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Q2 Earnings and CC should be around 7-31-19. For owners interested in the recent changes and wanting an explanation, I'd encourage reaching out to investor relations and asking them to be sure to include talking points on this topic in the Q2 CC.
Dan Whalen
Manager, Investor Relations
+1828-323-4898
Dan.Whalen@commscope.com
Kevin J. Powers
Vice President, Investor Relations
Kevin.Powers@commscope.com
New all time low this morning. Down 4%, 59 cents last time I looked. Trading at $14.53.
Would love to hear any alternate theories on why this is happening. All I've heard to date is the huge UOIP liability. Sorry... Unified Online. UOIP registration got revoked and the company it's suing drops 4% the next day.
Strange world we live in.
Well that's depressing, I was hoping for something a bit more colorful, anyone seen my missing ticker, got loose yesterday and I can't seem to find her. Her name is UOIP , I fear she's gone into the private sector.
Well given that the lifetime average on this board is about 3 posts a year... I'd say no conclusion can be decisively drawn about where everyone is :)
With near 0% individual ownership, makes sense that no one is here to discuss. Institutions have better things to do with their time.
Were did everyone go
I have never seen a stock with all institutional ownership. Is this common, and has this always been the case for COMM?
Makes sense that there are no individuals on this board, no one owns it.
IGLOW, if you don't believe the recent drop is related to the litigation, then what do you attribute it to?
I believe Comm will drop below 12 by end of august...possibly close to 10
Do you continue to recommend a buy for C O M M? The predecessor, Arris, disclosed indemnification in the ChanBond case. Please provide us with your insights into Wall Street. AJ
Bids drying up here at COMM.. not looking pretty
Yes, of course - the person writing the pumping articles for UOIP should contact the Wall Street Journal and about freelance writing and submit the articles - as they have fact checkers and editors.
SeekingAlpha doesn't vet the articles.
IG
Yes, I understand your position. Seeking Alpha is bad. Are you providing an alternative, with superior advice? TIA...AJ
The SEC stated that seekingalpha is being used to operate share selling schemes.
"Scammers Used SeekingAlpha for Bogus Stock Promotions, SEC Says"
What else needs to be stated that the SEC didn't uncover in their investigation.
SeekingAlpha is the bottom feeder of stock analysis - either pumping or attacking a stock that is baseless.
Fortunately only OTCM novice investors read the SA junk - serious and sophisticated investors understand that the information is mostly fabricated.
IG
This sounds like an unsubstantiated personal attack, but I would like to hear more of your insights. So, Seeking Alpha is evil? Could you, please, be more specific? TIA...AJ
Read the pumping articles he has written about UOIP - whatever he was paid it was too much - never any real DD - just pumping nonsense.
"Scammers Used SeekingAlpha for Bogus Stock Promotions, SEC Says"
SeekingAlpha.com tries to ensure that research published on its popular investing website is unbiased by requiring writers to disclose whether they’ve been paid for touting stocks. But U.S. regulators say there’s an easy work around: lying.
So the garbage spewed on SeekingAlpha about UOIP and COMM is worthless.
IG
UOIP hasn't sued anyone - they still owe Chanbond $5 million before the deal is consummated.
Chanbond is a worthless patent troll - or as the courts state - non-practicing entity.
IG
Hi, I-Glow. How much was he paid? AJ
Seeking Alpha was sanctioned by the SEC for providing false and misleading information as it attempts to operate pump and dumps.
The author of the article is a paid shill for UOIP - his information is worthless.
IG
Very interesting Magnus.
That same CEO admitted that Arris Group may have to indemnify the 13 Cable companies.
Now that He is the CEO of Corecomm He fails to mention it[The Cable companies by name].
Rather strange..... about Face on the subject
.
Not sure why you're so optimistic....The market cap of Comm has fallen below 3 billion and the stock is crashing...They are responsible for indemnifying the 13 MSO's that have been sued by Chanbond/Uoip for infringing on their patents. When Comm bought the company business from Arris they would have known about this liability and should have planned for it..This lawsuit has the potential to bankrupt Comm and you'd best be aware of this fact rather than singing about a 40 dollar share price down the road. They will be lucky to survive.
Nearly 6,000, as of today, a bit less than 8 days. Actually surprised that a "blog" would get this action. Thanks for the kind words. AJ
You are a rockstar !!!
4,700 hits in less than 1 week. AJ
2,469 hits in less than 96 hours.
I have never had this many hits on a blog, even after 1 year.
Also, I noted that CommScope is not disclosing the actual case in the footnotes to their financials.
If I was a CommScope executive, this failure to adequately disclose would concern me.
Best to all UOIP lings!
AJ
https://seekingalpha.com/instablog/3646631-anthony-cataldo/5312867-commscope-unifiedonline-shareholders-anticipate-evaporation-working-capital-near-term
Do not buy COMM. Buy something else. Too much risk with this one. AJ
CommScope could be preparing to payout to Chanbond $UOIP
CommScope's 10-Q March 31, 2019 that was not in their 10-Q a year ago.
Litigation and Regulatory Risks
We may incur costs and may not be successful in protecting our intellectual property and in defending claims that we are infringing on the intellectual property of others.
We may encounter difficulties and significant costs in protecting our intellectual property rights or obtaining rights to additional intellectual property to permit us to continue or expand our business. Other companies, including some of our largest competitors, hold intellectual property rights in our industry and the intellectual property rights of others could inhibit our ability to introduce new products unless we secure necessary licenses on commercially reasonable terms.
In the past, we have initiated litigation in order to enforce patents issued or licensed to us or to determine the scope and/or validity of a third party’s patent or other proprietary rights, and we may initiate similar litigation in the future. We also have been and may in the future be subject to lawsuits by third parties seeking to enforce their own intellectual property rights, including against certain of the products or intellectual property that we have acquired through acquisitions. Any such litigation, regardless of outcome, could be costly and could subject us to significant liabilities or require us to cease using proprietary third-party technology. In addition, the payment of any damages or any necessary licensing fees or indemnification costs associated with a patent infringement claim could be material and could also materially adversely affect our operating results. Such litigation can also be a significant distraction to management.
CommScope 10-Q 3/31/2019
http://ir.commscope.com/node/12811/html
CommScope 10-Q 3/31/2018
http://ir.commscope.com/node/12021/html
They just bought out Arris Group...Maybe this means a settlement is near?
Arris Shares Surge On Report Of CommScope Acquistion -- MarketWatch
4:36 pm ET November 6, 2018 (MarketWatch)
Arris International PLC (ARRS) shares rallied in the extended session Tuesday following a report that the set-top-box maker was going to be acquired by CommScope Holding Co. (COMM). Arris shares surged 16%, while CommScope shares fell 5% after hours. Late Tuesday, CNBC reported (https://www.cnbc.com/2018/11/06/commscope-near-to-buying-arris-for-more-than-31-a-share-sources.html) that CommScope was near a deal to acquire Arris for more than $5.6 billion.
Source = TDAmeritrade
The favorable patent ruling news will add $2-$4 to the current PPS. My short term target is still $44, but this year should see $50's
This 5yr DCF analysis implies CommScope $COMM is 40% undervalued before earnings Thursday:
DCF Model Source
So far no good
And who plays checkers anymore ?
I think I am going to jump in this one here. Can you say 20K? Maybe 50K Maybe 500K? Market makers How about I short instead.... See you on the checker board ;) I promise you I will be on the right side and I will take your money.
COMM up today! http://www.myblueJackets.net
NHL DEAL
CoreComm Signs Vault9 to Exclusive Dedicated Internet Access Agreement; Synergistic Relationship Established
BALA CYNWYD, Pa., Apr 30, 2002 (BUSINESS WIRE) -- CoreComm (Nasdaq: COMM), a
leading integrated communications provider with approximately 400,000 customers,
has signed a five-year agreement to provide dedicated Internet access to Vault9,
a Managed Service Provider in the Greater Toledo, Ohio market.
CoreComm will be providing Vault9 with additional bandwidth and network
redundancy in Vault9's new 26,000 square-foot Network Operations Center in
Toledo.
In addition to providing dedicated Internet access over a DS3 and two T1s,
CoreComm will also be leasing space in Vault9's new Technology Building in
downtown Toledo, to be used as a sales office.
"CoreComm is very supportive of small business, and we've joined forces with
them in the Toledo area because they understand our business and deliver great
service," explains Brandon Cohn, Chief Executive Officer for Vault9.
"The relationship we have developed with Vault9 as a result of this agreement
creates significant synergies from an information technology standpoint for both
companies over the next few years of this agreement," states Dave Schroeder,
Senior Vice President of Business Markets for CoreComm. "More importantly,
through this alliance between CoreComm and Vault9, businesses in Northwest Ohio
and Southeast Michigan will derive long-term benefits through the use of high
speed Internet access bandwidth combined with the ASP/ASM environment created
through Vault9's information technology platform."
Vault9 serves Northwest Ohio and Southeast Michigan area businesses by providing
custom e-business software development, full service off-site e-business
management of hardware and software, and ASP management.
About CoreComm/ATX
CoreComm/ATX is a leading facilities-based integrated communications provider
delivering innovative voice, Internet, data, e-business, and wireless solutions.
CoreComm and ATX joined forces in September 2000, bringing a 16-year track
record of success to approximately 400,000 consumers and businesses throughout
the Mid-Atlantic and Midwest regions. CoreComm/ATX leverages its proven model of
consultative services, consolidated broadband offerings, and personalized
account management to provide reliable products and a competitive advantage for
its customers. For more information on CoreComm/ATX, please visit www.core.com
or www.atx.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: In addition to the historical information presented, this release also
includes certain forward-looking statements concerning the future development of
the business. Such statements represent the Company's reasonable judgment on the
future and are based on assumptions and factors that could cause actual results
to differ materially. The Company assumes no obligation to update these
forward-looking statements to reflect actual results, changes in assumptions or
changes in factors affecting such statements.
Joe - JcRadio
Just guessing but I think before the end of this month.
muell <g>
any idea when they will be filling
Bill
LOL got them new teeth about three months ago, I'll buying a new home when ARYN files, got a bunch of it!
muel <g>
good, you getting you new teeth when ARYN files hehehe
CoreComm Limited Announces Financial Results For the Third Quarter of 2001; Continued Improvements to Financial Results, With a 94% Reduction in EBITDA Losses From the First Quarter
WEDNESDAY, NOVEMBER 14, 2001 9:04 AM
- BusinessWire
CoreComm Limited Announces Financial Results For the Third Quarter of 2001; Continued Improvements to Financial Results, With a 94% Reduction in EBITDA Losses From the First Quarter
NEW YORK, Nov 14, 2001 (BUSINESS WIRE) -- CoreComm Limited announced today its operating results for the three months ended September 30, 2001. The results reflect significant improvement over the second quarter and prior periods.
The Company's revised business plan and its focus on its most profitable markets and products are continuing to lead to significant improvements to the financial results. In the third quarter, further reductions in both the operating expenses as well as the selling, general, and administrative expenses have lead to a 94% reduction in EBITDA losses from the first quarter. The successful operating initiatives include facility consolidation, efficiency improvements, network optimization, headcount reduction, and vendor negotiations, as the Company continuously monitors all areas of its business for additional profitability and revenue growth.
In addition to these initiatives, the Company has also been able to grow revenues during this period. The Company continues to identify new revenue initiatives centered around its two most promising and successful product offerings: the first is integrated communications products and other high bandwidth/data/web-oriented services for the business market; the second is bundled local telephony and Internet products efficiently sold, serviced and provisioned via Internet-centric interfaces to the residential market. The Company also plans to drive revenue growth by capitalizing on low cost opportunities in additional markets. For example, using existing facilities, the Company has recently launched business communications service to several markets in the Great Lakes region and residential service in the East.
Thomas Gravina, Chief Operating Officer of CoreComm said, "We are pleased to announce the continuation of the positive trend in our results in the third quarter, which has led to the third consecutive quarter of substantial declining EBITDA losses, combined with revenue growth during this period. In the third quarter, our EBITDA (before corporate expenses) was ($1.3) million, compared to ($7.8) million in the second quarter and ($22.2) million in the first quarter. Although the tragic events of September 11 had a negative impact on our results for the quarter, we are pleased to show such significant improvement.
"Concurrently with the expense reductions, we have also been focusing on the improvement of the customer experience and expansion of our product offerings and geographic footprint. The fact that we have experienced modest growth in revenues while extensively cutting costs illustrates the fundamental success of our business model. These substantial achievements in such a short period of time demonstrate the focus of our senior management and the overall quality and commitment of our entire employee base. Our operating team has been doing a tremendous job executing the modified business model, which was reformulated earlier in the year due to the current financial market environment. We will continue to focus on revenue growth and bottom line profitability, and we expect further progress in our results going forward.
"As part of our goal of driving growth and profitability, we are currently evaluating and implementing several new revenue initiatives. We are leveraging our current resources in the East, Midwest and Great Lakes regions to expand our bundled commercial and residential product offerings across our entire operations footprint. We recently launched commercial telephony service in the Great Lakes region, as well as residential services in the East. We also continue to upsell our Internet customers to our bundled telephony and Internet products. We expect that these initiatives, coupled with our cost efficiency efforts, will enable us to drive revenue growth and continue to increase profitability.
"We have also continued our successful efforts to negotiate better terms with our existing vendors. We have held successful discussions with many vendors regarding associated payables, and have eliminated tens of millions of dollars of liabilities. We will continue to do business with many of those with whom we have reached agreement, and may be discontinuing relationships with certain vendors that have not been able to improve the terms and conditions of their services to the Company.
"We also recently announced the commencement of a program to recapitalize our outstanding debt. As a first step, we have already signed agreements with more than 88% of the holders of our 6% Convertible Subordinated Notes and are in continued negotiations with our other constituents in the capital structure. We believe that the deleveraging of our capital structure will enable us to execute our plans more effectively and will put us in a better position to participate in strategic developments in our sector."
The Company's revenues in the third quarter were attributable to the following service categories:
Cost Savings Initiatives
The Company has engaged in a significant cost reduction effort over the last several months, while it has also increased revenue. These efficiencies are reflected in the decrease in the Company's total expenses as shown in the table below:
The expense reductions shown above are the result of a variety of cost reduction measures, certain of which are also expected to generate additional savings during the remainder of the year and going forward. The cost savings initiatives include: network operations and asset consolidation; higher gross margin for delivery of telephony services via UNE, UNE-P, and EEL; elimination of products that do not meet profitability targets; and consolidation of business service operations, residential service operations, and Internet operations. These initiatives and other general cost reduction efforts have resulted in headcount reductions as well as elimination of expenses related to overhead and general and administrative expenses.
The Company has also continued its discussions with vendors regarding the terms and conditions of its various vendor arrangements. These discussions have been focused on the reduction or elimination of current payable balances as well as more favorable present and future contract terms and conditions. The Company has been successful in these discussions to date, eliminating tens of millions of dollars of liabilities, particularly with the many vendors that wish to maintain an ongoing successful relationship with the Company.
In conjunction with these initiatives, the Company has recorded reorganization charges, which are discussed further below.
Other Operating Initiatives
The Company has recently announced various other successful operating initiatives:
On October 31, 2001, the Company announced the commencement of a plan to recapitalize a significant portion of its debt. As part of this plan, the Company has signed binding agreements for transactions that would allow the Company to retire approximately $146 million, or 88%, of its $164.75 million outstanding 6% Convertible Subordinated Notes (the "Notes"). Under the terms of the binding agreements, if CoreComm determines to close the transactions, the Notes will be retired and CoreComm will pay each holder that has signed the agreement a cash payment equal to the October 1, 2001 interest payment due to such holder, plus equity which will equal, in the aggregate, 5% of the outstanding equity of the recapitalized Company on the basis of 100% of the current outstanding principal amount of the Notes being exchanged. The agreements terminate on December 15, 2001 if CoreComm has not determined to close the transactions by that time. If the agreements terminate, each holder that has signed the agreement will receive 50% of the October 1, 2001 interest payment due to such holder. The agreements include a waiver of interest currently due under the Notes, as well as an agreement not to take any action with respect to the Notes at least through December 15, 2001. CoreComm is currently in discussions with other constituents in its capital structure as well.
Depending upon the success of the recapitalization plan and the Company's performance, additional financing may be unnecessary in 2002 and for the foreseeable future. There can be no assurance that the recapitalization plan will be completed, that the Company will be able to generate sufficient cash from operations to meet all of its obligations, or that the Company will not be required to obtain additional funding in the future.
NASDAQ listing
In October, CoreComm also announced that it received confirmation from the Nasdaq Staff indicating that the Company was no longer being considered for delisting based on previously cited deficiencies under various listing criteria. As a result of Nasdaq's current moratorium on enforcing bid price and market value related continued listing requirements, the Company is able to remain listed under one of the alternative listing maintenance criteria. The Company was informed by Nasdaq that the moratorium will remain in place until at least January 2, 2002, at which time the listing criteria will be reapplied as though the Company had not previously been out of compliance. If the Company is still out of compliance at that time, it will have the normal prescribed periods for gaining compliance prior to receiving any new notices of delisting.
In July 2001, we finalized the streamlining of our operating structure to focus on our two most successful and promising lines of business. The first is integrated communications products and other high bandwidth/data/web-oriented services for the business market and the second is bundled local telephony and Internet products efficiently sold, serviced and provisioned via Internet-centric interfaces to the residential market.
We have engaged in significant efforts to reduce expenses in all areas of our business, while maintaining our revenue initiatives. These plans were implemented through a variety of means, including facility consolidation, efficiency improvements, network optimization, headcount reduction and vendor negotiations.
We have also engaged in significant efforts to capitalize on more profitable UNE, UNE-P and Enhanced Extended Loop provisioning and pricing to reduce existing network costs and capital expenditures, and enhance gross margins going forward. A large portion of our business and residential local access lines have been converted to these more profitable services, resulting in improved operating results on a going forward basis.
In addition, we have made significant progress in improving the operating efficiency of our networks, while also reducing network costs. The associated cost savings and product enhancements have come from increased overall efficiency, improved pricing terms, as well as the elimination of duplicative or unneeded network facilities.
As a result of the significant enhancements to our business plan, we had a 1.5% and 1.9% increase in revenues this quarter as compared to second quarter and first quarter of 2001, respectively, and operating, selling, general and administrative and corporate expenses were reduced this quarter by 7.0%, 22.4% and 29.0% compared to second quarter of 2001, first quarter of 2001, and fourth quarter of 2000, respectively. We expect these trends to continue in the fourth quarter of 2001.
As a result of the completion of the acquisitions of Voyager and ATX in September 2000, we consolidated the results of operations of these businesses from the dates of acquisition. The results of these businesses are not included in the 2000 results.
The increase in revenues to $74,307,000 from $18,263,000 is due to acquisitions in 2000, which accounted for $57,152,000 of the increase. This increase is offset by a decline in revenue attributed to the customer base associated with the USN assets to $4,894,000 from $9,232,000. The revenues from the USN customer base peaked in the third quarter of 1999 after our acquisition in May 1999 and, as expected, declined thereafter. USN Communications, Inc. was a CLEC that operated on a resale basis. The underlying operations, customer relationships and future revenue streams of the resale CLEC business have declined significantly since our acquisition. This trend will affect future operations because, in accordance with our revised business plan, we are substantially reducing our resale business.
Operating costs include direct cost of sales, network costs and salaries and related expenses of network personnel. Operating costs increased to $54,760,000 from $25,746,000 due to acquisitions in 2000, which amounted to $36,829,000 of the increase. This increase is offset by a decrease in costs as a result of the implementation of our modified business plan.
Selling, general and administrative expenses decreased to $20,879,000 from $23,123,000 due to the significant cost savings from the implementation of our modified business plan. This decrease was offset by an increase in costs due to acquisitions in 2000, which amounted to $16,444,000.
Corporate expenses include the costs of our officers and headquarters staff, the costs of operating the headquarters and costs incurred for strategic planning and evaluation of business opportunities. Corporate expenses decreased to $1,194,000 from $3,363,000 primarily as a result of the implementation of our modified business plan.
Reorganization charges of $3,910,000 in the third quarter of 2001 relate to the Company's actions to reorganize, re-size and reduce operating costs and create greater efficiency in various areas of the Company. In 2000, $243,000 of the reorganization charges recorded in March 2000 were reversed. We continue to review our operations and may incur additional charges in the future related to our operations.
Depreciation and amortization expense increased to $31,790,000 from $10,866,000 primarily due to the amortization of goodwill from the acquisitions in 2000.
Net interest and other decreased to expense of $12,783,000 from expense of $2,274,000 primarily due to increased borrowings to fund our acquisitions and operations.
The income tax benefit of $82,000 in 2001 is from state and local income tax refunds and the provision of $49,000 in 2000 is for state and local income tax.
In September 2001, the Company and the holder of the $3,016,000 principal amount 12.75% note payable for equipment agreed to a modification of the note such that the principal amount was reduced to $800,000, which was paid on October 1, 2001. The Company recorded an extraordinary gain on the early extinguishment of debt of $2,216,000 for the difference between the $3,016,000 obligation and the $800,000 liability.
CoreComm provides integrated telephone, Internet and data services to business and residential customers in several markets in the United States
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
In addition to the historical information presented, this release also includes certain forward-looking statements concerning trends in operating results. Such statements represent the Company's reasonable judgment on the future and are based on assumptions and factors that could cause actual results to differ materially. Examples of relevant assumptions and factors include, but are not limited to, general economic and business conditions, industry trends, technological developments, the Company's ability to continue to design and deploy efficient network routes, obtain and maintain any required regulatory licenses or approvals and finance network development, all in a timely manner, at reasonable costs and on satisfactory terms and conditions, as well as assumptions about customer acceptance, churn rates, overall market penetration and competition from providers of alternative services, the impact of restructuring and integration actions, the impact of new business opportunities requiring significant up-front investment, the success of the Company's recapitalization plan, interest rate fluctuations, and availability, terms and deployment of capital. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in assumptions or changes in factors affecting such statements.
Copyright (C) 2001 Business Wire. All rights reserved.
COMM
0.20 -0.008
Enter Symbol:
Enter Keyword:
In at .08 take those risks if you can,
CoreComm Limited Announces That It is No Longer Being Considered for Delisting for Previously Cited Deficiencies
TUESDAY, OCTOBER 02, 2001 8:00 PM
- BusinessWire
CoreComm Limited Announces That It is No Longer Being Considered for Delisting for Previously Cited Deficiencies
NEW YORK, Oct 2, 2001 (BUSINESS WIRE) -- CoreComm Limited (the "Company") announced that it received oral confirmation from the Nasdaq Staff indicating that the Company was no longer being considered for delisting based on previously cited deficiencies under various listing criteria.
As a result of Nasdaq's recently announced moratorium on enforcing bid price and market value related continued listing requirements, the Company is able to remain listed under one of the alternative listing maintenance criteria. The Company was informed by Nasdaq that the moratorium will remain in place until at least January 2, 2002, at which time the listing criteria will be reapplied as though the Company had not previously been out of compliance. If the Company is still out of compliance at that time, it will have the normal prescribed periods for gaining compliance prior to receiving any new notices of delisting.
Copyright (C) 2001 Business Wire. All rights reserve
smpathy, I think this company is on the verge is delisting from the Nasdaq. At this price, they belong on the OTC-BB.
A .20 stock on the NasdaqNM is a bit risky sounding.
Joemoney
NEWS!!CoreComm Limited Announces Financial Results For the Third Quarter of 2001; Continued Improvements to Financial Results, With a 94% Reduction in EBITDA Losses From the First Quarter
11/14/2001 9:04:00 AM
NEW YORK, Nov 14, 2001 (BUSINESS WIRE) -- CoreComm Limited (COMM) announced today its operating results for the three months ended September 30, 2001. The results reflect significant improvement over the second quarter and prior periods.
The Company's revised business plan and its focus on its most profitable markets and products are continuing to lead to significant improvements to the financial results. In the third quarter, further reductions in both the operating expenses as well as the selling, general, and administrative expenses have lead to a 94% reduction in EBITDA losses from the first quarter. The successful operating initiatives include facility consolidation, efficiency improvements, network optimization, headcount reduction, and vendor negotiations, as the Company continuously monitors all areas of its business for additional profitability and revenue growth.
In addition to these initiatives, the Company has also been able to grow revenues during this period. The Company continues to identify new revenue initiatives centered around its two most promising and successful product offerings: the first is integrated communications products and other high bandwidth/data/web-oriented services for the business market; the second is bundled local telephony and Internet products efficiently sold, serviced and provisioned via Internet-centric interfaces to the residential market. The Company also plans to drive revenue growth by capitalizing on low cost opportunities in additional markets. For example, using existing facilities, the Company has recently launched business communications service to several markets in the Great Lakes region and residential service in the East.
Thomas Gravina, Chief Operating Officer of CoreComm said, "We are pleased to announce the continuation of the positive trend in our results in the third quarter, which has led to the third consecutive quarter of substantial declining EBITDA losses, combined with revenue growth during this period. In the third quarter, our EBITDA (before corporate expenses) was ($1.3) million, compared to ($7.8) million in the second quarter and ($22.2) million in the first quarter. Although the tragic events of September 11 had a negative impact on our results for the quarter, we are pleased to show such significant improvement.
"Concurrently with the expense reductions, we have also been focusing on the improvement of the customer experience and expansion of our product offerings and geographic footprint. The fact that we have experienced modest growth in revenues while extensively cutting costs illustrates the fundamental success of our business model. These substantial achievements in such a short period of time demonstrate the focus of our senior management and the overall quality and commitment of our entire employee base. Our operating team has been doing a tremendous job executing the modified business model, which was reformulated earlier in the year due to the current financial market environment. We will continue to focus on revenue growth and bottom line profitability, and we expect further progress in our results going forward.
"As part of our goal of driving growth and profitability, we are currently evaluating and implementing several new revenue initiatives. We are leveraging our current resources in the East, Midwest and Great Lakes regions to expand our bundled commercial and residential product offerings across our entire operations footprint. We recently launched commercial telephony service in the Great Lakes region, as well as residential services in the East. We also continue to upsell our Internet customers to our bundled telephony and Internet products. We expect that these initiatives, coupled with our cost efficiency efforts, will enable us to drive revenue growth and continue to increase profitability.
"We have also continued our successful efforts to negotiate better terms with our existing vendors. We have held successful discussions with many vendors regarding associated payables, and have eliminated tens of millions of dollars of liabilities. We will continue to do business with many of those with whom we have reached agreement, and may be discontinuing relationships with certain vendors that have not been able to improve the terms and conditions of their services to the Company.
"We also recently announced the commencement of a program to recapitalize our outstanding debt. As a first step, we have already signed agreements with more than 88% of the holders of our 6% Convertible Subordinated Notes and are in continued negotiations with our other constituents in the capital structure. We believe that the deleveraging of our capital structure will enable us to execute our plans more effectively and will put us in a better position to participate in strategic developments in our sector."
OPERATING HIGHLIGHTS
Subscriber data
The Company had the following subscribers as of September 30,
2001:
----------------------------------------------------------------------
September 30, 2001
----------------------------------------------------------------------
Residential Local Access Lines 54,400
----------------------------------------------------------------------
Business Local Access Lines 241,500
----------------------------------------------------------------------
Toll-related Access Line Equivalents 495,300
----------------------------------------------------------------------
Internet Subscribers 351,600
----------------------------------------------------------------------
Other Data Customers (1) 18,200
----------------------------------------------------------------------
(1) Other data customers included Point-to-Point data, Frame
Relay, Web Development, Web Hosting, E-Commerce, Collocation
and other related customers.
Revenue Breakdown
The Company's revenues in the third quarter were attributable to the following service categories:
----------------------------------------------------------------------
September 30, 2001
----------------------------------------------------------------------
Local Exchange Services 32%
----------------------------------------------------------------------
Toll-related Telephony Services 26%
----------------------------------------------------------------------
Internet, Data and Web-related Services 32%
----------------------------------------------------------------------
Other Revenue 10%
----------------------------------------------------------------------
Total 100%
----------------------------------------------------------------------
Cost Savings Initiatives
The Company has engaged in a significant cost reduction effort over the last several months, while it has also increased revenue. These efficiencies are reflected in the decrease in the Company's total expenses as shown in the table below:
Three months ended,
------------------------------------------
% reduction Sept. 30, June 30, March 31, Dec. 31,
($ in thousands) Q4`00-Q3'01 2001 2001 2001 2000
----------- ---- ---- ---- ----
Operating Expenses 16% $54,760 $57,662 $63,520 $64,877
Selling, general and
administrative 46% 20,879 23,369 31,599 38,966
Corporate Expenses 72% 1,194 1,626 3,894 4,325
--- ----- ----- ----- -----
Total Expenses 29% $76,833 $82,657 $99,013 $108,168
The expense reductions shown above are the result of a variety of cost reduction measures, certain of which are also expected to generate additional savings during the remainder of the year and going forward. The cost savings initiatives include: network operations and asset consolidation; higher gross margin for delivery of telephony services via UNE, UNE-P, and EEL; elimination of products that do not meet profitability targets; and consolidation of business service operations, residential service operations, and Internet operations. These initiatives and other general cost reduction efforts have resulted in headcount reductions as well as elimination of expenses related to overhead and general and administrative expenses.
The Company has also continued its discussions with vendors regarding the terms and conditions of its various vendor arrangements. These discussions have been focused on the reduction or elimination of current payable balances as well as more favorable present and future contract terms and conditions. The Company has been successful in these discussions to date, eliminating tens of millions of dollars of liabilities, particularly with the many vendors that wish to maintain an ongoing successful relationship with the Company.
In conjunction with these initiatives, the Company has recorded reorganization charges, which are discussed further below.
Other Operating Initiatives
The Company has recently announced various other successful operating initiatives:
-- The Company has been selected by the Pennsylvania Chamber of
Business and Industry as its endorsed provider of
telecommunications services. The statewide, 10,000-plus member
organization considered more than 200 telecommunications
providers and entertained 21 Requests for Proposals before
making their decision.
-- The Company has renewed its strategic marketing alliance with
the Eastern Technology Council as the "Preferred Provider".
The partnership, which has more than 1,000 members and began
in 1997, has resulted in a significant number of member
companies consolidating their telecommunications using the
Company's services.
-- The Company continued to add customers through its
relationship with the State of Ohio's Electronic Classroom of
Tomorrow (ECOT), a statewide, Internet-based distance learning
school. CoreComm was selected earlier this year along with
Compaq, Microsoft, Level 3 and Xerox Connect to fulfill the
program's mission of providing a fully online educational
experience. CoreComm provides the Internet connections to take
students to the online learning center.
-- The Company has been selected by the City of Philadelphia as
their telecommunications provider for a third term. The
Company has twice before won the bid to provide services for
the entire city, which involves tens of thousands of phone
lines in several city government offices.
-- The Company has recently re-established relationships with
approximately 200 former customers representing nearly 400
locations throughout its footprint and millions in annualized
revenues through the continued execution of its "WinBack"
Program.
-- The Company has extended its longstanding relationship with
the Philadelphia Eagles, a customer since 1991. In addition to
renewing its suite lease agreement, the Company will continue
as an integrated communications provider for the team's
facilities and stadium.
-- In conjunction with the Company's ongoing relationship with
Great Lakes business customer Harley-Davidson
(HDI)
, the
Company recently expanded its relationship by delivering
additional bandwidth capacity to accommodate their needs
during a Labor Day H.O.G. (Harley Owners Group) rally with
approximately 150,000 people in attendance.
-- The Children's Hospital of Philadelphia has also renewed its
service agreement with the Company. The agreement with the
nation's premier children's hospital extends the Company's
twelve-year relationship.
OTHER DEVELOPMENTS
Recapitalization Plan
On October 31, 2001, the Company announced the commencement of a plan to recapitalize a significant portion of its debt. As part of this plan, the Company has signed binding agreements for transactions that would allow the Company to retire approximately $146 million, or 88%, of its $164.75 million outstanding 6% Convertible Subordinated Notes (the "Notes"). Under the terms of the binding agreements, if CoreComm determines to close the transactions, the Notes will be retired and CoreComm will pay each holder that has signed the agreement a cash payment equal to the October 1, 2001 interest payment due to such holder, plus equity which will equal, in the aggregate, 5% of the outstanding equity of the recapitalized Company on the basis of 100% of the current outstanding principal amount of the Notes being exchanged. The agreements terminate on December 15, 2001 if CoreComm has not determined to close the transactions by that time. If the agreements terminate, each holder that has signed the agreement will receive 50% of the October 1, 2001 interest payment due to such holder. The agreements include a waiver of interest currently due under the Notes, as well as an agreement not to take any action with respect to the Notes at least through December 15, 2001. CoreComm is currently in discussions with other constituents in its capital structure as well.
Depending upon the success of the recapitalization plan and the Company's performance, additional financing may be unnecessary in 2002 and for the foreseeable future. There can be no assurance that the recapitalization plan will be completed, that the Company will be able to generate sufficient cash from operations to meet all of its obligations, or that the Company will not be required to obtain additional funding in the future.
NASDAQ listing
In October, CoreComm also announced that it received confirmation from the Nasdaq Staff indicating that the Company was no longer being considered for delisting based on previously cited deficiencies under various listing criteria. As a result of Nasdaq's current moratorium on enforcing bid price and market value related continued listing requirements, the Company is able to remain listed under one of the alternative listing maintenance criteria. The Company was informed by Nasdaq that the moratorium will remain in place until at least January 2, 2002, at which time the listing criteria will be reapplied as though the Company had not previously been out of compliance. If the Company is still out of compliance at that time, it will have the normal prescribed periods for gaining compliance prior to receiving any new notices of delisting.
FINANCIAL RESULTS
Three Months Ended
September 30,
2001 2000 (1)
---------------- ----------------
(in thousands, except
per share data)
Revenues $ 74,307 $ 18,263
Costs and expenses:
Operating 54,760 25,746
Selling, general and
administrative 20,879 23,123
------------ ---------
EBITDA (1,332) (30,606)
Corporate 1,194 3,363
Non-cash compensation 3,234 3,234
Reorganization charges 3,910 (243)
Depreciation and amortization 31,790 10,866
------------ ---------
Operating (loss) (41,460) (47,826)
Other income (expense):
Net interest and other (12,783) (2,274)
Income tax benefit
(provision) 82 (49)
------------ ---------
(Loss) before
extraordinary item (54,161) (50,149)
Gain from early
extinguishment of
Debt 2,216 -
------------ ---------
Net (loss) $(51,945) $(50,149)
============ =========
Basic and diluted net
(loss) per
common share: (2)
(Loss) before
extraordinary item $(0.59) $(1.24)
Extraordinary item 0.02 -
------------ ---------
Net (loss) per
common share $(0.57) $(1.24)
------------ ---------
Weighted average shares 97,042 40,502
(1) As a result of the completion of the acquisitions of Voyager
and ATX in September 2000, we consolidated the results of
operations of these businesses from the dates of acquisition.
The results of these businesses are not included in the 2000
results.
(2) After giving effect to the dividends and accretion on
preferred stock of $5,641,000 and $104,000 in the three months
ended September 30, 2001 and 2000, respectively.
DISCUSSION OF OPERATING RESULTS
In July 2001, we finalized the streamlining of our operating structure to focus on our two most successful and promising lines of business. The first is integrated communications products and other high bandwidth/data/web-oriented services for the business market and the second is bundled local telephony and Internet products efficiently sold, serviced and provisioned via Internet-centric interfaces to the residential market.
We have engaged in significant efforts to reduce expenses in all areas of our business, while maintaining our revenue initiatives. These plans were implemented through a variety of means, including facility consolidation, efficiency improvements, network optimization, headcount reduction and vendor negotiations.
We have also engaged in significant efforts to capitalize on more profitable UNE, UNE-P and Enhanced Extended Loop provisioning and pricing to reduce existing network costs and capital expenditures, and enhance gross margins going forward. A large portion of our business and residential local access lines have been converted to these more profitable services, resulting in improved operating results on a going forward basis.
In addition, we have made significant progress in improving the operating efficiency of our networks, while also reducing network costs. The associated cost savings and product enhancements have come from increased overall efficiency, improved pricing terms, as well as the elimination of duplicative or unneeded network facilities.
As a result of the significant enhancements to our business plan, we had a 1.5% and 1.9% increase in revenues this quarter as compared to second quarter and first quarter of 2001, respectively, and operating, selling, general and administrative and corporate expenses were reduced this quarter by 7.0%, 22.4% and 29.0% compared to second quarter of 2001, first quarter of 2001, and fourth quarter of 2000, respectively. We expect these trends to continue in the fourth quarter of 2001.
As a result of the completion of the acquisitions of Voyager and ATX in September 2000, we consolidated the results of operations of these businesses from the dates of acquisition. The results of these businesses are not included in the 2000 results.
The increase in revenues to $74,307,000 from $18,263,000 is due to acquisitions in 2000, which accounted for $57,152,000 of the increase. This increase is offset by a decline in revenue attributed to the customer base associated with the USN assets to $4,894,000 from $9,232,000. The revenues from the USN customer base peaked in the third quarter of 1999 after our acquisition in May 1999 and, as expected, declined thereafter. USN Communications, Inc. was a CLEC that operated on a resale basis. The underlying operations, customer relationships and future revenue streams of the resale CLEC business have declined significantly since our acquisition. This trend will affect future operations because, in accordance with our revised business plan, we are substantially reducing our resale business.
Operating costs include direct cost of sales, network costs and salaries and related expenses of network personnel. Operating costs increased to $54,760,000 from $25,746,000 due to acquisitions in 2000, which amounted to $36,829,000 of the increase. This increase is offset by a decrease in costs as a result of the implementation of our modified business plan.
Selling, general and administrative expenses decreased to $20,879,000 from $23,123,000 due to the significant cost savings from the implementation of our modified business plan. This decrease was offset by an increase in costs due to acquisitions in 2000, which amounted to $16,444,000.
Corporate expenses include the costs of our officers and headquarters staff, the costs of operating the headquarters and costs incurred for strategic planning and evaluation of business opportunities. Corporate expenses decreased to $1,194,000 from $3,363,000 primarily as a result of the implementation of our modified business plan.
Reorganization charges of $3,910,000 in the third quarter of 2001 relate to the Company's actions to reorganize, re-size and reduce operating costs and create greater efficiency in various areas of the Company. In 2000, $243,000 of the reorganization charges recorded in March 2000 were reversed. We continue to review our operations and may incur additional charges in the future related to our operations.
Depreciation and amortization expense increased to $31,790,000 from $10,866,000 primarily due to the amortization of goodwill from the acquisitions in 2000.
Net interest and other decreased to expense of $12,783,000 from expense of $2,274,000 primarily due to increased borrowings to fund our acquisitions and operations.
The income tax benefit of $82,000 in 2001 is from state and local income tax refunds and the provision of $49,000 in 2000 is for state and local income tax.
In September 2001, the Company and the holder of the $3,016,000 principal amount 12.75% note payable for equipment agreed to a modification of the note such that the principal amount was reduced to $800,000, which was paid on October 1, 2001. The Company recorded an extraordinary gain on the early extinguishment of debt of $2,216,000 for the difference between the $3,016,000 obligation and the $800,000 liability.
CoreComm provides integrated telephone, Internet and data services to business and residential customers in several markets in the United States
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
In addition to the historical information presented, this release also includes certain forward-looking statements concerning trends in operating results. Such statements represent the Company's reasonable judgment on the future and are based on assumptions and factors that could cause actual results to differ materially. Examples of relevant assumptions and factors include, but are not limited to, general economic and business conditions, industry trends, technological developments, the Company's ability to continue to design and deploy efficient network routes, obtain and maintain any required regulatory licenses or approvals and finance network development, all in a timely manner, at reasonable costs and on satisfactory terms and conditions, as well as assumptions about customer acceptance, churn rates, overall market penetration and competition from providers of alternative services, the impact of restructuring and integration actions, the impact of new business opportunities requiring significant up-front investment, the success of the Company's recapitalization plan, interest rate fluctuations, and availability, terms and deployment of capital. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in assumptions or changes in factors affecting such statements.
CONTACT: CoreComm Limited
Michael A. Peterson
Richard J. Lubasch
212/906-8485
URL: http://www.businesswire.com
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