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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Covad Communications Grp., | AMEX:DVW | AMEX | Ordinary Share |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.00 | - |
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Media and Investors
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Michael Doherty
|
Santina Scalione | |||
408-952-7431
|
201-395-5703 | |||
mdoherty@covad.com
|
sscalion@covad.com |
| $10.6 million in A-EBITDA | ||
| $7.4 million increase in cash, cash equivalents and short-term investments, and restricted cash and cash equivalents | ||
| $121.6 million in net revenues | ||
| $11.9 million ($0.04 per share) net loss | ||
| 23 percent increase in subscription revenue from Growth products from the fourth quarter of 2006 | ||
| 22 percent increase in subscription revenue from T1 and Bonded T1 services from the fourth quarter of 2006 | ||
| 11 percent increase in subscription revenue from wireless from the fourth quarter of 2006 | ||
| Announced definitive agreement to be acquired by Platinum Equity for $1.02 per share |
| Net revenues for the fourth quarter of 2007 totaled $121.6 million, a decrease of $0.3 million from the $121.9 million reported for the third quarter of 2007, and an increase of $2.1 million from the $119.5 million reported for the fourth quarter of 2006. | |
| Direct subscribers for the fourth quarter of 2007 contributed $45.7 million of net revenues, or 37.6 percent, as compared to $45.3 million, or 37.2 percent, for the third quarter of 2007, and $42.3 million, or 35.4 percent, for the fourth quarter of 2006. Wholesale subscribers for the fourth quarter of 2007 contributed $75.9 million of net revenues, or 62.4 percent, as compared to $76.6 million, or 62.8 percent, for the third quarter of 2007, and $77.1 million, or 64.6 percent, for the fourth quarter of 2006. | |
| Subscription revenue from Growth products for the fourth quarter of 2007 totaled $58.4 million, an increase of $1.6 million, or 2.8 percent, from the third quarter of 2007, and an increase of $10.9 million, or 22.9 percent from the fourth quarter of 2006. Covads growth products are T-1, business ADSL, Line-Powered Voice Access (LPVA), Voice over Internet Protocol (VoIP) and wireless. The increase from the third quarter of 2007 was attributable to increases in broadband subscription revenue from T-1, business ADSL and LPVA of $1.4 million, and VoIP subscription revenue of $0.2 million. The increase from the fourth quarter of 2006 was attributable to increases in broadband subscription revenue from T-1, business ADSL and LPVA of $8.1 million, VoIP subscription revenue of $2.4 million and wireless subscription revenue of $0.4 million. Subscription revenue from Growth products for the fourth quarter of 2007 contributed 52.6 percent of total subscription revenues, an increase of 1.6 percent from the third quarter of 2007 and an increase of 9.3 percent from the fourth quarter of 2006. Refer to the Selected Financial Data below, including Note 3, for additional information, including a summary of subscription revenue from Growth and Legacy products and a reconciliation of subscription revenue to the most directly comparable GAAP measure. | |
| Subscription revenue from Legacy products for the fourth quarter of 2007 totaled $52.7 million, a decrease of $1.8 million, or 3.3 percent, from the third quarter of 2007, and a decrease of $9.5 million, or 15.3 percent from the fourth quarter of 2006. Covads legacy products, primarily sold through wholesale channels, are consumer ADSL, business SDSL, frame relay and high-capacity transport circuits. The decreases from the third quarter of 2007 and fourth quarter of 2006 were primarily attributable to decreases in broadband subscription revenue from consumer ADSL and business SDSL and frame relay products. Subscription revenue from Legacy products for the fourth quarter of 2007 contributed 47.4 percent of total subscription revenues, a decrease of 1.6 percent from the third quarter of 2007 and a decrease of 9.3 percent from the fourth quarter of 2006. Refer to the Selected Financial Data below, including Note 3, for additional information, including a summary of subscription revenue from Growth and Legacy products and a reconciliation of subscription revenue to the most directly comparable GAAP measure. | |
| Revenue from business subscribers for the fourth quarter of 2007 contributed $97.9 million of net revenues, a 1.0 percent increase from the third quarter of 2007 and a 4.4 percent increase from the fourth quarter of 2006. Revenue from business subscribers comprised 80.5 percent of net revenues, up from 79.5 percent in the third quarter of 2007 and 78.6 percent in the fourth quarter of 2006. Revenue from consumer subscribers for the fourth quarter of 2007 contributed $23.7 million of net revenues, down from $24.9 million in the third of 2007 and $25.6 million in the fourth quarter of 2006. Revenue from consumer subscribers for the fourth quarter of 2007 comprised |
19.5 percent of net revenues, down from 20.5 percent in the third quarter of 2007 and 21.4 percent in the fourth quarter of 2006. | ||
| Adjusted earnings before interest, taxes, depreciation and amortization (A-EBITDA) for the fourth quarter of 2007 totaled $10.6 million, up $0.3 million from the A-EBITDA reported for the third quarter of 2007, and up $3.9 million from the A-EBITDA reported for the fourth quarter of 2006. A-EBITDA in the fourth quarter of 2007 includes $2.1 million of expenses related to our pending merger agreement with Platinum, partially offset by lower operating expenses as a result of cost containment initiatives. Refer to the Selected Financial Data below, including Note 2, for additional information, including a reconciliation of this non-GAAP financial performance measure to the most directly comparable GAAP measure. | |
| Net loss for the fourth quarter of 2007 totaled $11.9 million, or $0.04 loss per share, compared to the $4.9 million net loss, or $0.02 loss per share, reported for the third quarter of 2007 and the $8.4 million net loss, or $0.03 loss per share, reported for the fourth quarter of 2006. As stated above, fourth quarter of 2007 includes expenses related to our pending merger. In addition, included in net loss and A-EBITDA above for the fourth quarter of 2007 is a $7.3 million charge from an arbitration award case with one of our former wholesale customers. The Company has filed a motion to vacate this arbitration award and it is waiting for the courts decision. | |
| Cash, cash equivalents and short-term investments, and restricted cash and cash equivalents at the end of the fourth quarter of 2007 totaled $71.6 million, an increase of $7.4 million when compared to the balance of $64.2 million at the end of the third quarter of 2007. This increase in cash, cash equivalents and short-term investments, and restricted cash and cash equivalents for the fourth quarter of 2007 was primarily as a result of an improvement in our cash generated from our operating activities and the cost containment initiatives stated above. |
SELECTED FINANCIAL DATA (unaudited)
(in thousands
)
As of
As of
As of
Dec 31, 2007
Sep 30, 2007
Dec 31, 2006
$
65,956
$
55,648
$
62,072
5,667
8,534
19,578
30,186
35,625
31,151
7,807
9,657
11,148
109,616
109,464
123,949
71,353
72,300
87,586
14,499
16,604
22,768
50,002
50,002
50,002
23,580
25,920
24,268
2,209
2,623
3,823
1,470
1,765
912
$
272,729
$
278,678
$
313,308
$
97,594
$
89,839
$
101,670
172,461
172,461
167,240
38,944
42,687
42,044
(36,270
)
(26,309
)
2,354
$
272,729
$
278,678
$
313,308
SELECTED FINANCIAL DATA (unaudited)
(in thousands, except per share amounts
)
Three Months Ended
Twelve Months Ended
Dec 31, 2007
Sep 30, 2007
Dec 31, 2006
Dec 31, 2007
Dec 31, 2006
$
121,594
$
121,878
$
119,456
$
484,207
$
474,304
84,795
86,950
84,325
346,876
328,474
(19,455
)
26,581
25,064
29,267
111,434
127,380
10,042
10,137
9,938
41,985
34,876
2,268
2,322
2,411
9,284
9,949
229
66
137
1,652
1,597
7,338
7,338
131,253
124,539
126,078
518,569
482,821
(9,659
)
(2,661
)
(6,622
)
(34,362
)
(8,517
)
(2,285
)
(2,243
)
(1,820
)
(8,605
)
(5,432
)
$
(11,944
)
$
(4,904
)
$
(8,442
)
$
(42,967
)
$
(13,949
)
$
(0.04
)
$
(0.02
)
$
(0.03
)
$
(0.14
)
$
(0.05
)
$
(0.04
)
$
(0.02
)
$
(0.03
)
$
(0.14
)
$
(0.05
)
298,044
298,013
295,683
297,489
290,262
298,044
298,013
295,683
297,489
290,262
$
36,799
$
34,928
$
35,131
$
137,331
$
145,830
30.3
%
28.7
%
29.4
%
28.4
%
30.7
%
Three Months Ended
Twelve Months Ended
Dec 31, 2007
Sep 30, 2007
Dec 31, 2006
Dec 31, 2007
Dec 31, 2006
$
(11,944
)
$
(4,904
)
$
(8,442
)
$
(42,967
)
$
(13,949
)
2,285
2,243
1,820
8,605
5,432
10,042
10,137
9,938
41,985
34,876
2,268
2,322
2,411
9,284
9,949
7,338
7,338
570
519
958
2,181
3,244
$
10,559
$
10,317
$
6,685
$
26,426
$
39,552
SELECTED FINANCIAL DATA (unaudited)
(in thousands)
Three Months Ended
Twelve Months Ended
(Note 3 through 7)
Dec 31, 2007
Sep 30, 2007
Dec 31, 2006
Dec 31, 2007
Dec 31, 2006
$
92,265
$
92,916
$
93,100
$
370,887
$
373,658
10,873
10,615
8,483
40,304
27,752
3,763
3,679
3,377
14,497
10,872
4,221
4,131
4,724
17,300
18,574
111,122
111,341
109,684
$
442,988
$
430,856
10,472
10,537
9,772
41,219
43,448
$
121,594
$
121,878
$
119,456
$
484,207
$
474,304
$
15,809
$
16,456
$
20,028
$
68,580
$
88,089
32,666
33,938
37,407
137,909
154,872
4,221
4,131
4,724
17,300
18,574
52,696
54,525
62,159
223,789
261,535
43,790
42,522
35,665
164,398
130,697
10,873
10,615
8,483
40,304
27,752
3,763
3,679
3,377
14,497
10,872
58,426
56,816
47,525
219,199
169,321
111,122
111,341
109,684
442,988
430,856
10,472
10,537
9,772
41,219
43,448
$
121,594
$
121,878
$
119,456
$
484,207
$
474,304
$
44,026
$
43,736
$
41,460
$
172,434
$
155,528
67,096
67,605
68,224
270,554
275,328
$
111,122
$
111,341
$
109,684
$
442,988
$
430,856
Key Operating Data
|
||||||||||||
As of | ||||||||||||
|
Dec 31, 2007 | Sep 30, 2007 | Dec 31, 2006 | |||||||||
End of Period Lines (EOP)
|
||||||||||||
Company
|
||||||||||||
Business
|
226,604 | 230,182 | 236,956 | |||||||||
Consumer
|
260,647 | 274,898 | 282,059 | |||||||||
|
||||||||||||
Total Company
|
487,251 | 505,080 | 519,015 | |||||||||
|
||||||||||||
Wholesale
|
||||||||||||
Business
|
163,261 | 166,078 | 171,647 | |||||||||
Consumer
|
253,183 | 266,671 | 271,311 | |||||||||
|
||||||||||||
Total Wholesale
|
416,444 | 432,749 | 442,958 | |||||||||
|
||||||||||||
Direct
|
||||||||||||
Business
|
63,343 | 64,104 | 65,309 | |||||||||
Consumer
|
7,464 | 8,227 | 10,748 | |||||||||
|
||||||||||||
Total Direct
|
70,807 | 72,331 | 76,057 | |||||||||
|
||||||||||||
Direct VoIP
|
||||||||||||
Customers
|
2,315 | 2,340 | 1,623 | |||||||||
Stations
|
56,005 | 56,966 | 49,987 | |||||||||
Sites
|
4,024 | 4,035 | 2,805 | |||||||||
|
||||||||||||
Direct Wireless
|
||||||||||||
Subscribers
|
3,540 | 3,582 | 3,493 |
Average Revenue per User (ARPU)
|
||||||||||||
|
||||||||||||
Three Months Ended | ||||||||||||
|
Dec 31, 2007 | Sep 30, 2007 | Dec 31, 2006 | |||||||||
Company
|
||||||||||||
Business
|
$ | 107 | $ | 105 | $ | 101 | ||||||
Consumer
|
$ | 24 | $ | 24 | $ | 24 | ||||||
|
||||||||||||
Total Company
|
$ | 62 | $ | 61 | $ | 59 | ||||||
|
||||||||||||
Wholesale
|
||||||||||||
Business
|
$ | 90 | $ | 88 | $ | 84 | ||||||
Consumer
|
$ | 24 | $ | 24 | $ | 24 | ||||||
|
||||||||||||
Total Wholesale
|
$ | 49 | $ | 48 | $ | 47 | ||||||
|
||||||||||||
Direct
|
||||||||||||
Business
|
$ | 151 | $ | 150 | $ | 147 | ||||||
Consumer
|
$ | 30 | $ | 30 | $ | 35 | ||||||
|
||||||||||||
Total Direct
|
$ | 138 | $ | 135 | $ | 130 | ||||||
|
||||||||||||
Direct VoIP
|
||||||||||||
Customers
|
$ | 1,635 | $ | 1,665 | $ | 1,814 | ||||||
Stations
|
$ | 64 | $ | 62 | $ | 58 | ||||||
Sites
|
$ | 924 | $ | 926 | $ | 1,039 |
1. | Gross margin is calculated by subtracting cost of sales (exclusive of depreciation and amortization) from revenues, net. | |
2. | Management believes that Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (A-EBITDA), defined as net loss excluding (i) depreciation and amortization of property and equipment, (ii) amortization of intangible assets, (iii) other income (expense), net, (iv) employee stock-based compensation expense, and (v) provision for arbitration award is a useful measure because it provides additional information about the companys ability to meet future capital expenditure and working capital requirements and fund continued growth. Management excludes employee stock-based compensation expense from this measure to enhance the comparability of operating results without giving effect to these non-cash charges which are in part a function of matters over which management has no control. Management also excluded a $7.338 million provision for an arbitration award from Adjusted EBITDA because it believes the specific dispute from which this arbitration arose is not reflective of its ongoing business activities and that investors will benefit from an understanding of the performance of the Companys business without giving effect to this unusual event. Management uses A-EBITDA to evaluate the performance of its business segments and as a factor in its employee bonus program. A-EBITDA should not be used as an alternative to our operating and other financial information as determined under accounting principles generally accepted in the United States. A-EBITDA is not a prescribed term under accounting principles generally accepted in the United States, does not directly correlate to cash provided by or used in operating activities and should not be considered in isolation, nor as an alternative to more meaningful measures of performance determined in accordance with accounting principles generally accepted in the United States. A-EBITDA generally excludes the effect of capital costs. Management reconciles A-EBITDA to net income or loss because it believes that net income or loss is the closest measure determined under accounting principles generally accepted in the United States that approximates A-EBITDA. | |
3. | Broadband, VoIP, Wireless and High-Capacity subscription revenues are defined as billings for recurring services provided during the period. These subscription revenues exclude charges for Federal Universal Service Fund (FUSF) assessments, dial-up services and other adjustments. In addition, these subscription revenues include bills issued to customers that are classified as financially distressed and whose revenue is only recognized if cash is received (refer to Note 4 below for a more detailed discussion on accounting for financially distressed partners). Management believes that Broadband, VoIP, Wireless and High-Capacity subscription revenues are useful measures for investors as they represent key indicators of the growth of the companys core business. | |
4. | When the company determines that (i) the collectibility of a bill issued to a customer is not reasonably assured or (ii) its ability to retain some or all of the payments received from a customer that has filed for bankruptcy protection is not reasonably assured, the customer is classified as financially distressed for revenue recognition purposes. A bill issued to a financially distressed customer is recognized as revenue when services are rendered and cash for those services is received, assuming all other criteria for revenue recognition have been met, and only after the collection of all previous outstanding accounts receivable balances. Consequently, there may be significant timing differences between the time a bill is issued, the time the services are provided and the time that cash is received and revenue is recognized. | |
5. | Customer rebates and incentives not subject to deferral consist of amounts paid or accrued under marketing, promotion and rebate incentive programs with certain customers. Rebates and incentives paid or accrued under these programs are not accompanied by any up-front charges billed to customers. Therefore, these charges are accounted for as reductions of revenue as incurred. | |
6. | Other revenues consist primarily of revenue recognized from amortization of prior period SAB 104 deferrals (refer to Note 7 below for a discussion of SAB 104), FUSF billed to our customers and other revenues not subject to SAB 104 deferral because they do not relate to an on-going customer relationship or performance of future services. | |
7. | In accordance with SAB 104, the company recognizes up-front fees associated with service activation, net of any amounts concurrently paid or accrued under certain marketing, promotion and rebate incentive programs, over the expected term of the customer relationship, which is presently estimated to be 24 to 48 months, using the straight-line method. The company also treats the incremental direct costs of service activation (which consist principally of customer premises equipment, service activation fees paid to other telecommunications companies and sales commissions) as deferred charges in amounts that are no greater than the up-front fees that are deferred, and such deferred incremental direct costs are amortized to expense using the straight-line method over 24 to 48 months. |
Condensed Consolidated Balance Sheet Data
|
||||||||||||
|
||||||||||||
As of | As of | As of | ||||||||||
|
Dec 31, 2007 | Sep 30, 2007 | Dec 31, 2006 | |||||||||
Cash, cash equivalents, and short-term investments
|
$ | 65,956 | $ | 55,648 | $ | 62,072 | ||||||
Restricted cash and cash equivalents
|
5,667 | 8,534 | 19,578 | |||||||||
Accounts receivable, net
|
30,186 | 35,625 | 31,151 | |||||||||
All other current assets
|
7,807 | 9,657 | 11,148 | |||||||||
|
||||||||||||
Total current assets
|
109,616 | 109,464 | 123,949 | |||||||||
Property and equipment, net
|
71,353 | 72,300 | 87,586 | |||||||||
Collocation fees and other intangible assets, net
|
14,499 | 16,604 | 22,768 | |||||||||
Goodwill
|
50,002 | 50,002 | 50,002 | |||||||||
Deferred costs of service activation
|
23,580 | 25,920 | 24,268 | |||||||||
Deferred debt issuance costs, net
|
2,209 | 2,623 | 3,823 | |||||||||
All other long-term assets
|
1,470 | 1,765 | 912 | |||||||||
|
||||||||||||
Total assets
|
$ | 272,729 | $ | 278,678 | $ | 313,308 | ||||||
|
||||||||||||
|
||||||||||||
Total current liabilities
|
$ | 97,594 | $ | 89,839 | $ | 101,670 | ||||||
Long-term debt
|
172,461 | 172,461 | 167,240 | |||||||||
Other long-term liabilities
|
38,944 | 42,687 | 42,044 | |||||||||
Total stockholders equity (deficit)
|
(36,270 | ) | (26,309 | ) | 2,354 | |||||||
|
||||||||||||
Total liabilities and stockholders equity (deficit)
|
$ | 272,729 | $ | 278,678 | $ | 313,308 | ||||||
|
Page1
Condensed Consolidated Statements of Operations Data
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
|
Dec 31, 2007 | Sep 30, 2007 | Dec 31, 2006 | Dec 31, 2007 | Dec 31, 2006 | |||||||||||||||||||
Revenues, net
|
$ | 121,594 | $ | 121,878 | $ | 119,456 | $ | 484,207 | $ | 474,304 | ||||||||||||||
Operating expenses:
|
||||||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization)
|
84,795 | 86,950 | 84,325 | 346,876 | 328,474 | |||||||||||||||||||
Benefit from federal excise tax adjustment
|
| | | | (19,455 | ) | ||||||||||||||||||
Selling, general and administrative
|
26,581 | 25,064 | 29,267 | 111,434 | 127,380 | |||||||||||||||||||
Depreciation and amortization of property and equipment
|
10,042 | 10,137 | 9,938 | 41,985 | 34,876 | |||||||||||||||||||
Amortization of collocation fees and other intangible assets
|
2,268 | 2,322 | 2,411 | 9,284 | 9,949 | |||||||||||||||||||
Provision for post-employment benefits
|
229 | 66 | 137 | 1,652 | 1,597 | |||||||||||||||||||
Provision for arbitration award
|
7,338 | | | 7,338 | | |||||||||||||||||||
|
||||||||||||||||||||||||
Total operating expenses
|
131,253 | 124,539 | 126,078 | 518,569 | 482,821 | |||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Loss from operations
|
(9,659 | ) | (2,661 | ) | (6,622 | ) | (34,362 | ) | (8,517 | ) | ||||||||||||||
|
||||||||||||||||||||||||
Other expense, net
|
(2,285 | ) | (2,243 | ) | (1,820 | ) | (8,605 | ) | (5,432 | ) | ||||||||||||||
|
||||||||||||||||||||||||
Net loss
|
$ | (11,944 | ) | $ | (4,904 | ) | $ | (8,442 | ) | $ | (42,967 | ) | $ | (13,949 | ) | |||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Loss per common share:
|
||||||||||||||||||||||||
Basic
|
$ | (0.04 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.14 | ) | $ | (0.05 | ) | |||||||||
|
||||||||||||||||||||||||
Diluted
|
$ | (0.04 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.14 | ) | $ | (0.05 | ) | |||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Weighted-average number of common shares outstanding
|
||||||||||||||||||||||||
Basic
|
298,044 | 298,013 | 295,683 | 297,489 | 290,262 | |||||||||||||||||||
|
||||||||||||||||||||||||
Diluted
|
298,044 | 298,013 | 295,683 | 297,489 | 290,262 | |||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Gross Margin (Note 1)
|
$ | 36,799 | $ | 34,928 | $ | 35,131 | $ | 137,331 | $ | 145,830 | ||||||||||||||
%
|
30.3 | % | 28.7 | % | 29.4 | % | 28.4 | % | 30.7 | % |
A-EBITDA Calculation (Note 2)
|
||||||||||||||||||||
|
||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
|
Dec 31, 2007 | Sep 30, 2007 | Dec 31, 2006 | Dec 31, 2007 | Dec 31, 2006 | |||||||||||||||
Net loss
|
$ | (11,944 | ) | $ | (4,904 | ) | $ | (8,442 | ) | $ | (42,967 | ) | $ | (13,949 | ) | |||||
Plus: Other expense, net
|
2,285 | 2,243 | 1,820 | 8,605 | 5,432 | |||||||||||||||
Depreciation and amortization of
property and
equipment
|
10,042 | 10,137 | 9,938 | 41,985 | 34,876 | |||||||||||||||
Amortization of
collocation fees
and other
intangible assets
|
2,268 | 2,322 | 2,411 | 9,284 | 9,949 | |||||||||||||||
Provision for
arbitration award
|
7,338 | | | 7,338 | | |||||||||||||||
Employee
stock-based
compensation
|
570 | 519 | 958 | 2,181 | 3,244 | |||||||||||||||
|
||||||||||||||||||||
A-EBITDA
|
$ | 10,559 | $ | 10,317 | $ | 6,685 | $ | 26,426 | $ | 39,552 | ||||||||||
|
Page 2
Consolidated Revenue Data
|
||||||||||||||||||||
|
||||||||||||||||||||
|
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
(Note 3 through 7) | Dec 31, 2007 | Sep 30, 2007 | Dec 31, 2006 | Dec 31, 2007 | Dec 31, 2006 | |||||||||||||||
Broadband subscription revenue
|
$ | 92,265 | $ | 92,916 | $ | 93,100 | $ | 370,887 | $ | 373,658 | ||||||||||
VoIP subscription revenue
|
10,873 | 10,615 | 8,483 | 40,304 | 27,752 | |||||||||||||||
Wireless subscription revenue
|
3,763 | 3,679 | 3,377 | 14,497 | 10,872 | |||||||||||||||
High-capacity circuit subscription revenue
|
4,221 | 4,131 | 4,724 | 17,300 | 18,574 | |||||||||||||||
|
||||||||||||||||||||
Total subscription revenue
|
111,122 | 111,341 | 109,684 | $ | 442,988 | $ | 430,856 | |||||||||||||
Other revenue, net
|
10,472 | 10,537 | 9,772 | 41,219 | 43,448 | |||||||||||||||
|
||||||||||||||||||||
Revenues, net
|
$ | 121,594 | $ | 121,878 | $ | 119,456 | $ | 484,207 | $ | 474,304 | ||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Subscription revenue from Legacy products
|
||||||||||||||||||||
Broadband Consumer ADSL
|
$ | 15,809 | $ | 16,456 | $ | 20,028 | $ | 68,580 | $ | 88,089 | ||||||||||
Broadband Business SDSL & Frame Relay
|
32,666 | 33,938 | 37,407 | 137,909 | 154,872 | |||||||||||||||
High-capacity circuits
|
4,221 | 4,131 | 4,724 | 17,300 | 18,574 | |||||||||||||||
|
||||||||||||||||||||
Total subscription revenue from Legacy products
|
52,696 | 54,525 | 62,159 | 223,789 | 261,535 | |||||||||||||||
|
||||||||||||||||||||
Subscription revenue from Growth products
|
||||||||||||||||||||
Broadband T1, Business ADSL, LPVA
|
43,790 | 42,522 | 35,665 | 164,398 | 130,697 | |||||||||||||||
VoIP
|
10,873 | 10,615 | 8,483 | 40,304 | 27,752 | |||||||||||||||
Wireless
|
3,763 | 3,679 | 3,377 | 14,497 | 10,872 | |||||||||||||||
|
||||||||||||||||||||
Total subscription revenue
from Growth products
|
58,426 | 56,816 | 47,525 | 219,199 | 169,321 | |||||||||||||||
|
||||||||||||||||||||
Total subscription revenue
|
111,122 | 111,341 | 109,684 | 442,988 | 430,856 | |||||||||||||||
Other revenue, net
|
10,472 | 10,537 | 9,772 | 41,219 | 43,448 | |||||||||||||||
|
||||||||||||||||||||
Revenue, net
|
$ | 121,594 | $ | 121,878 | $ | 119,456 | $ | 484,207 | $ | 474,304 | ||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Direct subscription revenue
|
$ | 44,026 | $ | 43,736 | $ | 41,460 | $ | 172,434 | $ | 155,528 | ||||||||||
Wholesale subscription revenue
|
67,096 | 67,605 | 68,224 | 270,554 | 275,328 | |||||||||||||||
|
||||||||||||||||||||
Total subscription revenue
|
$ | 111,122 | $ | 111,341 | $ | 109,684 | $ | 442,988 | $ | 430,856 | ||||||||||
|
Page 3
Key Operating Data
|
||||||||||||
|
||||||||||||
As of | ||||||||||||
|
Dec 31, 2007 | Sep 30, 2007 | Dec 31, 2006 | |||||||||
End of Period Lines (EOP)
|
||||||||||||
Company
|
||||||||||||
Business
|
226,604 | 230,182 | 236,956 | |||||||||
Consumer
|
260,647 | 274,898 | 282,059 | |||||||||
|
||||||||||||
Total Company
|
487,251 | 505,080 | 519,015 | |||||||||
|
||||||||||||
Wholesale
|
||||||||||||
Business
|
163,261 | 166,078 | 171,647 | |||||||||
Consumer
|
253,183 | 266,671 | 271,311 | |||||||||
|
||||||||||||
Total Wholesale
|
416,444 | 432,749 | 442,958 | |||||||||
|
||||||||||||
Direct
|
||||||||||||
Business
|
63,343 | 64,104 | 65,309 | |||||||||
Consumer
|
7,464 | 8,227 | 10,748 | |||||||||
|
||||||||||||
Total Direct
|
70,807 | 72,331 | 76,057 | |||||||||
|
||||||||||||
Direct VoIP
|
||||||||||||
Customers
|
2,315 | 2,340 | 1,623 | |||||||||
Stations
|
56,005 | 56,966 | 49,987 | |||||||||
Sites
|
4,024 | 4,035 | 2,805 | |||||||||
|
||||||||||||
Direct Wireless
|
||||||||||||
Subscribers
|
3,540 | 3,582 | 3,493 |
Average Revenue per User (ARPU)
|
||||||||||||
|
||||||||||||
Three Months Ended | ||||||||||||
|
Dec 31, 2007 | Sep 30, 2007 | Dec 31, 2006 | |||||||||
Company
|
||||||||||||
Business
|
$ | 107 | $ | 105 | $ | 101 | ||||||
Consumer
|
$ | 24 | $ | 24 | $ | 24 | ||||||
|
||||||||||||
Total Company
|
$ | 62 | $ | 61 | $ | 59 | ||||||
|
||||||||||||
Wholesale
|
||||||||||||
Business
|
$ | 90 | $ | 88 | $ | 84 | ||||||
Consumer
|
$ | 24 | $ | 24 | $ | 24 | ||||||
|
||||||||||||
Total Wholesale
|
$ | 49 | $ | 48 | $ | 47 | ||||||
|
||||||||||||
Direct
|
||||||||||||
Business
|
$ | 151 | $ | 150 | $ | 147 | ||||||
Consumer
|
$ | 30 | $ | 30 | $ | 35 | ||||||
|
||||||||||||
Total Direct
|
$ | 138 | $ | 135 | $ | 130 | ||||||
|
||||||||||||
Direct VoIP
|
||||||||||||
Customers
|
$ | 1,635 | $ | 1,665 | $ | 1,814 | ||||||
Stations
|
$ | 64 | $ | 62 | $ | 58 | ||||||
Sites
|
$ | 924 | $ | 926 | $ | 1,039 |
Page 4
A-EBITDA Calculation (Note 2)
|
||||||||
|
||||||||
Full Year-2007
|
||||||||
|
Projected Range of Results | |||||||
Total Revenue, net
|
$ | 485.0 | $ | 505.0 | ||||
Net loss
|
$ | (40.5 | ) | $ | (26.5 | ) | ||
Plus: Other expense, net
|
9.5 | 8.5 | ||||||
Depreciation and amortization of property and equipment
|
43.0 | 41.0 | ||||||
Amortization of collocation fees and other intangible assets
|
10.0 | 9.5 | ||||||
Employee stock-based compensation
|
3.0 | 2.5 | ||||||
|
||||||||
A-EBITDA (Note 2)
|
$ | 25.0 | $ | 35.0 | ||||
|
Page 5
1 Year Covad Chart |
1 Month Covad Chart |
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