x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| Delaware |
77-0487526 | |
| (State of incorporation) |
(I.R.S. Employer Identification No.) |
| Page No. | ||||
| Part I. Financial Information | ||||
| Item 1. |
3 | |||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
29 | |||
| Item 3. |
50 | |||
| Item 4. |
51 | |||
| Part II. Other Information | ||||
| Item 1. |
51 | |||
| Item 2. |
52 | |||
| Item 3. |
52 | |||
| Item 4. |
52 | |||
| Item 5. |
52 | |||
| Item 6. |
53 | |||
| 57 | ||||
| September 30, 2002 |
December 31, 2001 |
|||||||
| (unaudited) |
||||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
9,310 |
|
$ |
58,831 |
| ||
| Short-term investments |
|
2,312 |
|
|
28,890 |
| ||
| Accounts receivable, net |
|
6,721 |
|
|
6,909 |
| ||
| Current portion of restricted cash and short-term investments |
|
47 |
|
|
47 |
| ||
| Prepaids and other current assets |
|
10,881 |
|
|
8,541 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
29,271 |
|
|
103,218 |
| ||
| Property and equipment, net |
|
386,699 |
|
|
325,226 |
| ||
| Construction in progress |
|
|
|
|
103,691 |
| ||
| Restricted cash and short-term investments, less current portion |
|
1,517 |
|
|
27,997 |
| ||
| Debt issuance costs, net |
|
8,695 |
|
|
11,333 |
| ||
| Other assets |
|
2,136 |
|
|
3,589 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
428,318 |
|
$ |
575,054 |
| ||
| |
|
|
|
|
| |||
| Liabilities and Stockholders Equity |
||||||||
| Current liabilities: |
||||||||
| Accounts payable and accrued expenses |
$ |
9,862 |
|
$ |
17,499 |
| ||
| Accrued construction costs |
|
|
|
|
34,650 |
| ||
| Accrued interest payable |
|
6,381 |
|
|
2,167 |
| ||
| Current portion of debt facilities and capital lease obligations |
|
5,562 |
|
|
7,206 |
| ||
| Current portion of senior secured credit facility |
|
100,000 |
|
|
|
| ||
| Other current liabilities |
|
3,397 |
|
|
1,807 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
125,202 |
|
|
63,329 |
| ||
| Debt facilities and capital lease obligations, less current portion |
|
3,192 |
|
|
6,344 |
| ||
| Senior secured credit facility, less current portion |
|
|
|
|
105,000 |
| ||
| Senior notes |
|
139,303 |
|
|
187,882 |
| ||
| Other liabilities |
|
12,755 |
|
|
8,978 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
280,452 |
|
|
371,533 |
| ||
| |
|
|
|
|
| |||
| Stockholders equity: |
||||||||
| Common stock |
|
99 |
|
|
80 |
| ||
| Additional paid-in capital |
|
563,819 |
|
|
544,343 |
| ||
| Deferred stock-based compensation |
|
(4,244 |
) |
|
(11,022 |
) | ||
| Accumulated other comprehensive income |
|
546 |
|
|
135 |
| ||
| Accumulated deficit |
|
(412,354 |
) |
|
(330,015 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
147,866 |
|
|
203,521 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
428,318 |
|
$ |
575,054 |
| ||
| |
|
|
|
|
| |||
| Three months ended September 30, |
Nine months ended September 30,
|
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| (unaudited) |
||||||||||||||||
| Revenues |
$ |
20,187 |
|
$ |
17,178 |
|
$ |
58,385 |
|
$ |
45,948 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Costs and operating expenses: |
||||||||||||||||
| Cost of revenues (includes stock-based compensation of $49, $19, $216 and $412 for the three and nine months ended September 30,
2002 and 2001, respectively) |
|
26,217 |
|
|
24,597 |
|
|
78,599 |
|
|
74,593 |
| ||||
| Sales and marketing (includes stock-based compensation of $218, $496, $802 and $2,344 for the three and nine months ended
September 30, 2002 and 2001, respectively) |
|
2,888 |
|
|
3,982 |
|
|
12,168 |
|
|
13,274 |
| ||||
| General and administrative (includes stock-based compensation of $1,225, $2,384, $4,622 and $13,285 for the three and nine months
ended September 30, 2002 and 2001, respectively) |
|
8,159 |
|
|
12,621 |
|
|
22,735 |
|
|
47,013 |
| ||||
| Restructuring charges |
|
19,010 |
|
|
48,565 |
|
|
28,960 |
|
|
48,565 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total costs and operating expenses |
|
56,274 |
|
|
89,765 |
|
|
142,462 |
|
|
183,445 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss from operations |
|
(36,087 |
) |
|
(72,587 |
) |
|
(84,077 |
) |
|
(137,497 |
) | ||||
| Interest income |
|
179 |
|
|
2,318 |
|
|
961 |
|
|
9,477 |
| ||||
| Interest expense |
|
(8,180 |
) |
|
(11,305 |
) |
|
(26,411 |
) |
|
(32,948 |
) | ||||
| Gain on debt extinguishment |
|
|
|
|
|
|
|
27,188 |
|
|
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss |
$ |
(44,088 |
) |
$ |
(81,574 |
) |
$ |
(82,339 |
) |
$ |
(160,968 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss per share: |
||||||||||||||||
| Basic and diluted |
$ |
(0.44 |
) |
$ |
(1.03 |
) |
$ |
(0.88 |
) |
$ |
(2.07 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Weighted average shares |
|
100,509 |
|
|
79,058 |
|
|
93,687 |
|
|
77,843 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Nine months ended September 30,
|
||||||||
| 2002 |
2001 |
|||||||
| (unaudited) |
||||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
$ |
(82,339 |
) |
$ |
(160,968 |
) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Depreciation |
|
39,499 |
|
|
36,444 |
| ||
| Amortization of deferred stock-based compensation |
|
5,640 |
|
|
16,041 |
| ||
| Amortization of debt-related issuance costs and discounts |
|
4,425 |
|
|
5,884 |
| ||
| Allowance for doubtful accounts |
|
2,338 |
|
|
192 |
| ||
| Loss on disposal of property and equipment |
|
11 |
|
|
|
| ||
| Restructuring charges |
|
28,960 |
|
|
48,565 |
| ||
| Gain on debt extinguishment |
|
(27,188 |
) |
|
|
| ||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
|
(2,150 |
) |
|
(3,517 |
) | ||
| Prepaids and other current assets |
|
2,585 |
|
|
102 |
| ||
| Other assets |
|
1,332 |
|
|
(2,685 |
) | ||
| Accounts payable and accrued expenses |
|
(3,180 |
) |
|
(807 |
) | ||
| Accrued restructuring charge |
|
(8,869 |
) |
|
(574 |
) | ||
| Accrued interest payable |
|
4,999 |
|
|
8,243 |
| ||
| Other current liabilities |
|
1,590 |
|
|
533 |
| ||
| Other liabilities |
|
2,606 |
|
|
490 |
| ||
| |
|
|
|
|
| |||
| Net cash used in operating activities |
|
(29,741 |
) |
|
(52,057 |
) | ||
| |
|
|
|
|
| |||
| Cash flows from investing activities: |
||||||||
| Purchase of short-term investments |
|
(14,662 |
) |
|
(150,621 |
) | ||
| Sales and maturities of short-term investments |
|
41,224 |
|
|
102,165 |
| ||
| Purchases of property and equipment |
|
(5,091 |
) |
|
(77,160 |
) | ||
| Accrued construction costs |
|
(28,708 |
) |
|
(61,843 |
) | ||
| Purchase of restricted cash and short-term investments |
|
(5,090 |
) |
|
(25,325 |
) | ||
| Sale of restricted cash and short-term investments |
|
5,820 |
|
|
20,972 |
| ||
| |
|
|
|
|
| |||
| Net cash used in investing activities |
|
(6,507 |
) |
|
(191,812 |
) | ||
| |
|
|
|
|
| |||
| Cash flows from financing activities: |
||||||||
| Proceeds from exercise of stock options and employee st | ||||||||