SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 2003
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934.
Commission File No. 0-29092
PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
(Exact name of registrant as specified in its charter)
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Delaware |
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54-1708481 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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1700 Old Meadow Road, Suite 300, |
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22102 |
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McLean, VA |
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(Zip Code) |
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(Address of principal executive offices) |
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(703) 902-2800
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Outstanding as of |
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Class |
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November 12, 2003 |
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Common Stock $.01 par value |
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88,405,033 |
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PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
INDEX TO FORM 10-Q
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Part I. |
FINANCIAL INFORMATION |
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Item 1. |
FINANCIAL STATEMENTS (UNAUDITED) |
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39 |
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40 |
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PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
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Three Months Ended |
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Nine Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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NET REVENUE |
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$ |
328,265 |
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$ |
260,533 |
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$ |
948,948 |
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$ |
756,444 |
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COST OF REVENUE |
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195,804 |
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170,782 |
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582,190 |
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498,244 |
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GROSS MARGIN |
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132,461 |
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89,751 |
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366,758 |
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258,200 |
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OPERATING EXPENSES |
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Selling, general and administrative |
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87,280 |
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63,570 |
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254,146 |
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187,084 |
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Depreciation and amortization |
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21,160 |
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20,096 |
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62,713 |
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60,067 |
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Loss on sale of fixed assets |
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— |
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— |
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804 |
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— |
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Asset impairment write-down |
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— |
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233 |
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537 |
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570 |
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Total operating expenses |
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108,440 |
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83,899 |
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318,200 |
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247,721 |
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INCOME FROM OPERATIONS |
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24,021 |
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5,852 |
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48,558 |
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10,479 |
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INTEREST EXPENSE |
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(16,692 |
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(17,562 |
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(46,691 |
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(52,085 |
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GAIN (LOSS) ON EARLY EXTINGUISHMENT OF DEBT |
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(1,382 |
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— |
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13,252 |
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27,251 |
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INTEREST INCOME AND OTHER INCOME |
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185 |
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5 |
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385 |
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880 |
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FOREIGN CURRENCY TRANSACTION GAIN (LOSS) |
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431 |
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(674 |
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25,249 |
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(392 |
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INCOME (LOSS) BEFORE INCOME TAXES |
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6,563 |
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(12,379 |
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40,753 |
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(13,867 |
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INCOME TAX BENEFIT (EXPENSE) |
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(728 |
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(1,989 |
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(3,681 |
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8,679 |
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INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE |
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5,835 |
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(14,368 |
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37,072 |
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(5,188 |
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CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE |
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— |
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— |
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— |
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(10,973 |
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NET INCOME (LOSS) |
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5,835 |
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(14,368 |
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37,072 |
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(16,161 |
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ACCRETED AND DEEMED DIVIDEND ON CONVERTIBLE PREFERRED STOCK |
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— |
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(1,678 |
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— |
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INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS |
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$ |
5,835 |
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$ |
(14,368 |
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$ |
35,394 |
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$ |
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