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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| First Comms. | LSE:FCOM | London | Ordinary Share | COM SHS USD0.001 (REGS) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.015 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number : 9125Z
First Communications, Inc.
30 September 2009
30 September 2009
First Communications, Inc. Announces Unaudited Interim Results for the
Six Months Ended June 30, 2009
AKRON, OH, September 30, 2009 - Today First Communications, Inc. (AIM: FCOM)
("First Communications" or the "Company"), a leading Midwest competitive local
exchange carrier providing data and voice services, announces its unaudited
interim results for the six months ended June 30, 2009.
Discussion of Six Months Ended June 30, 2009 Results
Items of note in the six months ended June 30, 2009 results:
+-------+----------------------------------------------------------------------------+
| - | Revenue for the first six months of 2009 of $88.0 million (compared to |
| | $69.3 million reported for the same period in 2008); |
| | |
+-------+----------------------------------------------------------------------------+
| - | Increase in gross margin from 31.2% to 36.5% from the six months ended |
| | June 30, 2008 to the same period in 2009; |
| | |
+-------+----------------------------------------------------------------------------+
| - | EBITDA (as defined below) of $5.1 million for the first six months of 2009 |
| | compared to $2.4 million for the same period last year; |
| | |
+-------+----------------------------------------------------------------------------+
| - | A net loss improvement from ($5.9) million to ($5.7) million primarily |
| | resulting from higher EBITDA as discussed above, and a reduction in |
| | depreciation and amortization as discussed in more detail below in the |
| | section labeled "Management's Discussion and Analysis of Financial |
| | Condition and Results of Operations". |
| | |
+-------+----------------------------------------------------------------------------+
Note: The results for the six months ended June 30, 2008 include a full six
month's contributions from First Communications, LLC ("FC LLC"), and Xtension
Services, Inc. ("Xtensions"), and just over three month's contribution from
First Telecom Services, LLC ("FTS"). First Global Telecom, Inc. ("Globalcom")
is not included in the six months ended June 30, 2008 numbers as it was not
acquired until September 30, 2008. All entities are included for all six months
in 2009.
EBITDA is defined herein as net income (loss) before depreciation and
amortization, impairment of goodwill and other intangibles, interest expense,
and provision for (benefit from) income taxes.
Selected Financial Information
+--+-------------------------+--+------------+------------+------------+--+
| FIRST COMMUNICATIONS, INC. |
| SELECTED FINANCIAL INFORMATION |
| For the Six Months Ended June 30, 2009 and 2008 |
| (unaudited, in 000's) |
+-------------------------------------------------------------------------+
| | | | Six Months Ended June 30, | |
+--+-------------------------+--+--------------------------------------+--+
| | | | 2009 | 2008 | Variance | |
+--+-------------------------+--+------------+------------+------------+--+
| | | | | | | |
+--+-------------------------+--+------------+------------+------------+--+
| | | | | | | |
+--+-------------------------+--+------------+------------+------------+--+
| Revenues, net | | $ 88,041 | $ 69,302 | $ 18,739 | |
+----------------------------+--+------------+------------+------------+--+
| | | | | | |
+----------------------------+--+------------+------------+------------+--+
| Gross Margin | | 32,106 | 21,637 | 10,469 | |
+----------------------------+--+------------+------------+------------+--+
| | Gross Margin % | | 36.5% | 31.2% | | |
+--+-------------------------+--+------------+------------+------------+--+
| | | | | | | |
+--+-------------------------+--+------------+------------+------------+--+
| SG&A Expenses | | 27,281 | 19,022 | 8,259 | |
+----------------------------+--+------------+------------+------------+--+
| SG&A as % of Revenues | | 31.0% | 27.4% | | |
+----------------------------+--+------------+------------+------------+--+
| | | | | | |
+----------------------------+--+------------+------------+------------+--+
| EBITDA | | 5,050 | 2,431 | 2,619 | |
+----------------------------+--+------------+------------+------------+--+
| | | | | | | |
+--+-------------------------+--+------------+------------+------------+--+
| Depreciation and | | 6,785 | 10,818 | 4,033 | |
| Amortization | | | | | |
+----------------------------+--+------------+------------+------------+--+
| | | | | | |
+----------------------------+--+------------+------------+------------+--+
| | | | | | |
+----------------------------+--+------------+------------+------------+--+
| Net (Loss) | | $ (5,730) | $ (5,867) | $ 137 | |
| | | | | | |
+--+-------------------------+--+------------+------------+------------+--+
Operational Highlights and Current Outlook:
Ray Hexamer, CEO of First Communications commented:
"We have continued to progress in the first half of 2009 with the integration of
our two 2008 acquisitions, Globalcom and FTS. Additionally, we continue to
operate, manage and grow our core businesses, which combined with these
acquisitions, help position us well to achieve our goal of becoming the dominant
Midwest provider of data and voice services. Additionally, while the sale of the
non-core Tower Assets announced on August 21, 2009 was a substantial step
forward in improving our balance sheet (the financial implications of which are
discussed in the section, "Tower Asset Contribution"), we will continue to
pursue other opportunities to improve our balance sheet, while, of course,
balancing the opportunities for investment in our network and growing the
customer base.
We believe these actions, and others already in motion, such as specifically
focusing on higher margin customers, such as those on dedicated T1 integrated
voice and data On-Net services, and, to a lesser degree, reduction of personnel
and other general and administrative cost reductions in early 2009, position the
Company well for achieving financial success in 2009 and into future years."
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Revenues
First Communications, Inc. reported revenues of $88.0 million for the six months
ended June 30, 2009, compared to $69.3 million reported for the six months ended
June 30, 2008. The growth in revenue has resulted from the inclusion of
financial results from FTS and Globalcom for a full six months offset to some
degree by declines in legacy residential and voice services compared to the
previous year. The Company's strategy has been to focus increasingly on the
small and medium sized commercial market in key geographical areas, and the
supply of higher margin services including dedicated T1 integrated voice and
data On-Net services, while de-emphasizing some of its legacy voice services.
Gross Margin
The Company's gross margins increased from 31.2% in 2008 to 36.5% in 2009
primarily due to higher margins from Globalcom and FTS offset to a degree by
declines in margins in legacy residential and voice services
Sales, General and Administrative Expenses
As a percentage of revenues, the Company's selling, general and administrative
expenses for the six months ended June 30, 2009 increased to 31.0% compared to
27.4% for the six months ended June 30, 2008. The increase in expenses came from
the expansion of the Company's sales force, opening of new sales offices, and
costs associated with integrating two new subsidiaries.
Depreciation and Amortization of Other Intangibles
Depreciation and amortization charges decreased from $10.8 million for the six
months ended June 30, 2008 to $6.8 million for the six months ended June 30,
2009. The decrease is primarily related to impairment, as of December 31, 2008,
of certain intangible assets (as discussed in the Company's 2008 financial
results previously filed with the AIM), thus lowering the asset base, and the
required annual amortization thereof on an ongoing basis.
EBITDA, Income from Operations, and Net Income
The Company's EBITDA increased from $2.4 million for the six months ended June
30, 2008 to $5.1 million for the six months ended June 30, 2009. The Company's
loss from operations improved from $(8.2) million for the six months ended June
30, 2008 to $(2.0) for the six months ended June 30, 2009. The Company reported
a $(5.7) million net loss for the six months ended June 30, 2009 compared to a
loss of $(5.9) million for the same period in 2008. The increase in EBITDA
related primarily to the Company's emphasis on higher margin On-Net customers as
discussed above, thus resulting in higher gross margins, offset to a degree by
general and administrative expenses related to the acquisition and integration
of the two businesses acquired in 2008. The improvement in operating loss
results from those same factors, in addition to the reduction in depreciation
and amortization expense, as discussed above. Finally, the improvement in net
loss encompasses all the above, with some offset from increased interest
expense, resulting from higher debt.
Cash
Cash balances amounted to $2.6 million as at June 30, 2009 compared to $1.4
million at June 30, 2008. The increase in the Company's cash position resulted
from higher cash flow provided by operations, offset by capital expenditure
investment as discussed below and the repayment of our debt and related interest
obligations.
Capital Expenditures
Capital expenditures for the six months ended June 30, 2009 were $6.4 million
related primarily to the expansion of the Company's network, network and system
upgrades, installation costs and capitalized labor.
Post Balance Sheet Events
Tower Asset Contribution
On August 20, 2009, the Company entered into a transaction in which the Company
contributed to Diamond Communications, LLC ("Diamond") all of the assets of FTS
(the "Contributed Assets") relating to the business (the "Tower Business") of
wireless antenna and equipment collocation operations, capabilities and
applications, which includes all wireless antenna collocation contracts and
associated revenue and liabilities, FTS owned towers (collectively, the
"Towers") and the rights and obligations under certain agreements with various
operating affiliates of FirstEnergy Corp (the "Affiliate Agreements") to service
existing contracts and develop new contracts to provide wireless collocation
applications and capabilities, DAS, Wi-Fi systems, and new tower site
development. In exchange for the contribution of the Contributed Assets, Diamond
agreed that the Contributed Assets would remain subject to the lien of the
Company's lender group to the extent the lien related to $50 million of the
Company's debt which had been incurred in connection with the acquisition of
and/or the conduct of the Tower Business. Diamond also agreed to provide a
limited guarantee of this portion of the Company's debt. The Company also was
issued Class A and Class B membership Units in Diamond with a negotiated value
of $20 million resulting in an interest of 13.6% in Diamond. As of December 31,
2008, the net book value of the Contributed Assets was $44.3 million. Subsequent
to the acquisition of FTS on March 7, 2008, the Company recorded $7.8 million in
revenues and $5.05 million in profit before tax derived from the Contributed
Assets in the year ended December 31, 2008.
As part of the transaction, the Company has the opportunity to receive
additional units of Class A and B Membership Units in Diamond under an earn-out
formula (the "Earn-Out Units"). The number of Earn-Out Units to which the
Company may be entitled is based on the net annualized recurring revenue from
certain qualifying leases earned during the period beginning on April 17, 2009
and ending on March 31, 2011. The maximum value of the Earn-Out Units is $18.57
million.
The agreement contains representation, warranties and covenants that are typical
of transactions of this size and type including, without limitation, mutual
indemnification obligations for breaches of those representations, warranties
and covenants that are subject to baskets and caps depending on the source of
the indemnification claim. Any indemnification obligation the Company might have
(although none is anticipated) will be first satisfied through a return of the
units of membership interest the Company has received.
Amendment to Facility
Effective as of August 20, 2009, the Company entered into 'Amendment No. 2' to
its Facility (the "Amendment"). Diamond subsequently repaid the portion of the
debt guaranteed by it as described above, resulting in the term debt of the
Company being reduced by $40.0 million, and the amounts outstanding under the
revolver being reduced by $10.0 million, although the revolver is available for
future drawdown. Overall the Facility has been reduced to $87.5 million, and as
at August 20, 2009 the net debt of the Company was $77.5 million.
As part of the Amendment, the Company's lenders agreed to waive all
identifiable, existing defaults under the Facility, and amended certain future
covenants. The following is a summary of some of the key terms of the Amendment:
Capital contribution
+------+------------------------------------------------------------------------------+
| - | The Company is required to receive at least $10 million of cash capital |
| | contributions by January 31, 2010. At least $10 million of such |
| | contributions must be used to repay revolving loans that are part of the |
| | Facility, and the commitment to make revolving loans is permanently reduced |
| | by 50% of the aggregate of such repayment. One-half of the amounts then |
| | remaining are used to prepay the term loans that are part of the Facility |
| | (in inverse order of maturity), with the other one-half being available to |
| | the Company for working capital and/or capital expenditure purposes. |
| | |
+------+------------------------------------------------------------------------------+
Maturity Date
+------+------------------------------------------------------------------------------+
| - | The maturity date of the loans under the Facility has been amended so that |
| | the scheduled maturity date will occur earlier than under the terms of the |
| | previous facility (March 6, 2013). The scheduled maturity date will occur |
| | based on how much capital is contributed by the end of January 2010. |
| | |
+------+------------------------------------------------------------------------------+
+-----------------------------------+-----------------------------------+
| Amount of Capital Contributed | Scheduled Maturity Date |
| (in thousands) | |
+-----------------------------------+-----------------------------------+
| <$10,000 | December 7, 2010 |
+-----------------------------------+-----------------------------------+
| >$10,000 and <$17,500 | September 7, 2011 |
+-----------------------------------+-----------------------------------+
| >$17,500 and <$25,000 | December 7, 2011 |
+-----------------------------------+-----------------------------------+
| >$25,000 | June 7, 2012 |
+-----------------------------------+-----------------------------------+
Conversion of Certain Accounts Payable to Subordinated Debt
On August 20, 2009, the Company and FirstEnergy Corp. ("FE") agreed to convert
$6 million in payables owed by the Company to FE for past services provided by
FE to the Company to a subordinated note (the "FE Note"). The terms of the FE
Note provide for the principal balance of the FE Note to be amortized over a 120
month period at an annual interest rate of 11%, provided, however, that no
monthly payments of principal or interest are to be made on the FE Note until
December 31, 2010 at which time any accrued and unpaid interest installments
shall be due. Monthly payments of principal and interest will begin on January
31, 2011 and shall be due and payable on the last day of each succeeding month
until the earlier of the date that is (a) thirty (30) days after the maturity
date of the Facility (as described above) or (b) January 31, 2021, on which date
the entire unpaid principal and interest accrued and unpaid on the FE Note shall
be due and payable in full. The FE Note is subordinated to the Company's lenders
and is unsecured. The FE Note may be prepaid by the Company at any time without
penalty.
About First Communications
First Communications is a leading competitive local exchange carrier in the
Midwestern United States. Founded in 1998, First Communications has built a
highly scalable telecommunications platform, infrastructure and support system,
which represents a combination of world-class technology, and cutting-edge
product offerings. First Communications is led by a strong management team that
has operated telecom companies throughout all cycles of the telecommunications
market.
Forward-looking Statements
This press release contains statements relating to future results of First
Communications and statements which may be identified by the use of the words
"may", "intend", "expect" and like words that are "forward-looking statements".
Actual results may differ materially from those projected as a result of certain
risks and uncertainties.
+-----------------------------+----------------------------------------+
| For Further Information: |
| |
+----------------------------------------------------------------------+
| First Communications, Inc. |
+----------------------------------------------------------------------+
| Joe Morris | Tel: (330) 835-2472 |
+-----------------------------+----------------------------------------+
| |
+----------------------------------------------------------------------+
| Collins Stewart Europe Limited - Nominated Adviser and Broker |
| |
+----------------------------------------------------------------------+
| Piers Coombs/Stewart | Tel: +44 (0) 207 523-8350 |
| Wallace | |
+-----------------------------+----------------------------------------+
JUNE 30, 2009 and 2008 CONDENSED FINANCIAL STATEMENTS
+----------------------------------------+--------------+-------------+
| FIRST COMMUNICATIONS, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| As of June 30, 2009 and 2008 |
| (in thousands) |
| |
+---------------------------------------------------------------------+
| | As of | Previously |
| | | Restated |
| | | As of |
+----------------------------------------+--------------+-------------+
| | June 30, | June 30, |
| | 2009 | 2008 |
+----------------------------------------+--------------+-------------+
| ASSETS | (unaudited) | (unaudited) |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| CURRENT ASSETS | | |
+----------------------------------------+--------------+-------------+
| Cash and cash equivalents | $ 2,645 | $ 1,437 |
+----------------------------------------+--------------+-------------+
| Accounts receivable - trade, less | | |
| allowance for | | |
+----------------------------------------+--------------+-------------+
| doubtful accounts of $2,770 and | 18,822 | 13,164 |
| $1,110, respectively | | |
+----------------------------------------+--------------+-------------+
| Income tax receivable | 2,052 | 4,798 |
+----------------------------------------+--------------+-------------+
| Inventory | 3,173 | 2,955 |
+----------------------------------------+--------------+-------------+
| Other current assets | 4,705 | 3,327 |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| TOTAL CURRENT ASSETS | 31,397 | 25,681 |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| PROPERTY AND EQUIPMENT, net | 43,390 | 23,206 |
| | | |
+----------------------------------------+--------------+-------------+
| OTHER ASSETS | | |
+----------------------------------------+--------------+-------------+
| Goodwill | 105,202 | 90,820 |
+----------------------------------------+--------------+-------------+
| Other intangible assets, net | 66,878 | 98,482 |
+----------------------------------------+--------------+-------------+
| Deferred tax asset | - | - |
+----------------------------------------+--------------+-------------+
| Deposits and other assets | 6,018 | 6,337 |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| TOTAL OTHER ASSETS | 178,098 | 195,639 |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| TOTAL ASSETS | $ 252,885 | $ 244,526 |
+----------------------------------------+--------------+-------------+
+----------------------------------------+--------------+-------------+
| FIRST COMMUNICATIONS, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| As of June 30, 2009 and 2008 |
| (in thousands, except for per share data) |
| |
+---------------------------------------------------------------------+
| | As of | Previously |
| | | Restated |
| | | As of |
+----------------------------------------+--------------+-------------+
| | June 30, | June 30, |
| | 2009 | 2008 |
+----------------------------------------+--------------+-------------+
| LIABILITIES, REDEEMABLE PREFERRED | (unaudited) | (unaudited) |
| STOCK AND SHAREHOLDERS' EQUITY | | |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| CURRENT LIABILITIES | | |
+----------------------------------------+--------------+-------------+
| Current portion of long-term debt | $ 7,000 | $ 7,000 |
| Revolver | 10,000 | 3,750 |
+----------------------------------------+--------------+-------------+
| Accounts payable - trade | 28,608 | 12,906 |
+----------------------------------------+--------------+-------------+
| Income tax payable | (94) | 1,926 |
+----------------------------------------+--------------+-------------+
| Accrued expenses | 18,003 | 1,051 |
+----------------------------------------+--------------+-------------+
| Deferred tax liability | 221 | 212 |
+----------------------------------------+--------------+-------------+
| Deferred revenue | 9,898 | 6,482 |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| TOTAL CURRENT LIABILITIES | 73,636 | 33,327 |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| NON-CURRENT LIABILITIES | | |
+----------------------------------------+--------------+-------------+
| Long-term debt, net of current | 100,500 | 61,250 |
| maturities | | |
+----------------------------------------+--------------+-------------+
| Revolver | 9,484 | - |
| Deferred tax liability | 538 | 5,105 |
+----------------------------------------+--------------+-------------+
| Deferred revenue | 14,010 | 15,273 |
+----------------------------------------+--------------+-------------+
| Other long-term liabilities | 1,204 | - |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| TOTAL NON-CURRENT LIABILITIES | 125,736 | 81,628 |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| TOTAL LIABILITIES | 199,372 | 114,955 |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| REDEEMABLE PREFERRED STOCK, $0.001 par | | |
| value; 10,000,000 shares | | |
+----------------------------------------+--------------+-------------+
| authorized, 15,000 shares issued and | | |
| outstanding (liquidation | | |
+----------------------------------------+--------------+-------------+
| preference $1,000 per share) | 16,388 | 15,000 |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| SHAREHOLDERS' EQUITY | | |
+----------------------------------------+--------------+-------------+
| Series A Common Stock, $0.001 par | | |
| value; 59,165,000 shares authorized, | | |
+----------------------------------------+--------------+-------------+
| 26,067,000 shares issued and | 26 | 26 |
| outstanding | | |
+----------------------------------------+--------------+-------------+
| Series B Non-Voting Common Stock, | | |
| $0.001 par value; 835,000 shares | | |
+----------------------------------------+--------------+-------------+
| authorized, issued and outstanding | 1 | 1 |
+----------------------------------------+--------------+-------------+
| Additional paid in capital | 119,482 | 119,482 |
+----------------------------------------+--------------+-------------+
| Retained (deficit) | (82,384) | (4,938) |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| TOTAL SHAREHOLDERS' EQUITY | 37,125 | 114,571 |
+----------------------------------------+--------------+-------------+
| | | |
+----------------------------------------+--------------+-------------+
| TOTAL LIABILITIES, REDEEMABLE | $ 252,885 | $ 244,526 |
| PREFERRED STOCK AND SHAREHOLDERS' | | |
| EQUITY | | |
+----------------------------------------+--------------+-------------+
+--------------------------------------+--+-------------+--+-------------+
| FIRST COMMUNICATIONS, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| For the Six Months Ended June 30, 2009 and 2008 |
| (in thousands) |
| |
+------------------------------------------------------------------------+
| | | | | |
+--------------------------------------+--+-------------+--+-------------+
| | | Six Months | | Previously |
| | | | | Restated |
| | | | | Six Months |
+--------------------------------------+--+-------------+--+-------------+
| | | Ended | | Ended |
+--------------------------------------+--+-------------+--+-------------+
| | | June 30, | | June 30, |
| | | 2009 | | 2008 |
+--------------------------------------+--+-------------+--+-------------+
| | | (unaudited) | | (unaudited) |
+--------------------------------------+--+-------------+--+-------------+
| REVENUES, NET | | $ 88,041 | | $ 69,302 |
+--------------------------------------+--+-------------+--+-------------+
| | | | | |
+--------------------------------------+--+-------------+--+-------------+
| COST OF FACILITIES, exclusive of | | | | |
| depreciation and | | | | |
+--------------------------------------+--+-------------+--+-------------+
| amortization stated below | | 55,935 | | 47,665 |
+--------------------------------------+--+-------------+--+-------------+
| | | | | |
+--------------------------------------+--+-------------+--+-------------+
| SELLING, GENERAL AND ADMINISTRATIVE | | 27,281 | | 19,022 |
| EXPENSES | | | | |
+--------------------------------------+--+-------------+--+-------------+
| | | | | |
+--------------------------------------+--+-------------+--+-------------+
| DEPRECIATION AND AMORTIZATION | | 6,785 | | 10,818 |
+--------------------------------------+--+-------------+--+-------------+
| | | | | |
+--------------------------------------+--+-------------+--+-------------+
| OPERATING (LOSS) | | (1,960) | | (8,203) |
+--------------------------------------+--+-------------+--+-------------+
| | | | | |
+--------------------------------------+--+-------------+--+-------------+
| OTHER INCOME (EXPENSE), NET | | | | |
+--------------------------------------+--+-------------+--+-------------+
| Interest expense | | (3,995) | | (795) |
+--------------------------------------+--+-------------+--+-------------+
| Other | | 225 | | (184) |
+--------------------------------------+--+-------------+--+-------------+
| OTHER INCOME (EXPENSE), NET | | (3,770) | | (979) |
+--------------------------------------+--+-------------+--+-------------+
| | | | | |
+--------------------------------------+--+-------------+--+-------------+
| (LOSS) BEFORE INCOME TAXES | | (5,730) | | (9,182) |
+--------------------------------------+--+-------------+--+-------------+
| | | | | |
+--------------------------------------+--+-------------+--+-------------+
| (BENEFIT) FOR INCOME TAXES | | - | | (3,315) |
+--------------------------------------+--+-------------+--+-------------+
| | | | | |
+--------------------------------------+--+-------------+--+-------------+
| NET (LOSS) | | $ (5,730) | | $ (5,867) |
| | | | | |
+--------------------------------------+--+-------------+--+-------------+
FIRST COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2009 and 2008
(in thousands)
+----------------------------------------+---------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| | Six Months | Previously |
| | | Restated |
| | | Six Months |
+--------------------------------------------------------+-------------+-------------+
| | Ended | Ended |
+--------------------------------------------------------+-------------+-------------+
| | June 30, | June 30, |
| | 2009 | 2008 |
+--------------------------------------------------------+-------------+-------------+
| | (unaudited) | (unaudited) |
+--------------------------------------------------------+-------------+-------------+
| CASH FLOW FROM OPERATING ACTIVITIES | | |
+--------------------------------------------------------+-------------+-------------+
| Net (loss) | $ (5,730) | $ (5,867) |
| | | |
+--------------------------------------------------------+-------------+-------------+
| Depreciation & amortization | 6,785 | 10,818 |
+--------------------------------------------------------+-------------+-------------+
| Deferred taxes | - | 1,041 |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| Changes in Operating Assets & Liabilities | | |
+--------------------------------------------------------+-------------+-------------+
| Account receivable - net, | 2,112 | 2,909 |
+--------------------------------------------------------+-------------+-------------+
| Inventory | (371) | (249) |
+--------------------------------------------------------+-------------+-------------+
| Prepaid expenses | (2,442) | (1,837) |
+--------------------------------------------------------+-------------+-------------+
| Deposits and other assets | 219 | (1,273) |
+--------------------------------------------------------+-------------+-------------+
| Accounts payable - trade | 8,287 | (424) |
+--------------------------------------------------------+-------------+-------------+
| Income tax receivable and payable | 324 | (3,234) |
+--------------------------------------------------------+-------------+-------------+
| Accrued expenses | 1,460 | (1,549) |
| Other long-term liabilities | (1,109) | - |
+--------------------------------------------------------+-------------+-------------+
| Deferred revenue | 4,454 | (2,588) |
+--------------------------------------------------------+-------------+-------------+
| CASH FLOW PROVIDED BY (USED IN) OPERATING | 13,989 | (2,253) |
| ACTIVITIES | | |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| CASH FLOW FROM INVESTING ACTIVITIES | | |
+--------------------------------------------------------+-------------+-------------+
| Purchase of property and equipment, net | (6,401) | (1,539) |
+--------------------------------------------------------+-------------+-------------+
| Acquisition of assets and assumption of | - | (46,625) |
| liabilities, net of cash acquired | | |
+--------------------------------------------------------+-------------+-------------+
| CASH FLOW USED IN INVESTING ACTIVITIES | (6,401) | (48,164) |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| CASH FLOW FROM FINANCING ACTIVITIES | | |
+--------------------------------------------------------+-------------+-------------+
| Net borrowings of and payments on long term loans | (6,000) | 68,250 |
+--------------------------------------------------------+-------------+-------------+
| Reduction in redeemable preferred stock | - | (25,000) |
+--------------------------------------------------------+-------------+-------------+
| Payment of deferred financing costs | - | (3,821) |
+--------------------------------------------------------+-------------+-------------+
| Net borrowings of and payments on revolver | 729 | 3,125 |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| CASH FLOW PROVIDED BY (USED IN) FINANCING ACTIVITIES | (5,271) | 42,554 |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| NET INCREASE (DECREASE) IN CASH | 2,317 | (7,863) |
+--------------------------------------------------------+-------------+-------------+
| CASH, BEGINNING OF PERIOD | 328 | 9,300 |
+--------------------------------------------------------+-------------+-------------+
| CASH, END OF PERIOD | $ 2,645 | $ 1,437 |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| | |
+----------------------------------------+---------------+-------------+-------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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