Broomfield, Colorado (ots-PRNewswire) -
Communications Revenue Grows to $353 Million in Fourth Quarter
Increase of 292 Percent Over Fourth Quarter 1999
Cumulative Dark Fiber and Related Services Contracts Now Exceed
Level 3 Communications, Inc. (Nasdaq: LVLT) today announced its
fourth quarter 2000 results. Consolidated revenue for the quarter was
US$433 million. The net loss for the quarter was $552 million, or
$1.50 per share. Excluding one-time non-operating charges and charges
for stock-based compensation expenses, net loss for the quarter was
$1.20 per share.
"It was another solid quarter and an exceptionally strong year for
us," said James Q. Crowe, chief executive officer of Level 3. "We
have increased our communications revenue by 292 percent fourth
quarter over fourth quarter, and are poised for continuing growth.
Our global network is essentially complete, and we are now positioned
to leverage our unique, continuously upgradeable network."
Included in the company's results is a loss of $27 million
relating to the estimated one-time restructuring charge from
Commonwealth Telephone Enterprises, Inc. The company estimated the
$27 million charge using the mid-point of the estimated range of the
after-tax restructuring charge publicly disclosed by Commonwealth
Telephone Enterprises, Inc. in December 2000. The company has an
ownership interest in Commonwealth Telephone of approximately 46
percent. Excluding this non-operating loss, the net loss for the
quarter was $525 million, or $1.43 per share.
The results for the quarter also include an $83 million non-cash
charge, primarily related to the company's Outperform Stock Option
(OSO) Program. Excluding this charge and the one-time restructuring
charge from Commonwealth Telephone, the net loss for the quarter was
$1.20 per share.
Fourth Quarter Financial Highlights
Communications and Information Services Revenue: Communications
and information services revenue for fourth quarter 2000 was $384
million, a 217 percent increase over 1999 fourth quarter revenue of
$121 million. The year-over-year increase was a result of significant
growth in the communications business.
Total communications revenue was $353 million for the quarter, a
292 percent increase over 1999 fourth quarter communications revenue
of $90 million, and a 38 percent increase over third quarter 2000
communications revenue of $255 million.
Included in total communications revenue was $71 million of
non-recurring revenue from dark fiber sales and $94 million from the
previously announced sale of transatlantic capacity to Viatel. Also
included in total communications revenue for the quarter was $16
million attributable to reciprocal compensation.
Since inception, the company has entered into cumulative contracts
to sell dark fiber and related services for over $4.1 billion.
Services related to dark fiber include colocation and operation and
maintenance services, and represent approximately 50 percent of the
value of these contracts. Of this amount, approximately $2.4 billion
results from contracts signed in 2000, and the balance results from
contracts signed in prior years.
Full year 2000 communications revenue was $858 million, exceeding
the company's previously announced estimate of $825 million.
Communications cash revenue was $485 million for the fourth
quarter and $1.26 billion for the year 2000. Communications cash
revenue is defined as communications revenue plus changes in cash
deferred revenue. Communications cash revenue reflects up front cash
received for dark fiber and capacity sales that are recognised as
GAAP revenue over the life of the contract, typically 10-20 years.
"We have exceeded our previously announced revenue forecast for
the fourth quarter and the full year, as well as announced cash
revenues that significantly exceed GAAP revenue," said Sureel Choksi,
chief financial officer of Level 3. "We plan to provide financial
guidance for both 2001 and 2002 at our investor and analyst
conference in New York on January 29, 2001."
Level 3's customer base continues to increase rapidly. At the end
of the quarter, the company had approximately 2,675 customers -- a 12
percent increase in the number of customers since the end of the
third quarter 2000 and a 103 percent increase for the year.
Approximately 75 percent of the customer base currently purchases
more than one Level 3 service.
Other Revenue: Other revenue of $49 million for the fourth quarter
included $44 million from coal mining, versus fourth quarter 1999
coal mining revenue of $49 million. As previously announced, full
year 2000 coal revenue declined from 1999 by approximately 10 percent
due to reduced shipments under long-term coal contracts and the sale
of the company's 50 percent interest in Walnut Creek Mining Company
during the third quarter of 2000.
part 2, 3, and 4 to follow
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