UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-0001
FORM 10-Q
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(MARK ONE) |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the three months ended March 31, 2004 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Commission File Number 000-50706 |
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ESCHELON TELECOM, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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41-1843131 |
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(State
or other jurisdiction of |
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(I.R.S.
Employer |
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730 Second Avenue |
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55402 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (612) 376-4400
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 the filing requirements for the past 90 days. Yes o No ý
Indicate by check mark whether the registrant is an accelerated filer as defined in Rule 12b-2 of the Exchange Act. Yes o No ý
As of June 23, 2004, the number of outstanding shares of the Registrant’s Common Stock, par value $.01 per share, was 3,986,854 shares and the number of outstanding shares of the Registrant’s Preferred Stock, par value $.01 per share, was 84,306,677 shares, convertible into 98,050,953 shares of Common Stock.
ESCHELON TELECOM, INC.
INDEX TO FORM 10-Q
2
Eschelon Telecom, Inc.
(Dollars in Thousands, Except per Share Amounts)
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March 31, |
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December 31, |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
23,596 |
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$ |
8,606 |
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Accounts receivable, net of allowance for doubtful accounts of $710 and $739, respectively |
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13,402 |
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13,537 |
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Inventories |
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3,174 |
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3,169 |
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Other current assets |
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3,644 |
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4,143 |
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Total current assets |
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43,816 |
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29,455 |
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Property and equipment, net |
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86,112 |
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86,777 |
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Other assets |
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1,196 |
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1,269 |
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Goodwill |
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7,168 |
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7,168 |
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Intangible assets, net |
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30,166 |
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29,052 |
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Total assets |
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$ |
168,458 |
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$ |
153,721 |
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Liabilities and stockholders’ equity (deficit) |
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Current liabilities: |
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Accounts payable and accrued expenses |
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$ |
16,971 |
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$ |
14,761 |
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Deferred revenue |
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3,076 |
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3,000 |
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Accrued compensation expenses |
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3,935 |
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4,261 |
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Capital lease obligation, current maturities |
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666 |
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1,020 |
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Total current liabilities |
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24,648 |
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23,042 |
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Long-term liabilities: |
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Commitments and contingencies |
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— |
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— |
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Capital lease obligation |
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746 |
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576 |
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Notes payable |
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84,882 |
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86,226 |
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Total liabilities |
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110,276 |
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109,844 |
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Series A convertible preferred stock, $0.01 par value; 100,000,000 shares authorized; 84,306,677 shares outstanding at March 31, 2004 and December 31, 2003 |
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49,802 |
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48,948 |
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Stockholders’ equity (deficit): |
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Common stock, $0.01 par value; 160,000,000 shares authorized; 4,497,599 shares issued and 3,818,489 shares outstanding at March 31, 2004, and 4,457,579 shares issued and 3,372,501 shares outstanding at December 31, 2003 |
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45 |
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45 |
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Additional paid-in capital |
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119,253 |
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120,105 |
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Accumulated deficit |
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(110,884 |
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(125,167 |
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Deferred compensation |
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(34 |
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(54 |
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Total stockholders’ equity (deficit) |
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8,380 |
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(5,071 |
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Total liabilities and stockholders’ equity (deficit) |
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$ |
168,458 |
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$ |
153,721 |
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See accompanying notes.
3
Eschelon Telecom, Inc.
Unaudited Consolidated Statements of Operations
(Dollars in Thousands, Except per Share Amounts)
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Three months |
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Three months |
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Revenue: |
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Network services |
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$ |
32,113 |
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$ |
26,654 |
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BTS |
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6,083 |
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5,260 |
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Total revenue |
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38,196 |
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31,914 |
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Cost of revenue: |
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Network services |
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11,766 |
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10,665 |
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BTS |
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3,662 |
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3,367 |
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Total cost of revenue |
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