euro adhoc: PrimaCom AG
Annual Reports
Primacom reports 2001 results and debt financing (E)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
MAINZ, GERMANY, March 27, 2002 - PrimaCom AG (Neuer Markt Frankfurt, "PRC"/ID No. 625910; Nasdaq: PCAG) today reported its results of PrimaCom and Subsidiaries for the year ended December 31, 2001. For the 2001 twelve-month period, revenues increased 33.1 % to EUR 165,5 million versus EUR 124,3 million in the same period of 2000, primarily reflecting a full year's contribution of Multikabel in the Netherlands in 2001 compared to one quarter in 2000 and the acquisition of Quicknet in the Netherlands on July 1, 2001. Other contributors to revenue growth include rate increases for basic analog cable television services and the continued take up of high-speed internet access, data communication, and digital television services in Germany and the Netherlands.
Adjusted EBITDA for the twelve months of 2001 amounted to EUR 72.6 million an increase of 39.9 % over 2000. Fourth Quarter adjusted EBITDA was approximately Euro 18.9 million or Euro 75.6 million on an annualized basis. The adjusted EBITDA margin for the year increased from 41.7 % to 43.9 % which the company believes is the best margin in the industry in Europe.
For the 2001 full-year period, the company reported a net loss of EUR 104.1 million, or EUR 5.26 per basic and diluted share, compared with a net loss of EUR 64.3 million, or EUR 3.26 per basic and diluted share, a year ago. The increase in the loss can primarily be attributed to a Euro 42.8 million increase in non cash depreciation and amortization expenses. Going forward we expect the depreciation and amortization expense to decline due to changes in accounting for goodwill.
The company fully integrated Multikabel and Quicknet and continued to bring efficiencies in its German operations as reflected in a 39,9 % increase in its adjusted EBIDTA. The company's adjusted EBITDA margin of 43,9 % reflects the high level of efficiency at which the company is operating. The company believes its adjusted EBITDA margin continues to be the strongest in the industry in Europe. Growth in internet access services has been particularly strong. The company ended fourth quarter 2001 at a run rate on adjusted EBITDA of almost Euro 76,5 million, which places the company in a good position to meet or exceed 2002 guidance of Euro 82 million of adjusted EBITDA.
From a balance sheet perspective, the company today announced the refinancing of its senior and working capital facilities. The company believes it has added flexibility to financial covenant compliance and remains fully funded. The financing has a conversion feature beginning in December 31, 2004. The company believes the conversion is fair and equitable and should offer a substantial premium to existing shareholders if the company meets its projections and if the lenders choose to convert. There is also a maximum conversion allowed of 65 % of the economic interest. The conversion price is based on a multiple of the twelve times trailing four quarters adjusted EBITDA less debt. Any time between today and December 31, 2004 the company has the option to repay its second secured working capital facility of Euro 375 million in whole or in part. The new financing must receive approval from 75 % of the shareholders present at the next annual meeting.
In conjunction with this release, PrimaCom will host a conference call, which will be simultaneously broadcast live over the Internet. Management will host the call, which is scheduled for today, March 27, at:5:00 PM (Germany); 4:00 PM (London); 11:00 AM EST; 8:00 AM PST Contact: Alexander Hoffmann, EVP Investor Relations Tel.: 49 6131 / 9310-150, Fax: 49 6131 / 9310-149, investor@primacom.de
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because these statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially, including PrimaCom's transformation to a broadband communications company, its possible future need for additional financing, competitive factors and restrictions imposed by existing and possible future debt instruments.
end of announcement euro adhoc 27.03.2002
Further inquiry note:
Alexander Hoffmann, EVP Investor Relations
Tel.: 49 6131 / 9310-150, Fax: 49 6131 / 9310-149,
investor@primacom.de
Branche: Telecommunications Equipment
ISIN: DE0006259104
WKN: 625910
Börsen: Baden-Württembergische Wertpapierbörse, Bayerische
Börse, Börse Düsseldorf, Bremer Wertpapierbörse (BWB), Hamburger
Wertpapierbörse, Handelsüberwachung der Berliner Wertpapierbörse,
Niedersächsische Börse zu Hannover, Frankfurter Wertpapierbörse