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Me too. On to new investments. Good luck all!
got the money yesterday 1.92 a share
robin
I haxe no idea.
But I hope its soon. I have a couple of stocks that I'd like to add to while the price is down.
Kris
any body know when we wii get money from the transfer
robin
Mpower Holding Announces Adjusted EBITDA Positive Results for ThirdQuarter 2003; Net Loss Improves 75% over Second Quarter 2003
ROCHESTER, N.Y., Nov 6, 2003 /PRNewswire-FirstCall via COMTEX/ -- Mpower Holding Corporation (OTC Bulletin Board: MPOW), the parent company of Mpower Communications Corp., a leading provider of broadband Internet access and telephone services to business customers, today announced results of its operations for the third quarter ended September 30, 2003.
"Achieving positive Adjusted EBITDA results this quarter is another important step on our path towards sustainable cash flow growth," said Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. "Our financial and operational progress was recognized during the quarter by a $17.5 million equity investment in our company. We believe this investment reflects the value in Mpower's facilities-based network and strong debt-free balance sheet, and directly supports our clear strategy for profitable growth."
Mpower expects to use the new capital to raise its growth profile primarily by investing in additional sales, installations and product enhancements to increase its market share in Los Angeles, San Diego, Northern California, Las Vegas and Chicago.
Mpower's Adjusted EBITDA for the third quarter of 2003 was a positive $1.0 million, a 225% improvement over the Adjusted EBITDA loss of $0.8 million in the second quarter of 2003 and an $11.7 million improvement over the $10.7 million Adjusted EBITDA loss in the third quarter of 2002. Adjusted EBITDA represents earnings from continued operations before interest, taxes, depreciation, amortization and gains or losses from the sale of assets, and excludes network optimization costs, reorganization expenses, stock-based compensation and gain on discharge of debt.
Mpower's loss from continuing operations was reduced to $2.2 million in the third quarter of 2003, marking a 53% improvement over the second quarter of 2003 and a 99% improvement over the third quarter of 2002. The company's loss per share before discontinued operations was $0.03 in the third quarter of 2003.
The company reported a net loss of $1.2 million in the third quarter of 2003, a 75% improvement over the second quarter of 2003. Without reorganization expenses and the gain on the discharge of debt recorded in the third quarter of last year, Mpower's net loss would have improved by 96% over the third quarter of 2002. Mpower's net loss per share was $0.02 in the third quarter of 2003.
Revenue from continuing operations was $36.8 million for the third quarter of 2003, essentially even with the second quarter of 2003 and the third quarter of 2002. Offsetting the expected decline in switched access revenue, Mpower's core customer revenue, which includes revenue from the sale of data and voice services, increased 2% over the second quarter of 2003 and 7% over the third quarter of 2002 reaching $32.7 million and representing 89% of Mpower's total revenue.
"We continue to grow the profitability and quality of our core customer revenue streams with revenue from our high margin PRI and T1-based data services increasing 20% over the last quarter," added Huff. "With the recent investment, we are in the process of implementing a customer acquisition strategy to accelerate organic growth. At the same time, we have made significant progress in maintaining customer revenue with monthly customer retention rates averaging 98% for the third quarter."
Mpower's gross margin from continuing operations was $19.1 million or 52% of revenue in the third quarter of 2003 as compared to $18.8 million or 50% of revenue in the second quarter of 2003 and marked a 12% increase over the gross margin reported in the third quarter of 2002.
The company continued to reduce its operating expenses with selling, general and administrative (SG&A) costs declining to $18.1 million in the third quarter of 2003, an 8% improvement over second quarter of 2003 and a 35% improvement over the third quarter of 2002.
The company's capital expenditures were $2.4 million for the third quarter of 2003. Mpower ended the third quarter of 2003 with $36.6 million in unrestricted cash, growing its unrestricted cash position 90% over the second quarter of 2003 and 158% over the third quarter of 2002. The September 30, 2003 unrestricted cash balance includes approximately $17.5 million received in connection with the company's equity private placement plus $1.9 million that was returned to certain potential investors in October 2003 due to over-subscription of the private placement. In October 2003, $1.1 million was paid as finder fees for the private placement.
Conference Call to Discuss Third Quarter Results
Mpower will host a conference call to discuss its third quarter financial and operating results.
Date: Thursday, November 6, 2003
Time: 9:00 a.m. (Eastern time)
Dial-in Number: 1-800-683-1585
Audio Webcast: www.mpowercom.com
Replay Number: 1-877-519-4471, PIN #4279528
From November 6 at 11:00 a.m. through November 13 at
5:00 p.m. Eastern
Webcast Replay: Available on Mpower's Web site at: www.mpowercom.com
Mpower Communications Comments on FCC Triennial Review Order
ROCHESTER, N.Y., Aug. 22 /PRNewswire-FirstCall/ -- Mpower Communications Corp. (OTC Bulletin Board: MPOW), a leading provider of broadband high-speed Internet access and local and long distance voice services, today released the following comments on the Federal Communications Commission's order on the Triennial Review:
"Over the past seven years we have clearly articulated our strategy and long-held belief that owning our own facilities-based network and not depending on the LEC for switching infrastructure is a significant advantage," said Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. "Today's order is yet another confirmation that this strategy is absolutely the right one."
"Our network of switches and collocation facilities clearly distinguishes us from those companies that chose not to invest in network infrastructure and now run the risk of being impacted by this ruling," added Huff. "The value of our network is once again demonstrated by the fact that today's decision will have no impact on the prices or services we offer our customers or on our ability to carry out our growth strategy to add more customers and revenue onto our existing robust network infrastructure."
About Mpower Holding Corporation
Mpower Holding Corporation (OTC Bulletin Board: MPOW) is the parent company of Mpower Communications, a leading facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at www.mpowercom.com.
SOURCE Mpower Communications Corp.
CONTACT: investors, Gregg Clevenger, Chief Financial Officer,
+1-585-218-6547, or e-mail, invest@mpowercom.com, or media, Michele Sadwick,
Vice President, +1-585-218-6542, or e-mail, msadwick@mpowercom.com, both of
Mpower Communications Corp., or investor relations, Lester Rosenkrantz of
Cameron Associates, +1-212-554-5486, or e-mail, Lester@cameronassoc.com, for
Mpower Communications Corp.
Web site: http://www.mpowercom.com
Mpower Holding Schedules Second Quarter 2003 Results
ROCHESTER, N.Y.--(BUSINESS WIRE)--July 17, 2003--Mpower Holding Corporation (OTCBB: MPOW), the parent company of Mpower Communications, a provider of broadband high- speed Internet access and telephony services to business customers will hold a public conference call to discuss its second quarter results on Wednesday, August 6, 2003 at 11:00 a.m. Eastern. To access the call, dial 1-800- 901-5231, passcode 44739373, or visit Mpower's Web site at www.mpowercom.com for the audio Webcast.
A replay of the call will be available from Wednesday, August 6, 2003 at 12:00 p.m. Eastern through Friday, August 8, 2003 at 5:00 p.m. Eastern by dialing 1-888- 286-8010, passcode 58514993 or through Mpower's Web site.
About Mpower Holding Corporation
Mpower Holding Corporation (OTCBB: MPOW) is the parent company of Mpower Communications, a leading facilities- based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at www.mpowercom.com.
CONTACT:
Mpower Communications
Gregg Clevenger (IR), 585-218-6547
invest@mpowercom.com
or
Michele Sadwick (MR), 585-218-6542
msadwick@mpowercom.com
or
Cameron Associates
Lester Rosenkrantz (IR), 212-554-5486
Lester@cameronassoc.com
Mpower Holding Corporation Adopts Stockholder Rights Plan
ROCHESTER, N.Y., July 11 /PRNewswire-FirstCall/ -- Mpower Holding Corporation (OTC Bulletin Board: MPOW) announced today that its Board of Directors adopted a Stockholder Rights Plan in which preferred stock purchase rights will be distributed as a dividend at the rate of one Right for each share of Common Stock held as of the close of business on July 11, 2003. The Stockholder Rights Plan is designed to guard against inadequate or coercive takeovers and other abusive tactics that might be used in an attempt to gain control of the Company without paying all stockholders a fair price for their shares. The Rights Plan will not prevent takeovers, but is designed to deter such coercive takeover tactics and to encourage anyone attempting to acquire the Company to first negotiate with the Board.
Each Right will entitle stockholders to buy one one-thousandth of a share of Series A Preferred Stock of the Company at an exercise price of $6.00. The Rights will be exercisable only if a person or group acquires beneficial ownership of 15% or more of the Company's outstanding Common Stock or commences a tender or exchange offer which, upon consummation, would result in such person or group being the beneficial owner of 15% or more of the Company's outstanding Common Stock.
If any person becomes the beneficial owner of 15% or more of the Company's Common Stock, or if a holder of 15% or more of the Company's Common Stock engages in certain self-dealing transactions or a merger transaction in which the Company is the surviving corporation and its Common Stock remains outstanding, then each Right not owned by such person (or certain related parties) will entitle its holder to purchase, at the Right's then-current exercise price, units of the Company's Series A Preferred Stock (or, in certain circumstances, Company Common Stock, cash, property or other securities of the Company) having a market value equal to twice the then-current exercise price of the Right. In addition, if Mpower Holding Corporation is involved in a merger or other business combination transactions with another person after which its Common Stock does not remain outstanding, or sells 50% or more of its assets or earning power to another person, each Right will entitle its holder to purchase, at the Right's then-current exercise price, shares of common stock of the ultimate parent of such other person having a market value equal to twice the then-current exercise price of the Right.
Mpower Holding Corporation will generally be entitled to redeem the Rights at $.0001 per Right at any time until the tenth business day following public announcement that a person or group has acquired 15% or more of the Company's Common Stock.
Certain provisions of the Stockholder Rights Plan are outlined in a letter being mailed to all stockholders. The stockholder letter and stockholder rights plan summary can be found on Mpower's website at http://www.mpowercom.com/corpinfo/relationships.htm
About Mpower Holding Corporation
Mpower Holding Corporation (OTC Bulletin Board: MPOW) is the parent company of Mpower Communications, a leading facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at www.mpowercom.com.
SOURCE Mpower Holding Corporation
/CONTACT: Investors - Gregg Clevenger, Chief Financial Officer,
+1-585-218-6547, invest@mpowercom.com, or Media - Michele Sadwick, Vice
President, +1-585-218-6542, msadwick@mpowercom.com, both of Mpower Holding
Corporation; or Investor Relations - Lester Rosenkrantz, of Cameron
Associates, +1-212-554-5486, Lester@cameronassoc.com, for Mpower Holding
Corporation
Web site: http://www.mpowercom.com
http://www.mpowercom.com/corpinfo/relationships.htm
Mpower Communications Appoints President of Sales & Marketing To Lead Up-Market Strategy
ROCHESTER, N.Y., June 24 /PRNewswire-FirstCall/ -- Looking to capitalize on a new market opportunity with larger business customers, Mpower Communications Corp. (OTC Bulletin Board: MPOW), a leading provider of broadband high-speed Internet access and local and long distance voice services, today announced that Jim Ferguson has been appointed President of Sales & Marketing.
With two decades of proven business sales success, Ferguson will be responsible for Mpower's dedicated sales force, agent channel and marketing efforts. Ferguson's extensive experience in selling to larger and multi-location business customer will benefit Mpower as it plans to expand its services to include new higher-end trunking (PRI) products.
"Jim will be a core member of Mpower's executive management team. Coupled with the recent addition of Tony Cassara to our Board of Directors, we have significantly strengthened the sales and marketing acumen which will guide Mpower in the future," said Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff.
"With no long-term debt on its balance sheet, a high quality facilities-based network and a complete end-to-end product line, Mpower stands out in the telecommunications industry," noted Ferguson. "This is a company that has financial stability, strong leadership, a winning culture and a robust portfolio of services required to be an ideal partner for businesses; and to be a long-term provider in the telecommunications industry. I look forward to developing programs and driving superior results that will benefit our customers, employees and shareholders."
Ferguson has established a track record of achieving results and motivating sales organizations to out-perform. He joins Mpower from Global Crossing where he has held a variety of senior management positions including President of the Western Division, Vice President of Multi National Corporation Sales and Vice President NextGen Markets. Most recently he served as Regional Vice President of Sales overseeing all sales, customer support and engineering spanning a territory from Chicago to the West Coast. Recently his duties were expanded to include leading the sales efforts in the Asia Pacific markets. In addition to seven years at Global Crossing, Ferguson's strong sales and marketing background stems from positions with Cable & Wireless, Racal SkyNetworks, Sprint and GTE.
About Mpower Holding Corporation
Mpower Holding Corporation (OTC Bulletin Board: MPOW) is the parent company of Mpower Communications, a leading facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at www.mpowercom.com.
SOURCE Mpower Communications Corp.
CONTACT: Investor - Gregg Clevenger, Chief Financial Officer,
+1-585-218-6547, invest@mpowercom.com, Media - Michele Sadwick, Vice
President, +1-585-218-6542, msadwick@mpowercom.com, both of Mpower
Communications Corp.; Investor Relations - Lester Rosenkrantz of Cameron
Associates, +1-212-554-5486, Lester@cameronassoc.com, for Mpower
Communications Corp.
Web site: http://www.mpowercom.com
Mpower Communications Hires New Technology Officer
ROCHESTER, N.Y., June 10 /PRNewswire-FirstCall/ -- Mpower Communications Corp. (OTC Bulletin Board: MPOW), a provider of broadband high-speed Internet access and telephone services to business customers, today announced the appointment of Russell A. Shipley as New Technology Officer.
Shipley will be responsible for looking for opportunities to augment Mpower's robust integrated data and voice product offering to further enhance the value proposition for customers. He will also explore cost-efficient network access and transport technology alternatives to incorporate into the company's facilities-based network.
"Russ' experience and technological expertise will provide valuable perspective on products and network that we expect will provide Mpower with greater competitive advantages as we continue to build both these areas," explained Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff.
"Mpower's strengthened balance sheet position has poised the company for growth," added Shipley. "Our opportunity is now in the continued evolution of the product portfolio and in maximizing technology, distribution channels, partners and suppliers."
A seasoned senior executive with over 17 years leading engineering, technology, operations, service, construction, and business development, Shipley held senior positions at Global Crossing and Frontier Communications. His most recent position at Global Crossing was Senior Vice President-Global Transport Network Operations. While at Frontier, Shipley led the planning, engineering and construction of the 20,000-route mile nationwide fiber optics network shared by Frontier and Qwest. As part of this initiative, he championed many new technology advancements that yielded dramatically lower costs for both companies.
About Mpower Holding Corporation
Mpower Holding Corporation (OTC Bulletin Board: MPOW) is the parent company of Mpower Communications, a facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at www.mpowercom.com.
SOURCE Mpower Holding Corporation
/CONTACT: Mpower Communications Investor - Gregg Clevenger, Chief
Financial Officer, +1-585-218-6547, invest@mpowercom.com, or Mpower
Communications Media - Michele Sadwick, Vice President, +1-585-218-6542,
msadwick@mpowercom.com; or Investor Relations - Lester Rosenkrantz, Cameron
Associates, +1-212-554-5486, Lester@cameronassoc.com
Web site: http://www.mpowercom.com
Mpower Adds Sales & Marketing Executive to Board of Directors
ROCHESTER, N.Y., May 6 /PRNewswire-FirstCall/ -- Mpower Holding Corporation (OTC Bulletin Board: MPOW), the parent company of Mpower Communications Corp., a provider of broadband high-speed Internet access and telephone services to business customers, announced today that telecommunications industry veteran Anthony J. Cassara has joined its Board of Directors.
Cassara has over 23 years of management experience in the telecommunications industry. He is currently the President of Cassara Management Group, Inc., a privately held business counseling practice focused on the telecommunications industry. Prior to founding this firm, Cassara was President of the Carrier Services division at Frontier Corporation and later at Global Crossing. During his 16 years with Frontier and Global Crossing, he held many executive positions in various domestic and international business units.
"We are extremely pleased to have Tony join our Board," stated Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. "His expertise in the areas of sales and marketing will be invaluable as Mpower looks ahead to the future and focuses on growth and profitability."
"I'm looking forward to joining the Board of Mpower," said Cassara. "With Mpower being free of long-term debt, having facilities-based product lines and an established management team, I believe it is a company uniquely positioned in the telecom industry."
Concurrent with this announcement, two members of Mpower's management team, Joe Wetzel, President and Chief Operating Officer and Gregg Clevenger, Executive Vice President and Chief Financial Officer, are stepping down from the company's Board of Directors, but will continue in their executive management roles.
With the exception of Huff, each member of Mpower's Board of Directors is now an outside director having no employment relationship with the company. This structure is intended to ensure that the Board is completely impartial in guiding the company's direction.
"We take good corporate governance very seriously. In the spirit of Sarbanes-Oxley and other initiatives which may be proposed by the SEC, we are taking a proactive approach and adopting the best corporate practices with respect to the composition of our Board of Directors," added Huff. "We are pleased with the well-rounded makeup of our new Board and are confident that it will provide exceptional guidance to the management team as we focus on value creation for our shareholders."
About Mpower Holding Corporation
Mpower Holding Corporation (OTC Bulletin Board: MPOW) is the parent company of Mpower Communications, a facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at www.mpowercom.com.
SOURCE Mpower Holding Corporation
CONTACT: Investor Relations - Gregg Clevenger, Chief Financial Officer,
+1-585-218-6547, invest@mpowercom.com; Media Inquiries - Michele Sadwick, Vice
President, +1-585-218-6542, msadwick@mpowercom.com, both of Mpower Holding
Corporation
Web site: http://www.mpowercom.com
Mpower Appoints Treasurer; Company Plans to Release 1st Quarter Earnings on May 8th
ROCHESTER, N.Y., May 2 /PRNewswire-FirstCall/ -- Mpower Holding Corporation (NASD OTC: MPOW), the parent company of Mpower Communications Corp., a provider of broadband high-speed Internet access and telephone services to business customers, announced today its Corporate Controller Michael J. Tschiderer will take on additional responsibilities as Treasurer of the company.
Tschiderer has been with Mpower since May 2000 as Vice President of Finance, Purchasing and Administration and has been Controller since March 2001. As Treasurer, he will assume additional responsibilities for all Mpower treasury functions including capitalization planning, cash and currency management, and risk management.
"Mike has been a key leader and a critical contributor throughout Mpower's restructuring process over the past two-and-a-half years," noted Gregg Clevenger, Executive Vice President and Chief Financial Officer. "Now that we have completed that process and are focused on achieving profitability, we will leverage Mike's skills in managing our assets and capital."
Before joining Mpower, Tschiderer was a partner with Bonadio & Co., LLP, a CPA and consulting firm in Western and Central New York. He is a Certified Public Accountant in the state of New York and holds a bachelor's degree in business administration from St. Bonaventure University.
1st Quarter 2003 Earnings Announcement Scheduled
Mpower also announced today that it plans to release its first quarter
2003 financial results on Thursday, May 8, 2003.
About Mpower Holding Corporation
Mpower Holding Corporation (NASD OTC: MPOW) is the parent company of Mpower Communications, a facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at www.mpowercom.com.
SOURCE Mpower Holding Corporation
/CONTACT: Investor Relations, Gregg Clevenger, Chief Financial Officer,
+1-585-218-6547, invest@mpowercom.com, or Media Inquiries, Michele Sadwick,
Vice President, +1-585-218-6542, msadwick@mpowercom.com, both of Mpower
Holding Corporation/
/Web site: http://www.mpowercom.com/
Mpower Achieves Fully Funded Status as Sale of Markets Closes
ROCHESTER, N.Y., April 8 /PRNewswire-FirstCall/ -- Mpower Holding Corporation (OTC Bulletin Board: MPOW), the parent company of Mpower Communications Corp., a provider of broadband high-speed Internet access and telephone services to business customers, today announced that it has completed the sale of its Florida and Georgia markets to Florida Digital Network. This close completes the last of the transactions the company announced on January 8, 2003 and is the final step in creating the new Mpower, a company operating in Los Angeles, San Diego, Northern California, Las Vegas and Chicago with an annual revenue run rate of approximately $150 million.
With the closing of this transaction, Mpower's unrestricted cash balance as of April 8, 2003 is $16.5 million. Mpower also expects to receive additional payments, most of which are currently in escrow, from the three strategic transactions totaling $8-9 million over the next 180 days.
"Over the past two years Mpower has completed a financial and operational restructuring that has eliminated all of our long-term debt and significantly reduced our cash burn rate," stated Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. "In addition to eliminating all of our long- term debt, we have reshaped our company to provide geographic concentration and a substantially more efficient cost structure. We now expect to reach EBITDA(1) positive results during the third quarter, and expect our EBITDA to exceed our capital expenditures in the fourth quarter of 2003."
"Unlike many other telecom companies today, fully funding our business plan is no longer our main concern. We have now cleared that hurdle and are forging ahead with no long-term debt and what we believe is sufficient cash to meet our operational needs," added Huff. "Mpower is now prepared to turn the page on restructuring and begin to focus on growing EBITDA and creating value for our shareholders. We are considering a variety of such opportunities, including implementing in-market acquisitions and/or business combinations in order to achieve additional scale in our current markets and accelerating our investments in organic growth. However, we do not anticipate these alternatives would impact our company's fully funded status."
About Mpower Holding Corporation
Mpower Holding Corporation (OTC Bulletin Board: MPOW) is the parent company of Mpower Communications, a competitive communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Mpower Communications provides facilities-based telecommunications services to approximately 70,000 customers in the Los Angeles, San Diego, Las Vegas, Northern California and Chicago areas. Further information about the company can be found at www.mpowercom.com.
SOURCE Mpower Holding Corporation
/CONTACT: Investor Relations - Gregg Clevenger, Chief Financial Officer
of Mpower Holding Corporation, +1-585-218-6547, invest@mpowercom.com,
or Media - Michele Sadwick, Vice President of Mpower Holding Corporation,
+1-585-218-6542, msadwick@mpowercom.com/
/Web site: http://www.mpowercom.com
Good numbers for 2002.
I wonder when investors will wake up to MPOW?
They are in a very positive position right now,
increasing sales, decreasing costs, and almost
zero debt.
Mpower Holding Reports 2002 Results from Continuing Operations
PR Newswire - March 28, 2003 08:36
ROCHESTER, N.Y., March 28 /PRNewswire-FirstCall/ -- Mpower Holding Corporation (OTC Bulletin Board: MPOW), the parent company of Mpower Communications Corp., a provider of broadband high-speed Internet access and telephone services to business customers, today reported results of its continuing operations for the fourth quarter and full-year ended December 31, 2002.
Mpower is in the final stages of a more than two-year financial and operational restructuring that has eliminated all of its long-term debt, all but $371,000 of its long-term capitalized leases and has brought both geographic concentration and financial strength to its business.
Today Mpower announced that it closed on its agreement to transition its Texas markets to Xspedius. On March 18, the company closed its transaction to sell its Ohio and Michigan markets to LDMI Telecommunications. The last of these agreements, in which Mpower is selling its Florida and Georgia markets to Florida Digital Networks, is expected to close by the end of April.
"Closing these deals is an important step and represents substantial progress in significantly reducing our cash burn, strengthening our cash position and making the new Mpower stronger," said Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. "Once the last of these strategic transactions is complete, we believe we will have enough cash to fully fund our business. We expect to be EBITDA positive by the end of June, and that our EBITDA will exceed our capital expenditures and capitalized lease payments by the end of this year."
Mpower's continuing operations consist of the Los Angeles, San Diego, Las Vegas, Northern California and Chicago markets within which Mpower provides facilities-based telecommunications services to approximately 70,000 customers.
Results from Continuing Operations
Under generally accepted accounting principles (GAAP), Mpower is required to present the markets being sold as discontinued operations in its historical financial statements for 2000, 2001 and 2002. As a result of the change to the historical presentation, Mpower's new auditor, Deloitte & Touche LLP, was required to re-audit the company's financial statements for the years ended December 31, 2000 and 2001, which had been audited by Mpower's former auditor, Arthur Andersen LLP. These re-audits resulted in no adjustments to the company's financial statements.
"We are extremely proud of the fact that Deloitte & Touche's audit of our 2000 and 2001 financial statements resulted in no adjustments to the financial statements previously audited by Arthur Andersen," commented Mpower Communications Chief Financial Officer Gregg Clevenger. "We believe this speaks volumes about the integrity of our people and processes and the overall integrity of our financial reporting."
Mpower reported $38.0 million in revenue from continuing operations in the fourth quarter 2002, a 3.0% increase over the third quarter of 2002 and a 19.3% increase over the fourth quarter of 2001. The company's full-year 2002 revenue from continuing operations was $146.1 million, growing 7.3% over full- year 2001 revenue.
Gross margin from continuing operations increased by 4.7% to $17.8 million, or 47.0% of revenue in the fourth quarter 2002 versus $17.0 million, or 46.2% of revenue in the third quarter of 2002. Compared to the fourth quarter of 2001, the company's gross margin has improved 101.2%, from $8.9 million.
Mpower's selling, general and administrative (SG&A) costs were reduced to $23.3 million in the fourth quarter or 61.3% of revenue, compared to 75.3% of revenue reported in the third quarter of 2002 and 87.4% of revenue reported in the year-ago quarter. For the full-year 2002, SG&A costs from continuing operations were $108.4 million, down from $140.0 million in 2001.
Mpower's EBITDA loss from continuing operations in the fourth quarter of 2002 was $5.4 million, a 49.4% sequential improvement over the $10.7 million EBITDA loss reported in the third quarter of 2002 and a 71.3% annual improvement over the $18.9 million EBITDA loss reported in the fourth quarter of 2001. The company's EBITDA loss for the full-year 2002 was $47.0 million, a 56.3% improvement over its 2001 EBITDA loss of $107.5 million.
Unaudited Audited
Quarter Ended Year Ended
Amounts in $
thousands 31-Dec-02 30-Sep-02 31-Dec-01 31-Dec-02 31-Dec-01
Revenue $37,953 $36,867 $31,810 $146,104 $136,116
Cost of
Operating
Revenues $20,131 $19,841 $22,954 $84,734 $103,629
Gross Margin $17,822 $17,026 $8,856 $61,370 $32,487
Gross Margin (%) 47.0% 46.2% 27.8% 42.0% 23.9%
SG&A $23,260 $27,770 $27,796 $108,406 $140,024
EBITDA ($5,438) ($10,744) ($18,940) ($47,036) ($107,537)
EBITDA (%) -14.3% -29.1% -59.5% -32.2% -79.0%
EBITDA represents earnings before interest, taxes, depreciation, amortization and other non-operating items, and excludes network optimization costs, stock-based compensation and reorganization costs. Mpower's $5.4 million EBITDA loss in the fourth quarter of 2002 does not include $5.0 million of depreciation and amortization and a $6.4 million reduction of network optimization costs. Combining these items with Mpower's EBITDA would result in Loss from Continuing Operations of $4.1 million in the fourth quarter of 2002. Similarly, Mpower's $47.0 million EBITDA loss in the full-year 2002 does not include $36.6 million of depreciation and amortization, $266.4 million of reorganization expenses, $12.6 million of network optimization costs, and $0.7 million of stock-based compensation. Combining these items with Mpower's EBITDA would result in a Loss from Continuing Operations of $363.4 million for the full-year 2002.
Unaudited Audited
Quarter Ended Year Ended
Amounts in $
thousands 31-Dec-02 30-Sep-02 31-Dec-01 31-Dec-02 31-Dec-01
Reconciliation
to GAAP(1)
EBITDA ($5,438) ($10,744) ($18,940) ($47,036) ($107,537)
Depreciation and
amortization ($4,998) ($7,154) ($11,732) ($36,607) ($56,499)
Reorganization
expense $0 ($245,681) $0 ($266,383) $0
Network
optimization
costs $6,390 $0 $0 ($12,610) ($233,083)
Stock-based
compensation ($68) ($319) ($575) ($718) ($3,081)
------ ------ ------ ------ -------
Loss from
Continuing
Operations
(GAAP) ($4,114) ($263,898) ($31,247) ($363,354) ($400,200)
Other Financial and Operating Measures
Unaudited Audited
Quarter Ended Year Ended
Amounts in $
thousands 31-Dec-02 30-Sep-02 31-Dec-01 31-Dec-02 31-Dec-01
Unrestricted
Cash Balance $10,773 $56,751 $170,280 $10,773 $170,280
Current Maturities
of LT Debt and
Capitalized
Leases $4,638 $1,202 $7,729 $4,638 $7,729
Other LT Debt
and Capitalized
Leases $371 $51,115 $422,957 $371 $422,957
Actual Amounts
Total Lines in
Service 269,849 271,752 269,257 269,849 269,257
Weighted Average
Shares Outstanding
and Common Stock
Equivalents 65,247,708 65,247,708
Use of Non-GAAP Financial Information
The SEC has adopted rules (Regulation G) regulating the use of non-GAAP financial measures. Because of Mpower's use of a non-GAAP financial measure, EBITDA, to supplement our consolidated financial statements presented on a GAAP basis, Regulation G requires us to include in this press release a presentation of the most directly comparable GAAP measure and a reconciliation of the two measures. We believe the nearest comparable GAAP measure to EBITDA is Loss from Continuing Operations and we have presented a reconciliation of the two measures for each of the periods presented above. The non-GAAP measure we utilize (EBITDA) provides an enhancement to an overall understanding of our past financial performance and our prospects for the future as well as useful information to investors because of (i) the historical use by Mpower of EBITDA as both a performance measurement and a measurement of liquidity; (ii) the value of EBITDA as a measure of performance before gains, losses or other charges considered to be outside the company's core business operating results; and (iii) the use of the EBITDA by almost all companies in the CLEC sector as a measurement of both performance and liquidity. We have excluded from our presentation of EBITDA network optimization costs (which are costs resulting principally from the closure of certain of our markets), stock-based compensation expenses (which are costs related to stock options issued with an exercise price below fair market value) and reorganization costs (which are non-recurring costs related to our bankruptcy) because we do not believe that including such costs in EBITDA provides investors with an appropriate measure of determining Mpower's performance in its core business. Mpower's utilization of non-GAAP measurements is not meant to be considered in isolation or as a substitute for Loss from Continuing Operations, net loss, cash flow and other measures of financial performance prepared in accordance with GAAP. EBITDA is not a GAAP measurement and Mpower's use of it may not be comparable to similarly titled measures employed by other companies in the telecommunications industry.
About Mpower Holding Corporation
Mpower Holding Corporation (OTC Bulletin Board: MPOW) is the parent company of Mpower Communications, a facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at www.mpowercom.com.
Forward-Looking Statements
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Mpower Holding Corporation cautions investors that certain statements contained in this press release that state management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. Management wishes to caution the reader these forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties including, but not limited to, the consummation of the remaining previously announced asset sales, the expected financial and operational improvements from the transactions described herein, market makers independent decisions to create a market in the common stock of the company, future sales growth, market acceptance of our product offerings, our ability to secure adequate financing or equity capital to fund our operations, network expansion, our ability to manage rapid growth and maintain a high level of customer service, the performance of our network and equipment, our ability to enter into strategic alliances or transactions, the cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our equipment, regulatory approval processes, changes in technology, price competition and other market conditions and risks detailed from time to time in our Securities and Exchange Commission filings. The company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information, or otherwise.
(1) Year ended December 31, 2002 combines the results of "Reorganized
Mpower" for the period July 31, 2002 to December 31, 2002 and
"Predecessor Mpower" for the period from January 1, 2002 to July 30,
2002.
SOURCE Mpower Holding Corporation
/CONTACT: Investors, Gregg Clevenger, Chief Financial Officer,
+1-585-218-6547, or invest@mpowercom.com, or Media, Michele Sadwick, Vice
President, +1-585-218-6542, or msadwick@mpowercom.com, both of Mpower Holding
Corporation/
/Web site: http://www.mpowercom.com /
(MPOW)
Mpower Holding Reports Fourth Quarter 2002 Results
ROCHESTER, N.Y., Feb. 13 /PRNewswire-FirstCall/ -- Mpower Holding Corporation (OTC Bulletin Board: MPOW), the parent company of Mpower Communications Corp., a provider of broadband high-speed Internet access and telephone services to business customers, today announced results of its operations for the fourth quarter ended December 31, 2002.
* Mpower reported fourth quarter 2002 revenue of $60.6 million, a 6%
increase over the third quarter of 2002. Core customer revenue, or
revenue from the sale of data and telephone services, grew to $50.8
million in the quarter, representing 84% of the company's revenue, with
switched access accounting for the remaining 16% of quarterly revenue.
* Gross margin increased 10% to $25.0 million, or 41% of revenue, in the
fourth quarter versus $22.7 million, or 40% of revenue in the third
quarter of 2002.
* Mpower's EBITDA loss in the fourth quarter was $10.7 million, a 40%
improvement over the $17.7 million EBITDA loss reported in the third
quarter. EBITDA represents earnings before interest, taxes, stock-based
compensation, depreciation and amortization and excludes network
optimization costs, impairment of long-term assets and reorganization
costs.
* Mpower ended the fourth quarter with $11.0 million in unrestricted
cash, cash equivalents and investments.
Mpower continues to implement efforts to improve its cash reserves. The company has implemented stringent cash management policies and continues to actively explore additional funding alternatives. In addition, on January 8, 2003, Mpower announced its plans to sell customers and assets in Florida, Georgia, Ohio, Michigan and Texas to other service providers. Each of these transactions is expected to close by the beginning of the second quarter 2003.
In connection with the company's decision to sell these operating markets, accounting principles generally accepted in the United States ("GAAP") require Mpower to present the asset groups associated with these markets as discontinued operations in its historical financial statements for 2000, 2001 and 2002. The results reported today do not reflect discontinued operations as required by GAAP.
Arthur Andersen, Mpower's former auditor for the years ended December 31, 2000 and 2001, is no longer able to perform audits of publicly traded companies. In order to comply with GAAP requirements related to the financial presentation for discontinued operations, Mpower's new auditor, Deloitte & Touche, is required to re-audit Mpower's financial statements for the years ended December 31, 2000 and 2001 to provide Mpower with an audit opinion on such financial statements. Deloitte & Touche has informed Mpower that the re-audit for the years ended December 31, 2000 and 2001 is required only because of the unavailability of Arthur Andersen. These re-audits have commenced and are expected to be completed in time for Mpower to file its Form 10-K on a timely basis. Mpower expects to release fully audited fourth quarter and full year 2002 results at that time and plans to hold a conference call to discuss these results in further detail.
About Mpower Holding Corporation
Mpower Holding Corporation (OTC Bulletin Board: MPOW) is the parent company of Mpower Communications, a facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at www.mpowercom.com.
SOURCE Mpower Holding Corporation
CONTACT: Investor Relations, Gregg Clevenger, Chief Financial Officer,
+1-585-218-6547, invest@mpowercom.com, or Media Inquiries, Michele Sadwick,
Vice President, +1-585-218-6542, msadwick@mpowercom.com, both of Mpower
Holding Corporation/
Web site: http://www.mpowercom.com
.
Florida Digital Network To Acquire Mpower's Southeast Operations and Network Assets
ORLANDO, Fla.--(BUSINESS WIRE)--Jan. 8, 2003--Florida Digital Network, Inc.:
-- FDN Will Acquire Mpower Network Assets and Customers in Miami,
Fort Lauderdale, Tampa Bay and Atlanta
-- The Deal Represents About 77,000 Business and Internet Access
Lines and Marks FDN's First Expansion Outside Its Home State of
Florida
Florida Digital Network, Inc. and Mpower Communications Corp. have entered into a definitive agreement in which Florida Digital will acquire Mpower's customer base and network operations in the Southeast United States. Markets included in the deal are Miami, Fort Lauderdale, West Palm Beach and Tampa where Florida Digital already has a strong market presence, and Atlanta. The Atlanta market represents Florida Digital's first expansion outside its home state of Florida. Financial terms of the deal have not been disclosed.
The Mpower customer base represents approximately 77,000 voice and Internet access lines, close to doubling the size of Orlando-based Florida Digital Network. Network assets included in the package augment Florida Digital's extensive statewide network, providing the company immediate presence in the Clearwater/St Petersburg area, and bolstering capacity in its other markets.
"We are already one of the strongest regional competitors in the telecom industry and we believe this deal gives us the size and strength to provide real competition to the local monopolies," said Mike Gallagher, Florida Digital's CEO. "We are very excited about the opportunities this rapid growth presents. The presence in Georgia, the immediate expansion into Clearwater and St. Pete, and the introduction of some new technologies will allow us to provide more options to more consumers."
The deal is subject to regulatory approval in both Florida and Georgia. Gallagher is confident, however that this hurdle will be cleared. "We are confident the regulatory bodies will recognize this merger is good for both companies, good for competition, and as such, good for consumers," said Gallagher.
Florida Digital Network recently surpassed the 100,000 access line mark, a real accomplishment in a struggling economy and a widely troubled industry. This acquisition represents an approximate 70% increase in total lines served and validates the business plan of this regional communication company.
"We have stayed focused on our region and our core customers," reflected Gallagher. "While this is certainly a large expansion for us, it is in line with our business model and allows us to continue to build on our strengths. Executing this merger is well within our capabilities and will not greatly impact our existing customer base," Gallagher concluded.
Existing Mpower customers should see no negative impact according to Gallagher. "Mpower customers can rest assured that they will see no interruption in their service. In fact, they will soon start to realize many benefits from being a Florida Digital customer." One of the benefits to which Gallagher alluded is Florida Digital Network's SunDial(TM) calling plan that provides penny ($0.01) per minute toll calling between all Florida Digital Network customers throughout Florida and soon into Georgia.
To facilitate the integration, Florida Digital Network will begin a rapid hiring phase substantially increasing its workforce in all departments and locations. According to Matt Blocha, President and Chief Operating Officer of FDN, as many as 100 new positions will be created in the immediate future. Many current Mpower employees will be tapped to fill these positions. Blocha however, encouraged all job seekers with telecom experience to contact FDN Human Resources via the company's web site, FDN.COM. This hiring phase will bring the total number of employees at Florida Digital Network to over 500.
Florida Digital Network is a full-service Integrated Communications Provider (ICP), offering a complete suite of telecom services, including local telephone service, long-distance, Internet access and related services. FDN is a facilities-based carrier, providing service with its own telecommunications switching gear, which it installs in the central offices of incumbent carriers.
The company launched service in Orlando in April 1999, in Fort Lauderdale in May 1999 and in Jacksonville in June of the same year. In each of those markets, Florida Digital installed Class 5 telephone switching gear, providing the underlying engineering foundation upon which the company offers service. From those beginnings, Florida Digital has steadily expanded its reach into more Florida markets than any other alternative telephone carrier in the state.
About Mpower
Mpower Holding Corporation (OTCBB:MPOW) is the parent company of Mpower Communications, a facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers.
About Florida Digital Network
Headquartered in Orlando, Florida Digital has steadily expanded its service territory from Jacksonville to Miami to Tampa Bay over the past three years, and now has more than 100,000 business telephone lines in service, more than any alternative carrier in the state. Florida Digital offers a complete line of communications services, including: local and long distance voice, Internet access, Virtual Private Networking (VPN), Web Hosting and Integrated voice and data (DSL) services to businesses throughout Florida.
CONTACT: Florida Digital Network, Orlando
Kevin Smith, 407/835-0595
kps@floridadigital.net
Xspedius Strengthens Customer Base, Network Assets Through a Transaction for the Texas Holdings Of Mpower Communications
ST. LOUIS--(BUSINESS WIRE)--Jan. 8, 2003--
New Company Name, Xspedius Communications, More Closely Reflects
Breadth and Depth of Telecommunications and Data Services
Xspedius Management Co., LLC and its affiliates (Xspedius) today announced a significant expansion of its Texas customer base and network assets in a transaction involving the Texas operations of Mpower Communications Corp. (OTC BB: MPOW.OB).
Terms of the transaction, which is expected to close once all necessary approvals are obtained, were not disclosed.
The transaction adds nearly 6,000 business customers and major new network capacity to Xspedius' existing operations in Dallas-Ft. Worth, Austin, Houston and San Antonio. Xspedius will provide these new customers with the same locally based, personal customer service approach that has fueled the company's rapid growth.
"We are very excited to begin building a business relationship with Mpower's customers in Texas. They are a perfect fit with the profile of our own customers, who are smart-minded business people with a need for high quality, reliability, choice and value in their telecommunications and data services," said Xspedius President and CEO Mark W. Senda. "The transaction involving Mpower's Texas properties will enable us to apply our proven operational efficiencies as we consolidate their networks into ours, resulting in even greater service quality for our customers and growth potential for Xspedius."
"The management team and our investors are extremely pleased with the progress we've made at Xspedius since concluding the transaction for e.spire in the middle of 2002, and we expect to see the same benefits from this new investment in Texas," said Xspedius Chairman James C. Allen. "We are continuing to evaluate potential merger partners in other attractive U.S. regions to complement our aggressive growth strategy."
Xspedius also announced that it will consolidate all of its holdings under the new name Xspedius Communications. The name change, which is subject to regulatory approval, more closely reflects the breadth and depth of the company's telecommunications and data services. Xspedius Communications will have a footprint that includes 20 states, plus the District of Columbia, and more than 3,500 route miles of fiber in a total of 37 markets, including Atlanta, Dallas/Ft. Worth, Houston, Fort Lauderdale/Miami/West Palm Beach, Tampa, and Washington, D.C./Northern Virginia.
About Xspedius
Xspedius Management Co., a privately held firm headquartered in St. Louis, Missouri, is funded by Thermo Capital Partners. At the helm of the company is James C. Allen, chairman, and Mark Senda, president and CEO, two industry pioneers who have previously founded and led such notable communications companies such as Brooks Fiber, MetroNet, AT&T Canada and MFS Communications. Xspedius Management Company also manages Xspedius Communications LLC, a regional CLEC headquartered in Lake Charles, La.
About Thermo
Thermo is part of the Thermo Companies based in Denver, Colorado, a highly successful group of companies focused on opportunities in the telecommunications, industrial, power generation, natural resources, and real estate industries. For more information about Thermo, please contact Jim Lynch at Thermo Capital Partners, LLC (914) 576-7357 or jim@thermoco.com.
CONTACT: Xspedius Management Co., Atlanta
Michelle Machado, 404/355-5757
michelle.machado@espire.net
or
Ketchum for Xspedius Management Co., Atlanta
David Doolittle, 404/879-9266
david.doolittle@ketchum.com
Midwest Expansion Continues; LDMI Telecommunications Announces Agreements To Acquire Mpower Communications' Michigan and Ohio Assets
HAMTRAMCK, Mich., Jan. 8 /PRNewswire/ -- LDMI Telecommunications, the largest telecom company headquartered in Michigan, today took another significant step in its midwest expansion, announcing agreements to acquire the Michigan and Ohio assets and customers of Mpower Communications. Terms of the agreements were not disclosed.
"We are delighted with this acquisition opportunity, one that will have an immediate impact on our geographic reach and the range of services LDMI delivers," said LDMI Chairman and Chief Executive Officer Patrick O'Leary. "Mpower's state-of-the-art network, switching facilities, and business customer base represent an ideal strategic fit for us. We've solidified our position as the leading midwest-based Integrated Service Provider."
Since its founding in 1992, LDMI has demonstrated steady growth, even against the backdrop of the recent downturn in the telecommunications sector. LDMI began offering local phone service to Michigan residents in 2001, and has turned up more than 70,000 local lines since then. The company has also added several Internet and data services to its product portfolio, including high- speed connectivity, web hosting, security, business applications, consulting services, and more. LDMI has been EBITDA positive for seven consecutive quarters.
Founded in 1996, Mpower Communications Corp. (OTC Bulletin Board: MPOW) is a facilities-based communications provider offering an integrated bundle of broadband data and voice communication services to small- and medium-size business customers. Through its broadband DSL and T1 service delivery platforms, Mpower delivers a full range of telephony, high-speed data, Internet access and Web hosting solutions.
LDMI Telecommunications is an integrated communications provider serving business customers in the Great Lakes region. Its services include local and long distance phone service, and data services such as high-speed connectivity, security, hosting, and professional network services. Founded in 1992, the Company services more than 80,000 customers, and has been named one of the Top Ten Privately Held Michigan Businesses for 3 consecutive years.
SOURCE LDMI Telecommunications
CONTACT: Luke Haase, +1-231-932-0400, for LDMI Telecommunications
Mpower to Reshape Company Through Strategic and Financial Transactions
ROCHESTER, N.Y., Jan. 8 /PRNewswire-FirstCall/ -- Mpower Communications Corp. (OTC Bulletin Board: MPOW), a provider of integrated data and voice services to business customers, today announced several strategic and financial transactions which should further strengthen the company financially and focus its operations on its California, Nevada and Illinois markets.
Mpower has reached an agreement with RFC Capital Corporation, a wholly owned subsidiary of Textron Financial Corporation, for a three-year funding facility of up to $7.5 million, secured by certain of the company's receivables. Mpower anticipates closing this facility by January 31, 2003. This new funding is expected to provide near-term liquidity for Mpower as it continues to restructure its operations. The company indicated that it is also in active discussions with additional potential investors.
Mpower is bringing geographic concentration to its business by transitioning its customers and assets in Florida, Georgia, Ohio, Michigan and Texas to other service providers. Each of these transactions is expected to result in cash infusions to Mpower and significant reductions to the company's cost structure. Importantly, these transactions are expected to provide uninterrupted service for customers transitioning from Mpower and job opportunities for the company's employees in these markets.
* Mpower has reached an agreement for its Southeast markets, and will
transition its customers in Atlanta, Ft. Lauderdale, West Palm Beach,
Miami and Tampa to Orlando-based Florida Digital Network Inc., a full-
service integrated communications provider.
* Mpower has also reached an agreement for its Texas markets, and will
transition its customers in Dallas/Ft. Worth, Houston, Austin and San
Antonio to Xspedius Equipment Leasing, an affiliate of Xspedius
Communications, a competitive communications carrier headquartered in
St. Louis.
* Finally, Mpower also reached an agreement for its Michigan and Ohio
markets, and will transition its customers in Detroit, Cleveland and
Columbus to LDMI Telecommunications, an integrated communications
provider serving primarily business customers in the Great Lakes
region.
Twelve months ago, Mpower set out on a path to strengthen its balance sheet. In July of 2002, Mpower completed a financial recapitalization that retired approximately $600 million in long-term debt and preferred stock. As of January 3, 2003, the company's remaining $50 million in long-term debt was also retired. Coupled with the transactions announced today, the resulting new cash, reduced operational cost structure and new financing are expected to significantly improve Mpower's long-term viability.
"Over the past year we believe we have executed on our vision and have strengthened the company from both a financial and an operational perspective," stated Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. "In an industry burdened by debt-laden telecommunications companies, Mpower stands apart from the crowd as a company completely free of long-term debt."
"The new Mpower will have geographic focus across 12 markets in California, Nevada and Illinois with more financial and operational strength, scale and agility," added Huff. "While our company will now be focused exclusively on serving and growing our base of 75,000 customers in these three states, we are extremely pleased that these agreements will provide ongoing communications services for Mpower customers in every market and new opportunities for many of the valued employees who will be leaving the company."
About Mpower Holding Corporation
Mpower Holding Corporation (NASD OTC: MPOW) is the parent company of Mpower Communications, a facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at http://www.mpowercom.com.
Forward-Looking Statements
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Mpower Holding Corporation cautions investors that certain statements contained in this press release that state management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. Management wishes to caution the reader these forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties including, but not limited to, the expected financial and operational improvements from the transactions described herein, market makers independent decisions to create a market in the common stock of the company, future sales growth, market acceptance of our product offerings, our ability to secure adequate financing or equity capital to fund our operations, network expansion, our ability to manage rapid growth and maintain a high level of customer service, the performance of our network and equipment, our ability to enter into strategic alliances or transactions, the cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our equipment, regulatory approval processes, changes in technology, price competition and other market conditions and risks detailed from time to time in our Securities and Exchange Commission filings. The company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information, or otherwise.
SOURCE Mpower Communications Corp.
CONTACT: Investors, Gregg Clevenger, Chief Financial Officer,
+1-585-218-6547, invest@mpowercom.com; or Media, Michele Sadwick, Vice
President, +1-585-218-6542, msadwick@mpowercom.com both of Mpower/
Web site: http://www.mpowercom.com
Mpower Holding Initiates Redemption of Remaining Notes Will Clear All Bondholder Debt From Balance Sheet
ROCHESTER, N.Y., Dec 5, 2002 /PRNewswire-FirstCall via COMTEX/ -- Mpower
Holding Corporation (OTC Bulletin Board: MPOW), the parent company of Mpower
Communications Corp., a provider of broadband high-speed Internet and telephone
services to business customers, announced today that it intends to redeem all of
the approximately $2.1 million principal amount remaining of its 13% Senior
Secured Notes due 2004. HSBC Bank USA, the trustee under the indenture governing
the Notes, will notify registered noteholders by mail that on January 3, 2003,
pursuant to the terms of the Notes, Mpower will redeem the Notes at a redemption
price of 103.25% of their principal amount.
On November 25, 2002, the company announced that it had repurchased
approximately $48.9 million of the approximately $51 million outstanding 13%
Senior Notes due 2004. With the action announced today, Mpower expects to be
completely clear of noteholder debt, with only $4 million in capital leases
remaining on the company's balance sheet.
"Essentially eliminating all of our debt puts us in a unique position in the
telecommunications industry today and we believe is a critical prerequisite to
attracting additional funding and pursuing strategic transactions," said Mpower
Communications Chairman and Chief Executive Officer Rolla P. Huff.
About Mpower Holding Corporation
Mpower Holding Corporation (OTC Bulletin Board: MPOW) is the parent company of
Mpower Communications, a facilities-based broadband communications provider
offering a full range of data, telephony, Internet access and Web hosting
services for small and medium-size business customers. Further information about
the company can be found at http://www.mpowercom.com .
SOURCE Mpower Holding Corporation
CONTACT: Investor Relations, Gregg Clevenger, Chief Financial Officer, 585-218-6547, or invest@mpowercom.com; or Media, Michele Sadwick, Vice President, +1-585-218-6542, or msadwick@mpowercom.com, both of Mpower HoldingCorporation
URL: http://www.mpowercom.com
Mpower Holding Retires $48.9 Million in Debt
ROCHESTER, N.Y., Nov 26, 2002 /PRNewswire-FirstCall via COMTEX/ -- Mpower Holding Corporation (OTC Bulletin Board: MPOW), the parent company of Mpower Communications Corp., a provider of broadband high-speed Internet access and telephone services to business customers, announced today that it has repurchased $48.9 million of its $51 million outstanding 13% Senior Notes due 2004 for $13.7 million in cash. Pursuant to the terms of the 2004 Notes, Mpower intends to redeem the remaining $2.1 million of Notes following this transaction.
With the exception of $4 million in capital leases, this action, coupled with the intended redemption of the remaining 2004 Notes, would eliminate all of the company's remaining debt and will allow the company to remove liens on more than $100 million of its network equipment.
"We continue to pursue additional funding alternatives and are engaged in active negotiations with potential strategic partners," said Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. "Eliminating essentially all of our remaining debt is a crucial step in our efforts to consummate a value enhancing, strategic transaction and we expect that it will greatly accelerate that process."
About Mpower Holding Corporation
Mpower Holding Corporation (OTC Bulletin Board: MPOW) is the parent company of Mpower Communications, a facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at http://www.mpowercom.com .
SOURCE Mpower Holding Corporation
CONTACT: Investor Relations - Gregg Clevenger, Chief Financial Officer, +1-585-218-6547, invest@mpowercom.com, or Media - Michele Sadwick, Vice President, +1-585-218-6542, msadwick@mpowercom.com, both of Mpower Holding Corporation URL: http://www.mpowercom.com
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