)        (12.1)         8.8           8.8
     Third Quarter            (15.6)        (15.9)        12.5          11.6
     Fourth Quarter           (21.8)        (21.8)        17.3          15.8
     Year                    $(63.8)       $(64.0)       $45.8         $43.4
 
 
     2000:
     First Quarter           $(22.2)       $(23.4)       $19.8         $16.9
     Second Quarter           (20.2)        (21.4)        23.0          20.3
     Third Quarter            (39.0)        (38.3)        10.7          10.1
     Fourth Quarter           (41.2)        (41.2)         9.5           9.5
     Year                   $(122.6)      $(124.3)       $63.0         $56.8
 
 
     Pinnacle will not finalize any revisions to its prior filings until after
 Ernst & Young LLP completes its audit work and issues its reports on fiscal
 years 1999 and 2000.  Until such work is completed, Pinnacle cannot be certain
 that no additional revisions will be necessary.  Pinnacle does not anticipate
 further commenting on these matters until it completes and files all of the
 various reports referenced above.
 
     4th Quarter 2000 Results
     For the three months ended December 31, 2000, revenues increased by 25.7%
 to $46.0 million from $36.6 million in the same period in 1999.  Tower cash
 flow increased to $28.5 million from $23.2 million last year as restated.
 EBITDA was $9.5 million for the quarter (including nonrecurring charges
 totaling $11.0 million) compared to $15.8 million as restated for the same
 quarter last year.  The net loss attributable to common shareholders for the
 quarter was $41.2 million (including nonrecurring charges totaling
 $11.0 million), or $0.85 per share, compared to $21.8 million as restated, or
 $0.53 per share for the same period in 1999.  Non-recurring charges during the
 quarter were primarily comprised of the impairment of capitalized costs
 relating to acquiring and constructing tower assets the company has chosen not
 to pursue at this time and SEC investigation costs.
 
     Full Year 2000 Results
     For the year ended December 31, 2000, revenues increased by 106.3% to
 $175.6 million from $85.1 million in the same period in 1999 as restated.
 Tower cash flow increased to $111.8 million from $59.9 million last year as
 restated.  EBITDA was $56.8 million for the year (including nonrecurring
 charges totaling $19.5 million) compared to $43.4 million as restated for the
 same period last year.  The net loss attributable to common shareholders for
 the year was $124.3 million (including nonrecurring charges totaling
 $19.5 million), or $2.59 per share, compared to $64.0 million as restated, or
 $1.96 per share for the same period in 1999.
 
     Conference Call
     The company will schedule and host a conference call to discuss the 2000
 results as soon as practicable following filing of the above-mentioned
 documents.  The company does not anticipate further commenting on these
 matters until it completes and files all of the various reports mentioned
 above.
 
     About Pinnacle
     Pinnacle is a leading provider of communication site rental space in the
 United States. To date, Pinnacle has completed over 540 acquisitions and owns
 or manages in excess of 5,000 sites.  Pinnacle is headquartered in Sarasota,
 Florida. For more information on Pinnacle visit its Web site at
 http://www.pinnacletowers.com .  Information provided on our web-site is not
 incorporated into Pinnacle's SEC filings.
 
     Forward-looking Statements
     This press release contains statements that are, or may be deemed to be,
 forward-looking statements within the meaning of section 27A of the Securities
 Act of 1933 and section 21E of the Securities Exchange Act of 1934.  These
 forward-looking statements, including, but not limited to, the statements
 regarding the estimated amounts and anticipated effects of the above-described
 restatements and amendments, and the expected filing date of the
 above-described amendments, are not based on historical fact, but rather
 reflect Pinnacle's current expectations concerning future results and events.
 These estimated amounts are subject to completion and audit of the restated
 financial statements, as well as to additional review by the SEC.  These
 forward-looking statements involve known and unknown risks, uncertainties and
 other factors which may cause the actual results, performance or achievements
 of Pinnacle to be different from any future results, performance and
 achievements expressed or implied by these statements.  The following
 important factors, among others, could affect the restatements and amendments
 or future results, causing those restatements and amendments or results to
 differ materially from those expressed in our forward-looking statements: (1)
 further review of the above-described amendments by Pinnacle's auditor and the
 SEC; (2) substantial capital requirements and leverage principally as a
 consequence of its acquisition and construction activities; (3) dependence on
 demand for wireless communications; (4) the success of Pinnacle's acquisition
 and construction programs; (5) Pinnacle's outstanding debt and its ability to
 repay such debt; (6) future liquidity and capital needs; (7) risks associated
 with acquisitions; (8) risks associated with retaining Pinnacle's significant
 customers; (9) risks associated with the disposition  of Pinnacle's
 collocation facility ownership business; and (10) a determination that the
 financial results set forth above result in one or more violations of
 financial covenants contained in the agreements governing indebtedness of
 Pinnacle that are not waived by Pinnacle's lenders.  For a further list and
 description of risks and uncertainties, see Pinnacle's Amendment to its
 Registration Statement on Form S-3, filed with the SEC on September 19, 2000.
 The forward-looking statements included in this press release are made only as
 of the date of this press release and under section 27A of the Securities Act
 and section 21E of the Exchange Act, Pinnacle does not undertake any
 obligation to publicly update any forward-looking statements to reflect
 subsequent events or circumstances.
 
     CONTACT:  Steven Day, COO and CFO, or Joe Furmanek, Investor Relations,
 941-364-8886, ext. 1203.
 
 SOURCE  Pinnacle Holdings Inc.